Much of this is driven by crony zoning policy.
Notice that there are no cars on the roads.
So lots of people are asking WHY? Here’s a big reason why. This video is from back in 2014, but it’s worth another view.
Oh this is a great sign.
It does sound like the parameters around these new interest only loans are pretty conservative, 20% down, 720 FICO score, etc. But take it as a bellwether. Watch to see if more of this stuff comes on the market, with less stringent guidelines. Caution, always caution when it comes to housing, which is a highly government manipulated market.
If you’ve got a 50 million dollar house in London, New York, or Monaco things are looking pretty good for you. Of course they were already probably looking pretty good. Funny how that works. It’s nice to have access to the Fed window.
Of course many of us in the real estate sub-tiers continue to see little or no growth in the price of our homes, Indeed, adjusted for inflation many people continue to lose money year over year.
Stan Humphries – the author of the attached article – and I agree that home ownership often is not such a good deal. For many it is a downright terrible investment. More people are awakening to this fact, and that is a good thing.
But we differ on why it is such a bad deal for some.
This is what much of northern Virginia looks like. It’s not pretty.
Where I live they are building houses again. The neighborhood beside me should have been built 5 years ago but finally the bulldozers are in motion again. But don’t call it a recovery. There is no vibrance in the market. Just a subset of people escaping places like California with solid state jobs at the University.
But even here there is concern. 2 years ago the builders began again,
This is the Speaker of the Assembly in New York state. And $6 million is not chump change. It will be interesting to see how far this scandal spreads given that presumably nearly everything done in the New York state legislature had to go through Silver somehow.
Boy is it good to have a spouse in the Senate. Even better if one is in the commercial real estate business like Richard Blum, Diane Feinstien’s husband, is.
Seems Mr. Blum’s company CBRE just happens to be the sole real estate agent for a batch of now defunct post offices Congress has authorized the sale of. As we reported before many of these old post offices sit on prime real estate.
And remember this is with a totally gamed CPI number. It’s worse than it even looks.
Newsflash! Things are not good economically.
Most people make significantly less in inflation adjusted terms than they did prior to the 2008 Crash. And it should be noted that the economy prior to the Crash felt pretty hollow too. People forget this now. But nearly everyone was living off of the housing bubble in the Bush years. That’s why it hurt so bad when housing ate it.
A minuscule move up in mortgage rates caused a significant downdraft in mortgage applications.
And with cash buyers increasingly out of the picture, mortgage dependent buyers are where it’s at for real estate. The problem is the latter group is still on very shaky economic ground.
All the meddling in the housing market by the government. All the below market rates of interest from the Fed. All the “stimulus.” And this is where we are, spinning our wheels.
Ms. Pelosi knows how to work a deal. As such opportunities just seem to fall into her lap from nowhere. Before Pelosi was in Congress she was comfortable, but she wasn’t rich. Yet now she’s worth tens of millions of dollars.
The Chinese have poured stimulus on top of stimulus already. An archipelago of idiot central planning projects stretches from the Ordos desert in the north to the lush mountains in the south. High rises reach to the sky but are empty, in the middle of cities which are empty, in a country which is anything but empty.