thehousingbubble@gmail.com
Blog

All Signs Point Toward Peaking Housing Markets Around The Country

A report from Realtor.com. “Spring is here—and it’s not just the mercury that’s heating up. This is the unofficial kickoff to the home-buying season, when buyers come out of hibernation and start hitting the open houses in earnest. And this year’s spring market is extra significant, since it will tell us whether the recent slowdown in home sales and price appreciation is just a fluke—or the new normal.”

“‘Santa Clara County [home to San Jose] was probably the hottest, most competitive market in the country. However, since midsummer 2018 it became the market in the [San Francisco] Bay Area that cooled off the most,’ says Patrick Carlisle, Bay Area chief marketing analyst at the real estate firm Compass.”

“Unlike many Western cities, Salt Lake City has many new homes going up. In fact, about 1 in 3 homes on realtor.com in that market is new construction. At a median price of $389,000, these new homes actually cost less than existing homes in the market, despite typically having an extra 400 square feet.”

“Long the poster child for rapidly rising home prices, high-flying Seattle finally hit the power lines late last year. Would-be buyers were priced out at the same time that sellers and investors, sensing the metro had peaked, began listing more properties.”

“Home buyers in Lynchburg almost have too many choices after the number of homes on the market jumped 53% over the previous year. And the length of time it takes to sell a home has skyrocketed, too.”

From Forbes on Washington. “Condo developers in price tiers just below the very top have started to borrow ideas from the upper echelons to market their buildings. This is especially true in the pockets around the country that have seen a slow down in activity and have homes staying on the market for longer than they have in years.”

“Seattle, once going gangbusters in terms of real estate growth, is one of the largest pockets to see this trend take hold. A new luxury building overlooking the iconic Pike Place Market, called The Emerald, has 265 units coming on the market with prices starting at $500,000 up to around $4.5 million for the penthouses. To stay ahead of the market developers have created an ‘immersive’ sales experience which appeals to as many senses as possible for the buyer.”

“According to data from the search site Estately, last month in Seattle only 20% of homes sold over asking price. But look back to the same month last year and 68% of homes sold over asking. The difference is even more striking when looking at the decrease in median sales price—February of 2018 saw homes selling for a median of $715,000, but only $680,000 this past February. Homes are lower in price and they still aren’t getting as many competitive bids as they were a year ago. In this tilt towards a buyers’ market it is going to take more than a slick website to stand out to buyers.”

The Dallas Morning News in Texas. “February was a disappointing month for the Dallas-area housing market. And the average price of homes sold in the area actually fell by 1 percent from February of last year, according to data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.”

“So far in 2019, sales of single-family homes through the Realtors’ multiple listing service are down 5 percent from a year ago. At the end of February almost 22,000 homes were listed for sale with real estate agents – a 25 percent jump from February 2018 inventory in the more than two dozen North Texas counties included in the survey. And the number of condos on the market is now 43 percent higher than it was just a year ago.”

“‘The market is most definitely slower,’ said Dr. James Gaines, chief economist at the Real Estate Center.”

From Florida Atlantic University. “Many U.S. metropolitan residential real estate markets are exhibiting downward pressure on the demand for homeownership, according to the latest national index produced by Florida Atlantic University and Florida International University faculty.”

“‘Historical evidence indicates that home prices adjust to these directional pressures,’ said Ken H. Johnson, Ph.D., a real estate economist and one of the creators the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index in FAU’s College of Business.”

“BH&J Index scores approaching ‘1’ indicate significant downward pressure on the demand for homeownership. Scores hovering around ‘0’ indicate neutral pressure, while scores approaching ‘-1’ imply strong upward pressure on the demand for homeownership.”

“Three metro areas standout. Dallas (.98), Denver (.81) and Houston (.72) are all producing scores indicating significant downward pressure. Five metro areas are exhibiting signs of moderate downward pressure, including Kansas City (.38), Pittsburgh (.38), Seattle (.38), San Francisco (.37) and Miami (.36).”

“Eleven metros (Atlanta, Boston, Cincinnati, Honolulu, Los Angeles, Milwaukee, Minneapolis, Philadelphia, Portland, San Diego and St. Louis) have BH&J scores between 0 and .30, suggesting slight to mild downward pressure on the demand for home ownership.”

