From Bloomberg:
Existing-Home Sales in U.S. Probably Rose for a Second Month
Sales of previously owned U.S. homes probably rose for a second month in April as investors used cash to buy distressed properties, a reminder real-estate is struggling to gain traction almost two years into the recovery, economists said before a report today.
Purchases of existing houses rose 2 percent to a 5.2 million annual pace, according to the median forecast of 75 economists surveyed by Bloomberg News. Other reports may show fewer Americans applied for unemployment benefits last week and manufacturing expanded in the Philadelphia region.
The increase in home demand is helping clear the market of inventory even as renewed foreclosures will probably continue weighing on prices. Manufacturing has so far carried the economy, validating the Federal Reserve’s decision to maintain record stimulus until the recovery becomes self-sustaining.
“We are seeing a pickup in all-cash transactions,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York. “All-cash bargaining power and investment activity is helping absorb the supply. We will continue to see a gradual pickup in demand.”
The National Association of Realtors will release the figures at 10 a.m. in Washington. Estimates for home sales in the Bloomberg survey ranged from 5.09 million to 5.40 million. Purchases reached a record 7.08 million in 2005, and slumped to a 13-year low of 4.91 million last year.
Good Morning New Jersey
From the Record:
First-quarter commercial foreclosures climb in North Jersey
Commercial property foreclosures jumped in North Jersey and statewide in the first quarter, a sign of continued economic strain and distress in the recovering commercial real estate market.
Bergen County had 42 actions filed by lenders and loan services seeking to seize income-producing properties in the first quarter, nearly double the 22 commercial foreclosures from the same period a year ago, according to statistics provided by the New Jersey Judiciary.
Among the properties: a shopping center in the Meadowlands, a multifamily residential development in Rutherford and a funeral home in Hackensack, according to court documents and commercial real estate data provider CoStar.
Passaic County, meanwhile, had 36 filings in the first quarter, up from 25 the same period a year ago.
New Jersey overall had 475 commercial foreclosures in the first quarter, up from 388 in the first quarter of 2010, when there were 1,446 for the year.
…
What they are saying:
“There’s been a steady stream of commercial defaults that is not going to end anytime soon, at least through the end of 2012. … There are many, many, many properties in New Jersey that are over-leveraged and it’s just going to take a while for that to be worked off.”
SCOTT TROSS, PARTNER AT LAW FIRM HERRICK, FEINSTEIN LLP IN NEWARK AND A SPECIALIST IN COMMERCIAL FORECLOSURES
“There’s no real recovery going on here. I wouldn’t go as far as to say that we’re in a double-dip [recession], but certainly the economy is weak.”
FRANK SORRENTINO III, CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTH JERSEY COMMUNITY BANK IN ENGLEWOOD CLIFFS
“All the peers I talk to have the same issues: that their borrowers are, to some degree, stressed out – stressed in terms of being able to make the payments.”
RAYMOND HALLOCK, PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COLUMBIA BANK IN FAIR LAWN
Do you have that scripted?
From the WSJ:
Housing Recovery in 2014, Survey Says
Fifty-four percent of Americans don’t think the housing market will recover until at least 2014, according to a survey of homeowners and renters by Harris Interactive for the real-estate site Trulia.
That’s up from 34% in November, when most of those surveyed thought the market would recover by 2012 or 2013. Now just 39% think it will recover by 2012 or 2013. Only 5% think the market has already recovered, and 3% think it will recover this year.
From the Star Ledger:
Frank Lloyd Wright house placed on top 10 list of endangered historic sites in N.J.
TRENTON — The state’s historic preservationists are, by nature, a proud and picky bunch. So when they heard that one of New Jersey’s four known homes designed by architect Frank Lloyd Wright might be moved to New York, the response was immediate.
…
The home, the Bachman-Wilson House in Millstone Borough, was among 10 of the state’s most endangered places unveiled at the Statehouse on Wednesday by the nonprofit group. The 17th annual list, compiled through a public nomination process, aims to bring attention to treasured yet threatened sites.
…
But the Bachman-Wilson House garnered particular attention.
Designed by Wright in 1954, the house features an open floor plan and large glass walls. The Millstone Creek, which runs near the home, adds to the serene setting but also presents a constant threat: flooding.
In 1988, another architect, Lawrence Tarantino, purchased the home and invested tens of thousands of dollars to restore it. But the improvements could not stop the floodwaters, which damaged the home in 1999 and again in 2007.
“We see it becoming an ongoing issue,” said Tarantino, who lives in the home with his wife, Sharon, and operates an architectural studio. “It’s time to start thinking about its future and not ours.”
The Tarantinos are courting buyers for the home and are considering moving it, piece by piece, to a development in Sagaponack on Long Island. Preservationists here heard of the move and quickly listed the home to help keep it in New Jersey.
Grim 5 Cool looking house, but with all the problems we have today maybe this groups energy would be more productive elsewhere.
Grim sent you # for contractor, did you receive?
