Feb 06

These Vancouver Homes Sold For Millions In 2011 And Have Been Vacant And Rotting Since: Here’s Why:

 Five years ago, in July of 2011, the house at 4182 West 8th Avenue in Vancouver in sold for $4.6 million. It now rests vacant, abandoned and rotting.

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Feb 03

“We’re Nearing The End” David Stockman Warns, Retail Investors Are “Heading For The Slaughter”:

Former Reagan White House Budget Director David Stockman says retail investors are going to take, yet, another very big hit. Stockman explains,

“The retail investor waded in again. The sheep lined up and, unfortunately, are heading for the slaughter one more time. I think it is very hard to see how this Baby Boom generation, with 10,000 of them retiring a day, can afford one more devastating crash in their stock holdings. That is, unfortunately, what we are heading for. That’s why I say it’s dangerous. When the bubble breaks, it will spill and flow throughout the Main Street economy.”

Stockman warns the next crash will be bigger than any other in history. Stockman, the best-selling author of “The Great Deformation,” says, Continue reading »

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Feb 03

Vancouver Real Estate Goes Full-Retard; Average Home Price Now $1.8 Million:

Residential property sales in Greater Vancouver rose 31.7% in January. That’s 46% above the 10-year sales average for the first month of the year and the second highest January ever, the Greater Vancouver Real Estate Board reports. The benchmark price for a detached home in Vancouver: $1,293,700. The “benchmark” price represents what the Real Estate Board says a “typical” home would go for on the market. If we simply take the arithmetic mean (i.e. the average), the numbers are even more astounding.

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Jan 28

“Considering the global luxury real estate market is one of the most inflated asset bubbles on earth, current weakness could pretty quickly turn into a crash.”


The Luxury Housing Bubble Pops – Overseas Investors Struggle to Sell Overpriced Mansions

The Luxury Housing Bubble Pops – Overseas Investors Struggle to Sell Overpriced Mansions:

It appears the music may have finally stopped for one of the world’s largest luxury real estate bubbles: London.

It’s well known that foreign oligarchs love London real estate as a means to launder funds, typically “earned” by soaking their host countries dry via corruption and fraud. This has caused absurd and irrational spikes in high-end residential real estate in the English capital, as well as a flood of new construction.

With emerging markets now completely collapsing, the seemingly endless flood of foreign money is drying up, and with it, London real estate.

So has the London real estate bubble popped? Probably.

– From the September 9, 2015 article: Luxury London Home Sales Plunge 26% – Has this Mega Real Estate Bubble Finally Burst?

The first real signs that the global luxury home price bubble had popped emerged last fall in the world’s capital of oligarch money laundering: London.

Since then, we have seen weakness in high end Manhattan real estate, but the trend has now spread and is starting to make itself apparent all over the place. Continue reading »

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Jan 16

Manhattan Luxury Real Estate Peaked Last February – Prices Now Down 8 Months in a Row

Manhattan Luxury Real Estate Peaked Last February – Prices Now Down 8 Months in a Row:

William Ackman is a wildly successful hedge fund manager. He oversees $17 billion of mostly other people’s money. Forbes estimates his personal net worth at $1.7 billion. These facts alone would make him a prime candidate to buy the penthouse condominium at One57, the new luxury tower on West 57th Street.

And indeed, Mr. Ackman told The Times in a fascinating profile Sunday that he is the buyer of the 13,500-square-foot condo with an estimated price of $90 million. What is more shocking is what he plans to do with it. Continue reading »

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Dec 22

Existing Home Sales Collapse – Worst November In History:

The 10.5% crash in existing home sales is the worst November drop ever. Against expectations of a mere 0.2% drop, this is the largest miss in history asnd tumbles SAAR sales to the weakest since March 2014. The collapse in sales was across all regions, and ironically was accompanied by a rise in median home prices across all regions. Of course there was plenty of blame to go around, from inventory constraints to weather but most of all – paperwork – as new regulations – Know Before You Owe initiative, has meant longer closing times. In other words, wait til next month, it will all be great!?

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Dec 17

Real-Estate

The Foreign Criminals Using Los Angeles Real Estate to Launder Money and the Developers Who Help Them:

Here, as in other roosting places of the superrich, the recent influx of foreign money has gone hand in hand with the rising use of shell companies — generally limited liability companies. Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too.

– From the New York Times article: A Mansion, a Shell Company and Resentment in Bel Air

While New York City and London are already well known as top destinations for shady, foreign-money laundering oligarchs who often attain untold riches by thieving from their own people, the Los Angeles area has likewise morphed into a criminal real estate hub. Continue reading »

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Dec 15

London Bubble

Tens of Thousands of Properties to Be “Dumped” on London Real Estate Market by 2017:

One of the most spectacular bubbles inflated as a direct result of the oligarch giveaway colloquially known as “central bank policy” in the years since the global economic meltdown, has been the London real estate market. There are many reasons for this, but the primary one is the fact that London was seen as one of the best places for shady billionaires to park illicit funds, i.e., money laundering.

