A Very Widespread, False Belief
It’s Friday desk clearing time for this blogger. “Looks like all those reports of a luxury slowdown weren’t just speculative after all: The final Olshan Realty report of the year is out, and according to the real estate trackers there, ‘the golden years of new condo development’ are over. As Curbed New York columnist Jonathan Miller has noted in the past, ‘there’s too much development being built at 2014 prices, and that buyer isn’t there.’”
“Most of Edgerton’s tobacco warehouses were demolished years ago after the tobacco industry dried up. But in the past five years three of the cream-colored buildings were converted to apartments. All are full. Contrast that with the Orchard Heights subdivision for single-family homes on the city’s southern edge. It’s 12 years old but only about 20 percent full, developer Don Cosgrove said. ‘When we started out, we built maybe 30-some houses in the first few years, but it just went to nothing,’ Cosgrove said. ‘We thought it would be several years ago to fill the lot … Who knows when it will be filled?’”
“In the Bay Area housing market, supply and demand means not much supply and way too much demand. As a result, the cost of a single-family home has skyrocketed in recent years. Yet there were cracks in the market’s red-hot edifice; the volume of sales was way down from the previous year. New peak prices were recorded in April, May, June and July — and then the ’sluggish’ word set in and didn’t go away for the rest of the year. Sales were down. Buyers were digging in their heels. By fall, outside of hotly contested areas, sellers were making price adjustments unseen in a long time.”
“A new tax brought in to replace stamp duty is holding down house prices on the west coast, according to a leading estate agent. Will Banham, of Bell Ingram’s Oban office, said the Land and Buildings Transaction Tax has had unusual and unintended consequences for the west coast of Scotland. Mr Banham said: ‘This has simply caused downward pressure on prices, with most buyers explicitly discounting their offers by the exact amount of extra tax due. It is very much a buyers’ market, with vendors losing out.’”
“In the Yamuna Expressway authority area, 20 builders have failed to complete their projects and the investments of around 20,000 homebuyers is at stake. Noida, Greater Noida and Yamuna Expressway authorities are to recover a total of around ₹25,000 crore from builders in land dues. Many have turned defaulters, citing a dip in sales of flats. In Noida, the investments of around one lakh buyers are stuck in 50 delayed projects. There are 95 under-construction realty projects in Greater Noida. Around one lakh homebuyers in 80 of these projects are estimated to be impacted.”
“Australia’s booming market for purpose-built student accommodation, having caught the attention of some of the world’s largest investors, could be on the precipice of oversupply, with concerns among some of the industry’s largest outfits over the number of new beds in Brisbane. A report produced by commercial realtors JLL shows about 10,000 beds proposed in Brisbane, ‘the largest pipeline of beds in the country,’ adding to the existing supply of 9325 beds by 2020.”
“Iglu, which runs two student accommodation facilities in Brisbane, including one that opened months late, said it was ‘always a challenge’ to fill the properties. ‘There are a limited number of students, particularly at the higher price points,’ said company’s director Richard Smith. ‘Most of the new product is targeting a similar student demographic and we are concerned about the depth of the market to support all this new product. In our view Brisbane is the most oversupplied market in Australia … the student market is about half the size of Sydney and Melbourne yet has the largest development pipeline in Australia.’”
“Prices of completed private condominiums continued to fall in November suggesting recovery is still some way off for resale homes. November’s price fall was led by units in the central region, according to flash estimates from the NUS Singapore Residential Price Index. Mr Wong Xian Yang, head of research and consultancy at OrangeTee, said: ‘With rents still on a downtrend and the outlook on interest rates remaining unclear, buyers will continue to negotiate hard for lower prices.’”
“In China’s two-speed property market, prescriptions for deflating big-city bubbles are having unintended side-effects in smaller towns. ‘China’s property market has complicated, structural problems,’ said Wen Bin, a researcher at China Minsheng Banking Corp. in Beijing. ‘Bubbles in big cities have much to do with financial leverage, whereas oversupply in third- and fourth-tier cities epitomizes the lukewarm economy.’”
“Curbs are just buying time for policy makers and won’t fundamentally solve the crucial problem of regional imbalances, said Tommy Xie, an economist at OCBC Bank in Singapore. ‘They need to push forward the combined reforms as they’ve pledged in the statement,’ Xie said. ‘But to deflate a bubble while cutting oversupply really isn’t easy.’”
“Real estate prices will eventually collapse in Edmonton and prospective homeowners should consider renting for a few years, says an Alberta investment manager. ‘There’s lots and lots of issues with the Alberta economy, being a boom-and-bust economy. We’re not through the worst part of it yet,’ said Hilliard MacBeth, an Edmonton-based portfolio manager.”