I am now accepting regular listings in Newark. This is what my business life is coming to. Yesterday I got a call from a guy who owns 3 & 4 unit rentals in Newark. Finally had enough of managing crap properties and wants to sell. Originally met him waiting outside the Code Compliance office in Newark City Hall. He remembered me because I laughed at him when he told me about his plans to buy, renovate and run small multi family buildings in Newark. He said, you told me “here is my card, bet you call me in less than a year to sell because you will be losing your mind.”
Normally I would give the guy the name and number of a local broker I know, wish him good luck and laugh. Now I need the work and I’m not laughing!
5. TRENTON — The state’s historic preservationists are, by nature, a proud and picky bunch. So when they heard that one of New Jersey’s four known homes designed by architect Frank Lloyd Wright might be moved to New York, the response was immediate.
—–
Great, now they will destroy the house in order to save it. I love these historic boards, societies, etc. Nothing like being able to tell other people what to do with their own property. I needed to put up a fence a couple of years ago in South Jersey and ended up spending twice as much as I thought I would because my house is in the historic area of town. The guy told me, “The type of fence you want to put up doesn’t really go in this section of town.”
Jim
Jim,
I saw the same in downtown Jersey city. A guy wanted to replace the grey chainlink with a nice brick and Stucco wall for around $3K. The Historical society were objecting and were holding up a picture of how the street looked in the 20’s, 30’s. They wanted a $15K cast/wrought iron option.
The guy was making a good arguemnet that the HS were asking for restoration, not presevation which is not their purpose. The grey chainlink stayed.
8. 30 year
When the dot com went bust and every dope with an ETrade account fancied themselves financial geniuses, in came the stupid money in the rental game. Had one of these guys buy a house next to one of mine, telling ME how his rental is “passive income” and he was just going to be collecting checks while in Monmouth County. He put in new doors, refinshed the floors, cleaned up the yard. One year later the place was a shambles. He sold at a loss two years after buying.
“Fifty-four percent of Americans don’t think the housing market will recover until at least 2014”
Question for 54% of America – WTF makes you think it will recover even that quickly?
What are the chances that this will remain peaceful?
“First twitter and facebook took down several North African regimes where Ben Bernanke drove the people to a hunger-based desperation, now twitter is poised to topple the Spanish government. At least that appears to be the conventional wisdom in Spain, where for the fourth day people across the country are protesting record high (21%) unemployment and various other economic slowdown after effects. CNN reports on the latest out of Spain.”
http://www.zerohedge.com/article/spains-social-network-protests-enter-4th-day
Bailouts for me; austerity for you.
That’s a concept even a functional retard can understand.
#4 Falling prices is the market recovering.
Methinks the Lehman moment is at hand for Europe.
Weekly claims down to 409k, well under estimates. Three handle within striking distance again.
Until the revision.
just got contacted by an owner who’s house I saw in March. He said back than the house has lots of interest. He bought in 2009, didn’t do sh_t with it and now wants to move for some vague reason. He just said he found a new house that he’s interested so he’s even more flexible on price. Meanwhile his asking is higher than what he bought in 2009…by over 100K….Spring season is essentially over…I smell desperation in the air…
10. Fabius Maximus says:
The guy was making a good arguemnet that the HS were asking for restoration, not presevation which is not their purpose. The grey chainlink stayed.
—–
Amazingly if you go to Germany you can see old castles that have vinyl windows installed. There is one castle close to us that has a satellite dish sticking out of a window. In South Jersey where we have a house you have to have wood windows in the historic area even though the vinyl looks exactly the same and will last longer with no maintenance needed. Who cares? These historic boards have their own little kingdoms going. Meanwhile they don’t have to foot the bill for any of the things they want done.
“said he found a new house that he’s interested so he’s even more flexible”
I would be inclined to terll him that flexibility will do him well either when 1) he bends down to kiss his @ss goodbye, or when 2) he is bent over a straight-backed chair by an all-cash-buyer.
Two more acquaintances in their fifties have lost their jobs, one with Dell, the other with Hewlett-Packard. The two foreclosures that sold in the neighborhood are being turned into rentals but one is having extensive improvements made. Third foreclosure still has the family living in it. They are slowly moving their things out. Among the 20-something crowd, even with a degree, many are living at home or sharing a house with 3 other people, lucky to have 25 hr/wk retail jobs at minimum wage. It’s bad out there and it is getting worse by the day.
tell, too
#18 Like last weeks.
Out,
The model of graduating and moving into one’s own apartment and saving for a house, etc. is a recent historical development and, like US manufacturing hegemony after WWII, it may be an anomaly.
The focus so many seem to have in only hiring freshly-minted whatevers, regardless of field, is self destructive. If one fails to invest in employees, they need to invest in themselves (not that this is a bad thing), and the bond of loyalty between the parties is lost. Thereafter, the employee sees no rerason not to sell out the employer at the first opportunity to better himself or herself. Companies used to have a marriage of sorts with employees, now many seem to be focusing on one-night hookups. If they get scre-wed because of it, and maybe catch a little something nasty, it is their own doing.
Back to the saltmine.
