May 01

This Is Where America’s Runaway Inflation Is Hiding

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , ,

Apr 23

Valued At $16 It Sold For $68 Million “In 7200 Seconds” – The Inside Story Of Vancouver’s Wildest Property Deal

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , , ,

Apr 15

drone vancouver_0

A Drone Flies Through A Rotting, Abandoned $17.5 Million Vancouver Mansion; This Is What It Saw:

Over the past several months we have repeatedly noted a recurring peculiarity of the Vancouver housing bubble: there are numerous multi-million dollar mansions, which rot, abandoned, their owners having long ago disappeared.

Two months ago, we first postulated the hypothetical timeline that starts with the purchase of a Vancouver mansion Continue reading »

Tags: , , , , , , ,

Apr 13

peter thiel

Peter Thiel Says Everything Is Overvalued: “Public Equities, Houses, Government Bonds”:

Since the Fed may not, or simply refuses, to see if not a bubble then at least “froth” in any asset class, perhaps it should hire Peter Thiel to be on its macroproduential supervisory committee, because according to the venture capital legend who co-founded PayPal everything is overvalued. Speaking at the LendIt USA Conference in San Francisco on Tuesday, he said that he is “somewhat concerned about the frothiness of the markets” and adds that “startup tech stocks may be overvalued, but so are public equities, so are houses, so are government bonds.

He adds that “if there is a bubble it is probably centered on the zero % interest rates, the quantitative easing, the money printing and that’s a very strange one because it permeates everything.” Continue reading »

Tags: , , , , , , , ,

Apr 12

Manhattan’s Real Estate Woes Get Worse: No Demand In Building Where Ackman Splurged $90 Million:

Over the weekend, we asked the question, Did the Canary of New York’s Luxury Housing Market Just Die, following reports of the bankruptcy of a New York luxury real estate developet. Now, just two days later, we learn that another high-end real estate developer is having trouble closing out an ultra-luxury project in Manhattan.

Courtesy of Bloomberg, we find that luxury real estate developer Extell Development Co can’t sell luxury condos at what may be New York’s premier ultra luxury destination, the One57 tower, which it is attributing it to the fact that there is an abundant supply of condos already on the market. As a reminder, One57 is where Bill Ackman paid $91.5 million in April 2015 for a condo (which he hoped to flip), just a few months before Valeant, and his fund, suffered staggering losses. Perhaps that should have been the tell. Continue reading »

Tags: , , ,

Apr 11

It’s Over: San Francisco’s Epic Condo Bubble Bursts:

Done in by a historic construction boom.

Few housing markets are crazier than San Francisco’s. But what had to happen is starting to happen: while house prices continue to soar, a phenomenal building boom is causing a condo glut that will reach dizzying proportions as new condo towers are completed. And now the dynamics of the market have reversed.

The median condo price — half sell for more, half sell for less – was $1,100,000 in the first quarter for sales reported to Multiple Listing Services (MLS) by April 5, according to Paragon Real Estate Group. Up 70% from the first quarter in 2012. But it’s down from $1,107,500 in Q4. Very unusual: the last time the median price did not jump from Q4 to Q1 was in Q1 2012, at the end of the last downturn. For example, over the same period a year ago, condo prices jumped 8.5%! Continue reading »

Tags: , , , ,

Apr 10

Did The Canary Of New York’s Luxury Housing Market Just Die: Real Estate Developer Files For Bankruptcy:

The Bauhouse Group has filed bankruptcy for BH Sutton Mezz LLC, their entity that was to build out a 78 floor luxury condominium tower at Sutton Place, located on Manhattan’s Upper East Side. The bankruptcy comes on the heels of foreclosure efforts by Gamma Real Estate, who alleges that Bauhouse has defaulted on a loan of roughly $147 million.

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , , , , ,

Apr 07

UK Housing Bubble Pops: London Offers 20% Discounts On Luxury Apartments:

Another major city is experiencing a pullback in demand for its property – once again as a direct result of Government action to dampen the impact of foreign investment. In London, as Bloomberg reports, demand has slumped so badly that developers are offering discounts of up to 20% for their newly constructed homes. And just as the case was in Manhattan, it’s a result of the UK putting in a speed bump. The UK recently increased taxes on those deemed to be purchasing a second home, specifically designed to slow the pace of overseas investment.