“He expects some homeowners will be hit harder than others. For example, high-end properties on the outskirts of Calgary have already experienced a sudden drop. ‘Home bubbles and bubbles bursting and the explosion in the level of debt in Canadian society are totally tied together,’ MacBeth said in an interview with CBC Radio’s Edmonton AM. Because the market has been strong for decades, many Edmontonians believe the sector is recession-proof. MacBeth says this optimism is misplaced.”
“‘One of the big surprises to me is how widespread the belief is that owning a home is a really good thing to do,’ he said. ‘It goes through all levels of society, all kinds of people. The idea that prices always go up, it’s a very false belief, but it’s a very widespread belief.’”
“Renting is currently a bargain in Edmonton, MacBeth said. ‘If people think of a house as an investment, then everybody should sell their house and live in a rental place or move to a trailer,’ MacBeth said. ‘But if you think of it as a place to live, and accept that you will be consuming the value of that home over your lifetime, then it’s OK. It’s a speculator’s game, not an investor’s game.’”
you are worthy of getting free money from owning stocks and homes.
Can you think up a new shtick for 2017?
2017 is going to take care of that shtick for him.
No way . A comparable collapse in U.S. stock or home prices to the recent implosions in commodities prices and Chinese stock prices that sent former poster AlbuquerqueDan packing is unpossible.
Driven up by the same root-cause, it is unavoidable that they suffer the same fate, though on different timelines.
The Fed’s asset bubbles have been imploding roughly every eight years. First the tech bubble, then the housing bubble, and now the credit bubble (including the stock and housing markets) are due for a major bust. There is no more efficient means than the Fed’s engineered boom-bust cycles to arrange the looting and asset-stripping of the middle class and the transfer of its wealth to the oligarchy.
“2017 is going to take care of that shtick for him.”
Of all the people to complain about schtick.
But hey, at least the next four years will be entertaining.
Hey Donk.
Of all the people to complain about schtick.
I’m not complaining about anyone’s schtick. I’m just making an observation: a lot of delusions are going to go up in smoke this year, and our most infamous schtick-despensers tend to vanish once they’re proven wrong.
The biggest delusion of all in 2016 was HRC winning. Millions of sad pandas had it.
Got PTSD?
Millions of stress fractures from the stamping of little feet.
“stamping of little feet”
Interesting. I’d never heard it referred to as “stamping,” only stomping.
Similarly, more and more I hear the term “waiting on line” referring to the act of waiting your turn in a line.
Are these east coast terms?
They’re universal English language words that describe the empty pocketed, indebted and enraged.
To me stomping implies a pretty loud sound, which would require big feet.
Stomping actually does some damage. Stamping just makes a noise.
Stomping implies manly or forceful. This term does not apply to our precious snowflakes stamping their elfin little feet.
‘Stomping implies manly or forceful. This term does not apply to our precious snowflakes stamping their elfin little feet.’
https://www.youtube.com/watch?v=BW834Y3Ecuc
Senator Warren’s Dukakis in a tank moment
Team Hillary tried mightily to replicate how millions of Americans took the “Basket of Deplorables” gibe and ran with it. Only the ersatz “nasty woman” meme only caught on with a few thousand future cat ladies.
trump crash is headed our way!! Timing is everything.
Life is good when you’re not out on a limb.
“Life is good when you’re not out on a limb.”
+1 Starting to see, “take over payments,” on the Craigslist used automobile boards. One guy said he’s downsizing his life, payments gotta go. I was thinking… okay, who is she doing?
A Trump crash might be the best thing, especially for those of us with cash.
A wise man once said, “Nothing accelerates the economy like falling prices to dramatically lower and more affordable levels. Nothing.”
There is a person who repeats that statement daily. You may think that he’s a wise man, but there’s not much evidence to support that assertion.
Mikey, you only have a few more fleeting hours of 2016 to say something relevant.
cash is great, unless inflation takes off….
Hope and Change:
http://www.thedenverchannel.com/news/local-news/member-of-kennedy-family-arrested-in-aspen-after-fight
Aspen is not a bad place to get arrested. I asked the booking desk officers who checked me into the Pitkin County jail if they get alot of people who ask them do you know who I am? And they said yeah, and that 99% of the time they’re nobody.
I guess a cot at the Pitkin County jail is much cheaper than a hotel room in Aspen.
How much money did you save by checking in there? Was it worth it?
“Officers report witnessing Kennedy throwing approximately four or five punches to the head of the other party. No injuries were reported.”
That by itself is pathetic.
OK, I went searching for a Jed Clampet “Pitiful” youtube clip for the Kennedy kid throwing approximately four or five punches to the head of the other party with no injuries reported and I couldn’t find it.
But I did find this.