Like I siad yesterday, college grads, will nto be buying houses anytime soon.
http://www.nytimes.com/2011/05/19/business/economy/19grads.html?_r=1&hp
22. Outofstater says:
Two more acquaintances in their fifties have lost their jobs, one with Dell, the other with Hewlett-Packard.
—–
This looks more like a depression than a recession. I think the government is cooking their books to put the best spin possible on the economy but they can’t hide from the reality. There are no new jobs. Job growth at McDonalds and Walmart don’t count, and neither do seasonal cencus takers.
Shore #25 – I have been ranting for some time about how the idea of wide spread home ownership is less than 60 years old. Why do people believe this is the norm? 60 years over the course of history is but a blip!
Ket,
Here is some J Crew you can get into:
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re: # 28 – 3B – and yet the US has a shortage of skilled labor so we import millions of workers from Central America?Approx 1/3 of Airlines Flight Attendants have college degrees.I could go on an on but we are a service based economy a degree in English Lit is not going to get you a high paying job anywhere.
Mike Rowe (Dirty Jobs) did speak to Congress recently on the topic.
Mike Rowe doesn’t want to be considered an expert and doesn’t want to talk about policy.
The host of the Discovery Channel’s “Dirty Jobs” merely came to Washington Wednesday to tell members of Congress and the public that those “dirty” jobs should get some more respect.
Rowe joined up with the “I Make America” campaign, an effort supported by the Association of Equipment Manufacturers, to talk about strengthening domestic manufacturing jobs.
“I am the opposite of expert, I am a good sport, I am a perpetual apprentice and the only qualifications I really have are that I’ve been to most every state and I’ve had about 300 dirty jobs,” the TV host told Yeas & Nays, calling himself a “B-list” celebrity.
Rowe explained that “dirty” jobs, like those in manufacturing and farming, used to mean success, but now look like settling. He wants that to change.
“I don’t think the country is going to fall back in love with manufacturing and I don’t think these policies are going to change, until or unless we reignite a fundamental relationship with dirt, work, and the business of making things, as opposed to the business of buying them,” he said.
He said one of reasons this is occurring is because community colleges and vocational education have taken the backseat to four-year college degrees.
“It’s not happening because people hate community colleges, it’s not happening because people hate the trades, it’s happening because we’re promoting a very specific kind of education at the expense of the others,” he said.
And while Rowe’s lobbying trip was billed as his dirtiest job yet, the Baltimore native didn’t quite come away with that impression.
“It’s a suspicious job,” he said, smirking.
Also…..
http://www.mikeroweworks.com/2010/06/to-what-degree-do-you-think-a-degree-matters/
About that NY Times piece, Many With New College Degree Find the Job Market Humbling, how many people do most of us know who have had the means to make more than one multi-hundred-thousand-dollar purchases? For most folks, they get one chance (well multiple ones I suppose if they sell the one asset and then use it towards the purchase of another), and for most of us it ia s house. We may sell the asset to buy something else, but few folks are in the position to own multiple multi-hundred-thousand-dollar assets at once: Grim and the Stu-Gators are some notable examples. Even there, the Stu-Gators are pretty-well mortgaged.
When one buys an education, one may use it but one may not sell it. Taking on six-figure debt for an education is folly. It may well be worth spending that amount of money on an education, but I would never suggest that one should go into debt to buy an education that will saddle them with six-figure debt.
Betty Lui is definitely the hottest anchor on TV hands down
Philly Fed and Existing Home Sales, Yikes. Go back to sleep.
#33 College is not really all that expensive in one way. You can get a 4 year degree basic BA/BBA from Rutgers for instance for about 12k a year. That of course would entail living at home, and perhaps, horrors of horrors having a part time job.
The problem is kids and their parents insist that they must go away,and the tuition room and board then gets to be quite expensive. It is one thing to debate whether 50K a year or more is worth it for the Ivy Leagues, but when every run of the mill private college costs that much than it becomes just ridiculous IMO. I have always argued that for many kids today, going away does not in fact lead to many of them growing and maturing, but rather they get to play at being adults for 4 years, while student loans and or their parents foot the bill. Once the 4 years are over, many have a hard time adjusting to life in the real world.
I know some one whose parents could have sent the child anywhere, wrote the check every year without thinking twice. She wanted to be a nurse, and as such she went to a local state school, with a good nursing program, kept her part time job, and graduated in FOUR YEARS!!! She is now working in the field she enjoys, has no debt, and has her own apartment.
Existing-home sales slipped in April, although the market has managed six gains in the past nine months, according to the National Association of Realtors®.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, eased 0.8 percent to a seasonally adjusted annual rate of 5.05 million in April from a downwardly revised 5.09 million in March, and are 12.9 percent below a 5.80 million pace in April 2010; sales surged in April and May of 2010 in response to the home buyer tax credit.
Link: http://www.realtor.org/press_room/news_releases/2011/05/sales_ease
Your going to love this.
Lawrence Yun, NAR chief economist, said the market is underperforming. “Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger,” he said. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
Affordability, come paired to what 2006. Job creation, yes many homes will be bought with those Micy D jobs & our all time fav pant-up demand.
