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, thinking the market had finally turned. But after a brief uptick things settled down again. The all cash buyers disappeared and all that was left were regular people who actually needed mortgages.
And getting a mortgage is still pretty tough as the attached article outlines.
But I believe a small part (but a growing part) of the ongoing housing chill is that many people have finally seen through the rather idiotic obsession with always living in the largest house one can afford – or in many cases – one cannot afford.
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.
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.
Remember the sea of realtors? At one point – around 2006 – it was basically impossible to go to a barbecue without meeting a realtor or a mortgage person. Idiot sons across the country were making money hand over fist, buying Suburbans, and getting in on rental properties. Where did all those people go? Actually don’t tell me. That the depression has wiped out this crowd is one the few positive outcomes of the last few years in my estimation.
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.