“The Beverly Hillbillies: Big Daddy, Jed (#3.27)” (1965)
Jed Clampett: I declare, Granny, the huntin’ in these Beverly Hills is gettin’ sorrier every day. Me and Duke went as far back in the brush as you could go. The only thing we flushed out was a couple of real estate agents.
http://www.imdb.com/character/ch0021982/quotes
https://www.youtube.com/watch?v=6gxOffgz6VI
always throw combinations… grasshopper
“Officers report witnessing Kennedy throwing approximately four or five punches to the head of the other party. No injuries were reported.”
That by itself is pathetic.
The person on the receiving end of those punches is probably pleased.
Attorneys are happy about it.
Looks like you may have been right about Obama gunning for the SecGen position at the UN.
http://www.zerohedge.com/news/2016-12-29/obama%E2%80%99s-twilight-moves-against-israel-may-foreshadow-his-move-un-sec%E2%80%99y-gen
Well, that’s fine. The US should just withdraw from it anyway and let it re-locate to Brussels or Beijing.
From the article: “Kennedy notably formerly dated pop sensation Taylor Swift…”
Lucky… she could have ended-up in a car at the bottom of a river.
Nah, I’ve heard the Taylor Swift army of teen girls can be vicious. He’d never live.
Taylor’s fling with a Kennedy was brief and unsuccessful. Rumor has it that she bought her house down the coast in Watch Hill, Rhode Island, as a meddle fanger to the young lad, and probably the entire Kennedy clan. In other words, screw you and your moldering Kennedy compound:
http://trending.report/taylor-swift-house/
And then she invited some of her celeb buddies for a bash:
http://www.tmz.com/2016/07/04/taylor-swift-tom-hiddleston-gigi-hadid-4th-july-party/
I bet every single one of Taylor Swift’s “friends” would dish on her to the tabloids in a second.
I did post as sleepless in Seattle a couple of years back… In response to you question in previous thread.
Court reinstates Kennedy cousin Skakel’s murder conviction
Dave Collins, Associated Press 3:55 p.m. EST December 30, 2016
HARTFORD, Conn. — A divided Connecticut Supreme Court has reinstated Kennedy cousin Michael Skakel’s murder conviction in the 1975 murder of Martha Moxley, rejecting a lower court ruling that his trial lawyer didn’t adequately represent him.
The state’s highest court on Friday released its 4-3 ruling.
Skakel’s lawyer said he was reviewing the ruling and had no immediate comment.
Skakel was convicted in 2002 of killing Moxley in Greenwich, where they were teenage neighbors. He was sentenced to 20 years to life in prison.
But he was freed in 2013 after a judge granted him a new trial. The court found, in part, that Skakel’s trial lawyer failed to argue that Skakel’s brother could have been responsible for the crime and failed to present a key alibi witness for Skakel.
http://www.usatoday.com/story/news/nation/2016/12/30/court-reinstates-kennedy-cousin-skakels-murder-conviction/96010102/
@Ben Jones… Ben, do you plan on running a 2017 prediction thread over the next few days?
Yeah, starting tomorrow.
Oh boy. I hope you’re prepared for all the dire Trump predictions from the sad panda tragedy chorus.
It’ll be interesting to see who predicted what about the election.
He-heh. Are you going to retrieve some of those and post them?
Hillaryous was unelectable.
As they say in Fargo, you betcha!
‘Bubbles in big cities have much to do with financial leverage, whereas oversupply in third- and fourth-tier cities epitomizes the lukewarm economy’
Doesn’t sound like things are going well in China. Bond market, currency a mess. All they seem to be able to do is whip up a bubble here and there. Now where’s Dan to tell us how these clowns are going to take over the world?
They are still bleeding out $1Tr a year. One would think their bubbles will be smaller and smaller.
‘Demand for Dallas-Fort Worth office space stalled in the fourth quarter.’
‘The decline in office deals was enough to result in a nearly 40 percent drop in net office leasing for all of 2016 in North Texas, according to commercial real estate firm Cushman & Wakefield.’
‘Net office leasing showed a negative 518,000 square feet in the final months of the year. Factors were tenant move-outs in Fort Worth’s suburbs, and State Farm Insurance and other tenants vacating offices in Richardson’s Telecom Corridor and Far North Dallas.’
‘Also, businesses are reducing their office footprints as they cram more workers into smaller spaces.’
‘For all of 2016, D-FW net office leasing totaled 2.9 million square feet. That’s down from 5.2 million square feet in 2015, according to Cushman & Wakefield.’
‘The slowdown in net office leasing in the final months of the year is a surprise. In 2015, D-FW saw its greatest office space demand in over a decade, from relocating and expanding businesses. This summer, North Texas was on the way to having one of its best office leasing years on record.’
‘Net office leasing showed a negative 518,000 square feet in the final months of the year’
Manhattan had a negative office absorption of 4.3 million sq ft in the third quarter IIRC.
