From the Star Ledger:
Feds approve New Jersey’s plan to spend $1.8 billion in Sandy aid
Marking six months since Hurricane Sandy’s landfall on the Jersey Shore, officials announced today that the federal government has signed off on more than $1.8 billion in aid to help residents recover from the Oct. 29 storm.
New Jersey can now start doling out this first round of the state’s portion of the $60 billion emergency relief package that Congress approved in January to help businesses, homeowners and renters. Gov. Chris Christie and U.S. Housing and Urban Development Secretary Shaun Donovan announced the approval of the state’s plan for distributing the funds at a joint press conference in Highlands.
“This is phase one of our disaster recovery plan,” Christie said in the dining area of a crowded Bahrs Landing restaurant. “We’re not here to take a victory lap because we know that we haven’t achieved victory yet — anywhere near it.”
A large slice of the nearly $1.83 billion in funding will be directed toward homeowners, with $600 million allocated for residents to rebuild and elevate storm-damaged dwellings. Homeowners will be eligible for up to $150,000 through that program.
Donovan said “for a family that’s sleeping on a couch at a relative’s place for the last six months” today’s announcement means that even though flood insurance or the Federal Emergency Management Agency may not have helped them return home “that they have hope of getting back in their home very soon. It means their child will no longer have to commute an hour to get to school everyday.”
The Community Development Block Grants are expected to help more than 20,000 homeowners and more than 5,000 renters, as well as some 10,000 businesses, according to the state.
From Barrons:
On the Rise
The kids are alright. More than alright, in fact. Widely dismissed as a lost generation with few job prospects, towering student loans, and a bleak future, the so-called Millennials, most of whom have reached adulthood since 2000, could surprise America and the world in coming years with their economic might and spending power.
Industries from housing and autos to retailing and financial services could be transformed by their collective demands and desires, while their growing wealth, coupled with their doubts about the future of government entitlement programs, could usher in a new era of saving and a bull market for stocks.
…
FOR ONE THING, THE MILLENNIALS — sometimes called Generation Y, and defined by many demographers as ranging from ages 18 to 37 — make up the largest population cohort the U.S. has ever seen. Eighty-six million strong, it is 7% larger than the baby-boom generation, which came of age in the 1970s and ’80s. And the Millennial population could keep growing to 88.5 million people by 2020, owing to immigration, says demographer Peter Francese, an analyst at the MetLife Mature Market Institute.
…
The Millennials already account for an annual $1.3 trillion of consumer spending, or 21% of the total, says Christine Barton, a partner at the Boston Consulting Group, which defines this cohort as ages 18 to 34. As the economy pulls out of an extended period of sluggish growth, helped in part by this rising generation, annual growth in consumer spending is likely to revert to its long-term average of 3.5% to 4% from about 2% now. Likewise, consumer spending on durable goods could rise sharply.
From LPS:
LPS Home Price Index Report: February Transactions
LPS showing NJ prices up 2.9% year over year in Feb, they’ve got the NY Metro up 4.8% over the same time period.
Case Shiller due out this morning as well
apple is on its way up now that is paying fees to wall st. all rigged
We are living in the endtimes.
my trip last week. gdps up in many places, but huge youth unemployment persists everywhere. no good at all. recipe for disaster
I feel blessed, my youngest is graduating in May 22nd and starting a job at SHI International on the 27th. Company started from a Million dollar annual revenue to 4.3 billion in 2012. It will be a good starting experience for her.
[1]
With our dumbed-down educational system? That is some serious wishful thinking.
On the other hand, there’s this:
Managers to Millennials: Job Interview No Time to Text
http://www.cnbc.com/id/100684583
Helicoptering parents. A man in his late 20s brought his father into a 45-minute interview for a material-handling job on an assembly line, says Teri Nichols, owner of a Spherion staffing-agency in Brooksville, Fla. At Cigna, a health insurance provider, the father of a recent grad who received an offer for a sales job, called to negotiate a higher salary, says Paula Welch, a Cigna HR consultant.
From the above article. That one especially irks me. This year I’ve gotten three emails from parents soliciting jobs for their spawn. All three told me what a great kid they have and how they would really like a job where they could travel to Europe. The last one had no resume and asked that I contact the son. Gob smacking.
Boss asked me to sell ads in the Harvard Lampoon for his kid, who couldn’t sell the cure for cancer. His rate sheet and promo looked like it was written by a fourth grader, and the link for purchasing an ad online was dead. If the thing had been even halfway presentable, I would’ve tried to do it.
Straight into the trash bin.
#9…I checked with my 15 year old daughter about the texting in the interview..she seemed to know that was stupid….
Apr 29, 2013, 4:46pm MST
What CoreLogic’s acquisition of Case-Shiller means for housing research
http://www.bizjournals.com/phoenix/blog/business/2013/04/what-corelogics-acquisition-of.html
I think you misspelled SHI International, you left off the T
yome says:
April 30, 2013 at 7:51 am
I feel blessed, my youngest is graduating in May 22nd and starting a job at SHI International on the 27th. Company started from a Million dollar annual revenue to 4.3 billion in 2012. It will be a good starting experience for her
10 – Isn’t this the typical mechanism that wealthy parents and politicians use to get their kids employed? Leveraging their own networks, pulling strings, putting in a good word, calling in a favor?
Nice to see the middle class trying to play the game, but it usually only works when the other side has something to gain from providing the favor.
