From the Star Ledger:
Gov. Christie vetoes $100M homebuyers tax credit bill
Gov. Chris Christie today [Friday] vetoed a bill that would give tax credits of up to $15,000 to homebuyers, saying the state could not afford to forego $100 million in tax revenue over the program’s proposed three-year lifespan.
The bill, which passed with overwhelming bipartisan support late in the spring, would have provided three-quarters of the funding to buyers of newly built homes.
Christie has said that while he would support some economic development programs in other times, the state does not have the luxury of paying for them now.
…
“The homebuyer’s tax credit program would have reinvigorated the building industry and provided a much-needed boost to the state’s slumping economy,” Sen. Paul Sarlo (D-Bergen) said in a statement. “This action the governor took today will only exacerbate our economic problems. It is beyond disappointing.”But Christie argued in his veto the money would have been used by people already committed to buying homes and would “briefly and artificially inflate home values.”
…
Jeffrey Otteau, an East Brunswick-based appraiser who studies the state’s housing market, said the market took a big hit when the federal tax credit expired.“Absent a stimulus to the housing market, home prices will decline further, which will put additional downward pressure home prices,” he said.
Without the stimulus, homes values will dip even further, in the second half of the year, which could push more people into foreclosure, Otteau said.
From the NY Times:
The Roller-Coaster Ride Called a Short Sale
WITH property values down by as much as 30 percent in New York City, some homeowners who bought at the height of the market are finding themselves underwater and are being forced to sell their homes in short sales.
In the months after the Lehman Brothers crash, most of the short-sale action was in the boroughs outside of Manhattan and in the suburbs. This year, however, short sales appear to be picking up in Manhattan, real estate and mortgage brokers say.
A recent search of sales listings found almost 20 advertised short sales, and that did not include short sales disguised with euphemistic terms like “owner must sell.” The advertised short sales range from a $250,000 two-bedroom on the Upper East Side to a $2 million three-bedroom designed by Philippe Starck in the financial district. They include town houses, co-ops, condops and condos.
And the number of short sales, in which a home sells for less than the amount owed on the mortgage, will most likely continue to grow. The number of lis pendens filings — a first step in the foreclosure process for houses and condos — doubled in 2009 in Manhattan, to 724 from 334 in 2008; this year, 382 had been filed by the end of June, according to the Furman Center for Real Estate and Urban Policy of New York University.
“Short sales are happening and they’re all over the map,” said Melissa Cohn, the president of the Manhattan Mortgage Company. “We’re seeing multimillion-dollar foreclosures and short sales that no one ever anticipated in New York City.”
From the NY Times:
Slower Sales After Home Buyer Tax Credit Ends
THE market for lower-priced housing is now hurting more than the market for higher-priced homes in many New Jersey communities.
Over all, there was a “stunning reversal” in the pace of sales in May, according to analysis done by the Otteau Valuation Group, which reports on trends in state real estate. After the expiration of the federal tax-credit program for buyers on April 30, the number of contract signings in New Jersey abruptly fell to the lowest point in six years — after more than a year of continuous gains.
At the same time, the inventory of homes on the market for a month or more swelled. This “unsold inventory” climbed to 12.9 months from 7.2; in other words, said Jeffrey G. Otteau, president of the company, it would take more than a year to sell all the homes listed for sale as of the beginning of June at the existing sales pace.
The trend was most pronounced for homes priced under $400,000: For that category, the inventory increased to 13.4 months’ worth from 9 months.
For houses priced at $400,000 to $600,000, inventory increased to 11.6 months’ worth from 9.5, he said.
By contrast, the inventory level actually went down for houses priced $600,000 to $2.5 million, and increased only slightly for those priced over $2.5 million.
Real estate market trends in NYC seems to be about 18 months behind the rest of the country (and about 6 months behind Northern NJ) – kind of like a slow moving “tsunami” moving from inland to the coast.
I fu,cking hate people. all people Period.
sl
I think Christie is right, unless they send a check to all people owning a house, they are discriminating.