2 more for the pot today
http://humor.about.com/od/funnywebsites/ss/20-Hilariously-Terrible-Real-Estate-Photos.htm#showall
When city retirement pays better than the job
One very small tweak in the deck: One in four El Monte residents lives in poverty. Yet taxpayers pay a steep price to fund bonus pensions and other perks for city workers.
http://www.latimes.com/projects/la-me-el-monte-pensions/
Those photos are funny. I’d bet 3, 19 and 20 are foreclosures.
The most famous of the Terrible Real Estate Photos is the Fertility Window:
http://terriblerealestateagentphotos.com/post/69774419177
The LA Times left this one out… probably for good reason.
And it gets worse: http://terriblerealestateagentphotos.com/tagged/top%20ten%20of%202016
How come all ‘re at a have summer foliage?
Got slow?
Those pix were the “best of 2016″ so they were taken during all the seasons. And many houses stay on the market for months after the pix are taken, so you’ll see all types of foliage.
meant in general- december homes for sale have a summer look
Yes, those summer-in-December homes were probably photographed and put on the market in the early summer. After all, who puts the home on the market in the winter? Nobody’s looking the winter.
Pic #9 appears to show Lena Dunham in repose. Low energy sad panda after MAGA train came through her town.
You beat me to it! That article is a real eye-opener!
more about Stamford CT……
Beaudreau said that many food pantries are trying to provide more produce instead of nonperishable items, but doing so can be difficult because many facilities lack large refrigerators and freezers.
http://www.newstimes.com/local/article/United-Way-grant-supports-CT-Food-Bank-in-9520851.php
One very small tweak in the deck: One in four El Monte residents lives in poverty. Yet taxpayers pay a steep price to fund bonus pensions and other perks for city workers.”
its for the children …
“If people think of a house as an investment, then everybody should sell their house and live in a rental place or move to a trailer,’ MacBeth said.
Indeed.
I own two RV parks and we get 4-5 calls every day from millennials looking for a site. This is a new trend since 2012 or so. Rather it’s part of a larger 15 year trend of career folks travelling for contract work. I estimate most don’t have nor are they interested in owning a house. These aren’t retired people that are in marketing ads. They’re the 32-55 age range.
32-55 is Gen X. Millenials are younger. Maybe they want a spot to park their tiny houses?
Is your gig a KOA campground or a monthly type place?
Rather it’s part of a larger 15 year trend of career folks travelling for contract work ??
Yep…I have met more than I can remember…I see it at every stop…
RVTM….May I ask the general location of your RV parks ?? Not asking you to disclose…Maybe just what state you are located ?? I have had a interest in purchasing or building one for quite some time…Thanks in advance…
“If people think of a house as an investment, then everybody should sell their house and live in a rental place or move to a trailer,’ MacBeth said.
That doesn’t make any sense. Many people buy assets that they consider to be investments when they think that they’re cheap, hold them for years, and then sell them later when they’re expensive.
It makes perfect sense.
A hint could be found in the title of Ben’s blog.
The statement starts with “if people think”. Some people may not think that the price of their house has been inflated due to a speculative bubble. They may also think that the house is a place to live in addition to being an investment.
You should rent.
“‘One of the big surprises to me is how widespread the belief is that owning a home is a really good thing to do,’ he said. ‘It goes through all levels of society, all kinds of people. The idea that prices always go up, it’s a very false belief, but it’s a very widespread belief.’”
We crossed paths with old friends of my wife a couple of years ago and had them over for lunch. They were relocating from the Emerald City to SoCal, and were surprised to learn we were long-term renters.
Flash forward a couple of years: We are visiting visiting them in northern La La Land, and when my wife complimented them on their place, the confession came out that they had followed our lead and were renting “for several $100 less a month” than it would have cost to buy in the area.
I commented on the large number of For Sale signs I saw in front of houses in the neighborhood as we drove up to their place. Our female host replied, “Oh yeah, the Realtors are like vultures around here.”
One of the young pups at work recently took the plunge and now owes 100’s of thousands on his new mortgage. There is talk of a mass layoff at the office and he expressed some regret at buying recently. A female Asian coworker told him that he did the right thing, as he’s now going to be “building equity”.
When she said that, I cleared my throat and said “only if prices keep going up”.
Boy, did I get a dirty glare from her.
you never learn- I wonder if my friend in loveland can get out- bought a fixer a year ago
At lower interest rates loans amortize much more quickly during the early term of the loan than they do at higher interest rates.
Take for example a $100k loan on a 30 year amortization schedule:
At 4%, the monthly P&I is $477.42. After the first 12 months, the balance amortizes to $98.239k, so the loan balance is paid down by 1.76% of the original loan amount
At 7.5% the monthly P&I is $699.21. After the first 12 months, the balance amortizes to $99.078k, so the loan balance is paid down by 0.92% of the original loan amount.