Nom,
http://www.observer.com/hedge-funds-running-farms-05172011?page=0
I’ve got 3 kids going to college by September of 2013 and all of them will be taking loans if they want to go to an out of town school and pay for room and board. My daughter is starting school in the Fall. She will attend Bergen Community for free under the NJSTARS program. My sons are high school sophomores and it is too soon to tell where they will be headed.
All 3 are bright kids. Before the economy tanked they would have all been headed to private colleges, living away from home. Now sanity will likely prevail!
30 Year Realtor says:
May 19, 2011 at 7:07 am
Normally I would give the guy the name and number of a local broker I know, wish him good luck and laugh. Now I need the work and I’m not laughing!
…
Sorry to hear that, 30 Year. Is this the worst you’ve seen it? What’s the general consensus amongst your fellow realtor colleagues? My sister wants to drop out of college and become a realtor and I’m trying to help her not do that but I’d like to hear from a seasoned veteran who’s got better perspective than my newbie realtor friend who keeps telling her the market has leveled off and investors are coming back.
Fed report out of Philly not so good.
Link: http://www.philadelphiafed.org/research-and-data/regional-economy/business-outlook-survey/
Indicators Suggest Growth Has Slowed
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from 18.5 in April to 3.9, its lowest reading since last October (see Chart). The demand for manufactured goods, as measured by the current new orders index, showed a similar slowing: The index fell 13 points while the shipments index declined 23 points; both remained positive, however, suggesting slight growth last month. For the first time in eight months, firms reported that unfilled orders and delivery times were falling — both indexes were slightly negative this month.
Six-Month Indicators Fall Sharply
The future general activity index decreased 17 points this month, following a 29-point decline last month (see Chart). The indexes for future new orders and shipments also declined, decreasing 12 and 17 points, respectively. The index for future employment, which had been improving in recent months, fell back 15 points. Still, more firms expect to increase employment over the next six months (29 percent) than expect to decrease employment (7 percent).
#39 Job creation??? I guess Larry does not understand that job creation in and of itself does not mean housing should be stronger.
Are the 50k Mc Donalds is hiring going to go out and buy houses?? Is the recent college grad loaded down with debt and a 25k year jog going out to buy a house??
Is the guy who has been out of work for 6 months or a year or more who might have bought before the lay off, who is now rehired, is he running out right now to buy a house?? Do you really think that is the first priority??
Silly, silly Larry.
#43 Jersey Girl – Is this the worst I have seen it?
Out to dinner with a friend with more years in the biz than me the other night and we were discussing the state of the market. I said that I try to look back over my career to find a time I can compare to the current market and he interrupted me. My friend said, “there is no comparison!” Sad but true!
If I remember correctly the number of licensees in NJ is down about 30% from peak and there are still too many agents. The business is changing. Brokers I know who have run large, successful offices for decades are talking about leaving the business entirely. Multi office companies and franchises are searching for a new business model for the sake of survival.
To quote a regular poster on the blog, “any questions”?
http://seekingalpha.com/news-article/1121052-home-sales-dropped-in-april-foreclosures-declined
Home sales dropped in April, foreclosures declined
WASHINGTON — Fewer people purchased previously occupied homes in April. Activity among first-time homebuyers increased and foreclosure sales declined, but those factors weren’t enough to signal a recovery in the weak housing market.
Sales of previously occupied homes fell 0.8 percent in April to a seasonally adjusted annual rate of 5.05 million units, the National Association of Realtors said Thursday. That’s far below the 6 million homes a year that economists say represents a healthy market.
Purchases made by first-time homebuyers rose 3 percent to 36 percent. That’s still below the 40 percent that the trade group says is consistent with better markets.
Annual sales hit a record high of nearly 7.1 million homes in 2005. Since then, sales have fallen in four of the past five years before hitting a 13-year low last year. Sales are falling even as prices decline. The median sales price in April rose 2.4 percent from March, to $163,700. But it’s still down 5 percent from the same month one year ago.
Sales of homes at risk of foreclosure fell 3 percent in April, to 37 percent of all purchases. Foreclosure sales declined only because a large number of those homes are backlogged in the courts. They have been held up by a state and federal probe into troubled foreclosure practices by lenders.
A record 1 million homes were lost to foreclosures last year and foreclosure tracker RealtyTrac Inc. expects 1.2 million more will be lost this year. Homes at risk of foreclosures usually sell at 20 percent discounts compared to their original listing price. So when sales of distressed properties rise, prices fall.
Sales fell across most regions of the country. In April, sales declined 7.5 percent in the Northeast, 1.6 percent in the West and 1 percent in the South. But they rose 5.7 percent in the Midwest.
“unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
MIW [39],
I don’t understand why the appraisals aren’t mark to fantasy. After all if the IB books and the fed balance sheet are marked to par why not mark the underlying the same?
When will the RE industry market gap insurance? Make it mandatory if the down payment is less than 30%. Goldman can structure the product and sell to AIG. Of course, down the hall, bet that the product will implode.
#47 Mike You do know that this does not apply to that timeless enclave nestled on the banks of the mighty Hackensack River.