ZH: Presenting: The Housing Bubble 2.0
http://www.zerohedge.com/news/2013-04-29/presenting-housing-bubble-20
The Gretsch building, an old guitar factory turned condo building in Williamsburg, just had a crazy week: Crain’s reports that three units sold in all-cash transactions, each one setting new highs on a per-square-foot basis. The units in questions were two adjacent two-bedrooms on the ninth floor, selling for $1.4 million and $1.5 million, and a larger two-bedroom on the 10th floor selling at $2.5 million — all at an average of $1,150 per square foot. “It needs to be cash, it needs to be over ask, and (the listing) will never see the light of day,” the broker had told all the buyers. According to Crain’s, Williamsburg condos are currently averaging $794 per square foot, with high-end condos like Northside Piers bringing in closer to $1,050 per foot. The broker who handled the Gretsch sales at 60 Broadway can’t seem to believe it herself: “It’s unbelievable what’s going on out there,” she told Crain’s. Our question is, can the high sales we’ve been seeing lately be a bubble based on low mortgage rates if the buyers are paying record-setting prices with all cash?
So this Sandy aid thing for homeowners in NJ and NJ I bet is a crock of poop. Nearly all the Sandy aid near me from state went to pay union employees.
Funniest a red cross volunteer worker blogged she thought the policemen at the very least should not charge 1 1/2 in a crisis. They are paid very well and given she was volunteering working for free, she was amazed these guys were running up the clock at time and a half. She even had the audacity to suggest that cops and firemen go off the clock at 40 hours and do some volunteering.
OMG the Police, Fire Departments, Sanitation unions attacked this volunteer girl in a bug smeer campaign
15: Right. Hard to sell an employer on someone when the only thing they have to offer is: “I really really really like to travel to Europe.”
Thanks Lib…
One parent bugged me to put his kid in for an internship. I tell him have his son email me resume. Next two times I see dad he asks how it is going, I tell him his son never emailed me. Then he finally emails me this horrible resume, he spent a whole page on sports and hobbies and nothing about what skills he possess for the actual internship, I write back a long email explaining all the changes he needs to make to resume before I would submit it, never heard back
DL says:
April 30, 2013 at 8:13 am
Helicoptering parents. A man in his late 20s brought his father into a 45-minute interview for a material-handling job on an assembly line, says Teri Nichols, owner of a Spherion staffing-agency in Brooksville, Fla. At Cigna, a health insurance provider, the father of a recent grad who received an offer for a sales job, called to negotiate a higher salary, says Paula Welch, a Cigna HR consultant.
From the above article. That one especially irks me. This year I’ve gotten three emails from parents soliciting jobs for their spawn. All three told me what a great kid they have and how they would really like a job where they could travel to Europe. The last one had no resume and asked that I contact the son. Gob smacking.
And the best part the cops did nothing but stand around. I know the garbage men made a ton of money but they had to pick up all that junk. Firemen did less, but still had fires and some pumping out to do. Cops just ate jelly donuts all day for free from red cross. Basically, they just stole the money from widows and orphans shivering in shells of home.
Cops should have a rule, make over 100K and no OT like rest of world.
grim says:
April 30, 2013 at 8:50 am
Time and a half? Try double time, and plenty of it. I posted this before, I know cops who were bringing home paychecks for $xx,xxx in the weeks following Sandy.
Grim (1):
Most Millenials need a kick in the a$$ to motivate them. Half of them make Fat Albert look downright healthy.
#21..I am running local Carnival, have to hire cops at time and a half, around $100-$120 an hour we are paying out of fund raising profit. I am standing by the one cop not hanging with the other 3 chatting. I see teen-agers playing in a tree, I ask, can you get them out of there..he turns to me and says…”I’ll have to call my supervisor to see what I should do”….???!! While he does that, I go over and tell them to get out….
My friend said they really needed more cops in Brick where he lived. His neighborhood was wrecked and days later pretty much everything people had left in their lives was out on their front lawns drying out. Then the looters came. Neighborhood people stood guard for a while because cops said they were too busy responding to crimes and emergencies to help everybody. He said eventually they brought in cops from out of state.
21.JJ says:
April 30, 2013 at 8:54 am
And the best part the cops did nothing but stand around. I know the garbage men made a ton of money but they had to pick up all that junk. Firemen did less, but still had fires and some pumping out to do. Cops just ate jelly donuts all day for free from red cross. Basically, they just stole the money from widows and orphans shivering in shells of home.
Cops should have a rule, make over 100K and no OT like rest of world.
(24)
Brian,
Was Brick not one of the several towns in which residents/owners were banned from going back to their homes for multiple months?
(which is a situation just begging for looters)
re # 9 – My favorite interview was back during the dot com days. A programmer had the stones to bring in his McDonald’s breakfast and eat it during the interview with me. I asked him to stop eating and his answer was “but I’m hungry”. I then told him to wait here in a very small room for the next interview and made him wait a good hour before I called the second interviewer in. I was told the room stank like BO, methane and McDonald’s by the rest of the people giving interviews. Needless to say we hired him. His programming skills were good and back then if you could fog a mirror daily you were in, that is until he decided to run up the company Amex and buy himself a new bedroom set and other things his wife wanted. We never got the money back either guy was a total deadbeat and is either working at Mcdonald’s flipping burgers or at Apple on the next iJunk project.
