Dow is up, housing starts up, California construction booming

[DtB]

Seems Obamas plan is working!?! Your thoughts ?

 

[Tom Brown]

It's nice to see the US doing well again. I'm glad Obama was able to fix the Republican economic mistakes because it has an impact on Canada too.

I'm also happy for my American friends and family because I want everyone to have a nice life.

 

[DtB]

It's nice to see the US doing well again. I'm glad Obama was able to fix the Republican economic mistakes because it has an impact on Canada too.

I'm also happy for my American friends and family because I want everyone to have a nice life.

On behalf of all Americans
We are happy you are happy

 

[was thatguy]

Seems Obamas plan is working!?! Your thoughts ?

That's the view from Reno??

 

[Bobby V]

Seems Obamas plan is working!?! Your thoughts ?

My neighbor had a open house on Sat. There must have been 25 cars that parked and looked at the house. I know they got at least 5 offers over asking price of $695K. The price is 100k over what my other neighbor paid over a year ago.
:thumbsup:thumbsup

 

[thetub]

Hope you guys are right? or this is all another hoax cause of uncle Bernankes market manipulations.

dow is the only place to get any return on your money due to Bernankes low rates.

housing the same? low rates and shortage of housing inventory cause of banks holding on to them?

seems like house prices are going up to fast again? mini bubble? Its good for construction and realtors,but I hope its not another artificial boom? Little POS 700 square foot house I looked at in shitty neighborhood went for $280,000?? It had something like 10 offers in the first day??
seems like a playover of 2008.

and everyone keeps forgetting about the "fiscal cliff". In other words our deficit spending to keep the party going?

my 2 cents.. hope Im not a Debbie downer about it...

 

[GET SOME]

House next door 858 sq feet in horrible shape. No kitchen concrete floors etc just sold for 425k in 1 day crazy

 

[025]

It's nice to see the US doing well again. I'm glad Obama was able to fix the Republican economic mistakes because it has an impact on Canada too.

I'm also happy for my American friends and family because I want everyone to have a nice life.

Ya happy nice life, free health care and free money, free cell phone....Obama rocks!!!!! Oh I almost forgot thanks for taxing the hell out of us working people and not even sending a thank you note

 

[Bobby V]

Hope you guys are right? or this is all another hoax cause of uncle Bernankes market manipulations.


...

Well if it is another hoax people are falling for it again. I don't use graphs or charts like some people. I look around and see whats happening at least in my area and where I go and at my work. Costco, The mall, grocery stores and places to eat are full of people spending $$$. Two weeks ago I booked a room at a slope side ski resort in Mammoth. 1 bedrooms start at $300 a night. The 2 and 3 bedrooms were already sold out and I got the last of the 1 bedrooms. Now add in the cost of a lift ticket, gas, food and lodging. It gets expensive. People are not afraid to spend $$ again. At least where I hang out.

 

[thetub]

Hope you guys are right? or this is all another hoax cause of uncle Bernankes market manipulations.

dow is the only place to get any return on your money due to Bernankes low rates.

housing the same? low rates and shortage of housing inventory cause of banks holding on to them?

seems like house prices are going up to fast again? mini bubble? Its good for construction and realtors,but I hope its not another artificial boom? Little POS 700 square foot house I looked at in shitty neighborhood went for $280,000?? It had something like 10 offers in the first day??
seems like a playover of 2008.

and everyone keeps forgetting about the "fiscal cliff". In other words our deficit spending to keep the party going?

my 2 cents.. hope Im not a Debbie downer about it...

Good luck to all and choose wisely this time....

 

[thetub]

Man thats bad, Im quoting myself.

 

[Motor Boater]

I have been looking at houses in Phoenix since July, there is not much on the market in the first place so when something comes on it goes under contract in a second. Realtors are shouting BIG HOUSING BOOM from the rooftops and slowly I have watched all these same house fall out of escrow and come back on the market 2 and 3 times at reduced pricing every time. We've seen houses come on the market at 450K and they get so much interest they pull the listing because they think their underpriced, a week later it goes back on the market at 480K and sits..........they gradually reduce for months until the house finally closes at 420K. Weird stuff going on right now but Im not ready to call it a boom yet.

Lots of investors out there throwing blind contracts in when the listing is posted and they back out at a later date once they've come to see the property. Its really creating a false sense of demand. Had a realtor tell me I was wasting my time coming and looking at this property because he had an accepted contract with 6 back up offers. 3 days later house is back on the market, not sure if they were all bad contracts or he was trying to get people to bid up the house.

 

[thetub]

I have been looking at houses in Phoenix since July, there is not much on the market in the first place so when something comes on it goes under contract in a second. Realtors are shouting BIG HOUSING BOOM from the rooftops and slowly I have watched all these same house fall out of escrow and come back on the market 2 and 3 times at reduced pricing every time. We've seen houses come on the market at 450K and they get so much interest they pull the listing because they think their underpriced, a week later it goes back on the market at 480K and sits..........they gradually reduce for months until the house finally closes at 420K. Weird stuff going on right now but Im not ready to call it a boom yet.