#39 A “steady level of low appraisals that result in contract cancellations” is being blamed for the lower sales. Isn’t this putting the cart before the horse? Couldn’t it actually be that the properties aren’t worth the agreed upon price.
I just sold my house in April after 8 DOM. My next door neighbor with exact same floor plan but no finished basement or updated baths has been on market sine Jan 4th. His house came on too high. When we listed we came in under him after reviewing all recent comps and wanting to actually sell. Neighbor was pi$$ed. He has since made two price adjustments and is still not selling.
He divulged to me (after our sale) that his property was under contract in Feb with a price close to his original asking. Well, they got through inspections etc, but the house didn’t appraise. His buyers walked and bought something else.
In the area that we are looking to purchase, a nice looking house is listed 200k over what it was purchased for in 2005. It is a beautiful house but seriously overpriced. They recently had a contract at a price right around where they bought it. Guess what? It appraised for 200k less. Buyers walked.
Clearly, this is all the appraisers fault. ;0)
Here is your spring selling season,”In April, sales declined 7.5 percent in the Northeast”.
Per Gary “Any questions”
3b Where is Jets?
They may be appraising lower because that is what they are worth right now, just a thought.
BC “When will the RE industry market gap insurance? Make it mandatory if the down payment is less than 30%. Goldman can structure the product and sell to AIG. Of course, down the hall, bet that the product will implode.”
Excellent, innovation in financial instruments will solve all our woes. It has been working out so well after all.
Nobody complains when the appraisals are out of whack the other way. Sellers feel good because someone else agrees that their house is special. Buyer feels good because they now have “expert” agreement that they didn’t over pay.
An appraisal is only a snapshot of value at a moment in time. The value is only as good as the available comparable data. There are many times that I complete a price opinion and know that the data paints a picture that differs from the reality.
How NAR can allow their Chief Economist to blame appraisers for the market being in the sh*t is insane.
#52 I thought he was here earlier this week. Maybe he is busy picking up all the available inventory in that bucolic hamlet that hugs the mighty Hackensack.
Man that Philly fed number was butt ugly.
“the diffusion index of current activity, decreased from 18.5 in April to 3.9, its lowest reading since last October”
Green shoots my sisters a**.
Paging Ben B, paging Ben B get QEIII on the launch pad, OE to infinity & beyond…..
3b he was, just wanted his thoughts on the data. Oh wait I forgot the data is meaningless in Brigadoon on the hacky.
So as not to be accused of being to negative claims came in at 409 hurrah!, please reference posts 18 & 24 in regard.
Are Lawrence Yun and the NAR still lying? Core Logic says they juiced sales since around 2006, Core Logic’s numbers come in about 20% less than the NAR.
CoreLogic data comes from courthouse recordings, while the NAR use a sample method from about 40% of the MLSs.
Who is telling the truth here?
#58 None of the data applies to Bring on Hacky. Remember as in the original Brigadoon (which I coined, I have to mention that, as it is my only claim to fame on this board), it is a magical mythical place,and therefore nothing negative can ever be applicable to either the original Brigadoon, or Brigadoon-on-Hackensack.
#57 But didn’t Ben-Ben say no more Q eees??
Out to dinner with a friend with more years in the biz than me the other night and we were discussing the state of the market. I said that I try to look back over my career to find a time I can compare to the current market and he interrupted me. My friend said, “there is no comparison!” Sad but true!
Any Questions?
Lone Ranger [47],
Brilliant. And you know what? They probably already have it in the pipeline.
3b 61 Checks in the mail, I’ll pay you on Tuesday, I won’t (well you know the rest).
He will I have no doubt, he is in a box gotta keep the party going or it all goes to sh*t. Not that it won’t go that way eventually, just depends on who you want screw.
Brigadoon on the hacky…
LMAO!!
Dear Sellers,
Tick… tick… tick… tick…
Dear Sellers,
You’re gonna need a bigger boat.
Gary it’s the Hacky if your from our neck of the woods.
Jets12 is out unleashing his “pant-up demand” on the good citizens of Brigadoon-on-Hackensack.
To be fair, and much to my chagrin, I haven’t heard a peep from Jets12 about his “Little town that could!” (TM) since he was confronted with the fact that median sales prices in Brigadoon-on-Hackensack were down week-over-week, month-over-month, and year-over-year, not up 26% …
Need some advice for a friend. He is closing on the sale of his house and went to the town to get the CO. The inspector listed 16 violations, most of which were there when he bought the house back in 2003
The stairs to the attic and basement need a hand rail even though they never ever had one. There seem to be missing permits for work done in the 80s. They are complaing that the driveway was paved without a permit. The washing machine in the extension drains to the slop sink in the basement. The chimney needs a certification as the have a tax record that says it has a crack and can’t be used.
They have the home inpection from when they bought that will show the likes of the driveway and I told him to go back over the old MLS photos from when he bought that would show the washer dryer in the extension.