“Both Johnson and Eli Beracha, Ph.D., real estate economist and co-creator of the index, agree all signs point toward peaking housing markets around the country with the greatest current threat to housing values being uncertainty over the future of mortgage rates.”

“‘We are in the business of information production rather than predications,’ said Johnson. ‘During the last housing cycle very little information was available to consumers and real estate professionals, which exacerbated the results of the downturn. Therefore, we hope to produce information that allows for more informed real estate decision making with the BH&J Index.'”

From the Freelance Star. “Why is it so hard to find a starter home in today’s real estate market? Elliot Eisenberg, aka the Bowtie Economist, used charts, graphs and plenty of humor to illustrate the reasons at an economic summit that the Fredericksburg Area Association of Realtors and the Fredericksburg Area Builders Association hosted last week.”

“‘Every sector in the U.S. has cleaned itself up from the recession with one exception: housing. It’s still a complete wreck,’ he told the audience, who nodded and laughed in agreement. ‘We’ve under-built because of a weak economy.'”

“That’s especially true for single-family homes, particularly those going for $200,000 or less, said Eisenberg. ‘If you don’t build single family, you can’t sell single family,” he said. ‘Why can’t builders build them? They can’t make any money.'”

“Eisenberg offered a two-pronged solution. One was to urge their officials to change the regulations. The other, which had the audience in stitches, was to have sex. ‘If you want to make America great, or make America great again, go home and make love,’ he said. ‘Making love can be fun. Think about. I promise you, in 16 years there will be a worker.'”

“‘Inventory is going up. Cool your jets, calm down,’ he told the audience. ‘You can’t see it, it’s so slight.'”

“Eisenberg attributed the slow growth in part to the prices of new homes being significantly higher than they were at their peak before the recession. The median price has risen from $262,600 in March of 2007 to $303,500 last November, according to the U.S. Bureau of the Census. Today, he said, new houses priced under $200,000 are an ‘insignificant percentage’ of new home sales. Most are in the $200,000 to $299,999 and $500,000 to $749,999 ranges.”

“‘Last year was the best year. I hope you enjoyed it. This year won’t be as good, but enjoy it. Going from the first floor to the second floor doesn’t mean it’s bad,’ he said. ‘We’re not entering recession, we’re reverting to a long-term trend.'”

“Paul Porthouse, a Long and Foster real estate agent who attended the summit, said Eisenberg was ‘spot on’ about the housing market. He said that there is a shortage of houses for sale in the greater Fredericksburg area, and that he got a contract in just one day for a house he put on the market for $230,000.”

“‘There is such a demand for entry-level housing in this area,’ he said. ‘Once a house is over $400,000, sales slow down considerably.'”

Related Posts
This Post Has 89 Comments

  1. ‘Salt Lake City has many new homes going up. In fact, about 1 in 3 homes on realtor.com in that market is new construction. At a median price of $389,000, these new homes actually cost less than existing homes in the market, despite typically having an extra 400 square feet’

    Oh dear…

    1. My inlaws’ home equity wealth gains may take a hit, as my wife’s parents and numerous siblings are homeowners along the Wasatch Front near SLC. However, none are recent buyers, so slightly lower prices won’t send them underwater.

      1. My sister and her husband are listing in the next few weeks. They think they will make $200k in appreciation and sweat equity from remodeling they did. They live in a nice area of Cottonwood heights. Their plan is to go live abroad for a few years on the cheap.

        1. Sound like a smart couple. Get out before the real crater action takes place. Lots of 8’s in the price and the upside down st Joseph statue buried in the yard should guarantee a quick sale.

          1. Good plan but missed the peak by about a year. However, he who panic first panic best. He who panic second panic second best 🙂

  2. ‘So far in 2019, sales of single-family homes through the Realtors’ multiple listing service are down 5 percent from a year ago. At the end of February almost 22,000 homes were listed for sale with real estate agents – a 25 percent jump from February 2018. And the number of condos on the market is now 43 percent higher than it was just a year ago’

    But Toyota? Wa happened to my shortage?