At 10% the monthly P&I is $877.57. After the first 12 months, the balance amortizes to $99.444k, so the loan balance is paid down by 0.556% of the original loan amount.
It’s not that far fetched that in a flat market one could build up equity (albeit slowly) through the faster amortization of a low interest rate loan.
In general, if you make a 13th payment every year you have a mortgage, you can cut a 30-year mortgage to 23 years.
Since the second month I’ve lived in my house, I’ve been adding some extra cash on the principle above and beyond the 13 payment/year amount.
I was planning to increase that payment even more to see if I could pay the loan off even faster. But then I experimented with the amortization tables. Adding more to principle didn’t really shorten my loan by much. The best way to shorten the loan was to wait until the end of the loan, Year 21-22, and just pay big amounts then.
My guess is that the extra principle I’ve already tacked on has already burned through those first 7 years of front-loaded interest, so adding more to principle just cuts into principle instead of saving interest. So, I’m just saving my money in other places.
The best way to shorten the loan was to wait until the end of the loan, Year 21-22, and just pay big amounts then.
That’s funny math there, oxide; the extra principal is always better applied earlier rather than later, since you benefit from the reduced interest causing more of the fixed payment to fall on the principal side for every payment thereafter. If you are comparing small payments now with large payments later, then obviously it is an apples-to-oranges comparison; instead, you should compare big-payment-later with small-payments-now plus equivalent payment later (e.g. big-payment-later minus sum of small-payments-now). Then you’ll see the benefit.
My guess is that the extra principle I’ve already tacked on has already burned through those first 7 years of front-loaded interest,
There is no “7 years of front-loaded interest” in mortgages, though this is a common misconception. The reality is that your interest AT EVERY PAYMENT is computed based upon the current principal balance.
‘Australia’s booming market for purpose-built student accommodation, having caught the attention of some of the world’s largest investors, could be on the precipice of oversupply, with…about 10,000 beds proposed in Brisbane, ‘the largest pipeline of beds in the country,’ adding to the existing supply of 9325 beds by 2020.’
‘There are a limited number of students, particularly at the higher price points,’ said company’s director Richard Smith. ‘Most of the new product is targeting a similar student demographic and we are concerned about the depth of the market to support all this new product. In our view Brisbane is the most oversupplied market in Australia … the student market is about half the size of Sydney and Melbourne yet has the largest development pipeline in Australia.’
What are the common themes?
‘caught the attention of some of the world’s largest investors’
‘There are a limited number of students, particularly at the higher price points…Most of the new product is targeting a similar student demographic’
More luxury housing! Like 90% plus of the US apartment market under construction. Not long ago I posted an article showing something like 90% of Phoenix senior living facilities were built for the top 5% of pricing. And there’s thousands under construction.
‘Israelis sick of politicians‘ hot air as housing bubble expands’
I predict somehow amerikans will left holding the bags when that bubble bursts.
Here it’s man against man… over there it’s the other way around.
Bless you, weak hands, for your most generous gift of deeply discounted precious metals and mining stocks.
http://www.marketwatch.com/story/gold-gains-will-snap-worst-weekly-skid-in-12-years-2016-12-30
http://finviz.com/futures_charts.ashx?p=d1&t=GC
Oh, the pain!
http://finviz.com/futures_charts.ashx?t=GC&p=m1
And then there’s this …
https://fred.stlouisfed.org/series/M2V
to palmy and all of who grew up in southern Fairfield county CT
https://www.bloomberg.com/view/articles/2016-12-29/the-fall-rise-fall-and-rise-of-stamford-connecticut
Thanks, dj. I remember it well, and three round glass apartment towers owned by the Catlick church for low income residents.
“Since 2010, it has been the fastest-growing city in Connecticut — and will probably soon be second largest (after Bridgeport).”
Stamford is destined to be another Bridgeport. Why am I not surprised?
That’s good news for the wealthy wives of Greenwich, their maids will live a lot closer to work now, instead of commuting from B’port.
my brother used to work for FD Rich for maybe a decade servicing those big buildings
http://fdrich.com/
Here’s a photo that illustrates the vibrancy of Stamford:
http://i62.tinypic.com/v77es4.png
“The Future’s So Bright, I Gotta Wear Shades” —Timbuk3
I was there last week, Mom passed away.
Sorry to hear that. Best wishes.
jeez, phony, my sincerest condolences.
Peace bro.
I know this is probably in poor taste, but…any real estate to dispose of?
When my mom passed, it had already been disposed of to finance her end of life care.
Sincere condolences to you and your family!
Thank you all.
me too mr. scandals. i just got here and saw it. time is the only remedy, and it’s partial.
May you have been fortunate to have a loving and steadfast mother. It is a treasure that you will never lose.
Sorry. Parents passing are among life’s toughest times.
Sorry about your loss, PS.