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , , , , , ,

Mar 29

“Made Out Of Sand” – A Dramatic Look Inside A Newly Built Chinese Apartment:

While real estate is all about “location, location, location,” it appears there are sometimes more prescient factors that any prospective buyer should pay attention to. Amid yet another government-fueled housing bubble, it seems in their haste to fulfil a rapacious demand for property in which to gamble their hard-grafted assets, Chinese construction companies have cut a few corners. As the following stunning video shows, a “newly constructed apartment” crumbles before the owners’ eyes as the ‘concrete’ walls turn to sand

LiveLeak exposes, in the following video, just how poor the standards can be of so-called “new” properties. LiveLeak footage shows two men in a supposedly “new apartment building” in China where the concrete walls crumble like sand.

China is currently in the midst of a huge property bubble

20160228_chinahome Continue reading »

Tags: , , , , , , ,

Mar 25

For The Average American, Owning A Home Is Increasingly Unaffordable:

Home prices are rising faster than wages in most of the United States, making homeownership increasingly difficult for average Americans in some of the most populous areas of the country, according to a report released on Thursday. The report found that home price growth exceeded wage growth in nearly two thirds of the nation’s housing markets so far this year, with urban centers like San Francisco and New York City among the least affordable.

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , , ,

Mar 24

CanadaHouse

Chinese Take Over Canada’s Real Estate Market, Buy One-Third Of All Vancouver Homes Sold In 2015:

“Housing in Vancouver is insane — it was insane when I left and it’s more insane now.”

* * *

PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP

Tags: , , , , ,

Mar 01

Vancouver1_0

“This Is Pretty Freaking Nuts”: Vancouver Home Sells For $735,000 Above Asking Price:

In Canada, an interesting paradox is visible.

On the one hand, the country’s oil patch is dying a slow death in Alberta, where the worst 12 months for job losses in 34 years is contributing to rising property crime, higher food bank usage, and a rash of unsold condos and empty office space in Calgary.

On the other hand, if you were to take a look at real estate in Vancouver and Ontario you’d think you were looking at home prices for an economy that’s thriving.

In fact, prices in Vancouver have reached nosebleed levels. In January for instance, the average selling price of detached homes was an astronomical $1.82 million.

Here’s what that look likes like in chart form: Continue reading »

Tags: , , , ,

Feb 20

The Famous Vancouver Teardown Shack Just Sold For $2.5 Million, $80,000 Over Asking:

Three weeks ago, when observing the ongoing lunacy in the Vancouver housing market, we mentioned the case of Canadian Bill Ring, head of operations for a property management company who, as Bloomberg quotes, said  “I don’t want to invest in stocks because they’re crazy and real estate is a solid, safe investment.”

Much to our chagrin we mocked Bill’s zest, adding that “if the housing market in Canada were overheating, you wouldn’t be able to get “bargains” like the listing shown below from Vancouver.”

Tags: , , ,

Feb 15

Hong Kong Real Estate Price Plunges 70% In Latest Government Land Sale:

One place that provides some glimpse into true price discovery was the just completed government tender, in which a parcel of land sold by the government in the New Territories went for nearly 70% less per square foot than a similar transaction in September.

Tags: , , , ,

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.

Tags: , , , , ,

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 »

Tags: , , , , , , ,

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.

Tags: , , ,

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 »

Tags: , , ,

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 »

Tags: , , , ,

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!?

Tags: , , , ,

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 »

Tags: , , ,

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 »

Tags: , , , ,

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 »

Tags: , , , ,

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 »

Tags: , , , ,

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.”

Tags: , , , , , ,

Sep 29

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

Tags: , , , ,

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

Tags: , , , ,

Sep 16

Aussie Property Market Collapse Looms As Chinese Flee Amid Capital Controls

Tags: , , , ,

Sep 10

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

 

Tags: , , , ,

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 »

Tags: , , , , , ,