From the WSJ:
Lenders Tiptoe Into Bulk Sales
Glut of Foreclosed Homes Spurs Some Trial Runs
By JAMES R. HAGERTY
As the glut of foreclosed homes swells, banks and other lenders are starting to warm to the idea of selling some of the homes in bulk to investors, a departure from the practice of selling homes one at a time.
For the past year, investors have been eager to buy large numbers of homes from lenders at knockdown prices. Lenders have generally resisted that idea, but now some are trying it out on a small scale.
Barclays Capital estimates that banks and loan investors owned 871,000 foreclosed homes as of Nov. 1, up from 414,000 a year earlier. Barclays forecasts that this inventory will peak at around 1.4 million homes in mid-2010.
That deluge has persuaded some banks to start bargaining. In recent months, Wells Fargo & Co., Fannie Mae and Synovus Financial Corp. have negotiated a few transactions and have signaled to investors they might be willing to do others.
So far, no major lender has fully embraced the idea of selling in bulk. In many cases, they say prices that investors are demanding remain too low. The banks say they can get more money for most homes selling them through local agents. If investors buy homes and quickly flip them for a higher price, banks feel they have just let a middleman earn proceeds they should have been able to get on their own.
“We are getting a ton of bottom fishers,” says Barbara Desoer, president of mortgage and insurance services at Bank of America Corp., but the prices being offered aren’t attractive. Ms. Desoer says Bank of America, which this year became the nation’s largest mortgage lender by acquiring Countrywide Financial, isn’t doing bulk sales for now.
…
James Odell Barnes, an investor in South Carolina, says he and a group of investor partners recently paid about $1.2 million for a bulk purchase of about 800 homes from Fannie Mae. That works out to about $1,500 apiece on average. A large share of the homes were in Detroit and other depressed Michigan cities; others were in cities including Indianapolis, Pittsburgh, Memphis, Tenn., and Toledo, Ohio. Mr. Barnes says he quickly resold for about $50,000 one of the Detroit homes purchased from Fannie for $1,800.
…
Fannie’s main rival, Freddie Mac, says it is open to bulk sales but hasn’t been able to reach acceptable terms. “We don’t accept 20 or 30 cents on the dollar,” says James “Chris” Bowden, a Freddie vice president.
…
Partly for public-relations reasons, lenders are expected to be more open to considering bulk sales to nonprofit groups seeking to acquire homes in poor neighborhoods as a way to prevent blight and create affordable housing.Housing and Neighborhood Development Services, Orange, N.J., is setting up a nonprofit company to pursue such deals. Harold Simon, executive director of the new company, says it is negotiating to buy mortgages backed by about 100 homes, mostly in northern New Jersey. He declined to identify the seller of those loans.
Good Morning All!
From Editor & Publisher:
Gannett Cuts 206 Jobs at 6 New Jersey Papers
Gannett Co. Inc. has eliminated 206 positions at its six newspapers in New Jersey due to declining advertising revenues and the worsening economy.
Gannett, the nation’s largest newspaper company, announced in October that it planned a 10 percent work force cut nationwide in response to declining revenue. The latest reductions follow a 3 percent cut announced in August.
The company began notifying affected employees Tuesday at the Asbury Park Press in Neptune, the Courier-Post in Cherry Hill, the Home News Tribune in East Brunswick, the Courier News in Bridgewater, the Daily Record in Parsippany and The Daily Journal in Vineland.
“The economic downturn we are facing is severe and is expected to last throughout next year,” Thomas M. Donovan, president and publisher of the Asbury Park Press and vice president of Gannett’s East Newspaper Group, said in a statement published on the Asbury Park Press Web site. “We have reduced expenses significantly throughout this year. But, unfortunately, as we looked ahead to economic forecasts for 2009, it became clear that we needed to make further reductions.”
Strap on your seat belts. A friend of mine is a realtor in another State and sends out boiler plate emails with, well, below are some sample quotes:
“The over-inflated ridiculously high prices of just two years ago are now a thing of the past. That means that prices are at lows not seen in decades. It is the perfect storm for the real estate market. Mortgage interest rates are very low and we have a huge over-supply of resale inventory. You add all of this together, and for the real estate investor and the natural real estate buyers, the ones who what to move up or move down or move to a new area or whatever the reason is, you have one of the very best times in years to buy property.”
“Economists predict that the year of 2008 is going to go down in the history books as the year that the current real estate market makes a u-turn and starts to stabilize and appreciate again. Everyone keeps saying now is the time to buy. It’s not only the time to buy, it’s one the very best times to buy we will see for years to come.”
Economists predict that the year of 2008 is going to go down in the history books as the year that the current real estate market makes a u-turn and starts to stabilize and appreciate again.
Make a u-turn in 2008? In 27 or so days remaining? During what is traditionally the weakest part of the real estate season?
Right.
Hmm… You know, I haven’t yet heard a real estate agent say that the market was poised to rebound in the spring. That was the in-vogue statement last winter.