Thanks to all for the kind words.
During the holidays no less. So sorry for your loss.
Sorry to hear that. That’s rough. I hope you have a great support system.
My condolences, phony. Mine are up there. Tough to watch them struggle.
My condolences, phony. Mine are up there. Tough to watch them struggle.
Thanks guys.
So sorry, phony. Best wishes.
Thanks Tarara
and best wishes to you and your family for a Safe, Happy and Prosperous New Year.
You too, phony.
Hey jeff, so sorry to hear about your loss; my heartfelt condolences—losing a parent is tough. My thoughts are with you and your family.
Thanks Prime
One side of my brain tells me my Mom lived a long and blessed life.
The other side says it’s New Years Eve and Mom won’t be there to answer my call this year. Kinda silly for a dude in his 50s.
Kinda silly for a dude in his 50s.
Not in the least bit silly—you were a good son; be kind to yourself, and allow yourself to grieve. It is no small thing, the generational passing of the torch.
Bridgeport was scarier than Gary,in or Camden ,nj
Connecticut City Votes Felon Ex-Mayor Back Into Office
http://www.wsj.com/articles/connecticut-city-could-vote-felon-ex-mayor-back-into-office-1446589141
That’s all anyone needs to know about Bridgeport and the majority of its residents.
Thanks, dj. I remember it well, and three round glass apartment towers owned by the Catlick church for low income residents.
Would you be happier if they were in Section 8 Housing?
Also, were those apartments owned by Catholic Charities? I ask because technically CC is not part of the Church.
“Would you be happier if they were in Section 8 Housing?
Also, were those apartments owned by Catholic Charities? I ask because technically CC is not part of the Church.”
No, I would not be happier if they were in Section 8 housing. My memory is a little hazy on this, but as I recall, it was said the round towers were owned by the Archdiocese and very well run and provided decent housing for people who could otherwise not afford it. They were landmarks in the area.
Now, I may have offended you by my spelling Catholic as Catlick. If so, I apologize. I was raised a Catholic and am well aware of the many good things the Church did for the poor back in the day.
As to Catholic Charities, however, eff ‘em. They receive billions of dollars every year courtesy of the American taxpayer. That is not charity, that is forced giving and wealth transfer. It is my fervent hope that they and similar organizations involved in the refugee racket are removed from the government teat.
No need to panic, even though rates can only go up from here.
As mortgage rates march higher, a few reasons not to panic
By Andrea Riquier
Published: Dec 29, 2016 11:42 a.m. ET
Even with a big end-of-year jump, mortgage rates throughout 2016 were the lowest on record
Rates for home-purchase loans rose for the ninth straight week and have been accelerating since the presidential election, to account for the steepest increase since the 2013 “taper tantrum” sent bond yields surging.
The 30-year fixed-rate mortgage averaged 4.32% in the latest reporting week, up two basis points from a week earlier, mortgage finance provider Freddie Mac said Thursday.
…
Last night, Nightly Business Report (PBS) ran a story on the rise in mortgage interest rates, and had Darren Bloomquist as a guest. Bloomquist said that higher interest rates were actually good, because then only creditworthy people will be able to buy houses, which will avoid the mistakes of 10 years ago. The two hosts tried to cut him off, and instead asked about when banks could be loosening lending standards and extending more credit. (hint hint) Bloomquist again said that it’s better for lending standards to be tight, to avoid foreclosures for people who shouldn’t be buying the first place.
Oh, you should have seen the two hosts of NBR squirm. They shooed Bloomquist off the air as quick as they could. It should be noted that even though NBR is aired on PBS, the show is run by CNBC, and it’s obvious. They of course want nothing more than globalism and forever ZIRP.
“Bloomquist said that higher interest rates were actually good, because then only creditworthy people will be able to buy houses, which will avoid the mistakes of 10 years ago.”
Did Bloomquist also share that tightening credit conditions would likely result in a drop in demand, which normally leads to lower prices?
At 4.5% you’ll hear a sonic boom
He probably would have, if they had allowed him more than 90 seconds on the air.
Cut the $hit out. NPR, PBS, all are mouth piece of globalists.
yeah, rising interest rates are part of a globalist plan
And the mistakes of the 2009-2015 subprime lending orgy?
Who moved my DJIA 20K cheese?
This is why stocks look set to fall as 2017 arrives
By Victor Reklaitis
Published: Dec 30, 2016 7:26 a.m. ET
Critical information for the U.S. trading day
Almost to the finish line… rats!
It’s the last trading day of 2016, and the wild year is going out with a few more fireworks.
The almighty dollar briefly and mysteriously plunged against the euro, while the ruble has been taking a hit as Russia punches back at the U.S.
Oh and the “Trump trades” are fizzling, with the Dow looking like it won’t deliver eight up weeks in a row.
