From the WSJ:
Home Prices Decline in Nearly Half of Metropolitan Areas
Home prices fell in nearly half of U.S. metropolitan areas in the third quarter, indicating that the market is losing steam without government tax credits, according to an industry report.
The median price for home resales fell compared with last year in 76 out of 155 areas tracked by the National Association of Realtors, the trade group said Thursday. Prices rose in 77 areas and were unchanged in two.
In the second quarter of the year, prices rose in nearly two-thirds of U.S. cities.
The national median price for single-family homes, however, was nearly unchanged. It was $177,900 in the July-September quarter, down 0.2% from a year earlier.
…
The government sparked a surge in home sales at the start of the year by providing tax credits of up to $8,000, mainly for first-time owners. But since they expired, sales have slumped despite the lowest mortgage rates in decades.Home sales in the third quarter were down 25% from the second quarter, and down 21% from a year earlier, the Realtors group said.
The weak economy has kept buyers on the sidelines. Plus, uncertainty over the extent to which banks filed fraudulent foreclosure documents has caused some buyers to shy away from foreclosed properties.
…
Several lenders have stopped seizing properties over the past six weeks to fix document flaws.Once banks resolve those problems, analysts expect foreclosures to climb again. “Foreclosure sales are going to increase into next year, which will cause prices to decline further,” said Celia Chen, a senior director with Moody’s Analytics.
…
Nationwide, “distressed property,” including foreclosures and homes at risk of foreclosure, accounted for 34% of third-quarter transactions, up from 30% a year earlier, the Realtors estimated.
Frist
From Luxist:
Max Weinberg In New Jersey, Estate of the Day
Back in August we mentioned that Max Weinberg and his wife, Rebecca, had their Los Angeles home on the market. The drummer and bandleader and his wife are serial house flippers. That home has now had a price cut from $3.399 million to $3.215 million (still a little above they $2.88 million they bought it for in 2009) but the Weinbergs have another home to sell.
Their home in Middleton, New Jersey is a seven-bedroom Colonial that they built from the ground up. The Wall Street Journal reports that the house sits on almost 17 of 40 forested acres that Mr. Weinberg bought in 1997 for less than $1 million. Whoever buys the house will be his neighbor, he’s keeping the remaining 23 acres.
Program Uses Job-Loss Coverage to Lure Home Buyers
The California Association of Realtors program allows home sellers to fund insurance plans that pay buyers up to $1,500 a month toward their mortgages for six months if they’re laid off from their jobs.
The so-called Home Payment Protection Program is a nod toward the role job concerns are playing in the housing market, especially in high-unemployment states such as California, where 12.4 percent of the population remains without work.
“Most people out today wanting to buy houses have a fear: What happens if I lose my job?” said CAR president Beth L. Peerce. “This takes some of that stress away.”
Mortgage payment protection programs are nothing new, but what distinguishes the California scheme is that the protection is being pitched as a selling point for reluctant buyers, which sellers advertise as part of their home listings.
Good Morning New Jersey – Lots of under contract signs this weekend, is it over or just a glitch in the system?
Lots of under contract signs this weekend, is it over or just a glitch in the system?
No more or less than last week.
11/5 thru 11/7 – 94
11/12 thru 11/14 – 92
SFH for most of the GSMLS area.
Could be that the sign guy in your area finally got around to putting them up.
From HousingWire:
More parents buy homes for college-aged children, real estate agents say
Real estate agents said more parents are opting to buy their children a home in college towns rather than pay rent for an apartment or dormitory fees, according to a survey from Coldwell Banker Real Estate.
Of the 425 real estate professionals questioned in markets home to major colleges or universities, 64% said they saw a significant number of “parent investors” buying homes for their college-age children.
College towns have maintained some activity despite the downturn in the economy. Nearly two-thirds of the real estate agents said a significant number of investors are buying homes near campus and renting them out.
“Long-term investors take advantage of the steady stream of renters, including students, professors and university officials,” Coldwell CEO Jim Gillespie said. “Parent investors buy homes for their child to live in while attending college. Roommates provide rental income for the mortgage, and the hope is that students care for the home and it appreciates over time.”
From the WSJ:
Asian-Americans Live Well in the Garden State
Asian-Americans in New Jersey live longer, earn more and are better educated than other residents of the Garden State.