From Main Article-
“recently paid about $1.2 million for a bulk purchase of about 800 homes from Fannie Mae. That works out to about $1,500 apiece on average.”
Now how does this effect comps in the areas these homes are in?
From the NY Times:
Manhattan Awash in Open Office Space
Last year, when the New York real estate market was still frothy, large blocks of office space were hard to come by. Not anymore.
Almost 16 million square feet is currently listed as available in large blocks in 68 office buildings in Manhattan, according to Colliers ABR, a commercial brokerage firm. That is nearly double the space available a year ago, both in terms of the number of large office blocks — which in New York usually means 100,000 square feet or more — and in terms of total square feet.
Those figures are widely expected to go much higher, said Robert L. Sammons, the managing director of research for Colliers ABR. He said it was difficult to get a handle on exactly how much space financial companies alone might put back onto the Manhattan office market over the next year or so.
it’s always a good time to buy
#3-DL
“You add all of this together, and for the real estate investor and the natural real estate buyers, the ones who what to move up or move down or move to a new area or whatever the reason is, you have one of the very best times in years to buy property.”
-couple of things missing from this paragraph:
1-As long as you don’t need to sell ANYthing
2-you must live in florida or vegas
3-have an 800 + FICO
4-have 20% cash to put down
I’m sure to have missed a few…
DL what state is your friend from?
7- I guess they started making more land in Manhattan, something THEY said could never happen.
http://online.wsj.com/article/SB122826619188174465.html
“Sheila Bair’s Mortgage Miracle”
The FDIC has a loan modification for you….
http://www.marketwatch.com/news/story/Chinas-sovereign-fund-wary-western/story.aspx?guid=%7B5D3506A3%2DA5C5%2D4E21%2DA017%2D83DB4EC282E2%7D
“China’s Soveriegn Wealth Fund “wary” of Western Banks”
Hong Kong – The fund directors behind China’s $200B sovereign wealth fund said they have no intention of channeling more funds into Western finacial companies at this time, because of limited insight into what kind of shape they are in, and the effect of government bailouts….
CIC purchased stakes in two New York-based financial institutions last year…$3B in Blackstone – $5.6B for a 9.9% stake – in Morgan Stanley. The stakes are now worth about a quarter of their original value.
From CNBC:
US Mortgage Applications Surge by Record Amount
U.S. mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Nov. 28 soared a record 112.1 percent to 857.7, the highest reading since the week ended March 21 when it reached 965.9.
From MarketWatch:
Corporate layoffs surge to nearly 7-year high
Led by massive cuts at Citigroup and other banks, major U.S. corporations announced 181,671 layoffs in November, the highest total in nearly seven years, according to a survey conducted by outplacement firm Challenger Gray & Christmas and released on Wednesday.
More than half of the cuts in November were felt in the financial services industry, which announced 91,356 job reductions, including 50,000 at Citigroup. That’s the second highest monthly total for any industry in the 29-year history of the survey, exceeded only by the 96,333 jobs cut by the transportation industry in September 2001 in the aftermath of the hijackings on 9/11.
At 181,671, corporate layoff announcements in November were up 148% compared with a year earlier. It was the most since January 2002. Layoffs were up 61% compared with October’s 112,884.
The report comes two days before the Labor Department is scheduled to release its report on employment in November. Analysts surveyed by MarketWatch expect payrolls to fall by 350,000, which would be the biggest decline since May 1980.
(8)-
“it’s always a good time to buy”
– or sell a home.
Cooper; #9: She’s in Northern Virginia.
Frist!
this does not sound like fun. i am definitely not as handy as i need to be/could be, and sadly, when things like that go, we’re more likely to call someone to fix it than try to do it ourselves.
(after living for five years in NYC, there’s 0% chance we will buy a place that uses window ac units)
fortunately, we’re not buying a house with any idea other than it is four walls and a roof over our heads.
the hunt continues …
“Hmm… You know, I haven’t yet heard a real estate agent say that the market was poised to rebound in the spring.”
JB,
They aren’t even counting down the days to the Super Bowl. Are realtors capitulating?
In eight years I’ve replaced 1 Washer, 1 Fridge, 1 Stove, 1 Heater, 2 Dishwashers, 1 Built-in Microwave, and 8/9 window air conditioners.
Frankly, you got off cheap, wait until you need to do a roof or boiler.
“China’s Soveriegn Wealth Fund “wary” of Western Banks”
Cindy,
At one point, I thought they would rename the new Met’s park [Citi Field], Abu Dhabi Field. Currently, I guess Hammerin Hank Field is more appropriate.
Fed Funds Field? Or maybe we should stick with the Treasury’s preferred naming convention with something like TPFKACFNOBTTARP (The park formerly known as Citi Field now owned by the TARP)? Would Taxpayer Field be too snarky?
