As A Construction Boom Plays Out, Appetite Has Dimmed
A report from the Guardian in the UK. “A surge in the supply of rental properties on the books of letting agents is forcing landlords to peg back rent rises, according to an industry body. The proportion of landlords implementing increases fell to 24%, its lowest level this year, said the Association of Residential Letting Agents, while the number of unlet flats on agency books rose to the highest level for 18 months. David Cox, managing director of Arla, said: ‘This month’s findings paint a really positive picture for renters. The supply of rental stock has risen astronomically.’”
From Reuters. “High-end property developers in London are restricting the supply of homes to prevent further price falls by selling entire apartment blocks to funds for rental, according to agents and investment managers. Growing numbers of flats will come up for sale in coming years as a construction boom plays out, but appetite from individual buyers for British real estate has dimmed. Sales of unbuilt and completed projects are being struck at a 10-15 percent discount to their expected market values, industry consultants said, as housebuilders strip out the cost of marketing to individual buyers and taking debt to build the projects.”
“APG Asset Management, Europe’s largest pension fund manager, is in talks with developers who seem more open to deals as they contend with the risk of not being able to sell everything in the current climate,’ said Martijn Vos, APG’s senior real estate portfolio manager. ‘If the market remains as it currently is, I feel there will be more such deals to come,’ he said.”
The International Business Times. “The number of homes sold for £1m or more in England and Wales has collapsed by 62.5% in just two years as the property market feels the effects of tax hikes, global economic turmoil, and uncertainty surrounding the Brexit referendum. ‘There will be few tears shed for estate agents or their millionaire clients struggling to sell their homes but don’t put away the man-size too fast,’ said Henry Pryor, a buying agent. ‘In fact the problems affecting the top rungs of the housing ladder could and probably will infect the lower priced properties.’”
The Evening Standard. “Some of London’s luxury house developers are showering homebuyers with drastically more extravagant gifts in the wake of the Brexit vote. Amazon Property partner Chris Lanitis says: ‘If a purchaser bought an apartment from us and liked a particular piece of art which is bespoke to the apartment, then — depending on price — the piece would either be gifted as a moving-in present or, if the art work was one of the rarer and more valuable pieces, we would liaise with the art gallery to help arrange a preferential price for our purchaser.’”
“But methods to boost sales are not limited to art, says Michael Ferris, a director at JR Capital, which buys properties for Middle Eastern investors. He reveals that one of his Saudi Arabian clients was told that £200,000 of furniture from a showroom apartment would be thrown in if he bought one of the £2.5 million-plus flats in a new zone one scheme on the river. ‘This is because the development has a large supply of high-value unsold flats and is nearing practical completion,’ he explains.”
‘Foxtons, often referred to as Britain’s most hated estate agency, just saw its earnings from home sales drop by 34%. But there is far more to the story than just one estate agent having a bad month.’
‘In a report for This Is Money, Camilla Canocchi writes: “A continued slowdown in London’s property market is taking a toll on Foxtons as income from house sales fell by more than a third in its last quarter.”
“The London-focused estate agent, which also has offices in Surrey, said fewer home sales meant revenues declined 34% to £12.2m in the three months to the end of September. It also saw lower demand of homes to rent, but contract renewals meant its lettings revenues were flat at £22.6m.”
‘The news comes amid wider concerns of a slowing down in the housing market, and a potential fall in house prices and rents. While this will come as unwelcome news to Foxtons, property speculators, and landlords, it will be blessed relief for those priced out of the property market.’
‘According to the Office for National Statistics (ONS), the average price of a house hit £219,000 in August, and has been rising by £19,000 (8.4%) each year. The average annual wage in the UK is currently just £27,500. This means the average UK citizen would need a mortgage for 7.5 times their annual income to get their first step on the property ladder – a virtually impossible task.’
It’s different here…
“Home prices in Massachusetts continued their upward climb in September, according to new figures out Tuesday.
The median price for a single-family home in the state climbed 3 percent in September compared to the year prior, hitting $340,000, according to The Warren Group. Condo prices have surged 11.7 percent, to $335,000, reflecting a spate of sales of new high-end units in Boston.