They have a life expectancy of 91.8 years in New Jersey, compared to 79.7 years for the state’s general population, according to a study run by the Social Science Research Council, a New York City-based nonprofit. For the entire U.S., the average Asian-American lives 87.3 years.
Asian-Americans in New Jersey earn a median income of $50,069, and completing an graduate or masters degree at more than 2.5 times the rate as the general America population. The study defined Asian-Americans as people originally from East Asia, Southeast Asia and the Indian subcontinent. In Jersey, 7.8% of the population is Asian, compared with 4.6% for the U.S., according to the 2009 Census.
The state has become a magnet for well-paid, well-educated Asians because of its large pharmaceutical, chemical and communications industries, said Allan Punzalan Isaac, a professor at Rutgers University specializing in Asian- American cultural studies.
A fresh, sunny new morning hails the beginning of yet another week closer to oblivion.
How shall our gubmint and bankster masters wage war against us today?
Where is the deposition of this employee’s boss?
http://www.ritholtz.com/blog/2010/11/crystal-moore-deposition/
Why all the vitriol directed at robosigners? It’s clear that very few of these people had any idea what they were doing.
grim (10)-
The law is only for the little people.
Opening feelers exchanged on buying into an existing Nompound; there is interest on both sides. Now it comes down to price and terms.
Not many other options for my depreciating fiat paper.
#10 – Where is the deposition of this employee’s boss?
Good question, and one I think we all know the answer to.
Last
This postink closed
Hiii fiveee
Jj franks alter ego
Arizona pensions
http://www.azcentral.com/arizonarepublic/news/articles/2010/11/12/20101112arizona-pension-funds-elected.html
The Republic, as part of an investigation into the state’s public-pension systems, found at least 43 elected officials of the 500 who retired since 2000 earn more from their state pensions than when they served in office.
[Sustainable? Oh, certainly!]
SANFORD, Fla. – An central Florida dealership trying to drum up business is offering an unusual perk for potential used-truck buyers: A free AK-47 assault rifle.
General sales manager Nick Ginetta says that since the promotion was announced on Veterans Day, business has more than doubled at Nations Trucks in Sanford
When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!
Thanxx
You nicely summed up the issue. I would add that this doesn’t exactly concenplate often. xD Anyway, good post…
Thanxx
Thanxx
#10 – Why all the vitriol directed at robosigners? It’s clear that very few of these people had any idea what they were doing.
I feel somewhat sorry for the robos. Just doing a job they weren’t very clear on, never knowing they were living in a Shirley Jackson short story.
I’m going to poach a quote from The Wire that, I feel, is apropos;
“Follow the drugs and you find drug dealers and drug addicts, follow the money and who the **** knows where you’re going to end up”
Mike [4];
Good Morning New Jersey – Lots of under contract signs this weekend, is it over or just a glitch in the system?
Mike,
Do you believe the MLS “Days on Market” statistics too? Marketing, nothing more.
Wow lots of asians in NJ, no wonder I always Wing the Wong number
I didn’t know the exact location of the Springsteen story from last week…now I do. He was being interviewed at his house, which is walking distance from my RENTAL……I never knew I drove past it pretty much half the times I leave my house……….
grim says:
November 15, 2010 at 6:02 am
From Luxist:
Back in August we mentioned that Max Weinberg and his wife, Rebecca, had their Los Angeles home on the market. The drummer and bandleader and his wife are serial house flippers. That home has now had a price cut from $3.399 million to $3.215 million (still a little above they $2.88 million they bought it for in 2009) but the Weinbergs have another home to sell.
Anybody have the European Union in their dead pool?
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8132689/Europe-stumbles-blindly-towards-its-1931-moment.html
Pretty much I hated Springsteen since the River Album. Does the guy have kids, I always see Bon Jovi, Madaona and Billy Joels kids but never the Bosses kids, does springsteen have kids?
Chifi, anyone you know in the GM IPO, six times oversubscribed as of last Friday.
The graphics on the lead story show preliminary figures for Edison NJ and Newark-Union NJ are up 3.5% from 3q 09 to 3q10 and NY-North Jersey is up 2.8%.