Plenty of analysts have warned the post-election moves were overdone. Now it appears some are breaking out the champagne — or at least their keyboard’s “caps lock” feature.
“MEAN REVERSION — FINALLY!” writes technical analyst Mark Arbeter from Arbeter Investments. He is referring to the simple idea that outperformance is followed by underperformance, and vice versa.
Providing our call of the day, Arbeter says he is bearish in the short term and expects stocks will retreat in 2017’s first half.
…
“In case some of you were duped into believing this was evidence that proved Russia hacked the US elections, John McAfee would like to remind you that you’re probably a high tier retard and would believe virtually anything your government told you.
Crazy, but brilliant, John said “if it looks like the Russians did it, then I can guarantee you it was not the Russians.”
http://www.zerohedge.com/news/2016-12-30/john-mcafee-i-can-guarantee-you-it-was-not-russians
I am looking forward to find out what a lot of people in our government agencies might have to say when they are under different orders.
This country and everything fiscal and monetary will be entirely different over the course of the next years, including asset prices of all types. Old money already prepared for it. What so many believed and still believe is impossible will eventuate.
I’m not sure if Russia is an issue, or if Russia is not an issue, but I’m looking forward to political polar opposites switching sides on the topic come January 20th.
Truth bombs start dropping 1/21/17. Lots waiting to come off the sidelines and report all the fraud, waste, and abuse throughout all levels of government. Most of this country has been turned into a swamp over the last few decades, but especially the last 10 years so its going to take some time to drain.
Get real! Things aren’t going to be changing. The globalist agenda continues to move forward.
Trump can’t do a thing about the globalists. If he does, there will be a helecopter accident.
‘Vornado Realty Trust’s 699-unit Bartlett luxury apartments are stirring up change in the multifamily market by serving as a “luxury pop-up hotel.” Starting Jan. 13, the 22-story apartment in Arlington, VA, (just outside of DC) will temporarily rent out 50 units for President-elect Donald Trump’s inauguration.’
‘Using its WhyHotel platform, Vornado received approval from the Arlington County Board in 2013 to pilot its pop-up hotel, and the REIT received final approval in December to convert 50 of its unleased units from residential to hotel use. Eventually, WhyHotel plans to convert up to 200 of new luxury apartment units to hotel rooms. The $250M project at 520 12th St opened to residents this June.’
When you can’t sell’em or rent’em, turn them into day rentals.
Or hourly (post to follow later…).
FINANCIAL TIMES
France
French luxury hotels woo daytime lovers
Fall in tourism pushes chains to rent rooms out by the hour
© Dreamstime
yesterday
by: Michael Stothard in Paris
Traditionally, room rental by the hour has been the preserve of seedy establishments or, more recently, “love hotels” found in countries from Argentina to Japan. But luxury hotel groups have embraced the hourly model in France.
…
This reminds me of a Pink Panther movie where Commissioner Dreyfus is talking to a woman on the phone and we are misled into thinking that he is talking to his wife (”Kiss the children for me”).
It turns out he’s talking with his mistress.
I think I see AirBnB’s future.
Marblehead, MA Housing Prices Crater 10% YoY
http://www.zillow.com/marblehead-ma/home-values/
Zillow is “trumpeting”
I can’t find a negative prediction
market
Midland,Minot,Fairfield Dr
No how
Hey,lookie here … here’s a guy that says that we humans will be extinct in ten years.
He was once a professor so it must be so …
https://wattsupwiththat.com/2016/11/25/arizona-professor-forget-climate-humans-dont-have-10-years/
Hmmmm … if human beings become extinct then real estate prices will probably fall to the point where they will be affordable to everyone, so .
… so IT IS ALL GOOD!
Even knife katcher wannabes aren’t interested in the financial ruin housing offers.
“here’s a guy that says that we humans will be extinct in ten years.”
Henry Kissinger said you should never set deadlines.
Pending Home Sales Reflect “Dispirited” Buyers
Dec 28 2016, 10:37AM
http://www.mortgagenewsdaily.com/12282016_pending_home_sales.asp
DIY Neighbour from Hell
https://www.youtube.com/watch?v=jrzRDg7Zui0
The run time is 6:31. Enjoy.
Tenants From Hell - Indoor Pool Leak
https://www.youtube.com/watch?v=186LeOOhzmg
Run time is 7:20.
The above was a prank phone call but the following article is for real …
http://www.dailymail.co.uk/news/article-2713159/Teenagers-turn-entire-living-room-swimming-pool-covering-film-filling-water.html
the economic miracle of chile. how and why it happened. from 1000% inflation to vibrant economy. who were the true architects? what the world can learn.
http://tomwoods.com/ep-812-the-truth-about-chiles-augusto-pinochet/
“It’s time for our country to move on to bigger and better things,” Hillary said in a statement regarding her emails.