Speaking of iJunk
Trump Has Some Advice For Apple: Make iPhone Screens Larger Immediately
http://www.huffingtonpost.com/2013/04/29/trump-apple_n_3180513.html
re: 15 – I had an intern last year from the privileged class. His deal was he showed up until near the end of the summer and Daddy would buy him a trip before next semester. He was barely texting it in all summer, late daily, long lunches and spend the day on Facebook and travel websites, disappearing act around 3 pm daily. When I mentioned are you going to Europe basically looked at me like I was lame. So I started tossing out more extreme locals. When I hit on Thailand bingo. He and his buddies were planning to reenacted Hangover II with a twist they are a bunch of pitchers and catchers…
Police Chief in Hoboken is suing for Sandy overtime and other personal grudges. He is trying to ring the register before he retires. Since he smokes like a fiend he won’t live long to spend it all.
http://cdn.hoboken411.com/wp-content/uploads/2013/04/Falco-vs-Zimmer-Hoboken-NJ-lawsuit.pdf
Worst I ever saw was when I worked in Monmouth. We had one intern who took off in the AM, went to the beach to work on his tan, and came back after lunch wearing different clothes. Nobody ever called him on it.
Wall Street Journal @WSJ
Over past 5 years, NYC employment in securities and banking fell 10%, while high-tech employment rose 10%. http://on.wsj.com/11RP5YD
re # 31 – The amount of hipsters in Hoboken is out of control. Thick beards and mutton chops, thin ties and brown dress shoes on the weekends. Many work in Bubble 2.0 companies in Manhattan.
re #22 – Two of them at the local Target last weekend riding around in the electric carts for seniors. Sure they were having fun but in reality the two of them needed to stop wearing black and hit the treadmill.
29
Juice,
$1,300/year for uniforms (per person… chief and other senior officers)
From Bloomberg:
Home Prices in 20 U.S. Cities Climb by Most Since May 2006
Residential real-estate prices increased in February by the most since May 2006, showing the U.S. housing market is strengthening.
The S&P/Case-Shiller index of property values in 20 cities rose 9.3 percent from February 2012, more than forecast, after advancing 8.1 percent in the year ended in January, the group said today in New York. The increase exceeded the 9 percent median forecast in a Bloomberg survey. Compared with the prior month, prices rose the most since October 2005.
Further price gains may help alleviate a lack of housing inventory by encouraging more homeowners to put their properties on the market. At the same time, mortgage rates close to all- time lows and an improving labor market are providing a boost for residential real estate, which is a source of strength for the expansion.
“The recent run up in prices probably has a lot to do with the lack of supply,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “The more attention that home price gains get, more and more people will realize it’s a good time to sell their home.”
Estimates for the year-over-year price change ranged from increases of 8.5 percent to 9.3 percent, according to the 27 economists surveyed. The Case-Shiller index is based on a three- month average, which means the February figure was influenced by transactions in January and December.
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/30/poll-42-percent-of-americans-unsure-if-obamacare-is-still-law/
More proof of how dumb most Americans have become. Many don’t even speak or read english,so what’s the problem.
As long as its free, and they can watch games from the old country
Pray for us
February S&P CS numbers for the NY Metro
Low Tier (Under $259k) – Up 1.3% YOY
Mid Tier ($259k-$425k) – Up 2.8% YOY
High Tier ($425k and Over) – Up 2.1% YOY
Aggregate – Up 1.9% YOY
Shiller was on CNBC this morning. I think he is a bit lost in his thoughts, he is reverting to saying stocks are a better investment long term than housing etc, bolier plate stuff, pushing all of his predictions out long long term. He also mentioned the validation that home-ownership provides the American Dream etc is driving prices now in addition the the historically low rates.
The benchmark 10-year yield dropped three basis points, or 0.03 percentage point, to 1.64 percent super low.
BTW I called up for the Sandy Grant info. OMG anyone without flood insurance who used cash or took a SBA or Home Equity loan to pay for repairs is screwed.
The funds are only for future repairs, if you took a loan to do repair it is considered paid for.
Basically you should have did $31,900 worth of repairs than full stop and wait till now to any more repairs. Crazy, who does that. I guess that is point. By not telling folks till April 28 you could get paid anyone with money or eligible for a loan went ahead and did repairs. Only folks who truly needed help will get help. Tricky
“The recent run up in prices probably has a lot to do with the lack of supply,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “The more attention that home price gains get, more and more people will realize it’s a good time to sell their home.”
Wrong. They can’t sell. If your underwater and waist high in debt, you aren’t going anywhere. And if inventory increases, who’s buying? I know… it’s pant up demand. Another fluff blurb that means nothing.
JJ [39];
By not telling folks till April 28 you could get paid anyone with money or eligible for a loan went ahead and did repairs. Only folks who truly needed help will get help. Tricky
On the other hand, people who banked the $31k and shacked up at their vacation home, or with friends/relatives probably didn’t do so badly. Anyone with the self initiative to git’r done got to pick up the bill… twice. Government at its finest.
Friend of mine just came into 200k. what would members here recommend as an investment .
(1)
http://newjersey.news12.com/features/sandy/feds-approve-nj-s-plans-for-1-8b-in-sandy-grants-announce-application-process-1.5161330?firstfree=yes
This article says you have to register by tomorrow (Wed) to be able to apply for grants next month.
(42)
To borrow another’s line:
“Give it to me!”