With a cratering in emerging market economies, as well as tax changes in the UK, much of that trade is now over. As such, some players are now scrambling to get out before the bottom drops.

If the following article is even remotely accurate, London real estate investors need to pay close attention.

From the Evening Standard:

As many as 60,000 homes bought off-plan in new developments in areas such as Nine Elms are scheduled for completion by the end of 2017 and many will be put up for sale immediately because of the growing disillusion with London, it says. Continue reading »

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Nov 12

Real Estate Bubble

Luxury London Real Estate Prices Plunge 11.5% Year-Over-Year:

Two months ago I published a piece titled, Luxury London Home Sales Plunge 26% – Has this Mega Real Estate Bubble Finally Burst?. I wrote:

It appears the music may have finally stopped for one of the world’s largest luxury real estate bubbles: London.

It’s well known that foreign oligarchs love London real estate as a means to launder funds, typically “earned” by soaking their host countries dry via corruption and fraud. This has caused absurd and irrational spikes in high-end residential real estate in the English capital, as well as a flood of new construction.

With emerging markets now completely collapsing, the seemingly endless flood of foreign money is drying up, and with it, London real estate.

So has the London real estate bubble popped? Probably.

Now we see the following from Bloomberg: Continue reading »

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Nov 12

The Stench Of Freddie Mac Is Back——An $18 Billion Spree Of Crony Capitalist Thievery:

Washington’s capacity to foster crony capitalist larceny and corruption never ceases to amaze. But according to Bloomberg, Wall Street’s shameless thievery from US taxpayers is about to get a whole new definition.

To wit, Freddie Mac is handing three private equity billionaires deeply subsidized debt financing in order to undertake $18 billion in rental apartment deals. According to no less an authority than Morgan Stanley, the subsidy embedded in this cheap financing amounts to 150 basis points or roughly $150 million per year on the loan amounts in play. Continue reading »

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Oct 10

This “Unlivable $350,000 Shack” Is The Cheapest Home In San Francisco:

According to the broker, it’s the cheapest home on the market in San Francisco, and it’s an unlivable shack.

As Fortune reports, it is a worn-down, decomposing wooden shack that was built in 1906, and the interior is unlivable in its current condition. The San Francisco house is also selling for $350,000.

According to Zillow, $350,000 would comfortably fetch a 1,500-square-foot, three-bedroom home in many smaller cities in the U.S., including Cincinnati, Ohio.

The Cheapest Home In San Francisco

Realtor Alexander Han, would definitely advise against moving in too soon.

“The house still needs a lot of work. I would not recommend anyone moving right in. The bathroom is not functioning. The kitchen needs a bit more work. The flooring has a couple of places that are little bit weaker, and needs to be reinforced.”

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Sep 29

Step Aside Detroit: There Is A New “Worst” City For Housing In The U.S.

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Sep 21

Forget about a housing recovery: for the vast majority of Americans, the housing crisis is about to get worse. Much worse.


The Mystery Of The “Missing Inflation” Solved, And Why The US Housing Crisis Is About To Get Much Worse

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Sep 16

Aussie Property Market Collapse Looms As Chinese Flee Amid Capital Controls

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Sep 10

What Bubble? 6 Castles That Are Cheaper To Rent Than An Apartment In NYC Or SF (ZeroHedge, Sep 10, 2015)

 

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Aug 20

bubble-pop

How Western Governments Will Steal Your Land, Part I (Sprott Money, Aug 19, 2015):

This was a difficult piece to write, and an equally difficult piece to title, because the people who most need to see this message are simultaneously the least-likely to read it. How do you steal anything? Boiled down, there are only two procedures: doing so via brute-force (i.e. robbery), or doing so by deception (i.e. fraud).

This is primarily a warning about the latter form of stealing, although ultimately there will be brute-force employed, for any who attempt to resist the mass-foreclosures and mass-evictions which are now imminent. To explain how your land will be stolen from (most of) you – by fraud – first requires a brief lesson in economics, conducted via a simple, hypothetical scenario. Continue reading »

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Aug 20

Existing Home Sales Extrapolation Surges To Highest Since Feb 2007 (ZeroHedge, Aug 20, 2015):

By the miracle of NAR extrapolation and seasonal adjustment, the SAAR Existing Home Sales data just printed 5.59mm units – the highest since Feb 2007. Sales were dominated by increases in The West and The South with The Northeast falling. We have two questions for NAR – where are the buyers coming from… and how long is this sustainable?