The total credit amount is so small, and would apply to so few purchasers of existing homes, that it would basically be a lottery that expired in a week.
It isn’t a stimulus, it’s a waste of money. Nobody would be able to time their purchase in such a way to close in the incredibly narrow window that the credit amount would support. They would run out of money in a week, which would be entirely applied to contracts that took place before the stimulus was announced. Those who decide to purchase barely have time to look at a house before they announce they are out of cash.
No more transfusing the corpse. The corpse is rotting, and everyone knows it.
Anarchy now!!!!!!!
“briefly and artificially inflate home values.”
Is an incredibly optimistic statement. If there is *any* impact, it is due to misperception on the side of buyers (“OMG I NEED TO BUY NOW BEFORE IM PRICED OUT”), not any kind of direct economic impact.
A recent search of sales listings found almost 20 advertised short sales, and that did not include short sales disguised with euphemistic terms like “owner must sell.” The advertised short sales range from a $250,000 two-bedroom on the Upper East Side to a $2 million three-bedroom designed by Philippe Starck in the financial district. They include town houses, co-ops, condops and condos.
A 250k 2 bedroom on the UES? Wow, that’s shocking. This place would have to be a massive dump. UES is a pretty good (depends on your taste) location for 250k. Grim, do you have access to any MLS info in NYC? I’d love to see the listing on this place
Please. Some moral support. I have 20 more charts to go and I am sucking wind at this point….
sl
Maybe she’s referring to a 270k condo I see doing foreclosures/UWS.
2278714
Moral support:
Stop whining, get cracking on those charts. Move it.
Or, simply drop them with the desk, walk out, pack up and drive down here. There’s a crappy empty storefront available with a gun rack left behind.
Pat, 13
Thanks. I. feel. motivated. ugh.
sl
8 more…
sl
SL at least you’re in airconditioning. It’s hot as h*ll at the beach. West wind- no onshore breeze.
Coast 16
One saving grace — I’d still rather be at the beach, though — have a margarita for me wouldja?
Second saving grace: medics brought me a pint of Ben&Jerry’s “half baked” ice cream last night…. it’s now become breakfast. I’ve sat in this seat so long I’m getting a decubitus ulcer…. and…. well….. fat.
sl
Nom,
You have mail!!!
Nom,
Forget that. answered my own question!
I’m no fan of Christie, but this was the right move. The tax credit was huge waste of money.
<blockquote cite="But if we actually look at the numbers, this is a poor choice for a second stimulus package. The NAR recently reported:
NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.
You can calculate the new $15 billion projection; 1.9 million times $8,000.
But this only resulted in 350,000 additional sales. Divide $15 billion by 350 thousand, and the program cost is about $43,000 per additional buyer. Very expensive.”
http://www.calculatedriskblog.com/2009/09/streitfeld-housing-tax-credit-debate.html“>
Still Looking Good — chill baby, chill. You’re doing good work……..it may not seem like it right now. But better days are comin’
I can remember a few of your responses to my posts in recent months that had me chuckling at my computer. Keep a good diary. There may be the Great American Novel in there somewhere.
I don’t understand this comment, “Without the stimulus, homes values will dip even further, in the second half of the year, which could push more people into foreclosure, Otteau said” from the article. Why would dropping home values force people into foreclosure?
Classic quote from ‘The Fifth Element’
Leeloo: Everything you create, you use to destroy.
Korben Dallas: Yeah, we call it human nature.
So apropos.
Question.. I know this has been explained before, but I don’t remember…. if a house transfers ownership for $1 what does that usually mean?
D -
It’s called a Transfer of Convenience and could mean any of several different things. It’s mostly used to cover a change in the deed. A divorce, an Estate transfer, I’ve seen it done to correct a misspelling of the owner’s name.
If you look on the OPRS website, there’s sometimes a clue in the previous owner name. There’s also a field called NU, the NU # corresponds to a standard list. Some counties even have the deeds online, if you really want to go after it.
Do you have a particular address in mind ?