Shiller on Squawk Box
http://video.cnbc.com/gallery/?video=3000164247&play=1#eyJ2aWQiOiIzMDAwMTY0OTAyIiwiZW5jVmlkIjoiV1FsaHJZeC8yKy9ma0FISnh1akZrZz09IiwidlRhYiI6InRyYW5zY3JpcHQiLCJ2UGFnZSI6IiIsImdOYXYiOlsiXHUwMGEwTGF0ZXN0IFZpZGVvIl0sImdTZWN0IjoiQUxMIiwiZ1BhZ2UiOiIxIiwic3ltIjoiIiwic2VhcmNoIjoiIn0=
grim, check recent 07078 closings. One just sold for 20% above ask.
That is registered with FEMA. 99.99999% of folks long ago did a FEMA registration. The NJ grants you dont need to apply for right away. But you need a FEMA number to process.
I wasted a few hours on Saturday with the application process. I want a grant to help finish repairs. I did 2/3rds of work then stopped. Thank god it is not income based. It is need based. I got needs, you got needs lets have needs together.
joyce says:
April 30, 2013 at 10:41 am
(1)
http://newjersey.news12.com/features/sandy/feds-approve-nj-s-plans-for-1-8b-in-sandy-grants-announce-application-process-1.5161330?firstfree=yes
This article says you have to register by tomorrow (Wed) to be able to apply for grants next month
JJ – Don’t you have to raise the house off the ground otherwise flood insurance goes up to like 35k a year?
Rentals: The New American Dream?
Tue 30 Apr 13 | 08:33 AM ET
The following transcript has not been checked for accuracy.
we will get them at 9:00 a.m. eastern. joining us is robert shiller, professor at yale and founder of case-shiller index. the piece or the part that really caught my attention was sort of the future of buying versus renting. renting which conotes mobility might become known to be a high status lifestyle in the new economy. can you explain why that could be? because it connotes mobility and free dom. i don’t think it’s a cle trend yet. it’s always been a high status lifestyle in manhattan. isn’t man hat annan exciting place? the suggestion is the american dream of owning the home, the leave it to beaver lifestyle we have long talked about, you think that’s done? it’s not done, no. it’s just a matter of degree, change. i think we were really strong o this american dream of 5, 10 years ago. and we’re getting back to maybe more normal. this country hasn’t been a country of homeowners all the time. renting works very well. and it’s very sensible strategy for many people depending on your circumstances. and think if they got rid of the mortgage deduction. i was thinking of that. there would be no reason. if you can’t use it or if they were to cap it where it wouldn’t matter if you had a nice house you would miss out on home appreciation. but you would miss out on what happened in 2008 and 2009. that would be one way to do it, to get rid of mortgage deductibility. that might be coming or scaled back. i think people are doubting the wisdom of that. why subseu tkaoeuz big es. is that the best way to spend our money on? if and when we decide to do it, how do you not hurt the market. do you have estimates on what it might do? well, i suppose it’s already hurt the market a little bit. the markets will say when the news hits the markets, that’s when it happens. as far as structuring it, one thing i think would be done is to keep it for low priced homes. so it doesn’t wreak hardship on marginal houses. it’s especially important, by the way, that people struggling to achieve the american dream, that these people be helped. they are the ones more vulnerable in theirself-esteem. that’s what it’s about. self-esteem and sense of participation in our society. i don’t dismiss it but i think we have overrated it, especially for higher income people. professor shiller i know you can’t talk about the numbers coming out later today. but i have a broad questions in terms of what’s happening with the market. there are questions about how strong that recovery is. i have a more specific question. with the fed keeping them so low at zero, how much of the housing recovery is tied. if the fed increases rates, how much impact will that have on the recovery? the home buyer tax credit introduced in 2009. that expired in 2010. it had a big effect on housing price between 2009 and 2010 when it was enforced. subsidies in san francisco went up 20%. huge increase. after they took it off, home prices came down again. it might be the same thing with qe3. ever since they announced that they have been very low. they’re going to take that off. one reason that some people are so anxious to buy now is they sense the low mortgage rates might be temporary. the implications of what you say is that houses that are currently owned right now, they don’t ultimately easily convert to rental properties. so if you think that’s the the future, there could be serious implications. you said, in addition, they haven’t been designed to foster components of continuing care retirement communities and given all the baby boomers planning to retire. what does that mean? what markets will there still be some success? where should people be worried. lay out a framework for us. first of all, i’m not talking about big bubble or burst movement. we’re getting away from the record effects we saw earlier this century. but i think some areas are disadvantaged over the long run. maybe. it’s speculative. be in a remote suburb of a big city, with no sidewalks, big front lawns, big houses, those don’t seem to be doing as well. and i think there’s reason to think that it reflects maybe slightly more urbanized outlook. continuing care retirement communities are typically in some kind of apartment building. sometimes they’ll have disbursed but not all over, miles apart. townhoype communities, attached homes might do better. you should buy the home you want and not worry too much. but there might be a trend towards communities rather than disbursed far flung mcmansions. your good friend jeremy siegel here. good to see you. first of all, in the tax deduction there’s a lot of countries that don’t have it. they are high if not higher than in the u.s. one thing i wonder with interest rates so amazingly low. even if the tpebgs raises them. if the 10-year bond goes to 3%. it’s now 1.6% that, would be a mortgage i could only dream abou 10, 15 years ago. i think there’s probably a lot of slack here before we get to a rate that really could pinch and if they feel they are getting a good price. rates might stay low for a long time. right now we set new records for the 15-year low on mortgage rates. right. and i think people react especially to that kind of thing. cord low. they want to grab it. so there’s an immediate impulse on buying pressure. you know, my son refinanced down to what we thought was a great rate a few years ago, 4%. now that’s not great. now there’s 3. i said pay it off. how much lower can loan rates go? they can’t go below zero. 139 on the 10-year that will stand decades from now. final question for professor shiller. our friend at the table loves to say the market is going to keep going up. if you could buy real estate or equities right now, what’s the bigger bet? well, if you don’t want the — the problem with real estate is maybe you want it. you want to live there. if it’s just an investment i would say the stock market. as jeremy has shown and stocks for the long run. two century long history shows a lot of amazingly good performance for stocks. maybe it won’t be that good for the future but i bet it’s better than housing. professor, thank you for joining us. we will be awaiting those numbers. i like his advice, though, live where you want to live. but maybe rent.