(Bonus points for nested acronyms)
From CNBC:
Planned Layoffs Hit Highest Level in 7 Years
Layoff plans at U.S. firms surged to their highest monthly level in nearly seven years during November, led by the financial and auto sectors, outplacement firm Challenger Gray & Christmas said in a report released on Wednesday.
Job cuts announced in November totaled 181,671, up 61 percent from October and 148 percent higher than November 2007, when job cuts totaled 73,140.
The November planned layoffs was the largest monthly toll since January 2002, when employers announced a record 248,475 planned layoffs.
Just get it over with guys, shutter the windows and padlock the doors. Oh well, off to the pink sheets for this super jumbo lender.
From MarketWatch:
Thornburg Mortgage suspended from NYSE for price fall
A little color on Thornburg.
Thornburg stock was trading in the $270 range in the middle of last year, and was trading as high as $300 a share in mid-05.
Current tick?
30 Cents.
And this is after a 10-1 reverse stock split in September. Which would make the adjusted price:
$0.03 a share
From $300 to 3 cents in 3 years.
Amazing.
http://www.iht.com/articles/2008/12/03/asia/03china.php?page=1
(21) BC – More on China….
They are picking up some “bad” habits from us…
“China’s economy, in need of a jump start, waits for citizens fists to loosen”
“He does not know it yet, but Dang Fu has been tapped to save the economy of China and with it, theat of the entire world.”
As one indicator that China is aping the American Propensity to buy now and pay later, he cited the growth of credit cards here. In 2005, there were 13 million credit cards in China; that that number has hit 115 million, and most card holders are under 33.
I call them China’s Baby Boomers because they’re similar to post-war Americans who have only known prosperity, Rein said. They want the best of everything and they want it now.
“TPFKACFNOBTTARP”
JB,
LMAO.
(20) Grim – I bought my daughter a water heater for Christmas – I’m using it…she’s okay with that….
“They are picking up some “bad” habits from us…”
Cindy,
One of our top exports.
http://baselinescenario.com/2008/12/02/china-us-imbalance-recession/
“The Importance of China”
Several excellent links to Brad Setzer at the bottom of the article as well…
I’m on a “China” jag…
30 – That would be Brad SetSer…
The people on CNBC just looked burned out…Talking with some quest her says…
“We have nothing to fear but fear itself.”
“Are you SURE we have nothing to fear?”
“Oh well, yeah, there is plenty to fear but, but,..
“Time for a break..”
smirk – half smile by the lady there…cut to commercial…
lol! Clot get ready for a slew of resumes.
In its complaint, filed in Delaware Chancery Court, High River said the refinancing served only to “delay the inevitable failure of Realogy.” High River also claimed that Realogy was insolvent and the new debt offering constituted a fraudulent conveyance by the company.
http://www.nytimes.com/2008/12/03/business/03realogy.html?_r=2&ref=business
From MarketWatch:
Private-sector jobs fall by 250,000 in November, ADP says
The U.S. private sector shed 250,000 jobs in November, the biggest job loss in six years, according to the ADP national employment index released Wednesday. The loss was in line with estimates of analysts surveyed by MarketWatch. Job losses rose to 158,000 in the goods-producing sector and to 92,000 in the services. The report comes two days before the government releases its report on the labor market for November, with analysts expecting the worst losses in more than 25 years.
NY Giants collectors’ item. Get them before they are banned….
http://www.nypost.com/seven/12032008/news/regionalnews/you__too__can_be_fake_jersey_boy_141949.htm
The people on CNBC just looked burned out
Bosses at CNBC, The Observer has learned, are now preparing to scale back budgets. Sources inside CNBC have heard that the figure could approach a 10 percent overall budget cut.
http://www.observer.com/2008/media/broke-peacock
#3 DL: No offense, you friend is a ding dong. Pontificating on things she obviously knows nothing about.
http://www.doctorhousingbubble.com/
California is a mess…”California alone made up 20% of all nationwide foreclosure activity last month.”
“The state budget deficit is gigantic”
8.2% Unemployment places us 3rd in the nation…
Revenue? Largely made up of….
27% sales tax – 44.7% personal income tax – 9.2% corporate tax
Oh great…
CNBC in house talent is ok on reporting but terrible on analysis. When the Money Honey interviewed Meredith Whitney after she made her credit card call she called her one of the few people who have correctly been calling the melt down since day one. I love it when they get the deer-in-the-headlights look. Everyone one of them is a mile wide and an inch deep with the exceptions of Santelli and Gasparino.
C’mon, Christie
http://www.nj.com/news/index.ssf/2008/12/christie_says_he_will_decide_a.html
lol! Clot get ready for a slew of resumes.
Century 21 and Coldwell Banker are simply too important to fail.
3b: ref 36. What do you expect, she’s trying to sell RE? I don’t hold it against her.
#9 Cooper and the natural real estate buyers,
Yeah, this is not the time for the unatural real estate buyers to buy.
We have nothing to fear but fear itself, and maybe 30% unemployment.