More homes are selling, too, with the volume of closed sales this year running 12.7 percent ahead of last year’s clip through September. Warren Group chief executive Timothy Warren predicted that sales could match last year’s total of 60,523 statewide, a 10-year high.”
http://www.bostonglobe.com/business/2016/10/25/home-prices-you-guessed-are-again-mass/qd6amI95S9hwJNBcZr8I1L/story.html
Yep. But the data won’t stop the usual retards from posting impassioned assertions about a housing bubble in every market.
Yep. But the data won’t stop the usual retards from posting impassioned assertions about a housing bubble in every market.
What blog do you think you are on?
Sincerely,
One of the retards
He’s on the blog where the retards told him he paid too much for a place to sleep. He knows he’s not going to get those 30 years back, or the million bucks for that matter.
“So far, buyers have been able to accommodate increasing prices, but the lack of homes for sale could start pricing buyers out of the market.”
Sounds like EasyCredit.gov to me.
“The number of homes sold for £1m or more in England and Wales has collapsed by 62.5% in just two years as the property market feels the effects of tax hikes, global economic turmoil, and uncertainty surrounding the Brexit referendum.”
It couldn’t happen to a nicer bunch of people! I watch “Location, location, location” from the UK every week and the price that the Brits pay to live an hour and a half train ride away from London is astronomical. Talking to all my Brit friends in Milton Keynes last January convinced me that most people not in the banking sector make nowhere near the money they need to buy a house in England.
UK banking sector ? That’s so 2015
500,000 bankers have lost their jobs
How many bureaucrat “watchers” lost their jobs?
Hedge funds swarm into Palm Beach
Influx of asset management firms is driving up commercial rents
October 24, 2016 09:45AM
http://therealdeal.com/miami/2016/10/24/hedge-funds-swarm-into-palm-beach/
30 people show up for Tim Kaine rally. What if the polls are wrong and Crooked Hillary has zero support outside her core constituency of dependency voters, future cat ladies, Wall Street grifters, and Democrat Party hacks?
http://www.thegatewaypundit.com/2016/10/wow-tim-kaine-holds-rally-30-people-show/
Polls could be rigged. Or just not as evenly sampled as presumed. Or people could be lying when polled. Or Hillary has it in the bag? If somehow Trump pulls it out I will laugh hard, it will be another “how could this happen, nobody I know voted for him” moments. Not that I particularly look forward to a Trump presidency either…I take my humor where I can get it.
Seems like there are a lot of people who don’t like HRC, or are indifferent toward her.
Seems like there are a lot of people who don’t like Trump, or are passionately in favor of him (looking for something new).
The lack of excitement for HRC by Democrats should be concerning, if you don’t want a Trump Presidency.
Germany’s cultural enrichment continues.
http://www.zerohedge.com/news/2016-10-25/german-police-conduct-13-anti-terrorism-raids-across-5-states-citing-imminent-terror
They’re likely looking for known terror operators who fled Syria masquerading as civilians seeking asylum. Photos and fingerprints are being collected and fed into Interpol database systems. This is FUBAR recourse.
For a generous donation to the Clinton Foundation or DNC, Comrade Hillary will probably see her way clear to issue the executive order of your choice. Forward!
http://www.thedailysheeple.com/executive-orders-for-sale-leaked-email-showed-hillary-camp-answering-wealthy-donors-questions-about-how-executive-orders-work_102016
Russian media (lol,you know it’s getting bad when you have to get your news from Russian media) is reporting that Eric Braverman, former head of the Clinton Foundation, has made an urgent request for asylum at the Russian Consulate in NY as of October 23. Here’s a little background on Braverman:
http://www.zerohedge.com/news/2016-10-22/meet-man-who-can-expose-real-hillary-clinton-scandal
And here’s the report:
http://westernsentinel.com/kremlin-turmoil-clinton-foundation-ceo-requests-urgent-immediate-asylum/
Most people in his situation don’t make it to where they are headed.
‘The San Fernando Valley’s resale housing market maintained its tepid pace in September as tight inventory and rising prices slowed sales, a trade association said Monday. Last month the median home price rose to $620,000. That’s up 12 percent from $555,000 a year earlier, said the Van Nuys-based Southland Regional Association of Realtors. The median price fell $5,000 from August.’
“We used to see two and three times the monthly sales not all that long ago, yet today we’re in a market where 560 plus home sales and a couple hundred condo transactions are the norm,” said Jim Link, the association’s chief executive officer.’