    1. I dont live in DFW – but travelled there a lot for business in 2018. With Toyota, Liberty Mutual and others moving in in the Plano/Frisco area – that was the talk in the hotel bars … and i thought that it was interesting.

      I was wrong – they was incremental demand – but they just built too much. What is really going to suffer is all the luxury rental — look for deals

  3. ‘Santa Clara County [home to San Jose] was probably the hottest, most competitive market in the country. However, since midsummer 2018 it became the market in the [San Francisco] Bay Area that cooled off the most’

    The hottest, most expensive dives the most. Classic mania peak and crash.

    Etc…

    ‘last month in Seattle only 20% of homes sold over asking price. But look back to the same month last year and 68% of homes sold over asking. The difference is even more striking when looking at the decrease in median sales price—February of 2018 saw homes selling for a median of $715,000, but only $680,000 this past February’

    1. Condo building downtown Seattle. There were 4 open houses. Agents sittting around – there only lookers were 7 fellow agents and one guy apparently in a 1br – looking for a 2 br.

      But seems like a very slow spring start

      1. House down the street just sold.. after 4 months and 2 price cuts.

        The $/sq ft I’m seeing in listings seems sticky, but price cuts from the original listing are becoming the new normal for actual sales.

        As the spring selling season is off to a cold start, I’m sure the snow and cold will get blamed instead of acknowledging the truth.

      1. Sounds more like flying too low to me, but what’s a few mixed metaphors among friends.?

        Heck, I don’t even know what a meta is for…

  5. “Long the poster child for rapidly rising home prices, high-flying Seattle finally hit the power lines late last year. Would-be buyers were priced out at the same time that sellers and investors, sensing the metro had peaked, began listing more properties.”

    Hmmm….what happens after flying high into a power line????? You explode and crash….Hmmmm just like Seattle housing market right now. So nice advice to buy NOW!?!

    1. “Hmmm….what happens after flying high into a power line?????”

      Crisped crow for dinner?

  7. How Realtors Add Value for Their Customers

    “There is a reason we are paid well: We work hard, have a thorough knowledge of the local market, promise to keep our clients’ interests above ours, pay our own expenses and only are paid for our time and expertise if the transaction closes.”

    Peg Redding

    Naperville, Ill.

    https://www.wsj.com/articles/how-realtors-add-value-for-their-customers-11552256389

    A comment:

    “No one questions that realtors provide a service. What is at issue is the cost of that service, which is grossly excessive. The cost of realtor services as a fraction of gross sales price has gone UP, not down, over the last forty years, in spite of the fact that real estate price increases have greatly exceeded the consumer price index. Good to know that realtors’ income has grown so much more rapidly compared to the rest of us! With the proliferation of online services providing both buyers and sellers a wealth of information not available until now, how can realtors possibly justify their exorbitant fees? Because they will get a better price? 4-5% better? not likely! Because they serve as emotional support animals for buyers? I have cats, thanks very much. The need for the realtor profession vanished with their monopoly on information. Time for the profession to vanish, too.”

    1. Another:

      “I applaud the original March 4 article. So much more could be said. But I wont get into the gory details of my experiences buying and selling my five homes through realtors over the years. Besides the tactics that some used that were contrary to my best interests as they “represented” me, the core problem is taking six percent of a home’s sales price off the top. For many old ladies, for example, their home represents the bulk of their net worth. A big chunk of what took much of a lifetime of making mortgage payments to accumulate can be pocketed with just a few hours work by some realtors. For younger people with little equity, the commission can be the factor that makes or breaks a deal or leaves a seller facing a loss. I also think realtors dodged the blame for the real estate backed securities crash since some were the ones who hooked up unqualified buyers with mortgage brokers. Everyone made their money except the ones who bought the securities even if the buyer defaulted.”

      1. “Real estate agents offer no value…period. Have sold homes a half dozen times over the years. Here is how it goes:
        First – Your home is beautiful. Don’t change a thing…I will sell for 10% more than your suggested asking price.

        Second – Well, the market is soft right now. Let’s pull the listing, and then re-list.

        Third- It has been on the market for 90 days, with limited traffic. Perhaps we should update the carpeting, and stage some furniture.