URL:http://video.cnbc.com/gallery/?video=3000164902
This transcript is generated by automated closed captioning, has not been edited, and may not be entirely accurate.
©2011 CNBC.com
[42] freedy
“Friend of mine just came into 200k. what would members here recommend as an investment .”
.223 ammo.
(had to beat Scrapple to it).
Hire Chifi to manage it.
42.freedy says:
April 30, 2013 at 10:37 am
Friend of mine just came into 200k. what would members here recommend as an investment .
“two century long history shows a lot of amazingly good performance for stocks. maybe it won’t be that good for the future but i bet it’s better than housing”
-Shiller
According to National Flood Insurance Program my house has never had a flood claim. Sandy was only time since house built in 1955 it had water. I never had flood insurance so even with Sandy I never had a claim. Since I had no claim, no building inspectors visited my house and I had no building permits for repairs. I pay $400 bucks a year for flood insurance since I am a low risk.
ICI where you have to raise house is mainly for folks WITH flood insurance where payout is greater than 50% of cost of house. FEMA only pays out $31,900 which is never greater than 50% cost of house.
I am one of rare houses that did not have flood insurance had damages exceeding $31,900 yet no damage visible from outside so any drive by building inspector did not see anything. I want to finish house off just waiting on grants. Or spring 2014. I stopped all work as my guy is doing insurance work for top dollar and wont be able to give me my cash price till next spring. In meanwhile if someone gives me grant money I will go ahead and do it without him. I need two rooms sheetrocked, two screen doors and some mold remediation under extension and a new wood floors in main level and I am done.
Juice Box says:
April 30, 2013 at 11:04 am
JJ – Don’t you have to raise the house off the ground otherwise flood insurance goes up to like 35k a year?
Is came into 200K a way of saving he married and ugly chick with 200K in the bank
freedy says:
April 30, 2013 at 10:37 am
Friend of mine just came into 200k. what would members here recommend as an investment .
Nope that was a terrible mistake. I was told unless you can show receipts that you had at least $31,900 of work done you are not eligible for any more grant money.
I did a ton of work my self. Maybe a few hundred hours. But I have receipts for like 35K worth of work. Since I used up my whole $31,900 I can apply for grant for remaining work.
Doing it your self is smart. But also if you dont have receipts for $31,900 and fema audits you they can make you pay it back. So if you have 50K worth of repairs you should do 18K youself and have receipts ofr 32K. That is what I did.
Anon E. Moose says:
April 30, 2013 at 10:35 am
JJ [39];
By not telling folks till April 28 you could get paid anyone with money or eligible for a loan went ahead and did repairs. Only folks who truly needed help will get help. Tricky
On the other hand, people who banked the $31k and shacked up at their vacation home, or with friends/relatives probably didn’t do so badly. Anyone with the self initiative to git’r done got to pick up the bill… twice. Government at its finest.
Demand among homebuyers is so high in some parts of the country that builders are holding lotteries to decide who gets to purchase homes in their developments.
O’Brien Homes started holding a monthly housing lottery for its 228-unit development called Fusion in Sunnyvale, Calf., after seeing throngs of prospective buyers camp out at the openings of other new condo complexes in the area.
http://money.cnn.com/2013/04/30/real_estate/home-lotteries/index.html?iid=Lead
bubble?
“but i think some areas are disadvantaged over the long run. maybe. it’s speculative. be in a remote suburb of a big city, with no sidewalks, big front lawns, big houses, those don’t seem to be doing as well. and i think there’s reason to think that it reflects maybe slightly more urbanized outlook.” -Shiller
Is he talking about Hunterdoom McMansions?
Joyce [57];
I think I’ve seen this movie before. The ending is predictable and it takes too long getting there.
Joyce – Sunnyvale not so much, go a little north to Menlo Park and you will pay 2 million for a crap shack.
Sounds fishy. I call BS on that one. Why wouldn’t the builder just charge a higher price? What good does the lottery do anyone?
Sounds like marketing hype to make the buyer feel like a winner.
57.joyce says:
April 30, 2013 at 12:11 pm
Demand among homebuyers is so high in some parts of the country that builders are holding lotteries to decide who gets to purchase homes in their developments.
O’Brien Homes started holding a monthly housing lottery for its 228-unit development called Fusion in Sunnyvale, Calf., after seeing throngs of prospective buyers camp out at the openings of other new condo complexes in the area.
http://money.cnn.com/2013/04/30/real_estate/home-lotteries/index.html?iid=Lead
bubble?