Sales have collapsed.
Rising median price on falling sales volume. Then collapsing price.
Not the same thing, but headed in the same direction; I had a chat with a long time business friend who sells motors for one of the majors. The motor manufacturer is seeing falling sales. High tech stuff is especially down. Costs of production is down because of metal prices. They are going to raise prices.
My own employer, who makes things the motors get put on is also seeing falling sales volume and significantly lower costs. They are going to raise prices too. It’s the only way the Financial Plan bottom line can be maintained on paper. We’ve seen how this plays out before as well.
Ties in with the stories about grocery stores having lower profits along with lower costs.
Airlines make less money when fuel goes down. There’s less room to sneak in price increases. As far as the median, a couple months ago it was reported it was up in Houston still. And I doubt many people think prices are up in Houston.
Median is based on the high and the low, right? If the flippers bid up the hovels at the low end, the conceivably the median could rise even as mid-grade houses don’t move in price at all.
No. The median is the number at which half the sample is below, and half the sample is above.
So, if flippers bid up the hovels at the low end, but all other prices remain the same, with the same sample size, the median won’t move at all.
Perversely, if flippers are attracted to the low end, increasing the volume and prices at the low end, the median might actually go down.
Median is based on the high and the low, right?
And… oxy’s story of training in and working in the sciences just became far, far less believable to me. You can’t get a degree in any of the sciences without an intro-to-stats course. The concept of ‘median’ would be one of the first concepts that you would have had to master there.
Median throws out ALL of the noise of the “high and the low”—you find it by essentially discarding high/low pairs until you end up with only the data-point in the middle remaining in the data-set (assuming an odd number of samples).
‘Europe and Britain continue to thrash through the fallout from the British public’s decision to leave the EU four months ago, but as far as Morrissey’s concerned, the results were “magnificent”. The famously outspoken former Smiths front-man discussed Brexit in a recent interview with Australian magazine Faster Louder, saying that the media, rather than the actual events, are responsible for any negative portrayal of political events such as a possible recession.’
‘Morrissey said: “The British political class has never quite been so hopeless, but the same can be said for the USA. What has happened is that news media can no longer attach any nobility to old-style politics because although politicians do not and cannot change, the people the world over have changed. What could be more grotesquely stupid than the Clinton-Trump coverage? As for Brexit, the result was magnificent, but it is not accepted by the BBC or Sky News because they object to a public that cannot be hypnotised by BBC or Sky nonsense. These news teams are exactly the same as Fox and CNN in that they all depend on public stupidity in order to create their own myth of reality. Watch them at your peril!”
“I am shocked at the refusal of the British media to be fair and accept the people’s final decision just because the result of the referendum did not benefit the establishment.”
I guess since Trump wants to ignore the $19 trillion debt, just like Hillary wants to, the Trump worshippers here now like debt.
http://www.thefiscaltimes.com/2016/10/20/Clinton-and-Trump-Agree-Let-s-Ignore-19-Trillion-National-Debt
Like the media, you don’t get it:
‘If Donald Trump manages to eke out a victory in the fiercely contested swing state of Nevada, it will be thanks in part to this sun-blasted Las Vegas suburb, one of the communities hit hardest by America’s most recent housing crash.’
‘Though registered Democrats significantly outnumber Republicans in the area, all four Clinton canvassers said they’re finding increasing support for Trump.’
‘It’s not just door knocks that suggest that Trump has gained ground here. Donation patterns tell a similar story. In both 2008 and 2012, about twice as many residents in the area donated to Democratic presidential campaigns than to Republicans. This year, more residents are giving overall ― and they’ve donated to Trump by a ratio of 5-to-1.’
‘The housing market in North Las Vegas, Nevada’s fourth-largest city, has recovered since 2011, when one of its zip codes had more foreclosures than any other in America. Yet it is increasingly beset by squatters living in still-vacant properties. Local police received more than twice as many squatter-related calls last year than in 2012.’
“I’ll vote for anything that brings about chaos at this point,”Chirnside concluded. “We need a little chaos, to shake things up.”
‘Elsewhere, I met Shannon Barton, a real estate agent who said he’d previously backed Obama. “I feel Hillary’s a crook. I’m a registered Democrat. I will not vote for Hillary. I’ll vote for Trump, someone different, just because of all the lies she’s done.”