In eight years I’ve replaced 1 Washer, 1 Fridge, 1 Stove, 1 Heater, 2 Dishwashers, 1 Built-in Microwave, and 8/9 window air conditioners.
The heater was a boiler. We have oil heat.
I can’t fix much, but my father was a handyman and my brother is an electrician.
#3 DL: No offense, you friend is a ding dong. Pontificating on things she obviously knows nothing about.
Replace “Economists” with “Larry Yun, Realtor Shill”, and her statement will make perfect sense.
“Economists predict that the year of 2008 is going to go down in the history books as the year that the current real estate market makes a u-turn and starts to stabilize and appreciate again.”
Someone needs to comb this Pimco dude’s hair for him – it is Gross!
From MarketWatch:
U.S. Nov. ADP biggest jobs decline since Nov. 2001
#19 BC Bob: Right after Super Bowl was the begining of the Spring market, according to many realtors over the last few years
Ref my RE friend. She works out of a Re/Max office. I’d be curious to know if anyone else has seen that narrative coming out of Re/Max.
The propaganda isn’t only coming from the office, but the local Realtor boards as well.
I always look forward to the Friday afternoon email from my local board chock full of doublespeak.
They tell me the market is doing just fine, while at the same time announcing that they are holding another Foreclosure/Short Sale seminar because the last one sold out almost immediately.
More from the same release:
“If you’re wondering if this is true in our area…(agency name redacted) conducted 843 transactions in September and 722 in October. That’s two months in a row that we had an increase in the number of transactions compared with the same months last year. That is the first time this has happened in years. Considering we have fewer realtors than we did last year, this is quite an accomplishment and points to the beginning of market improvements.”
A really good article that I think many on this blog will enjoy reading…
*warning – it’s quite long*
http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom/#
49
My Re/Max agent hasn’t sent me that BS.
She actually sent me a blurb on how bad the market actually is right now, as she was talking me into a price cut to stay below the competition.
#45 grim:“Economists predict that the year of 2008 is going to go down in the history books as the year that the current real estate market makes a u-turn and starts to stabilize and appreciate again.”
I am bookmarking this quote.
That is the first time this has happened in years. Considering we have fewer realtors than we did last year, this is quite an accomplishment
No it isn’t it is a type of survior bias. Fewer Realtors and agencies mean the surviving firms gain market share. This is a classical example of “Industry Shakeout”, when weaker firms and players are eliminated in a deteriorating market. Surviving firms may show year over year increases, but it isn’t because of an improving market, its because they’ve taken market share from the failed firms.
(37) Cindy
I think I see your problem—9 plus 45 plus 27 equals 81. No wonder there is a deficit.
#51 DL:“If you’re wondering if this is true in our area…(agency name redacted) conducted 843 transactions in September and 722 in October
I guess maybe lower prices had nothing to do with the increase in the transactions.
Here is a thought, if the sellers keep reducing the prices, the transactions may continue to incrrease.
3b-#42
natural as opposed to performance enhanced buyers
#50 grim:They tell me the market is doing just fine
Do they define fine?
This is why I love this site. No group can spot/call BS faster.
Ain’t she a beaut…And she can be had for the “bargain” price of $769k!
GSMLS#2593181 31 Beverly Rd Madison
http://newmls.gsmls.com/public/show_public_report_rpt.do?method=getData&sysid=%203889810&ptype=RES&report=res_media&pubid=259341&fromPublic=PUBLIC
I’m trying to get my brother to refi out of a 6.5% 30 year. His payment history is excellent but he is self-employed. I keep hearing about 800+ fico. Is that going to be necessary for a refi?
If it was me, I would just stop paying my mortgage and force them to do something. But that’s not advice that I can give him.
(56) Nom…I said “largely made up of….”
Hey – I only teach math to second graders!
You’ll have to go to the article to get the rest of the taxes….
I didn’t write them all down…
Hughes #53-
Are you a seller?
I’m sure that she isn’t sending the same thing to her buyers?
If it was me, I would just stop paying my mortgage and force them to do something. But that’s not advice that I can give him.
I’d suggest speaking with a local (reputable) mortgage broker. There may be refi opportunities right now that don’t involve default. He might want to do it quick, I’m not sure these 5-handle rates are going to stick around.
Hmm, its worth asking whether a high 5-handle would help his situation.
Ain’t she a beaut…And she can be had for the “bargain” price of $769k!
GSMLS#2593181 31 Beverly Rd Madison
Better at $769k than the $869k they were originally asking.
larry yun realtor shill! cant stand that guy how about larry yun wing nut
#62 d2b- i don’t believe 800+ is necessary to refi but you might need the loan to be under %80. again not sure but i don’t think you can refi while holding PMI
-disclaimer
61 Gator
I hope it comes complete with the old people smell.
Goldman buys the Pets.com sock puppet, says there are banking opportunities on the “In-Tar-Web”. And these guys are supposed to be the innovators?