Did JJ call another one, or has the market for lower priced stuff slowed even more and is causing a higher median?
re: #10 – The robo-signer is a Legal strategy. It came from the top along with MERS to create a system where nobody is responsible for the information and the decisions.
The Banks etc are expecting the laws to play catch up with electronic recording not the other way around.
Future RE headlines in 2012:
The housing market continues to decline. Prices have dropped another 10% . Experts say the expiration of the tax credit two tears ago is to blame.
Give it a rest. Prices are too damn high
Anon No. 24 Guess the word “lots” was used incorrectly. OK now that I’m under oath I saw 3 under contract signs in my fall travels yesterday. I hope Governor Grim will pardon me. :)
Mike [33];
I wasn’t taking issue with “lots” (quantity). I expect that a used house salesman who had some nibbles on a property over the weekend, knowing that the prospects might drive by again on their own, wouldn’t let something as inconsequential as the truth or falsity of the matter to disuade them from putting up an “Under Contract” placard hoping to entice a little false sense of urgency in the mark.
Anon I get the picture, it’s just like going to an open house and the house guide says this house is generating so much interest meanwhile your the third name on the sign in list. Anyway they can get their con-mission
Great news. Those friendly and competent people at airport security checkpoints are now allowed to unionize. This will make things safer, more efficient and cost to taxpayers goes down. Or at least feelings get better or something. This is exactly what the country needs: More public sector unions!
“TSA employees can vote on union representation, labor board rules
By Joe Davidson
In a significant victory for federal employee unions, the Federal Labor Relations Authority decided Friday that Transportation Security Administration staffers will be allowed to vote on union representation.
The decision clears the way for a campaign by the government’s two largest labor organizations, the American Federation of Government Employees and the National Treasury Employees Union, to represent some 50,000 transportation security officers.”
http://voices.washingtonpost.com/federal-eye/2010/11/tsa_employees_can_vote_on_unio.html?wprss=federal-eye
Another update: the house we were planning to buy fell through in the att. review. All I can say is – no biggie. Plenty more where that one came from.
FT Alphaville reporting on rumors of blanket-retroactive legislation to ratify MERS across all 50 states … I’m surprised it took this long.
/disclaimer…. just rumors for now…
Tosh,
I’m not sure how that would work since the legal violations that are at isssue are often state laws.
Another 8 billion in POMO on day 2 of QE 2 and all we have to show for it is a 40 point pop and a 10 year yield of 2.83.
Ireland doom is stealing the destruction of our dollar. Those bastards. Die dollar, die, die.
Where is the deposition of this employee’s boss?
http://www.ritholtz.com/blog/2010/11/crystal-moore-deposition/
Why all the vitriol directed at robosigners? It’s clear that very few of these people had any idea what they were doing.
Yep, I’m listening to this deposition and it is making me physically sick. I knew that things were messed up but it wasn’t until listening to this that it really hit home.
Sigh…
re: #38 – “If the facts don’t fit the theory, change the facts.” – Albert Einstein
moose (34)-
You must be kidding. Us Realtors may be dumb, but if you think we do THAT, you’re dumber than we are.
#39 – Agreed. There are some fairly complex legal issues involved, however there has been the suggestion that the states may drop any opposition for such a plan in exchange for a hand-out from the Feds.
POMO/QEII-induced rally on!
We are digging a tunnel to hell.
tosh (45)-
I think in our Brave New America, states’ rights are enforceable in direct proportion to states’ solvency.
Usurping states’ rights is just another example of the purposeful overwhelming of the system in order to wreck the whole MF’er and grab control.
Buy Silver. Crash JP Morgan.
http://www.youtube.com/watch?v=77RZ3WSeih4&feature=player_embedded
Nothing as good as a little silver porn on this Monday morning.
Lamar No. 44- I spoke to my local Weichert housing guide after that post and although she ( my little vulturess) never admitted to that tactic she says it’s not uncommon to put the under contract sign outside and continue to keep showing because of the hard times these pontential buyers have getting the mortgages.
look out below (or never say never)…………..
Is It Time to End the Mortgage Tax Deduction?
http://www.cnbc.com/id/40196343
now if they take away mortgage deduction with margin interest deduction and tax free bonds be far behind.