        Fourth – It has been over 180 days now; clearly the listing is too high. Let’s drop it by 20% and see what happens.

        Fifth – IT SOLD! I know it took nearly a year, and you lost money on your most precious asset. But…WE DID IT!

        Realtors are inept money-grubbers.”

        1. Why would anyone still pay five-to-six percent fee to sell an almost perfectly commoditized product? Every single piece of information one needs to make an informed decision is available at the tip of one’s fingertips.

          1. Nobody pays 6%. Well nobody with an IQ over 85 pays 6%. I’ve sold a few houses in my life and it has been 4% or 4.5% each time. Which is still a hell of a lot of money for the work they do. But it’s the price of getting the listing on MLS. And that’s essentially what you’re paying for, MLS access. The rest of it like marketing plans and whatever is BS. Real estate agents get paid because they have access to MLS and nothing else.

          2. “…Why would anyone still pay five-to-six percent fee to sell …”

            Another way to say: Why would I pay five-to-six percent fee to be (in many cases) to be manipulated / lied to?

            If anyone from the REIC is reading, could you kindly name one single piece of advice that your Realtors provide that I can’t find elsewhere (and most certainly for free) ?

        2. Must be some interesting responses from the realtors too. I agree 110% they are way overpaid. There service should be a flat fee with annual inflation of normal wage growth not the 4-6% off the top they feel entitled too. There are many services you can use that provide mls listing, escrow service, and law ALL without involving a realtor.

        3. We need an Attorney General who will prosecute the NAR and Larry Yun under the RICO (Racketeer Influenced and Corrupt Organizations) Act. I don’t think the REIC is really anything other than a form of organized crime, much the same as most of the healthcare industry is the U.S.

    2. “Good to know that realtors’ income has grown so much more rapidly compared to the rest of us!”

      Given a low bar for entry into the profession, I doubt it. Higher commissions will naturally be offset by slower rate of sales as more enter to capture the mania premium.

      “With the proliferation of online services providing both buyers and sellers a wealth of information not available until now, how can realtors possibly justify their exorbitant fees? Because they will get a better price? 4-5% better? not likely!”

      It’s an interesting question which could be answered with data analysis, if the data could be obtained.

      1. I don’t see many FSBO success stories. I bought a place once from the owner that wasn’t even listed, but he shouldn’t count. His wife said “Yes you will sell the farm”.

        2. FSBO is tough. I tried it twice, never went anywhere. The problem is buyers pay no commission. So there is no incentive for buyers to go FSBO.

          Now of course, buyers do pay commission, because in the end buyers (no matter what they buy) pay commission, not sellers. All sellers do is increase the price by the amount of commission paid. But buyers don’t look at it like that and thus, FSBO is next to impossible.

          And everyone keeps focusing on realtor commissions. What is also a huge ripoff is title company fees. Thousands of dollars, from both buyers and selling, for putting together some paperwork. It’s obscene.

          1. “The problem is buyers pay no commission. So there is no incentive for buyers to go FSBO.”

            I don’t get this at all. Are you saying buyers would rather pay a commission than not pay one, for the same house? Why pay extra?

          2. Let me restate this positively: Real estate transactions costs drive a wedge between what a seller receives and what a buyer pays, so that the proceeds to the seller are lower and the price to the buyer is higher by the amount of these costs (e.g. used home seller’s commission, title insurance, mortgage origination fee, etc.).

            If the transactions costs can be handled more cheaply in the absence of a used home seller, then both the buyer and seller can benefit, through a reduced price for the buyer and increased proceeds to the seller. I believe that getting a sale done for less than a traditional used home seller would charge is the FSBO business model, in a nutshell.

          3. “But buyers don’t look at it like that and thus, FSBO is next to impossible.”

            It sounds like what the FSBO world needs in order to succeed is demonstrable evidence of lower buyer price and higher seller proceeds, on average, with no deterioration in transaction quality or large increase in time costs for the buyer or seller compared to a traditional sale.