I’ve mentioned before there seems to be a connection with the housing bubble and these moods. Would there have been a Brexit if houses hadn’t crashed? Would there have been a Brexit if house prices hadn’t shot up past the old highs? People aren’t benefiting. Bernanke can call himself courageous all day, but I’d bet he’d be tarred and feathered if he had to get out of his limo. Look at all this media talk about “elites” in our political and financial establishment. That isn’t sitting well with the average person.
“I’ve mentioned before there seems to be a connection with the housing bubble and these moods. Would there have been a Brexit if houses hadn’t crashed? Would there have been a Brexit if house prices hadn’t shot up past the old highs? People aren’t benefiting. Bernanke can call himself courageous all day, but I’d bet he’d be tarred and feathered if he had to get out of his limo. Look at all this media talk about “elites” in our political and financial establishment. That isn’t sitting well with the average person.”
I think there’s a VERY strong connection between housing and what’s going on now. In a way, it mirrors the current state of overall collapse of the political/financial system. The lawlessness, the collusion, the corruption, the fraud. I’ve said this before, but it’s my opinion that housing was our first clue. What’s playing out right now before our very eyes is just the wider part or broadening of the phenomenon, of which housing was just a piece of the puzzle.
With today’s revelations of actual, observable vote switching from Trump to Clinton by the machines in Texas and the Wikileaks revelations of Obama actively communicating with Clinton through her server (when he had said he knew nothing about it until the media brought it up), and the donor inquiries (the Bonner Group) into executive orders, the Federal government is de-legitimizing fast, in real time.
When agreements based on the rule of law dissolve, the next thing up, unfortunately, is the rule of force. And unless there’s a miracle of some sort, that’s where all this is headed.
Look at rents. We have the largest group renting in 40 or 50 years. And the REIC/media gets absolutely ecstatic month after month when they announce rents are going through the roof! The “everything is awesome” thing is seen as tone deaf. Even the UHS in the link above says he had a great year but wants change. This isn’t about Trump.
“This isn’t about Trump.”
It never was. It was only that he was the messenger with the stones and resources to deliver the message, even if he did it imperfectly.
Just like it never was about Obama, but Obama made the mistake of thinking it was all about him and has never thought otherwise. Trump actually knows better and has never pretended to be a saint.
Look at rents. We have the largest group renting in 40 or 50 years. And the REIC/media gets absolutely ecstatic month after month when they announce rents are going through the roof!
And every time there’s a story in the media about falling prices in any sector (gasoline, food) we are treated to sob stories about how businesses in these sectors are hurting, and how we just don’t understand the negative consequences of price drops. This despite the very obvious fact that anyone paying for these goods benefits every time the price goes down.
We are being “educated” and fed the narrative that high and ever-increasing prices of everything are a good and necessary thing, and falling prices are to be feared and avoided.
The only thing wrong with falling prices is that they were ever artificially pushed up in the first place.
Look at rents. We have the largest group renting in 40 or 50 years. And the REIC/media gets absolutely ecstatic month after month when they announce rents are going through the roof!
The media is owned by the same oligarchs who have been showered with trillions in printing-press stimulus confetti by the Fed. Gouging people who need a roof over their head and who are hopelessly priced out of the housing bubble blown by the Fed is Wall Street’s business model - and is further enriching the banksters who own all those overpriced apartments. No wonder the media is shaking its pom-poms.
RIGGED: Amid Email Scandal, Clinton Ally ‘Paid’ 600K to FBI Prosecutor’s Wife…
Team Crowder
Monday October 24 2016
http://louderwithcrowder.com/clinton-ally-paid-fbi-wife/
State Department aide pleads the Fifth more than 90 times
By Sarah Westwood Published October 24, 2016
A former State Department IT aide invoked his Fifth Amendment rights and refused to answer more than 90 questions Monday during the final deposition in a lawsuit over Hillary Clinton’s private emails.
http://www.foxnews.com/politics/2016/10/24/state-department-aide-pleads-fifth-more-than-90-times.html
But…but…most transparent administration in history!
was told that £200,000 of furniture from a showroom apartment would be thrown in if he bought one of the £2.5 million-plus flats
A price cut by any other name would smell as sweet.