So now Greece says that it’s the GERMANS who will end up bankrupting European nations. Funny, I thought the PIIGS did it all by themselves. Why do I keep thinking of “Blazing Saddles” with the guy putting a gun to his head?
http://www.irishtimes.com/newspaper/breaking/2010/1115/breaking23.html?via=mr
Mike (48)-
That’s legit, though. However, putting an “under contract” notation on a house that has no contract is pure suicide for the agent.
stater (51)-
Great. The corrupt and the irresponsible blame the mature nation- with a very long memory of its own very nasty, world war-inducing hyperinflation- for all their ills.
This is what the soci@list mindset leads to in the end. No one is capable of judgment, discretion, decision-making or anything else of greater consequence than choosing in which coffee house one will while away the hours of his torpor-filled, accomplishment-free, work-free day. Natch, the same PTB that give individuals the cradle-to-grave surety of the most soul-sucking economic invention of all time are more than happy to field the misguided blame hurled their way by the same people whose lives they utterly control.
TPTB in Europe will take that heat every day of the week. Hell, they’re in on the giant daylight bank robbery too.
I have some Greek family. They are dumber than applesauce and do crazier things with their money than many of my loss mitigation clients.
here about the greek boy who did not want to leave home?
he did not want to leave his Mother’s behind
re #54 – yes but your ancestors were living in caves and growling like dogs while we we were carving beautiful statues like the Venus de Milos and creating civilization.
Lamar [52];
How so? Suppose a prospective buyer sees the sign, calls “their” agent crying hyterically how they “lost” “their” house. Said agent: 1) tries to get them to commit to making an offer; 2) calls the listing agent to inquire about the current status of the house. Reply to 2) “Oh yeah, there’s an accepted (mythical) offer but they are willing to entertain a backup offer, besides the (mythical) first offer has some problems and may fall out in attorney review – we’ll know in a week or two if the deal is going forward…”
Even if it doesn’t induce an offer, at the very worst, don’t you think a buyer working with a “Buyer’s” agent is going to at least mention how the property they were interested in now has an Under Contract” sign in the yard, without that agent inquiring into the true current status?
That’s how I view it. I’m curious why you think putting an Under Contract sign up on a property is not is “suicidal”.
Greek (56)-
Civilization is overrated.
Easier for the listing agent to just shop the offer.
JJ – I think it would be his Brother’s behind he would miss most!
here about the greek boy who did not want to leave home?
he did not want to leave his Mother’s behind
Moose (57)-
Uh, gee…I guess it’s because when buyers in today’s market see “Under Contract” on a house, they move on to the next one. In case you haven’t heard, it’s not 2005 anymore.
Anyone who is a serious seller in today’s market would also never authorize his listing agent to essentially chase off scores of potential buyers by trying this stupid gambit.
I’m probably as distrustful and skeptical as you are, but this one is just beyond the realm of possibility. If any seller and agent were to collude on such an idiotic idea, failure is virtually guaranteed.
“I’m curious why you think putting an Under Contract sign up on a property is not is “suicidal”.’
grim (59)-
Thank you.
I’m just happy to have gotten a jj comment on my “Greek” post. Today was now worth living.
When I lived in Astoria the landlord was a mystery. He was around 60, his “wife” was very hot around 40 and the son although only 20 was hairy, with the stubbles and balding and their daughter was like 7. The Mother and Son looked like husband and wife, the whole family was always kissing and hugging hello a little too much, one day I come home from work on a very very hot day, of course they are cooking with no AC in the kitchen and the and the son is in one of those teeny gym shorts and a tank top and so is mother, and Mom is sitting on his lap and they are hugging each other. Yikes Yikes Yikes, how can a 20 year old man have a hot 40 year old mom on his lap on a hot day when both are wearing almost nothing, plus I never saw that greek kid with a GF, but awfully close to Mom, dad was a plasterer and came home late each night while kid in college got home around lunch time from school and younger daughter got home around three pm. He was in my opinion boning his mom every afternoon.
jj (64)-
And all these years, I thought only sheep need be afraid around Greek men.
Maybe his Moms went “baaaaa” for him.