I personally think the inspector is looking for a brown envelope, but can they be held accountable for issues missed on the towns previous CO.
gary
http://files.sharenator.com/Failboat_Failboat_Collection-s480x360-80206-580.jpg
[70] When I read a post like that, I really think that I will never, ever, own a house in NJ again. The bullying from the local mob government is never-ending.
Mike,
I agree… it’s always been known as the “Hacky”. Those suburbanites just don’t understand! :)
Any takers?
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Kettle,
Cue in the movie score from Jaws! :)
#70 What is really scary, is how many others in Brig on Hacky might also believe that. Has he been telling friends and neighbors the same nonsense?? And did they lap it up, an believe it as gospel??
Fabius 70 in many cases things that were Ok (code) have changed, dryer in my past rental had plastic flex type exhaust, now it has to be the metal flex one. You want to sell you fix. The washer issue may be one of these changes. By the way if he fixes the washer use burst lines to play it safe with the inspector. Not that I doubt for a minute that the inspector is looking for some cash.
#74 gary: That might have been back in the day. Now please refer to it as one of the following, majestic, mighty, or historic.
When I finally rent the bottom unit in my multi when we move to our Glen Ridge home in about a month, I plan to offer three unique promotions which will bring the rent down 50% (if qualified). A 20% ‘Friends and Family’ discount. A 20% ‘Employee Pricing’ discount where, “What we pay is what you pay.” Plus a 10% ‘Loyalty’ discount if you were ever a prior renter. I can’t wait to see the offers fly in. I mean, who is crazy enough to discount rent by half.
Oh & on the hand rails , yes they are needed by code. Just because this stuff was over looked , missed, or enveloped away by the prior seller when he bought will not negate the need for compliance now. Could be a different guy maybe this one does his job.
Amazing we are fully in another Dot com bubble even bigger than the last.
http://blogs.wsj.com/marketbeat/2011/05/19/linkedin-table-groans-under-weight-of-money-left-on-it/?mod=yahoo_hs
Hey, John. Are you now a producer for CNN?
http://www.cnn.com/2011/HEALTH/05/19/std.protection.ep/
Poppin in from the midwest, 30 year I went to Bergen and I’m moderately successful, state school also. As I told my nephews you want and experience eat some shrooms. you want an education get one that won’t enslave you and has the potential to keep you fed for a good portion of your life. One of them wanted to join the army said make it the coast guard or airforce and you have my support. To sensitive and smart to be meat for the machine
B.O. was just on TV. He is giving away money we don’t even have to the Middle East. If he is re-elected Americans deserve whatever they end up getting.
change you can believe in but can’t afford
[41] relo
I have been aware of this trend for years now. But the hedgies are not true survivalists, just good investors. Farmland will continue to command premiums. If TSHTF, that asset will continue to produce.
Question is, what if we have Armageddon? Will hedgie investors be working the field and bringing home the crops? Will they flock to the land and set up camps there to ride out the inner city meltdown? I don’t think that is their intent (nor should it be because a hedge fund investor can afford their own damn Nompound).
The Nompound: Doesn’t seem so nutty anymore, does it?
[41] relo
The last two paragraphs say it reasonably well:
“There is, of course, a slightly more sinister reason to develop a sudden interest in agriculture. Last year, Marc Faber recommended to anyone: “Stock up on a farm in northern Norway and learn to drive a tractor.” He sees a “dirty war” on the horizon, playing on fears of a biological attack poisoning food supplies. Those sort of fears drive capital into everything from gold (recently at an all-time high and a long-time safe haven for investors with currency concerns) to survivalist accoutrements. In this particular case, one might buy the farm in order to avoid buying the farm.
That may seem extreme, but even the lesser scenarios are frightening to some. When asked if this is an end-of-the-world situation, the hedge fund manager replied: “It really is. I tell my fiancée this from time to time, and I’ve stopped telling her this, because it’s not the most pleasant thought.” He pauses for a moment. “We just can’t keep living the way we’re living. It’ll end within our lifetime. We’re just going to run out of certain things. We’ll just have to learn how to adjust.”
/snip
And on that happy thought, I am out.
mikey (39)-
Seems like NAR is calling for a return to the good old days of inflated appraisals and outright appraisal fraud. Blaming a lack of sales on the absence of an environment of fraud is not only shameful, it is surreal.
Today is one of those days when I hate my industry even more than usual. The whole country and economy are on the verge of complete ruin, and asshole criminals like Larry Yun are given free run of a news cycle to promulgate the latest lie du jour.
No one will be spared; no one.
jersey girl (43)-
Your pal wants to drop out of college to be a Realtor?
First, she should simply drop out of college.
Next, if she still wants to sell real estate, you should euthanize her.
My business is overstocked with idiots.
Freshly-minted idiots need not apply.
30 Year (45)-
My guess is that it was probably worse trying to sell farmland in Oklahoma or Kansas during the Dust Bowl.
However, most of it was likely REO, and the banks would push it out to any cash buyer at any price.
Would be fun to see somebody at a place like Wharton work up a comparison between the Dust Bowl SW and current Depression NE real estate markets.
glutueus (70)-
Those CO issues need to be corrected. Otherwise, they can become:
– an insurance issue
– a tax issue
– a fresh, new permit issue for the new owner
– a hindrance to future sale of the property
#92 and current Depression NE real estate markets.