          4. “then both the buyer and seller can benefit, through a reduced price for the buyer and increased proceeds to the seller”

            But that never happens. Sellers will still try and sell for the price their neighbors are selling for with an agent. This is also why FSBO never works. To make it worthwhile to buyers, sellers would need to lower their price. But if they’re lowering their price to attract buyers outside of MLS, why not just keep the price high and use the MLS? There’s basically no incentive to either the buyer or the seller to go FSBO. Which is why virtually no real estate ever sells that way.

  9. So recently, there has been more “Opposite opinions” being presented by alternative facts or really *new* real estate shills on this blog. Similar to 2007 and 2008 where some blamed Ben for posting negative facts that scared away buyers, they claimed. People are generally upset and mad that we are not looking at all the “facts”, are very biased against the FED (‘saved the world’), and are against the housing market in general.

    “I never did give anybody hell. I just told the truth and they thought it was hell.”

    -Harry Truman

    I have been trolling these shills for weeks but now it’s time for some serious and honest conversation. First of all, there has always been shills on this blog. If folks remember, scdave, jp_redmond, aqdan, etc., and they usually come and go as the bubble expand and bust. The information they presented were based on MSM and from real estate “experts” such as Zilliow, Redfin, Realtor.org, etc. As you can see, not unbiased source of information. While no one here claimed to be experts, the fact that median house price is 4-9x median income paints a different story. Like someone said, we are merely calling a spade a spade. Secondly, we are just presenting a different views on the FED QEs/NIRP policies. Apparently, they saved the world but did they? We are now in more debts than ever and they can’t even raise the rate without bursting the Everything Bubble. This doesn’t sound like problems from GFC were solved … merely kick the can down the roads. Lastly, no one here wants a global depression where everyone loses their jobs and house prices crash 90%. With that said, prices are WAY TOO HIGH based on income and rents. Unless income doubles or triples to support these levels, I don’t see how a consumption-based, debt-driven economy can be sustained in the long term.

    1. no one here wants a global depression

      Actually the world’s central banks and governments have baked one into the cake. I would have preferred having a recession 10 years ago, one that washed the trash out. We’d have recovered by now. Instead, we face a more painful correction. The sooner the better, because later is worse.

      1. What makes you think they won’t be able to print themselves out of a corner again with stealth bailouts and inflation?

        1. Honestly PB, and we’ve been watching this together for a very long time, I guess they will probably try. If they don’t they will become irrelevant. If they do, it will make matters worse in the long run. You know this. That’s what the popcorn is for.

          1. “That’s what the popcorn is for.”

            So far beyond “organic popcorn”, eye’ve created a cornucopia fea$t of treats to watch the ca$cading debacle$ come into focu$. Oh garçon, menu s’il vous plait.

    2. A reader sent this in:

      ‘Q4 2018 Quarterly Median Home Prices- Ada/Canyon County
      Market softened- I call that a buying opportunity.’

      ‘For the fourth quarter, the Ada county median existing home price of $290,000 was down 4.6% from the previous quarter. Don’t panic- prices usually soften in Q4. Sales were down 10% from the previous fourth quarter, due to even lower inventory- which has now dropped for 51 consecutive months according to Boise Regional Realtors.’

      ‘Year over year in Ada County the median still ended the year up 16%. That’s a very good year! Housing supply remains extremely low, so don’t look for prices to turn downward anytime soon near Boise.’

    3. (Hwy act$ as financial time$ editor / addendum …)

      “Firstly, Hwy here wants a global rece$$ion, with the Central Wanker Banker$ both hand$ occupied in their own pocket$, whilst lower echelon wage worker$ increa$e their net paystub$ to keep the Wanker$ QE $eminal Perver$ions @ bay.

      The real e$tate re$idential / commercial Indu$trial Complexe$ $uccess.by.design $enior.Foreigner$.$tudent.luxuries$ “chalk board” needs a complete era$ure.

      Ol’ Hwy thinks that such event$ would require$ $omething that really is “different.thi$.time!”

      (Is anything remotely like that going to happen$ in the near future$? … Nix, nix, nix & Nope!)

      “It’$ amazing what you can accompli$h it you do not care who gets the credit$” … Harry, from Independence, Missouri.

  10. I’m pretty sure we’ve seen these “immersive” sales experiences before. Is that the one where they bake cookies, hire actors to pose as a family living in the house, and install the pretty girl on the exercise bike in a nearby window?