Grim [59];
I wasn’t so bold as to presume a (real) offer had been made. Not that that ever stopped a used house salesman from claiming the contrary, either. Besides, more effective, I think to signal the mark to act on their own than to shop the (non-existant) offer. “Under Contract” displays strength, while shopping the offer displays weakness.
It other circles the technique is called “inducing a bluff”.
So Oedipus is not a Greek myth?
My Greek story for the day, while in Greece a crazy cabbie nearly killed us taking us to see the ruins of Olympia, and it wasn’t the 100 MPH driving everywhere and going nearly 70 MPH on the Beach! It was the BO that almost killed us damm did that guy stink in the 100 degree heat!
Had a smelly greek guy who was dating a girl in my summer house once who came out for weekend, guy smelled super bad, guys in house played a pick up game of basket ball and he joined us and wow the funk was super bad, afterwards we go man you stink, go take a shower, SOB with peer pressure of five guys went in and took shower and came back out with same smell clothes on. Girl in house ditched him next weekend, she said man was he good looking and hung like a mule, but the stench was too much for her.
All this dust up over the TSA enhanced pat downs is comical. I wonder if some guy has a boner will the TSA screener go for it or just tell you to move along?
Juice,
I feel the opposite. The security theater has gone beyond extreme at this point. The Whether its the scanners or the full body pat down, its a practice is physical violation when its security value is negligible at best.
Lamar 61 – I’ve been pretty suprised by the cr*p that some listing agents are still trying to pull. Granted, most of the stupid we are experiencing is not coming from any of the big local players, but sometimes it’s hard to believe (cynic though I am) that people are this stupid.
We’re going back for a second look at just about the only property that did not sell in GR during the tax credit season. This place has been rotting for over 220 days and magically there was another couple who was also going back for a second look this past weekend. They must have been drawn to the gold marble main bathroom and bidet.
Funny how we never heard back what materialized out of that. YAWN.
so I went to visit the bank reo on long island, insanely run down. bank hire photographer to only take pictures of good parts of house, leaving off back roof in shambles, garage that had sunlight shining in and the mold. That plus he said was a four bedroom, but fourth bedroom was a tiny closet with windows that did not open, yet the bank priced it at 100K than a house in mint condition with a pool, then goes it will accept low ball offers.
why price it so high in first place, why just take photos of good sections. Do people think they will fall in love with house. My wife was extremely disappointed as she expected a house in good shape, she was so turned off we did not want to bid. Even worse all power is off in house and water and heat. House was 100 years old and all wood. It was in a tree filled section and house is off road. That place is going to turn into a super mold first come winter. Pretty much by spring it will need a demo;
10 yr. crashing? WTF
moose (67)-
You should find a good therapist. Not every business proposition under the sun is a scam.
When somebody like me is telling somebody else to seek help, you know it’s bad.
JJ:
http://www.youtube.com/watch?v=VL9whwwTK6I
jj (69)-
Wow. That was sort of like a Greek version of The Great Gatsby, all compressed into one paragraph.
gator (72)-
Big difference between the “we have other offers game” and outright marking the place under contract.
Here’s why your 10-year UST is turning to shit:
“Today’s sudden spike in yields across the curve is being widely attributed to a conversation between Moody’s Steven Hess, Senior Credit Officer covering sovereigns, and Market News, in which Moody’s has given the point blank warning that a permanent extension in the Bush tax cuts may lead to a downgrade of the US, putting yet more pressure on the president, who despite having shown a conciliatory stance recently vis-a-vis permanent tax extensions, may suddenly find himself boxed once again, and without much choice but to prevent an all out compromise. As the market has recently been running higher on expectations that a tax cut extension is pretty much guaranteed, today’s announcement by Moody’s pours cold water over yet another “priced in” concept, which suddenly may not materialize. The net result: a smackdown in the 10 Year which is slowly migrating to all risk assets.”
http://www.zerohedge.com/article/moodys-says-permanent-extension-bush-tax-cuts-would-be-negative-us-sovereign-debt-rating-spo
cat (71)-
Yeah. Patdowns, shoe checks, etc. are all designed to inconvenience people and scare the crap out of them. People who don’t want to travel anywhere are easier to control.
I have no doubt the Yemeni printer cartridge “bombs” and all the other junk that happened right before the election are all fabricated events.