Goldman Sachs mulling online bank, other funding options
68 Barbara – Would you pay extra for that? Maybe it’s already factored into the asking price.
70. Gator
That house screams estate sale. I’m betting no fewer than 4 spawn are salivating and already borrowing (borrowed?) against that lovely. Yep, been involved in offers on these nightmares. There’s always a dispute and they never get to closing, even it it is priced fairly (and this one isn’t). Huge waste of time.
#60 grim: Wow. I wonder if they will provide a GS ATM card. Gee, maybe I can go home again.
http://www.businessweek.com/lifestyle/content/jun2008/bw2008065_526168.htm
I was checking into option-ARM resets and found this…
From June 2008…Businessweek
“The Next Real Estate Crisis”
By April 2009, hundreds of thousands of option-ARM mortgages will begin resetting, bringing on a fresh wave of foreclosures.
60% in CA – Yikes!
“But California won’t be alone. Homeowners are also frighteningly vulnerable in states such as Arizona, Florida, New Jersey and others.”
I wonder what your numbers are? I can’t even get my mind around 60% in California…maybe it’s wrong…
Gator,
I don’t get it. Madison RE is priced ridiculously. There is an empty 50×210 lot on ridgedale ave with a foundation poured, asking $399k. Also listed is a drawing of plans of the finished house for $850k.
I’m waiting for the Wall St fallout to hit Madison but I’m still not seeing it.
Maybe Clot can offer up a few stories about the bulk deals that came out of the RTC during the last bust.
There is an empty 50×210 lot on ridgedale ave with a foundation poured, asking $399k.
A 50×210 buildable lot with all approvals in Madison for $399k isn’t crazy Sy. During peak market I’ve seen smaller lots in lesser towns go for that much. You also need to factor in that there isn’t a teardown involved, which does cost a bit of money, same goes for site prep.
I’ll show you stupid deals, but I don’t really think this is one of them. Granted, given the state of the new homes market, it probably is overpriced for everyone but a builder.
64
d2b-
I’m both a seller and a buyer. Good times.
If I didn’t have a little one and another on the way in a two bedroom townhome I’d ride it out for another year.
Sy,
150 Ridgedale was purchased for $276k in 2003, older home was torn down. Looks like a lowball opportunity too.
#76
I guess that makes sense; I never followed the sales of empty lots, but I noticed this one on a walk and looked it up when I got home.
Based on the cost of building a new home + the cost of the lot, vs. what that same amount would buy you, I don’t see the value. But then again, I’m not a builder.
stock market off to a bad start. any bullets left in the gun?
i do not consider bailing out the auto companies a bullet.
on the plus side, we might have found our agent. she said she’s willing to make lowballs, which is music to my ears.
Grim/Syb – What is the estimated close date for 19 Lorraine in Madison (2520257)? I’d be curious to find out what it finally went for.
This one sat forever. Completely redone. OLP was 749k. Last LP was $569k. Unfortunately it sits one house away from a sound wall and the Rte 24 overpass.
http://newmls.gsmls.com/public/show_public_report_rpt.do?method=getData&sysid=%203844981&ptype=RES&report=res_media&pubid=259341&pubid=259341&fromPublic=PUBLIC&app=public
Sy,
Owner is in a world of trouble, he was just served a Lis Pendens on a home in Chester and owes back taxes on a property in Netcong. I’d suggest a lowball of $280k on that lot.
Wow, so the owner has been holding that since 2003?
That location is somehwat nice, but Ridgedale is somewhat of a busy road, and I don’t think I’d be able to swing financing the cost of the lot + a new building.
By the way, do you know anything about 13 Madison Ave? I know it sold for $517,500 in 2007 after several price reductions, but it’s been sitting, rotting actually, since then. I looked to see if the owner has any lis pendens or anything on it, but came up empty.
I live a few doors down, and it’s a shame to see what could be a gorgeous Victorian rotting away slowly.
Gator,
New Year’s Eve.
Grim/Syb – What is the estimated close date for 19 Lorraine in Madison (2520257)? I’d be curious to find out what it finally went for.
Short sale, so who knows, but the expected close date is listed as 12/31/2008.
#74 sybarite:I’m waiting for the Wall St fallout to hit Madison but I’m still not seeing it.
You will.
By the way, do you know anything about 13 Madison Ave?
Odd history. In early October last year, buyer was facing a Sheriff Sale of one of his properties (38 Central in Madison). Towards the end of October, it appears he refi’ed a number of his properties (36 & 38 Central and 3 Ferndale) for $1.656m. He then purchased 13 Madison (perhaps using the refi proceeds).
Grim 85 – So it did go short. This one was purchased for $429,500 back in 03 with an actual 20% down payment. Owners seemed to have HELOCed themselves into hell with all the renovations. There was a LP filed for over $500k, and even the builder of the conservatory had a lien against the house. Sad.
cooper, #6
Odell Barnes has been interviewed by Nightline several times.