Cash for Trash as reflation of Fannie and Freddie continues.
http://www.businessweek.com/news/2013-04-30/paulson-leads-hedge-funds-urging-u-dot-s-dot-to-privatize-fannie-mae
Freedy – tell em to put the 200k to work in FMCKJ
http://finance.yahoo.com/q?s=FMCKJ
They have a $25 issue price and are trading up up about 1700% since 2010.
This all depends if the Hedge Funds and Millstein can get Congress to act, and if housing continues to recover they just may all in the guise of paying back the taxpayers.
63
Brian,
Read the whole article. It mentions higher prices and the lottery.
Phony and Fraudy’s unwind are just Nero tuning his fiddle.
When FHA blows to pieces (and it will), there goes the necronomy.
Exit light
Enter night
Take my hand
We’re off to never never-land
Still, that’s my gut feeling on that. If they want to make the long lines shorter raise the price. If people don’t leave the line you haven’t found the proper price of the home yet. Supply and Demand isn’t that complicated. Or, build more houses. What good does the lottery do anybody?
63.joyce says:
April 30, 2013 at 1:21 pm
63
Brian,
Read the whole article. It mentions higher prices and the lottery.
66
Did you advocate the same course of action during the gas lines after Sandy? or was that gouging?
Gubmint either underwrites or insures 9 out of 10 new mortgages.
This should end well.
I dunno….that headline on Yahoo stating home ownership rate in US is at an 18-year low seems to be an inconvenient fact around all the housing cheerleading lately.
joyce (67)-
The people lining up at housing developments like that one are walking into a meat grinder. They deserve whatever they get.
There were a number of times in the 1930s that the gubmint and media resorted to outright lies and fabrication to hide or distract the population from the reality of the dead and rotting economy.
Today, gubmint and media are vastly more sophisticated and powerful. What interests of theirs would be served by telling anyone the truth?
Housing going up but no homeowners….. sounds kinda like Stock Market going to new highs on lowest volume in a year…..
http://www.reuters.com/article/2013/04/30/us-usa-economy-housing-idUSBRE93T0PB20130430
Flipped on TV a little while ago to The Chew. What a festival of idiocy.
We are doomed.
dan (72)-
Amazing what you can do with a printer and the will to print.
When i at first stated We visited this -Notify everyone if completely new responses are usually added- checkbox and now if a review is actually increased I am Some electronic mails with the the same brief review. Will there be any approach you could clear away everyone from that service? Cheers!
Fielding calls from RE brokers who want to hang my license and let me sell part-time.
As if.
Speaking of walking into meat grinders:
http://www.zerohedge.com/news/2013-04-30/apple-launches-17-billion-bond-offering-largest-ever-non-financial-firm
“Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. This rapid increase in prices occurs after a demand or supply shock: examples include price increases after hurricanes or other natural disasters. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. In the Soviet Union, it was simply included under the single definition of speculation.”
http://en.wikipedia.org/wiki/Price_gouging
Gouging is different than finding market price for goods and services. It is also illegal.
67.joyce says:
April 30, 2013 at 1:46 pm
66
Did you advocate the same course of action during the gas lines after Sandy? or was that gouging?
I see you are mentally preparing yourself for the move out to the ‘burbs……I still remember in my last month in Hoboken and I stopped at the traffic light at the PATH as the mass swarmed out of the strairs……I realized….damn these people look really young…….then I realized it was over……time to move on……
Juice Box says:
April 30, 2013 at 9:50 am
# 31 – The amount of hipsters in Hoboken is out of control. Thick beards and mutton chops, thin ties and brown dress shoes on the weekends. Many work in Bubble 2.0 companies in Manhattan.
The article stated the houses went up an average of 32% during the different phases… and apparently that wasn’t high enough to find equilibrium. Right? So far we’re in complete agreement. I also agree that if the prices continued to rise less and less people would show up to buy.
If gas prices ONLY rose 32% temporarily after Sandy, a $3.50/gal would cost $4.67… and all of a suddent that’s a gouging, and a crime?
Why can’t ‘finding equilibrium’ work during a ‘supply shock’? If the price rises to equilibrium, only those who truly need gas will get in line… poof, no more lines. Should the guy on my street who resold his 5-gallon gas can (full) for 100% profit really be prosecuted for a crime?
“Ninety percent spend on good times, women and Irish whiskey. The other ten percent probably should be wasted.”
freedy says:
April 30, 2013 at 10:37 am
Friend of mine just came into 200k. what would members here recommend as an investment .
Stop talking sense lest you be shouted down…..
joyce says:
April 30, 2013 at 2:15 pm
The article stated the houses went up an average of 32% during the different phases… and apparently that wasn’t high enough to find equilibrium. Right? So far we’re in complete agreement. I also agree that if the prices continued to rise less and less people would show up to buy.
If gas prices ONLY rose 32% temporarily after Sandy, a $3.50/gal would cost $4.67… and all of a suddent that’s a gouging, and a crime?
Why can’t ‘finding equilibrium’ work during a ‘supply shock’? If the price rises to equilibrium, only those who truly need gas will get in line… poof, no more lines. Should the guy on my street who resold his 5-gallon gas can (full) for 100% profit really be prosecuted for a crime?
Did you see the price on the 3Y floater?
3M USD LIBOR + 5 bps……that’s 0.33% for those playing at home……….
Scrapple n’Ricin says:
April 30, 2013 at 1:57 pm
Speaking of walking into meat grinders:
http://www.zerohedge.com/news/2013-04-30/apple-launches-17-billion-bond-offering-largest-ever-non-financial-firm
[79] chifi
Thin ties are back??? Damn, I threw away the last of mine in 1989.