World-class lowball.
SL,
Assuming that what you’re doing will help you achieve your long term goals in life, it will be worth it.
“What doesn’t kill us makes us stronger,” said Nietzsche.
“Adversity makes men, and prosperity makes monsters,” Victor Hugo wrote on a similar note.
D says:
July 25, 2010 at 10:43 am
Why would dropping home values force people into foreclosure?
You bought your house for 400k. it is now worth 200k because people all around you keep foreclosing. if you owe 300k on your house loan … why would you keep paying it? How long are you willing to stay that far underwater? If you don’t plan on moving for 10-15 years, it isn’t a big deal .. but if you’re in a stopgap house … wouldn’t an alternative be to walk away?
Thanks, Fiddy & Yikes.
Fiddy, the house is just one on my street & one of the neighbors saw it transferred for $1. Divorce & death, so that makes sense. It WAS in pre-foreclosure, but now not as sure.
Yikes, I get your explanation, but really? The house loses value = forced foreclosure? I don’t think that would be forced unless other factors are involved & the mortgage can’t be paid. Falling values on their own don’t force foreclosure, kwim?
I’m good. I’m home now.
Just can’t believe how insane nights in the Pit are getting.
I’ve got two days off til I’m chained to the rack again. I hear a pitcher of sangria calling for me…
sl
D -
Go to this web-site and enter the county and the address (location) —
http://oprs.co.monmouth.nj.us/oprs/External.aspx?iId=12
Tell me what you find…..
Fiddy and West (sounds like an address, doesn’t it?)
Thanks for the lift. I totally dig Nietszche. If only I could write for a living… maybe next year….
sl
sl –
“Chained to the Rack” Hmmm…..Mistress Heather of CSI fame, would have a blast with that mental image.
Perhaps you could keep a journal of your days & nights in the Pit. Could be theraputic in letting it go at the end of a shift. I’m betting there’s a novel in there. Or at the least, a reality TV show.
Got motorola droid x. It’s an IC@p killer for sure. So much easier to navigate and type!
U.S., South Korean Forces Begin Naval Exercises Denounced by North Korea
How long before Kim’s nuclear threat starts? WWWIII
Is it possible to find out what bank/lender/et al holds the mortgage note on a property? First and seconds, etc?
Without the stimulus, homes values will dip even further, in the second half of the year, which could push more people into foreclosure, Otteau said.
What do you mean, “dip even further?” I thought we were at a bottom months ago. Isn’t that what we were told? Didn’t those in the industry tell us things have stabilized? This $15,000 stimulus deal has only been on the table recently, why is it now that the real estate “experts” are saying it’s vital? Again, things were stabilizing months ago, did some economic disaster occur? And three or four years ago, wasn’t the industry telling everyone to buy now or be priced out forever?
Ba-rac Obama, had a war. Ei-ei-o. Here a war. There a war. Everywhere a war, war.
A danger in dealing with Iraq has been that if we or Israel acted, Iran would pivot its forces and attack our forces in Iraq. As we sraw down in Iraq, that becomes less of a danger.
So, today I see this (CBS News), and it seems to lay the groundwork for getting the public to accept the NEED to open another front:
Ex-CIA Chief: Strike On Iran Seems More Likely Now
Jul. 25, 2010
WASHINGTON (AP) – A former CIA director says military action against Iran now seems more likely because no matter what the U.S. does diplomatically, Tehran keeps pushing ahead with its suspected nuclear program. Michael Hayden, a CIA chief under President George W. Bush, says that during his tenure a strike was “way down the list” of options. But he tells CNN’s “State of the Union” that such action now “seems inexorable.” He predicts Iran will build its program to the point where it’s just below having an actual weapon. Hayden says that would be as destabilizing to the region as the real thing. U.S. officials have said military action remains an option if sanctions fail to deter Iran. Iran says its nuclear work is for peaceful purposes such as power generation. THIS IS A BREAKING NEWS UPDATE.