Lots of investors out there throwing blind contracts in when the listing is posted and they back out at a later date once they've come to see the property. Its really creating a false sense of demand. Had a realtor tell me I was wasting my time coming and looking at this property because he had an accepted contract with 6 back up offers. 3 days later house is back on the market, not sure if they were all bad contracts or he was trying to get people to bid up the house.

its weird, here in Kalifornia the foreclosures and shortsales are bought by cash investors before they hit the market.
Basically realtors have their stash of repeat cash buyers , and list the property on the market even though its sold already.

seems like regular buyers are in panic mode cause of this frenzy and throwing out offers driving prices too high. IMO

You are right , would not call it a boom. Maybe a controlled frenzy.

 

[Weekend Therapy]

In our area it is simple lack of inventory that has been driving the demand sort of a mini bubble some would say. We put an offer on a place back in November and hope to close next month.

In the mean time we have looked at other places all of which typically go within 24hrs of listing. The last place we looked at a couple of weeks ago we absolutely loved, but was over priced by about $15 a sqft. I thought I might come in low and get it for a decent price, but they had 3 full price offers within 3hrs of the open house. Now look back to when we were trying to sell our house (different area) there was little to no demand and it took 8 months to sell and numerous price decreases.

 

[Racey]

The Dow, up because you can't make money in a savings account at 0.50% interest, and the Fed has been buying MBS off the banks freeing up capital, everyone has been running to the stock market as a last resort for the last 3-4 years..... None of the companies in the Dow are up in production to match the rise in stock prices, buyers of the stock are driving the price, not the performance of the companies, the real measure of health. In other words a speculative boom on stock prices. No real production is taking place to back these gains, so any winners in this market come mostly at the expense of losers in the market, a redistribution of money from the hands of one to the hands of another, like a casino, for the most part.

Housing market is being held in an artificial supply shortage by foreclosed(and not yet but soon to be foreclosed, behind payment) homes being held back from market so that there aren't entire streets lined with sale signs bringing prices down as buyer bargaining power goes up. The Fed is enabling this by purchasing the debts from the banks through their QE3 program buying mortgage debt off the hands of banks that would otherwise be forced to dump the assets onto the market, instead they are given money and the Fed owns the debt now.....

In other words, if you think this is real health, a recovery, you are dreaming, if you see it what it is and want to make a quick buck on it in the mean time good for you :thumbsup better be quick, just don't be surprised when this all shits out again in another 18 months or so..... I'd be more worried about staying liquid than buying into this game. Look at industry and raw production, none of this "growth" is real, it's being funded by expansion of the money supply, and manipulations of interest rates and markets.

 

[Classic Daycruiser]

Seems Obamas plan is working!?! Your thoughts ?

Save some money for those bad times..

 

[thetub]

Well if it is another hoax people are falling for it again. I don't use graphs or charts like some people. I look around and see whats happening at least in my area and where I go and at my work. Costco, The mall, grocery stores and places to eat are full of people spending $$$. Two weeks ago I booked a room at a slope side ski resort in Mammoth. 1 bedrooms start at $300 a night. The 2 and 3 bedrooms were already sold out and I got the last of the 1 bedrooms. Now add in the cost of a lift ticket, gas, food and lodging. It gets expensive. People are not afraid to spend $$ again. At least where I hang out.

your right. Same here. stores are packed. 99 cent store,ross,dollar general, wally world to the higher end stores. I scratch my head :headscratch:

spending money or borrowed money? people spending money on buying crap is driving the economy?

again the Bernanke spend your way out of it mentality.....

 

[djunkie]

I have been looking at houses in Phoenix since July, there is not much on the market in the first place so when something comes on it goes under contract in a second. Realtors are shouting BIG HOUSING BOOM from the rooftops and slowly I have watched all these same house fall out of escrow and come back on the market 2 and 3 times at reduced pricing every time. We've seen houses come on the market at 450K and they get so much interest they pull the listing because they think their underpriced, a week later it goes back on the market at 480K and sits..........they gradually reduce for months until the house finally closes at 420K. Weird stuff going on right now but Im not ready to call it a boom yet.

Lots of investors out there throwing blind contracts in when the listing is posted and they back out at a later date once they've come to see the property. Its really creating a false sense of demand. Had a realtor tell me I was wasting my time coming and looking at this property because he had an accepted contract with 6 back up offers. 3 days later house is back on the market, not sure if they were all bad contracts or he was trying to get people to bid up the house.

Not saying this is the reason, but I can tell you it's a lot harder getting a loan nowadays. Could be why they are going back on the market. When we were looking I saw a few homes that were in escrow then fall out cause they couldn't get funding. Ours was a bitch.

 

[Rexone]

Things are fantastic.

I'm just going to continue stockpiling food as a hobby now.

 

[Old Texan]

I'm just amazed about 700 sqft homes.....Good grief, my living room is bigger than that and my home is far less money. CA RE is delusional from what it is here.

 

[530RL]

Did I miss something or did the economy in Q4 contract?