When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.
Everything is not black and white. At some point, the behavior is morally reprehensible and incites civil unrest.
If a bunch of rich people competing for houses in the San Francisco area don’t get to buy houses….no big deal.
Anyway, you’re missing the point Joyce. Debating the legitimacy of price gouging laws has nothing to do with it.
Cmon….do you really believe that those builders are holding a lottery because they are nice guys and want to make sure all of those people get a fair shot at buying a house? It just isn’t good business sense.
Just make the price 1million and it’s a non-story.
80.joyce says:
April 30, 2013 at 2:15 pm
The article stated the houses went up an average of 32% during the different phases… and apparently that wasn’t high enough to find equilibrium. Right? So far we’re in complete agreement. I also agree that if the prices continued to rise less and less people would show up to buy.
If gas prices ONLY rose 32% temporarily after Sandy, a $3.50/gal would cost $4.67… and all of a suddent that’s a gouging, and a crime?
Why can’t ‘finding equilibrium’ work during a ‘supply shock’? If the price rises to equilibrium, only those who truly need gas will get in line… poof, no more lines. Should the guy on my street who resold his 5-gallon gas can (full) for 100% profit really be prosecuted for a crime?
Selling a new development you release a few homes at a time underpriced, folks line up to buy go all over town to brag about deal, then next time you raise it a bit more, then a bit more, then do lotteries, then you have buzz and suckers lined up paying 40% more than it is worth.
Bottom line very few win initial lottery to get home cheap, those that do actually get a good deal. It is kinda like you comp pretty girls at a new bar and give cool people free rounds till crowd builds up them milk them for all they are worth.
[81] chifi,
You are ripping off one of my favorite ancient actors:
“Part of the $10 million I spent on gambling, part on booze and part on women. The rest I spent foolishly.”
George Raft
Nice, but still .33% considering savings account often pay .30% not impressive.
chicagofinance says:
April 30, 2013 at 2:23 pm
Did you see the price on the 3Y floater?
3M USD LIBOR + 5 bps……that’s 0.33% for those playing at home……….
Market Post: Iowa Fertilizer, ‘Yield’ Credits See Insatiable Demand
by: Taylor Riggs
Tuesday, April 30, 2013
The $1.2 billion Iowa Finance Authority deal stole most of the attention in the primary Tuesday afternoon as traders said any bond with yield is extremely well received.
Can you sue in a bad bond deal if bonds are backed by Fertilizer?
It’s all picking up nickels in front of a steamroller.
Going down hard, folks.
Go for Spanish and Italian debt.
Get that yield, boy!
Shiller says the housing market is operating in an “abnormal economy” where the Federal Reserve is buying $40 billion worth of mortgage securities and $45 billion worth of Treasury notes each month. This has driven mortgage rates to record lows.
When asked where this all leaves the housing market 10 years from now, Shiller says home prices will be “about where they are now” after adjusting for inflation.
It’s different here… right? Right? I said, right?
It’s different here…until it all blows sky high.
Then, it will be worse here.
jj (90)-
Maybe you can get to the fertilizer and pour some diesel on it.
“Can you sue in a bad bond deal if bonds are backed by Fertilizer?”
re# 79 re: “you are mentally preparing yourself”
I am not sure what you mean? The burbs are a wonderful place full of young nubile women. Right? Right? I still get to see young firm people in lululemon when I go to yoga or the gym right? RIGHT???
Eddie [93];
The fact that the money is plowing into housing is almost besides the point. Housing is the vehicle of choice because is an efficient way to move lots of dollars into circulation quickly. Those dollars will find their way into other things sooner or later, and raise those (all) nominal prices accordingly.
To me, the big picture is that the amount of fed money being created and plowed into mortgage securities compared to the federal budget deficit (about 50%). unprecedented monetization, and it only covers half the tab. Nope, no spending problem here.
http://seattle.cbslocal.com/2013/04/30/man-dies-after-falling-into-meat-grinder-at-oregon-packaging-plant/
Man Dies After Falling Into Meat Grinder At Oregon Packaging Plant
CLACKAMAS, Ore. (CBS Seattle) — A man has died at an Oregon packaging plant after falling into a meat grinder.
Clackamas County authorities say 41-year-old Hugo Avalos-Chanon, a contract employee for DCS Sanitation Management, fell into a meat blender at Interstate Meat Distributors while cleaning, KOIN-TV reports.
An employee pressed the emergency switch in an effort to stop the blender, but it was too late.
JB/Chi, so went in another property, came in 4% below ask. they came right back at me like i’m some f*ckin tourist and countered with a close to-but still sub 1% reduction. So I said the hell with them. That was my first+best.
When you bid is it one of those bids contingent upon a mortgage, inspection, you selling old place etc.?
When you watch those shows like Pickers etc. Cash on Barrel Head always is best deal. Even folks on show say it is irrational that someone will take such a discount for cash rather than wait a few weeks for a larger amount, it is human nature.
BearsFan says:
April 30, 2013 at 4:30 pm
JB/Chi, so went in another property, came in 4% below ask. they came right back at me like i’m some f*ckin tourist and countered with a close to-but still sub 1% reduction. So I said the hell with them. That was my first+best.
JJ – mortgage and inspection yes, no other house sale contingency.