What’s wrong with this picture?

20150820_ex

Some other data from the NAR: median prices. Continue reading »

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Jul 27

In These 13 US Cities, Rents Are Skyrocketing (ZeroHedge, July 26, 2015):

Seven years ago, the American homeownership “dream” was shattered when a housing bubble built on a decisively shaky foundation burst in spectacular fashion, bringing Wall Street and Main Street to their knees.

In the blink of an eye, the seemingly inexorable rise in the American homeownership rate abruptly reversed course, and by 2014, two decades of gains had disappeared and the ashes of Bill Clinton’s National Homeownership Strategy lay smoldering in the aftermath of the greatest financial collapse since the Great Depression.

HomeownershipRate

In short, decades of speculative excess driven by imprudence, greed, and financial engineering and financed by the world’s demand for GSE debt had come crashing down and in relatively short order, a nation of homeowners was transformed into a nation of renters.

It wasn’t difficult to predict what would happen next. Continue reading »

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Jul 19

JustHangingOut

China Stock Rout “Rocks” Property Market: “Massive” Cancellations Expected (ZeroHedge, July 18, 2015):

To be sure, we’ve had our fair share of laughs at the expense of China’s newly-minted day traders.

Back in March, Bloomberg highlighted a study which suggested that some 31% of new investors in China’s equity markets had an elementary school education or less. Shortly thereafter, we began to look at data from the China Securities Depository and Clearing Co which showed that millions of new stock trading accounts were being created in China every single month. Once reports began to come in from the front lines of China’s inexorable equity rally, it became clear that (to say the least) not everyone pouring money into the SHCOMP and The Shenzhen was what you might call a “seasoned” investor. Continue reading »

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Jun 29

FYI.


Prora_Solitaire

Controversial former Nazi mega-resort turned into luxury apartment complex (PHOTOS) (RT, June 27/29, 2015):

The Nazis’ favorite seaside resort is being opened up to visitors and even prospective real estate buyers. Finished in 1939, Prora, on the German island of Rugen, never received a single visitor.

Once planned as the biggest holiday camp in the world, the island (three miles wide) is Germany’s largest. The resort itself has over 10,000 rooms and was originally intended as a government-sponsored, family-type vacation destination for those on a budget. But Adolf Hitler’s focus on financing his WWII campaign saw the funds being diverted. Continue reading »

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Jun 12

House prices plummeting in London's most expensive boroughs

House prices plummeting in London’s most expensive boroughs, but going up in the suburbs (Independent, June 12, 2015)

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Jun 09

–  60 Year Old Vancouver House Sells For 40% Above Asking As Chinese Buyers Go Full Tilt (ZeroHedge, June 9, 2015):

While the US housing bubble may have made its triumphal return particularly among the ultra-luxury segment in select cities on the east and west coast (making both owning and renting unaffordable for most Americans), it pales in comparison to what is going on in Canada. Case in point, this 60-year-old, 4-bedroom, 3-bathroom rancher in West Vancouver. The house, according to the Vancouver Sun, was originally listed with an asking price of $2.98 million. A few days later, the house is in contract at a price of $4.1 million, 40% above asking.

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May 27

Bel-Air-Mansion-McClean-Design

Peak Inequality: $500 Million Asking Price For LA Mansion (Dark-Bid, May 27, 2015):

Just when you thought you had seen it all, Nile Niami pulls another mansion out of his hat. The film producer and speculative real estate developer announced the asking price for the mansion he is building on a hill in Bel Air, the location where the memorable Fresh Prince of Bel Air TV show takes place. Unfortunately, Will Smith is not fresh enough for this place. You have to be a literal prince to afford it.

The mansion is not even finished yet, but it will be over 100,000 square feet. The main residence is 74,000 square feet, but several other homes will be included. At 5,000 square feet, the master bedroom is larger than most people’s houses. The property also features a 30-car garage and a Monaco-style casino. Continue reading »

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May 20

Wall Street’s Hot New Financial Product: Your Rent Check (Mother Jones, May 14, 2015):

Investment firms are playing landlord and bundling their rental homes into new securities. What could go wrong?

Toward the end of 2012, Mark Alston, a real estate broker in Los Angeles, began noticing something strange. Home prices were starting to rise, and fast—about 20 percent annually. Normally, higher home prices would signal increased demand from homebuyers and indicate that the economy was rebounding. But the home ownership rate was still dropping. Somehow, the real estate market was out of whack.

Then there were the buyers themselves. “I went two years without selling to a black family, and that wasn’t for lack of trying,” recalls Alston, whose business is concentrated in inner-city neighborhoods where the majority of residents are African American and Latino. Now all his buyers were businessmen in suits. And weirder yet, they were all paying in cash.