I do know that Incline Village is booming. I suspect it has something to do with people wanting to live in feet of snow. Can't possibly have anything to do with Nevada's 0% income tax rate versus California's 13.9%?

[video=youtube;zDAmPIq29ro]http://www.youtube.com/watch?v=zDAmPIq29ro[/video]

 

[Tom Brown]

I have been looking at houses in Phoenix since July, there is not much on the market in the first place so when something comes on it goes under contract in a second. Realtors are shouting BIG HOUSING BOOM from the rooftops and slowly I have watched all these same house fall out of escrow and come back on the market 2 and 3 times at reduced pricing every time. We've seen houses come on the market at 450K and they get so much interest they pull the listing because they think their underpriced, a week later it goes back on the market at 480K and sits..........they gradually reduce for months until the house finally closes at 420K. Weird stuff going on right now but Im not ready to call it a boom yet.

We're in a boom here. Our economy is booming. Unemployment is down around 2%. There is a ton of activity.

Even in this boom, selling a house is often an effort in comedy. People make offers who could barely afford the fuel to come and see the property. Others tell you they are interested and beg you to pull the property off the market and then you never hear from them again. We had to cut three contracts over four months, before one of them went through.

Realtors would call us and tell us they could sell our property in 48 hours but none of them would budge on 120 day sale contracts as a minimum.

About 18 months ago, MLS started keeping track of time on market to sale averages. The day after they started that, realtors would withdraw houses from MLS every 60 days and re-list them. A realtor friend of mine told me about this behavior. He told me a 4 month sale was as good as can be reasonably expected, even in this market.

 

[Tom Brown]

I'm just amazed about 700 sqft homes.....Good grief, my living room is bigger than that and my home is far less money. CA RE is delusional from what it is here.

The future is smaller homes and higher density urban living.

Those homes won't be any less expensive, though. lol!

 

[Old Texan]

The future is smaller homes and higher density urban living.

Those homes won't be any less expensive, though. lol!

I see that in places, just not here in TX for the most part. Older smaller homes are being snatched up by immigrants and investment buyers for rental "empires". While established buyers are moving their young families into rural and sub-rural settings. Schools are being built to meet demand and the infrastructure of roads is dragging behind. We're a commuter society in large part. The wife drives 30+ miles for decent shopping on an almost daily basis.

Based strictly on personal opinion, small base houses around here tend to be 1,800 sqft minimum. 3,000 sqft is becoming common place more and more as average 2nd home purchase. As long as the economy holds this will continue.

Tom, if I can get my house on a trailer, do you think you could tow it to CA? I could flip it for 5 times what I could sell it for here based on the numbers being thrown around.:skull

 

[was thatguy]

I see that in places, just not here in TX for the most part. Older smaller homes are being snatched up by immigrants and investment buyers for rental "empires". While established buyers are moving their young families into rural and sub-rural settings. Schools are being built to meet demand and the infrastructure of roads is dragging behind. We're a commuter society in large part. The wife drives 30+ miles for decent shopping on an almost daily basis.

Based strictly on personal opinion, small base houses around here tend to be 1,800 sqft minimum. 3,000 sqft is becoming common place more and more as average 2nd home purchase. As long as the economy holds this will continue.

Tom, if I can get my house on a trailer, do you think you could tow it to CA? I could flip it for 5 times what I could sell it for here based on the numbers being thrown around.:skull

As you know Tex, I have a House in CA, and 4 acres, pool Shop, Barn, pasture, etc.

I don't know what these guys are talking about. Granted, My County is NOT the wealthiest out there.
But every few months another house on our road forecloses or shorts....and My house has NEVER been back even money since 08 or so.

We bought in 04. Well before the boom and bust. Our property was nearly doubled at the peak....but we did not leverage that false equity.
Good thing!!

It has been as low as 70% of what we paid, and as high as 85% of purchase.

I tell you what HAS held value here, and are in demand.....5th Wheel trailers, preferably used.
People are walking away from homes and living in them.

 

[Old Texan]

As you know Tex, I have a House in CA, and 4 acres, pool Shop, Barn, pasture, etc.

I don't know what these guys are talking about. Granted, My County is NOT the wealthiest out there.
But every few months another house on our road forecloses or shorts....and My house has NEVER been back even money since 08 or so.

We bought in 04. Well before the boom and bust. Our property was nearly doubled at the peak....but we did not leverage that false equity.
Good thing!!

It has been as low as 70% of what we paid, and as high as 85% of purchase.

I tell you what HAS held value here, and are in demand.....5th Wheel trailers, preferably used.
People are walking away from homes and living in them.

That seems to be a life change for a helluva alot of folks. We have untold numbers of RV parks being set up all around. Many are for workers coming for projects, but a surprising number are plain folks living in them. Some I've talked too have no children and pocket the saved money to use for retirement savings. Some just like the mobile life style.

Curious if this is a national trend of sorts????? Even in states with stronger economies like TX.....I know lot rental for these things is going up. A guy told me he was paying $600 a month for the convenience of being close to his jobsite in east TX.