He has a formula for selling houses in blighted areas like Detroit where he gets people into houses quickly and he does make a profit.
He seems to be helping the areas by getting houses re-occupied.
http://abcnews.go.com/Business/story?id=6249208&page=1
87
It seems that 13 Madison was bought outright, correct? I thought I remember the records showing that.
Damn shame. House has sat since then with no activity, and broken windows letting in the elements. I took a peek through one and a grougeous brick fireplace was crumbling, and the floors were warping. At this point, I can’t even imagine how much $$ would take to restore it. But it could be gorgeous if done right.
grim,
my wife is in full force over this. can you tell me a thing or two about this property in collingswood?
MLS ID #5418765
i think it screams flip.
thanks.
SM,
Don’t have access to that MLS system, sorry.
It seems that 13 Madison was bought outright, correct? I thought I remember the records showing that.
I don’t see a mortgage on that property, so I’d agree with your statement.
ISM Services numbers ugly and far below consensus.
So much for our transition to a services economy.
From MarketWatch:
U.S. Nov. ISM services employment 31.3% vs 41.5% in Oct.
U.S. Nov. ISM services below consensus 42.7%
@92,
NP.
I just checked the tax records and it sure is a flip. Bought exactly 1 year ago for 166K. Current list price is 389K. Now that’s b@lls! But hey, there is a landscape allowance.
Sorry guys, some of that was my fault, I no longer employ the services of a hair cutter.
I’ve transitioned to the recession haircut, I just buzz my head with a trimmer in my bathtub now.
$25 a month saved.
What can I say, I’m cheap.
From MarketWatch:
U.S. Nov. ISM services falls to all-time-low 37.3%
Nonmanufacturing sectors of the U.S. economy contracted at a record pace during November, the Institute for Supply Management reported Wednesday. The ISM nonmanufacturing index fell to 37.3% from 44.4% in October. The decline was broad-based with 17 out of 18 industries reported contraction The decline was larger than expected. Economists were looking the index to fall to 42.7%. The major sub-indexes also set record lows. The business activity index fell to 33.0% in November from 44.2% in the previous month. New orders fell to 35.4% from 41.5%. The employment index fell to 31.3% from 41.5%. Inflation pressures eased. The price index plunged to 36.6% from 53.4% in the previous month.
“’ve transitioned to the recession haircut, I just buzz my head with a trimmer in my bathtub now”
you hair must look like crap and you will end up buying $25 worth of draino.
Just get a haircut bloke.
I goto a Russian barber shop, they charge 15, and I give them a 5 spot tip. So, I just throw down a 20 bill.
come on bloke, you need a nice haircut.
SAS
we talk weather & politics with the Russians. good perspectives.
I can give the joints name if you like.
SAS
its across from a Dunkin Donuts too:)
I get my haircut every third Sat if you ever want to join me.
I’ll even pay for your haircut.
SAS
The decline was broad-based with 17 out of 18 industries reported contraction
One industry which did not report decline – was it debt collection???
“Sorry guys, some of that was my fault, I no longer employ the services of a hair cutter.
I’ve transitioned to the recession haircut, I just buzz my head with a trimmer in my bathtub now.
$25 a month saved.
What can I say, I’m cheap.”
Heh, I’ve been doing that for years. What baffled me was that the set of clippers was actually cheaper than a single haircut. Although, this past year, I took an alternate approach, I just don’t cut my hair.
haircut: having left NYC, i’m saving money on haircuts. feel bad for the nice ladies of hair cuttery (cute girls right out of high school), so on a $13 haircut, i tip $7.
BC Bob – You said you were putting your boots on a month or two ago. you lace ’em up yet?
Yikes [103],
Only have one boot on, at this time. Can’t seem to locate the other boot.
Secondary Market: Ref 91: I just looked at the location. It’s in the sweet spot of town. A little outside of the commercial district which is more to the east. Added benefit, you can walk to Cooper River and the High Speed Line. We looked there in April. Only reason we’re not considering it had more to do with lot sizes and condition of neighboring houses. You will see the occasional used car parts lot pretending to be a driveway here and there but overall, the town has a good business environment, lively restaurant scene, and sense of community.
Given the temperature outside, wouldn’t slippers be more appropriate?
well, I did it for my dog’s hair – could not stomach 70$ every two month – got good clippers for 100$, and now I cut my dog’s hair (for the last 2 years).
My own haircut – 18$ with tip, every 1/1/2 month. Might use dog’s clippers soon :-) – as I get shorter and shorter haircuts. My last haircut was #2 on the sides, #3 on top…
Problem – my wife would not cut my hair and it is kind of hard to do yourself, unless it is true buzz cut.
Biggest ISM hit from our family we decided not to go out for next 2 month – last few going out to cheapo chains restaurants, food was just not tasty at all….
So have decided to stop going out and instead go out more during our January Vacation.
Wall Street fallout will take a little bit. I have a friend who’s still collecting his severance pay from Bear Stearns. Give it a few more months.