Over the lasttwo years, private equity firms and hedge funds have amassed an unprecedented real estate empire, snapping up Spanish revivals in Phoenix, adobes in Los Angeles, Queen Anne Victorians in Atlanta, and brick-faced bungalows in Chicago. In total, Wall Street investors have bought more than 200,000 cheap, mostly foreclosed houses in some of the cities hardest hit by the economic meltdown. But they’re not simply flipping these houses. Instead, they’ve started bundling some of them into a new kind of financial product that could blow up the housing market all over again. Continue reading »

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May 16

“Ghost towns in UK are a real problem.

People shoring up their pension funds with nice properties in quaint or popular locations have been depriving communities of continuity and business for decades, but the failure of Local and National Government to address the issue and its Social consequences has resulted in an exponential growth.

Where we live, in a picturesque part of the country, small villages have really become ‘holiday villages’ due to a large portion of the properties being let to people on vacation.
But, out of season, there’s just no one there….reminiscent of THE SHINING.”


 

chelsea
On one London street, seven out of 10 properties are second homes – and the area is rapidly becoming a ghost town

The one figure that shows the scale of London’s housing crisis (Independent, May 15, 2015):

The realities of London’s housing crisis have been made even more clear, after it has been found that seven out of 10 properties on one Kensington street are second homes.

On the 300 metre length of Ashburn Place in Kensington, West London, which has 131 residential addresses, 70 per cent of the homes are not classed as a main home, according to Kensington & Chelsea Council.

The council’s figures were obtained via a Freedom of Information request by The Steeple Times. Continue reading »

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May 14

 –    London Housing Bubble Watch: $630/Month For A Bed “In” A Shared Kitchen! (ZeroHedge, May 13, 2015):

You know it’s a bubble when… A listing has appeared online advertising a single bed in a house in London where the mattress is located in the kitchen.

 

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May 08

California-Drought-Housing-Traffic

Why the California water crisis will lead to a housing collapse, municipal bankruptcies and a mass exodus of climate refugees (Natural News, May 7, 2015):

The only proof you need that many Californians are still living in a water fairy tale is the fact that California real estate prices haven’t yet collapsed. Even as the California Governor has declared a state of emergency — and emergency water rationing is under way — there are still people purchasing commercial and residential real estate in precisely the areas that will be hardest hit by that rationing.

What is the value of a home or business that has no functioning connection to a water system? Essentially ZERO.

How many California homes and businesses are headed for a zero-water future? Many millions. Continue reading »

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May 07

Versailles-House

The 90,000 Square Foot, 100 Million Dollar Home That Is A Metaphor For America (Economic Collapse, May 7, 2015):

Just like “America’s time-share king”, America just keeps on making the same mistakes over and over again.  Prior to the financial collapse of 2008, time-share mogul David Siegel and his wife Jackie began construction on their “dream home” near Disney World in Orlando, Florida.  This dream home would be approximately 90,000 square feet in size, would be worth $100 million when completed, and would be named “Versailles” after the French palace that inspired it.  In fact, you may remember David and Jackie from an excellent 2012 documentary entitled “The Queen of Versailles”.  That film documented how the Siegels almost lost everything after the financial collapse of 2008 devastated the U.S. economy because they were overleveraged and drowning in debt.  But since that time, David’s time-share company has bounced back, and the Siegels now plan to finally finish construction on their dream home and make it bigger and better than ever before.  But before you pass judgment on the Siegels, it is important to keep in mind that we are behaving exactly the same way as a nation.  Instead of addressing our fundamental problems after the last financial crisis, we have just continued to make the exact same mistakes that we made before.  And ultimately, things are going to end very, very badly for us. Continue reading »

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Apr 28

–  Death Of The Middle Class: Homeownership Rate Drops To 29 Year Low As Average Rent Hits Record High (ZeroHedge, April 28, 2015):

Earlier today the US Census released its latest quarterly data, which confirmed that for what is left of America’s middle class, owning a home has become virtually impossible, with the homeownership rate tumbling from 64.0% to 63.7%, which is tied for the lowest historic print since the first quarter of 1986, with the only difference that then the trendline was higher. Now, as can be seen on the chart below, it isn’t. At this rate, by the end of the 2015 and certainly by the end of Obama’s second term, the US homeownership rate will drop to the lowest in modern US history.

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Apr 18

Why The Record Drop In Chinese House Prices Suggests Beijing Is Already In A Recession (ZeroHedge, April 18, 2015):

If one compares the history of the Chinese and US housing bubbles, one observes that it was when US housing had dropped by about 6% following their all time highs in November 2005, that the US entered a recession. This is precisely where China is now: a 6.1% drop following the all time high peak in January of 2014. If the last US recession is any indication, the Chinese economy is now contracting! So much for hopes of 7% GDP growth this year.

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