Miami Blues, Again?: “Stearns’ predictions for the city’s ‘preconstruction’ condo market have gone from bad to worse to, as of yesterday, apocalyptic”

Real estate people never seem to learn. Especially it seems in Miami.

Didn’t we JUST do this a few years ago?

In the last real estate bust Miami was a bellwether. I watched the market closely along with California and New York in those years. This all seems very very familiar. And it should be noted also that auto loan default rates (generally) are rising.

What do you think happens if rates finally tick up solidly?

Read More

These government-approved high-interest green loans are turning mortgage lending upside down

I like solar power. Who doesn’t? We have a giant nuclear reactor in the sky and we should make better use of it for energy purchases. However the “policy makers” in Washington continue to screw up the solar equation.

Read More

Interest-only mortgages: They’re baaack

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.

Read More

Keynesian Central Bank Craziness Causing Insane Asset Bubbles In Real Estate

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.

Read More

Home “ownership” for many isn’t very smart (Especially these days.)

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.

Read More

The “House Rich” movement, and the woe of aftermath

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,

Read More

NY Assembly Speaker Sheldon Silver accused of $6 million bribery and kickback scheme, taken into custody

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.

Read More

Senator Feinstein’s husband stands to profit big from government deal

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.

Read More

Life in the “Income Depression”

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.

Read More

Mortgage applications plunge to 14-year low

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.

Read More