I pay more for my dog’s (Indiana Bones) haircut than my own.
SAS
grim (25)-
Just to think: their core business was prime ARMs.
@105 – DL,
Thanks for the info. I still can’t come to terms with leaving the city but we recently found out the wife is preggers so I’m loosing leverage each day of morning sickness. Although, I think we have at least year or so that I can convince her to stay put and watch the price reductions on this house.
Sean (33)-
Most agents in the Realogy companies would not even function well as doorstops in my office.
There is nothing I could do with 99 of 100 of their local agents. 7th grade educations, no written communication skills, bad attitude…and packing about 25-30 lbs of blubber around the middle (too many caravan lunches).
DL (49)-
Re/Max franchises are all individually-owned, so you get different messages from different offices.
I own a Re/Max, and you certainly don’t get that line out of me or any of my agents.
Re/Max International’s party line is a rather toned-down version of NAR’s. It is mushy, vague, and forward-looking (since there’s not much you can really say right now and not come off sounding like a shyster).
Clott,
I’ve only spoken to two agents in Mercer County that admit houses that aren’t moving are overpriced. Both of them Remax. The problem I have is that they try paint a picture that 10% lower is properly priced. Maybe they really believe that or maybe they are being manipulative. I’m not sure.
grim (75)-
Not that many residential bulk RE sales during RTC. RTC was mostly commercial stuff.
However, I think that South Carolina guy, Barnes, got his start and made it big during the RTC years.
When lenders have whole blocks of vacant REO…or have stuff they’ve never even seen, just rotting away, bulk sales are the only remedy. Expect to see plenty of these in ’09.
New Jersey Vulture Fund may need to raise some capital
I’d be interested in bulk sales opportunities. I have some family that might be persuaded into investing in something like that.
NJV Fund could work there too; if properly executed, I’d consider throwing down on that.
sas (100)-
“I’ll even pay for your haircut.”
Why do I get the feeling some of your “haircuts” end up like this:
http://www.onewal.com/a013/byrum.gif
Ben (114)-
I don’t like speaking in generalities about blanket percentages when it comes to making an individual decision to buy or sell. Too much depends on town, condition and location.
The way Barnes does bulk purchases & flips only requires aobut 100k in seed capital, a guy on the ground, some cardboard (for handwritten “For Sale” signs) and some Sharpies.
Now here’s something to get excited about:
ProShares Launches First Short and First Leveraged ETFs Tracking Gold or Silver
Wednesday December 3, 7:30 am ET
BETHESDA, Md.–(BUSINESS WIRE)–ProFunds Group, the world’s largest manager of short and leveraged funds,1 announced today that it is launching the first exchange traded funds in the United States to provide short or leveraged exposure to gold or silver. The four new ETFs will begin trading on the NYSE Arca today. They join a line-up of four other Commodities ProShares that launched last week.
Ultra Gold UGL Gold Bullion price, London p.m. fix 200%
UltraShort Gold GLL Gold Bullion price, London p.m. fix -200%
Ultra Silver AGQ Silver bullion price, London fix 200%
UltraShort Silver ZSL Silver bullion price, London fix -200%
Ultra DJ-AIG Commodity UCD Dow Jones-AIG Commodity IndexSM 200%
UltraShort DJ-AIG Commodity CMD Dow Jones-AIG Commodity IndexSM -200%
Ultra DJ-AIG Crude Oil UCO Dow Jones-AIG Crude Oil Sub-IndexSM 200%
UltraShort DJ-AIG Crude Oil SCO Dow Jones-AIG Crude Oil Sub-IndexSM -200%
Clot[123],
Now Mitchell, Bi, Jamil, etc.., have a vehicle to trade rather than babbling on a blog.
clot: OR ANYONE…please quickly if possible
Assuming a qualified borrower….what is a refi rate for no points, 15Y fixed conforming and what is an estimate on closing costs
Gotta love the markets. Anytime anyone in business or in the gubbmint says the word “bailout: the markets go up!
bwahahahaha!
When the gubbmint bails out the states, will we get a 3000 point rally?
This is insane!
chi (125)-
15 yr is a ripoff right now. Spread is too tight.
Assuming high-700 FICO, 80 LTV, you’d be at 5.5% on a 15, 5.25% on a 30 (15 day lock on both). Better to take the 30 and make extra payments.
As to closing costs, can’t say without a dollar amount on the mortgage, but expect 4 months’ property taxes, 4 months homeowners’ insurance, appraisal fee, recording costs and a new title policy.
hype (126)-
Love the rallies. I will short into each and every one.
clot: I have a conference call at 12PM, but these guys are in Basking Ridge, if they want to do something would you be averse if I pitched them to you. You are in their back pocket and I am in no mood to deal having these guys waste time with chuckleheads. The amount is small…..$150K-$200K area….