Just sis a whirlwind tour of the mls, have stayed away for a few weeks. Same shit. I see not sanity, asking prices still 2006ish. Trulia keeps it all real, people who bought in 05 actually list at 150-200k OVER what they paid. 400k to 200k because of foreclosures? Somebody sell me one of these houses. Its all starting to sound like an urban myth.
sis=did
It looks like Tony Hayward will finally get his life back and wil have lots of time to go sailing. I wonder if he will do much sailing off LA and MS?
P chief Tony Hayward ‘negotiating exit deal’
25 July 10 13:42 ET
BP’s chief executive Tony Hayward has been negotiating the terms of his exit, with a formal announcement likely within 24 hours, the BBC has learned
Maybe war really is the answer?
Barbara,
Amen… same bullsh1t with the same bullsh1t line. Prices still near peak for anything I wouldn’t be completely embarrased to call home. Everyone in prestigous North Jersey is obviously still rolling in the dough. In one fell swoop, I just upped the sale price of my home when I decide to sell. My, my… nobody told me it was this easy to make another $50,000 to $75,000 in one day. What the heII, I think I’ll buy my Schmutzi a f*cking pony, too!!
U people are nuts.
http://online.wsj.com/article/SB10001424052748703995104575389401909376586.html?mod=WSJ_hpp_sections_newyork
“Some students test well, some don’t.”
U people are nuts????
Sometimes you feel like a nut. Sometimes you don’t.
Attention all SELLERS – you can lower your price now or just wait for the fall / winter to come along. It’s only a matter of time before you’ll be forced to reduce your overpriced POS house. To all those buyers still holding out good for you. Remember if they “accept” your offer you left $ on the table and don’t be afraid to low ball & ask for closing cost too… Let them pay closing, take the 2 points and get the best F’ing rate you can
45. Hilarious. Talk about rewarding Failure.
The new CEO of BP is the American who was in charge of…..what for it…..The Gulf!
Going back to yesterday’s discussion:
Industries Find Surging Profits in Deeper Cuts
By NELSON D. SCHWARTZ
Published: July 25, 2010
By most measures, Harley-Davidson has been having a rough ride.
A Harley-Davidson showroom outside Chicago. Harley’s sales are falling, but profits are strong. Many companies are preparing for a future where they can prosper even if sales do not recover.
Motorcycle sales are falling in 2010, as they have for each of the last three years. The company does not expect a turnaround anytime soon.
But despite that drought, Harley’s profits are rising — soaring, in fact. Last week, Harley reported a $71 million profit in the second quarter, more than triple what it earned a year ago.
This seeming contradiction — falling sales and rising profits — is one reason the mood on Wall Street is so much more buoyant than in households, where pessimism runs deep and joblessness shows few signs of easing.
Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production.
…
http://www.nytimes.com/2010/07/26/business/economy/26earnings.html?hp
Clot
Here’s one to make make you smile.
Apollo exploits loophole to create new bank
http://www.ft.com/cms/s/0/9b04ecc4-9817-11df-b218-00144feab49a.html
I have to bail out of here for another extended break. I’ll leave you with this one.
Bush Tax Cuts Emerge as Next Big Fight in Washington
http://slatest.slate.com/id/2261731/entry/1/
Personally, I think all of them should expire. That said, the Dems get a free roll on this one. There is no way the GOP can dodge this and there is no angle they can play, that can make them look good.
Ket/Clot,
You may enjoy this:
http://www.snopes.com/politics/soapbox/imtired.asp
Boy, am I glad we are tied to Mexico via NAFTA, as it is sooooo much like Canada and the US:
http://www.bbc.co.uk/news/mobile/world-latin-america-10757242
From that BBC piece:
Gunmen who killed 17 people at a party in northern Mexico earlier this month were let out of prison to carry out the attack, state prosecutors say.
Guards at a prison in Durango state are accused of lending the inmates weapons and vehicles to commit the murders in neighbouring Coahuila state before returning them to their cells.
The same group of prisoners are thought to have carried out other killings
snip