Lamar [75];
Not every business proposition under the sun is a scam.
Of course not, because not every business proposition involves a used house salesman. Those that do, however…
You should find a good therapist.
Surely you’ve used the services of several. Perhaps some of those remain in the business that I can call?
cat (71):
To your point,
http://johnnyedge.blogspot.com/2010/11/these-events-took-place-roughly-between.html
57: Moose,
You really are hysterical.
Suppose a prospective buyer sees the sign, calls “their” agent crying hyterically how they “lost” “their” house.
#67 – “Under Contract” on a sign out in front of a house is a deterrent, not a way to entire interest.
Not to mention the fact that it would require they drag their fat ass out there to put the sign up (don’t underestimate this). Most agents can’t muster the willpower to get their fat ass off a chair and learn to take a picture. Put up a sign? Hell some agencies subcontract out their sign installations and removals. Get dirt on my Ferragamos? Who are you kidding.
Not only that, but this would likely incite significant push back from the seller, who now sees that sign in front of their house, wondering why. Pre-requisite to any of this would be to get the seller to buy into this little ruse. Most idiot sellers can’t be convinced to drop the price of their crap shack by 5 grand, let alone conspire in some con like this.
I’m not sure why you pooh-pooh offer shopping. This is probably the most effective technique to entice fence sitters to enter a bidding war. If you’ve ever put an offer in on a home, and heard back a day later there was another offer, it was because you were shopped, I’d put the probability on it at somewhere north of 90%. Yes, that high.
Any keybox showing, business card, email, interest, anything, anyone will be called on by the listing agent almost immediately after receiving an offer. You think they are rushing over to the owner? Heck no, any agent should be rushing to their rolodex, sign in sheets, everything to tell anyone on earth that was even remotely interested that there is an offer on the table.
Buy side agents LOVE to get these kinds of phone calls, there is no better tool to try to create a sense of urgency in a client who had interest in a property, but couldn’t muster the initiative to actually bid. This gives the buy side agent a reason to ring up a client and initiate the conversation, and a darn good reason for the other side to actually stay on the phone. Hey, remember 123 Main? Were you still interested? If so we better move quick because they’ve got another offer, I know your wife loved it, and you guys were waiting to see the price come down a bit more (insert some bullshit here about the owner not being thrilled with the offer, and looking for an alternative, say, that nice couple that was here last weekend).
This is how you entice a bluff, not by putting up a sign.
By the way, signs don’t sell houses, we just want to use your lawn for free advertising space.
#85 – Which is exactly what a good listing agent/brokerage should be doing when they get an offer. Their job is to ensure their client gets the highest price and the best offer. Why not shop an offer?
Of course, this sucks for the initial contract buyer, since it means they need to be able to compete within a non-optimal negotiating position. Negotiation becomes much more difficult, since playing hardball has less of a chance of working.
Only once was I ever in a position where I was part of an offer being placed as a result of a property going ARIP in the MLS. Seller rejected the higher written offer, since they had already been working with the buyer and felt obligated to honor their acceptance.
Relisting doesn’t really require ass-seat detachment, which is why it’s probably the best approach to entice offers on a stagnant listing.
Well that and obsessive/compulsive alteration of the listing information. Description changes every 3 days, updates to agent remarks every other day.
I suppose if you can’t convince a seller to reprice an overpriced listing, what else can you do?
So you keep polishing that turd.
Oh well, at least the sign out in front of the house firmly establishes your market position as measured in “lawn share”.
86: Grim,
That negotiation can pale in comparison to the one with your spouse after telling the realtor “good luck to them, we decline to be the the pace rabbit”. Then again, as a smart guy once told me: it doesn’t take a genius to kill a deal.
Negotiation becomes much more difficult, since playing hardball has less of a chance of working.
Oh lord…
http://www.youtube.com/watch?v=pkApYwxJku8&feature=related
http://www.youtube.com/watch?v=QS-zPBelnVw&feature=related
More depositions related to Crystal and Nationwide Title Clearing.
grim,
that’s all fine and good, but I won’t up my offer until I SEE IT WRITING the other party’s offer. This is usually demanded in FSBO situations, what’s good for them is good for the realawhores. Can produce? Then I’m not buying it, figuratively and literally.
can – can’t