It’s a short business week this week, but we’re still here and working. I thought we’d start we’d start out listening to one of my favorite analysts, Peter Shiff, telling the government to stay out of the mortgage mess:
Is there anything else out there that we should read, watch or pay attention to today? If so, we’d love to hear from you!
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Breaking News Relevant Articles© Copyright 2012 Housing Doom | Copyright© 2011, AuthentiCraft, Inc.
When will bubble burst?
Condo sales are booming for good reason — but also for bad
By LINDA LEATHERDALE, BUSINESS EDITOR, TORONTO SUN
What a difference the 49th parallel makes.
South of the border, foreclosures are running rampant in 77 of the largest cities and home prices are falling through the floor.
In one California hub, there’s one foreclosure for every 31 homes .
But north of the border, the hot housing market continues to defy all odds — with buyers lining up to bid on luxurious Toronto condos, where the price tag can jump by millions in a matter of hours on units that haven’t even been built.
http://www.torontosun.com/Money/2007/11/18/4664830-sun.html
Looney-
We watched this phenomenon in markets across the U.S.- we watched speculation lift and then tank markets across the U.S. You would think people would say, “Wow, look what happened to Miami, Phoenix, Las Vegas- it could happen here in Salt Lake City, Seattle, etc…” but no- realtors promoted “But we are special here” and the lemmings lined up and bought.
I kept thinking that perhaps Canadians would learn from the mistakes of their neighbor, but no, the frenzy just moved north.
I guess misery loves company.
The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’
Ronald Reagan
Kid-
I’d heard another version of it:
1. Of course I’ll respect you as much in the morning.
2. Your check is in the mail.
3. I’m from the government, I’m here to help.
I concur with the sentiment either way.
yea, beware them all!
by the way, i was tooling around on the mls tonight, looking homes for sale in mcdowell mtn ranch. ran across multiple homes that have reduced their asking prices by over $100k- one was over $150k. still, many are way, way overpriced, but i hope this puts to rest the notion many hold that north scottsdale is bulletproof. it ain’t.
another funny blurb- there is a house at
10470 E CONIESON RD Scottsdale that has only been on the market for…cough, cough, 508 days. yup, thats it. and, they have lowered their asking price from $765k all the way down to $739.9. this is not a story of the buyer having bought at the peak of the market as tax records indicate the property was purchased by the owners in 2000 for $300k. the realtor (insert ridiculous symbol here) is jeff green at remax if anyone in interested in having his/her house sit on the market for a year and half and counting.
i think i am going to put a for-sale sign on my car asking $100k. never mind that it is worth $30k and depreciating daily. if i don’t get my price ill just keep my sign in the window ad infinitum.
Kid-
The owner of the Conieson property may be like my neighbor. He said he was sick of all the “lowball offers” last year, [Which I thought sounded reasonable, I would have cheerfully sold] as they were off the peak prices. He said he refused to walk away from $60K in equity. He’s rented it out for since January as prices have been dropping.
The problem might be a lousy realtor, but likely as not, it’s a seller who says they aren’t budging until they get their price.
Excellent rant from Jeff Matthews on Greenspan
‘The Undertaker’ and His Economic Doobie Brothers
Jan-Martin-
Funny coincidence- Mr. Twist has been in plastics importing for many years, and Raven Industries, who Matthews mentioned, is a former customer of his. As you can imagine, Mr. Twist has a different view about the “fundamental economic consequences” of a weaker dollar than Mr. Greenspan. : )
Moin Twist,
it is frightening to see that they are really that clueless…….
U.K. October BSA Mortgage Approvals Fall Annual 14%
twist -
You will have appreciated Schiff’s comment toward the end of the Fox video where he notes that mortgage holders who don’t get a good deal on workouts can probably do OK renting.
Jan-Martin-
It is difficult to believe they are really that clueless. I keep thinking they must understand these basic economic principles, but they are hoping that the people who read their comments don’t.
I like to think the best of people, but so often I can’t decide whether I’d rather believe they are foolish or lying.
John-
Schiff is on record that he is a renter as well.
There is a real premium on home ownership at the moment- prices have dropped around 11% in my neighborhood since the August credit crunch, for example. More and more people will remain “short” homeownership until prices make more sense.
Moin Twist,
i want to believe that you´re right but recently i have some serious doubts….
In the case of Greenspan we hopefully can tribute some comments on his age……..
Jan-Martin-
Sadly, they are wrong, no matter what the reason for their thinking, and we will all pay the price.
kid-
I know of one in McCormick Ranch that was bought for 560k in 2006 that is now 369k.
That’s closing in on 200k.
I wonder if that one is the biggest price drop in North Scottsdale so far?
Everybody please give the man the respect he’s earned: it’s “Schiff”.
Agnostic-
Our apologies to Mr. Schiff- we were a little careless this morning. I’ve edited the typos.
[Leave it to Igor- my anti-spam word is "blunder"]
Drilling Deeper into the Freddie Fiasco
Best part of yesterdays CC