CLot (128)
I have a little money on the side. I may start shorting myself. I may ask your advice. Do you have an email where I can send you questions.
Thanks!
[64] Cindy,
Relax, it was a jibe at Cali in general. And perhaps you should be teaching math in Sacramento.
hype (130)-
You probably don’t want advice from me. ChiFi can confirm for you that besides not having the ability to understand the difference between gambling and investment, I also suffer from borderline personality disorder.
My only advice to anyone in these matters is to follow your gut, have tight stops in at all times and don’t leave your computer during trading hours.
More on BPD:
http://tinyurl.com/2ztbot
ChiFi (129)-
It’s not me they need to talk to. Have them call Cindy @ 908-231-7390.
interesting parallel w/ Japan. Article give 4-5 years for bottom
http://globaleconomicanalysis.blogspot.com/2008/12/housing-update-how-far-to-bottom.html
What Recession?
From Bloomberg:
Online Spending Rose 15% on Dec. 1, ComScore Says
Online spending at U.S. retailers jumped 15 percent on Dec. 1 to $846 million, the second-biggest amount on record, as Internet sites lured customers with discounts on clothing and electronics, ComScore Inc. said.
The so-called Cyber Monday was the first workday after the Thanksgiving holiday weekend. The Reston, Virginia-based research firm reiterated today its forecast for Internet holiday spending to be little changed from a year ago.
“Consumers are clearly responding positively to retailers’ aggressive online discounts,” ComScore Chairman Gian Fulgoni said in a statement. “We can but hope that their aggressive discounting has still left room for profits.”
Internet site visits increased 10 percent on Dec. 1, Nielsen Online said in a separate statement yesterday.
Oh, this one. Somebody better let the consumer know.
From Bloomberg:
Commercial Mortgage Delinquencies to ‘Spike’, Barclays Says
Commercial mortgage delinquencies rose in November and will climb more as the economy slows and unemployment grows, according to Barclays Plc.
Payments more than 60 days late on commercial real estate loans that were bundled together and sold as bonds increased to 0.69 percent last month, compared with 0.57 percent in October and 0.51 percent in September, Barclays data show.
The “relative spike” in delinquent loans marks the “beginning of a sustained, upward trend,” Barclays analysts led by Aaron Bryson in New York said in a report yesterday. “We have repeatedly stressed that CMBS delinquencies are a lagging indicator of performance and tend to lag changes in employment by close to a year.”
Commercial property owners are having a harder time making debt payments as the recession curtails spending and crimps business growth. U.S. companies eliminated an estimated 250,000 jobs last month, the most since November 2001, ADP Employer Services said today.
Retailers are leading the rise in commercial mortgage delinquencies, according to Barclays. Late payments on retail space rose to 0.58 percent in November, compared with 0.43 percent in October, the data show.
Cut every family members hair except my own. Husband is balding so likes REALLY sort on what is left, son is 4 on top, 2 on sides. Daughter is a long bob, my hairdresser taught me to do it.
Apart from the savings, I now don’t have to schedule the time for the cuts, takes all of 10 minutes after dinner.
Kettle,
Your bailout pie chart, from BP;
http://www.ritholtz.com/blog/wp-content/uploads/2008/12/bailout-pie.png
SAN FRANCISCO (MarketWatch) — Securities industries groups warned Wednesday banks may fail to meet $2 trillion of demand for credit origination over the next three years if securitization markets continue to fail to operate properly. In a statement released alongside a conference of U.S, European and Australian securitization and bond groups, plus major arrangers such as Citigroup and Morgan Stanley , the groups recommended ratcheting up standards and information on residential mortgage-backed securities to restore confidence. Mortgage losses and the subsequent spike in default fears on Wall Street have nearly shuttered securitization markets, making it tougher for banks to originate loans that get sold to these pooled securities.
U.S. homes now undervalued, economists say
WASHINGTON (MarketWatch) – The U.S. housing market is now slightly undervalued after rapid price declines have overshot fundamentals, economists for IHS Global Insight said Wednesday.
Compared with their long-term fundamental values, U.S. homes are now 3.8% undervalued, the economists said.
“With no end in sight to the downward spiral of house prices, it is likely that the long-anticipated market correction will now overshoot fundamental valuations on the downside,” said James Diffley, head of regional economics at Global Insight.
New thread! Move it on over!
lisoosh Says:
December 3rd, 2008 at 12:55 pm
Cut every family members hair except my own. Husband is balding so likes REALLY sort on what is left, son is 4 on top, 2 on sides. Daughter is a long bob, my hairdresser taught me to do it.
Apart from the savings, I now don’t have to schedule the time for the cuts, takes all of 10 minutes after dinner.
Any hints on cutting little Boy’s hair – he is 18 month old – did really good during his first haircut, so I think we can do it ourselves – just do nto know how…
Yes it is officially now NJrereport is now Real Estate, Economy, Strollers, babies haircuts, and competition for lowest gas prices report.
Last!
When
Great article. I found some more information here