It’s time for Hillary to don an orange jumpsuit and appear before an honest judge.
they tried that and it cost us over $20 mill. we could have used that money for corporate tax breaks.
are there any fiscal conservatives left… like me?
Memo to Hillary: The country did move on to bigger and better things, and you aren’t one of them.
Sometimes part of moving on is sweeping the floor before you go.
And draining the swamp.
Amy Schumer (who will not be leaving America anytime soon, despite Trump’s victory) is going to be eating her feelings after becoming an FB.
http://www.marketwatch.com/story/comedian-amy-schumer-parts-with-penthouse-after-multiple-price-cuts-2016-12-27?link=MW_latest_news
How low can she go?
“Schumer … bought the unit from TV producers Randall Barone and Eric Beesemyer in 2014 for $1.695 million, according to property records.”
This is the market that needs an end put to it, ie - people who buy and sell within 2 years hoping to make a killing. There’s a place near me that was purchased for $480k now back on the market 2 years later for $750k.
Get rid of the MID, for one. And instead of a “live in it for 2 of 5 years” capital gain exclusion, how about a “live in it for 15 years” exclusion?
Does it have a door man?
Luxury condo contracts in NYC just collapsed by 25%.
http://www.zerohedge.com/news/2016-12-28/more-bad-news-nyc-real-estate-luxury-co-op-contracts-collapse-25
‘A distracted driver has sued Apple over a fatal car crash involving FaceTime. The plaintiff filed suit in a California court in early December in regards to a road accident that occurred on Christmas Eve in 2014. The driver was ” distracted while using the ‘FaceTime’ application on an iPhone 6 Plus during the operation of his motor vehicle,” and hit the back of a stationary vehicle while going 65 miles per hour, per the court documents obtained by AppleInsider.’
‘Bethany and James Modisette were the two adults in the vehicle along with their two children — Isabella and Moriah. The whole family sustained serious injuries, but 5-year-old Moriah died of her injuries in the hospital.’
How is this Apple’s fault? This is like the idiots who sue gunmakers every time some spree killer goes off the deep end. When are we going to start holding reckless or negligent people responsible for their own actions?
You actually have a point there, Ray. The story reminded me of a guy that I know who did 18 months in prison after getting busted for DUI three times. Following this same logic he should have sued Anheuser-Busch.
‘the investments of around 20,000 homebuyers is at stake. Noida, Greater Noida and Yamuna Expressway authorities are to recover a total of around ₹25,000 crore from builders in land dues. Many have turned defaulters…’
Dumb question of the day: What’s a crore?
The Indian units are interesting and different; rather than counting by units of thousand like the English system (thousand, million, billion), they have units like 100,000 (lakh) and ten million (crore). I’d be curious to know what the root of that is.
Have you seen the show, Trump loves Putin? Kinda a Joanie loves Chachi sitcom.
It’s on now.
Hey Gang!! How y’all been?
I suspect Mikey Might and HA have continued to scorch it up these last 5 -6 mos.
Been a long while - finally getting settled - moving is a pain in the butt!!!
Ben posted a bit about the onerous taxes on the blog a day or two ago in re to Illinois / Chicago as a result of the dysfunction of ILLANNOY in so many ways - Linky below is a good peek at what Mad Again and his crew have done to what was once a great state.
Happy New Year!
Will check in from time to time.
Love it here in Colorado and thankfully I am back working full time in the Denver area!! Praise God.
http://www.chicagotribune.com/news/opinion/editorials/ct-madigan-cullerton-rauner-illinois-budget-edit-0101-20161229-story.html
Welcome to Colorado, RJ! We used to be one of the Free States before an infestation of Californians and Free Sh*tters showed up, and God willing, one day the free counties will break away from the the libtard Democrat administration in Denver and its entitlement mobocracy voters and set up a new red state.
Mighty Mike’s anke-biting comments generally provoke the kind of anihilating retorts that reduce him to a whimpering jelly-like bundle of neurosis. And that’s when we’re being nice.
They’re annihilating only through the lens of your demented logic.
Hi, rj! I’ve thought about you from time to time, wondering how the move went and how you were doing, so I’m glad to hear that you are doing well.
Lord love ya and a Happy New Year to you and yours.
Another thing and then back to work….
Ben - you gonna do a tour of towns this Spring / Summer like you did a while back? Those vids were very telling.
Dont forget to give blood this time of year. Good for your ya health too.
I wish my friends in the bear pit a happy new year!
Remember…… Nothing accelerates the economy like falling prices to dramatically lower and more affordable levels. Nothing.
I want u people to b a success like DJT!
Try making through five minutes of Mr. Magoo. Enjoy!
“Greenspan: You Can’t Fix U.S. Economy Until You Fix Entitlements”
https://www.youtube.com/watch?v=_DXJK1ZlJTg