Please be advised that there is a hamlet that cradles the banks of the historic Hackensack River where your above comment does not apply.
That hamlet can kiss my monty white ass.
Ham is very popular in that hamlet. Mainly of the porkroll variety. Of course, it is consumed in private as to not reveal the hue of blue which is supposed to be absent in their collars.
DSK gets 1mm bail.
Seems to me the most commonly found meat in Brig-on-Hackensack is tubesteak.
Latest Mike Krieger:
We all know by now that the centrals planners believe the tail wags the dog. So the economy doesn’t lead to higher stock prices but higher stock prices will lead to a better economy. Insane? Absolutely. Is it their religion? 100%. The other important thing for investors to be aware of now when they are comparing the current state of affairs to what many lived through in the 1970’s is that the central planners have learned some lessons. What we must always remember about central planners is that they will never renege on their core philosophy which is that an elite academic and political class in their wisdom are better stewards than free humans interacting in a marketplace. That said, most people do not share their worldview for obvious reasons (who wants their lives micromanaged?) so the trick of the central planners is to micromanage your life while you think you are in charge. As Goethe said “None are more hopelessly enslaved than those who falsely believe they are free.” He didn’t just make up this clever quote, it is a tried and true method of the most successful control systems throughout history. So even the brainwashed masses out there understand that price controls were tried in the 1970’s and failed. We also know why. Therefore, the last thing the current group of central planners will want to do is announce price controls. That doesn’t mean they don’t attempt them anyway. They have been rigging stocks in the United States consistently for the past two years and most people get this and accept it as a part of the current state of disunion we are in. However, as I wrote last week we have now entered Phase 2. This was represented by the raid on commodities.”
http://www.zerohedge.com/article/krieger-printing-and-propaganda
Brilliant. More Krieger:
“So part of the propaganda “tool” used by the central planners is the manipulation of financial markets, which seems to have increased in emphasis in recent weeks. The other consists of outright lies and disinformation. Put yourself in The Bernank’s shoes for a moment. This guy loves printing more than Hewlett Packard. He is despondent beyond belief that the markets and an increasing amount of financial commentators have criticized his precious QE insanity. Meanwhile, the economic data is starting to roll over and housing looks set to launch into another spiral lower. So what is a Bernank to do? Bluff the heck out of the markets. He knows that the only way he can have cover for his printing party is to smash commodities because the rise in commodities is the biggest point of contention amongst the masses. Unfortunately, most people don’t delve deep enough into how the system works to have the serious moral and philosophical issues with the central planning system as I and many others do. The Bernank knows this. Bread and circus is a tried and true method. Problems emerge when the bread runs out. So the period we are in right now is huge for the Bernank and his merry band of mental patients. They don’t have to make any decision on more printing until June when the current fiasco ends. It is during this window when they think they can have their cake and eat it too. They can print like mad yet at the same time claim they are about to stop and maybe even tighten. Yeah, and the Easter Bunny is sitting next to me trading LinkedIn shares.
In any event, this is The Bernank Bluff and he is milking it for all it is worth while at the same time orchestrating raids on commodity futures. This is just a massive psychological game against the investor class to keep them from the assets that will actually provide protection. Well Bernank you’ve got a month left. Make the most of it because after that you need to act. I can’t wait to see you try to tighten as the economy rolls over. “
Shocking…. Donald Trump’s school is a sham.
The New York attorney general’s office is investigating whether a for-profit school founded by Donald J. Trump, which charges students up to $35,000 a course, has engaged in illegal business practices, according to people briefed on the inquiry.
snip
“They lure you in with false promises,” said Patricia Murphy, 57, of the Bronx, who is among the former students suing Mr. Trump. She said she spent about $12,000 on Trump University classes, much of it paid with credit cards, in the hope of escaping her career as a part-time teacher and becoming a real estate investor.
Her instructors said they would introduce her to banks, help her secure loans and walk her, step by step, through deals, she recalled. “They did none of that,” she said. “I was scammed.”
Mr. Sorial said the school was looking into Ms. Murphy’s claims.
Carmen Mendez, 59, a public school teacher in Brooklyn, wrote to the Better Business Bureau in 2009 about her disappointment with the school — and with Mr. Trump. She said she had dipped into her retirement savings to pay nearly $35,000 for the classes because “Mr. Trump is a very respectable person, and I thought that Trump University was a real institution.”
An instructor promised her, she wrote, that the school guaranteed financial assistance to purchase real estate. But once she had enrolled, Ms. Mendez wrote, she was refused such assistance. Because her credit cards were loaded with debt to pay for the classes, mortgage brokers told her she was ineligible for a loan, she said.
“I am writing because I want people to be aware that Trump University is not a real educational institution,” she told the Better Business Bureau. “Please advise other people so they do not lose their savings in these difficult days.”
http://www.nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?_r=1&hpw
Reinvestor’s Alma mater in trouble.