BearsFan,
Tell them to go f.uck themselves. I hope they wind up taking less than your bid. I’m pray1ng that an inspection turns up a major issue and they have to shell out a f.ucking boat load of money. In fact, tell us the listing number, I want to put in a bid 20% under asking price with a letter attached to it.
fpmpLcDx http://www.51Cq0It1s3Fufa0R6Sq9D6.com/
fpmpLcDx
[url=http://www.51Cq0It1s3Fufa0R6Sq9D6.com/]fpmpLcDx[/url]
Eddie – No reason to get contentious with them, silence is golden. I think BearsFan should go radio silent for 30 days. If the house is still on the market, the next offer is another 2-3% off the last offer, with the reason being that clearly the first offer was above market.
I wanted to pay 290K on place seller wanted 315k, I gave them 315k contingent on financing and a mortgage as I could not get them lower.
After I paid for inspection and they hired lawyer we formally agreed on 315, they hired a lawyer drew up contract, they delisted house as offer was pending, I had my lawyer review it and go back ant forth then I whined and moaned about hard to get amortgage in those areas effected by flood, issued with innspection then re-offered 280K cash as is, even though I know not much was wrong, realtor was a bit suprised, then I said basically, no other buyer, house is empty spring selling is upon us, by time you relist, have open houses get a buyer with a mortgage seller is holding empty house for 3-5 months and risks sitting on it next huricanne season or we can do this today.
Seller said ok, and was actually happier. Cause when I gave him his 10% non cash offer as is, he knew he was done as soon as he got check.
I wanted mortgage, but paying 15K extra for house and an extra 3k at closing I would need 18K of mortgage interest which is like almost six years worth at these low rates.
You have to flip to cash or as is after last mortgage/contingent offer is done or at least show big downpayment.
BearsFan says:
April 30, 2013 at 4:42 pm
JJ – mortgage and inspection yes, no other house sale contingency.
I wasn’t debating the legitimacy of anything. I was taking your logic and applying it to another scenario. Logic is supposed to be applicable in different situations.
Make the price a million, you say… who’s gouging now, Brian?
Are the contractors at the Jersey Shore and parts of NY gouging when their prices have risen 50% since Sandy? Same for the home builders (stick and modular).
86.Brian says:
April 30, 2013 at 2:27 pm
Everything is not black and white. At some point, the behavior is morally reprehensible and incites civil unrest.
If a bunch of rich people competing for houses in the San Francisco area don’t get to buy houses….no big deal.
Anyway, you’re missing the point Joyce. Debating the legitimacy of price gouging laws has nothing to do with it.
Cmon….do you really believe that those builders are holding a lottery because they are nice guys and want to make sure all of those people get a fair shot at buying a house? It just isn’t good business sense.
Just make the price 1million and it’s a non-story.
Joyce,
Home builder lottery = marketing gimmick
Not a bubble.
Eloquent in its brevity. Care to respond to the points made?
Bears seems you need to feel victorious like me. I see you have
Bid twice in the last few weeks how is the better half taking it?
JB – Well, I wouldn’t say I need it, but I’m curious :) I’m very confident in my market assessment. Like many here, I’ve spent way too many hours following the “big picture” and also have tracked houses in the area I am buying for over 2 years. I could be a paid consultant in the market i’m hunting in. The B2B timing is more a coincidence, we just happened to find 2 we liked that fit our needs in a close time frame. This hasn’t been the case much. Better half is supportive, and gets it. We’re up against our upper boundary anyway $$, so it makes it a little easier to stay firm. If that were not the case, I’m sure I would give in and just get on with it. But when your nose is already a little bloody…..
Thanks for the auspicious writeup. It in truth was once a entertainment account it. Glance complex to more introduced agreeable from you! By the way, how can we keep in touch?
102 – Eddie…u crack me up. I love it. I think this time, if they do go for less than we offered (which has already happened on one place we liked), my wife and I will def break some shit. It’s been a long time since I was as angry as I was the day that house closed and I saw the number. I couldn’t work for a few hours I was so bent. really pissed me off. I would love some cover though, toss that 20% UA in!! :)
Argentines swap iffy pesos for dollars and store that value in U.S. (MIAMI) property, out of the prying hands of the government back home.”
http://www.businessweek.com/articles/2013-04-28/argentina-s-mad-dash-for-u-dot-s-dot-dollars#r=rss
Yome (7): I used to play on the SHI hockey team.
waldorf (98)-
That’s gonna leave a mark.
“Clackamas County authorities say 41-year-old Hugo Avalos-Chanon, a contract employee for DCS Sanitation Management, fell into a meat blender at Interstate Meat Distributors while cleaning, KOIN-TV reports.”
re#110 – Bears -” I could be a paid consultant in the market i’m hunting in”
Not when dealing with the irrational buyers sellers and their cohorts.
You have clarity but the irrational wins every time and will overbid at these low rates. I don’t think you said there were other offers, but if there is a Realtor that is worth their salt involved they should be all over the seller by now to counter lower and if there isn’t then the seller isn’t selling or the Realtor is incompetent since “you” being solid like me can actually close. Even a million dollar home is only 50k @ 5% and nothing over 30 years at 3.5%..
Find a place and take charge,the Fed won’t let our cash earn without risk which we all have enough of in our 401ks so perhaps it’s time so it’s time to pick another battle and all shiny isn’t that battle.
Risk on, but hey the Fed along with the rest of Central Banks buying will buy and hold forever.
http://advisorperspectives.com/dshort/guest/Chris-Kimble-130430-Margin-Debt-Update.php
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