The New York attorney general’s office is investigating whether a for-profit school founded by Donald J. Trump, which charges students up to $35,000 a course, has engaged in illegal business practices, according to people briefed on the inquiry.
http://www.nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?_r=1&hpw
eh? link to NY Times moderated?
http://www.nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?_r=1&hpw
The end is nigh (Web 2.0 Edition):
http://finance.yahoo.com/q?s=lnkd&ql=1
Chi – Amazing Robot trading the retail investors just lost Billions.
Q to the board: I was working on a case involving the potential sale of a large farm property. One buyer was discussing how he originally made his money and he said that he ran a gambling business in Keansburg…..he is, or was, mafiosi yes? I couldn’t think of any other reasonable explanation…..
re # 105 – last name end with a vowel?
Fabius 70.
Tell you friend to get estimates and if he has a buyer, square it at the closing table. That inspector may be a creep, but some of those violations are serious.
babs (105)-
In most towns in NJ, you can’t close title with an open permit file.
WTF do you think? :)
Juice Box says:
May 19, 2011 at 5:10 pm
re # 105 – last name end with a vowel?
84- Thought I heard something about that this morning. I had to march away from the t.v. when I heard something about Obama wanting to give billions somewhere in the Middle East to promote job promotion. Are you kidding??! Tell that to my 5 + friends who have been out of work here for over 1 year. I didn’t want to go to work angry so I turned the t.v. off.
Experts here… What is the code for the deck rails for 10 feet (give or take a little bit) high deck? Is 36″ to the top of the rail fine?
S
whine (108)-
I dare anyone to tell me that this is not part of a systematic plan to completely destroy what shred of the US middle class is left.
The only thing we should donate to these barbarians is a barrage of daisy cutters and tactical nukes. Or, we should leave them to kill each other…which is about as evolved as their patterns of thought get.
Kill them all, and take their oil. The ones who don’t have oil, let them kill each other.
106.
I would just pay for the permit. Does he want t sell a house or not? Is he being bribed? Yes. Just pay it.
Your town and plot of land doesn’t belong to you, it belongs to the family that has been running it for the last 30 years or so. Your job is to pay them for their courtesy.
I wonder is this is subtle revenge for being left of the Wedding guest list. He will get a massive positive reception after the polite greeting the Queen got.
http://tinyurl.com/3rmmgsg
Thanks clot.
Thatis is the most consise advice. It will come down to how much he wants to close. The plumber has said that to do the Washing machine right is big bucks. The chimney will cost him big bucks. The big question will be if the town make him rip up the driveway or just pay the permit and survey.
Stay Classy Joisey
http://www.cbsnews.com/8301-31749_162-20063956-10391698.html
Jobless Claims Fall, But 4-Week Average Hits 7-Month High
http://seekingalpha.com/article/270828-jobless-claims-fall-but-4-week-average-hits-7-month-high
“There was good news on U.S. initial jobless claims on Thursday: They fell by 29,000, to 409,000 for the period ended last week. That was better than the 11,000 drop in claims that economists had been expecting, and it provides some relief following the mysterious and troubling spike in claims in late April, which weighed on optimism that the U.S. employment situation was at last making some noticeable improvements.
Yet, it’s not all good. The previous week’s claims were revised slightly higher, to 438,000 from 434,000. And more importantly, the much-watched four-week moving average, which smoothes out some of the weekly volatility, rose to 439,000. That’s up 1,250 from the previous week and marks the highest level since last November.”
It does go on to say a decline is expected in the 4 week average over the next few weeks, we shall see.
“he is, or was, mafiosi yes?”
There is no such thing as LCN. It is just a manifestation of Anglo pique that southern europeans had the temerity to try to have a voice in society.
Damn Sicilians just figured out fast that a man without a gun has no voice in society.
I like guns.
Jim/House Whine: re… aid to Egypt…
Compared to extension of W’s tax cuts, TARP, wars of choice, etc., this is peanuts. Even compared to oil subsidies, simply because this is a one-time deal.
This from an often unfairly harsh critic of Obama…
“I am willing to take the bruises and stand by Obama to engage countries like Egypt and Tunisia and stay involved in Libya and finish the job in Iraq,” [XYZ] said. “I am willing to take American dollars at a time when we’re flat broke, go back home and suffer the consequences of sending aid to Egypt at a time when [my state] has 10 percent unemployment because I believe the Egyptian revolution is about a new way of doing business that’s better for us.”
If Obama gets reelected, we deserve what we get: a good president.
I’ll give Oblama credit for giving the green light to unleash the predator drones in Afghanistan and ultimately, for releasing the hounds who greased that motherf*cker in Pakistan. Other than that, his domestic policies are a f*cking disaster.
Sas3 – Is he proposing no more MIltary aid? Perhaps beat swords into plowshares? Our “aid” to Egypt is for the Military. In 2010, $1.3 billion went to strengthen Egyptian forces versus $250 million in economic aid, and the US Miltary also donates equipment to the tune of hundreds of millions. — The Obama administration asked Congress to approve similar sums for the 2011 fiscal year.
Where is the change?