    1. I never did see the pretty girl on the exercise bicycle.

      Of course here in the San Francisco Bay Area, it may not be an actual XX Chromosome female if they actually did put someone on the bike…

  12. “these new homes actually cost less than existing homes in the market, despite typically having an extra 400 square feet.”

    This makes sense. New homes typically have postage stamp yards and you can reach out and touch your neighbor’s home. I’ll happily give up 400 sq ft or more to have a decent sized yard and elbow room from my neighbors. Plus living in an established areas with mature trees, etc beats a brand new subdivision where you’re basically living in a construction zone as the area is built out.

    Newer isn’t always better.

    2. Doomed,
      You’re preaching to the choir. Three-quarters of an acre and not a single neighbor has line of sight into our house thanks to the trees and hills.

      It does however look like we may have just picked up a bald eagle nesting here this year, to go along with the deer, raccoons, and owls. The critters are quite welcome.

      1. “with the deer, raccoons, and owls. The critters are quite welcome.“

        Your lot could be a safe haven for the dying population of squirrels them realtors be eatin

        1. No realtors(tm) allowed. We shoot them on sight. 😀

          It helps that we’re adjacent to a large protected open space.

          I spent too many years living in a tiny apartment in Bellevue, sharing walls with 3 other apartments and 12+ wifi-routers within 75 feet, and fighting with “neighbors” over parking spots, unregistered pets and noise at all hours of the night. Good riddance, indeed.

  13. Major Reduction | The Foothill Estate

    THE FOOTHILL ESTATE, BEVERLY HILLS, CA | $97,500,000

    BEST PRICED MAJOR ESTATE IN BEVERLY HILLS

    “Newly constructed in 2016, the Foothill Estate sits within this pantheon of magnificent LA homes. Idyllically located on 3.25 +/- lush acres, this eco-friendly hilltop property comprises one of the five largest useable parcels of land in the city of Beverly Hills and was designed by the esteemed Richard Meier & Partners Architects. Led by Principal Designer Michael Palladino, FAIA. Timeless yet contemporary design, incorporating natural elements such as white oak, stone, and walls of glass, to create an inspired sense of place. The open floor plan offers gallery-like spaces that are at once intimate and expansive. Comfort and elegance abound, as each area flows seamlessly to the next, revealing both public and private rooms tucked behind discrete doors. There are two staircases and an elevator which connect the three levels. Many of the shared spaces occupy the main level including the great room with spectacular high ceilings, plentiful art walls and automated steel and glass doors creating an expansive opening onto the lawn. The lower level houses the staff quarters, professionally equipped 1,148 sq. ft. gym, and private screening room. There are five bedrooms situated on the top level. The master stands alone as a serene refuge, complete with its spa-like bathroom, huge walk-in closets, and sun-drenched deck with treetop vistas. There is immense grandeur to the outdoors, which are sprawling with Beverly Hills and LA City views. Plentiful picturesque spaces are nestled within the lush landscape including the entertainment deck featuring an 85-foot, fully tiled infinity pool, pool house, and al fresco dining area. A spectacular city retreat that commands a powerful sense of simplicity and serenity.”

    How much lower?

    $125M Foothill Estate in Beverly Hills Is the Week’s Most Expensive New Listing
    By Claudine Zap | Jan 10, 2019

    https://www.realtor.com/news/trends/foothill-estate-beverly-hills-125m-most-expensive/

    1. “…BEST PRICED MAJOR ESTATE IN BEVERLY HILLS…”

      Here is a thought experiment that will hurt your head:

      If the Wasserman family sold you this property for $1, what would be the annual operating costs for property tax,maintenance,staff, etc?

      Me thinks you would have to be in the top 1% of income earners just to keep the doors open and the cobwebs out.

      A property with a limited market for sure.

      1. According to Zillow, taxes are $71K/month.

        For operating costs, I’ll take a stab at it. My guess would be close to the same $70K/month. Staff: 2 full-time cleaning, 2 full-time pool/grounds, 1 chef, 1 housekeeper/manager, and possibly 2-3 security guards depending who you are. $50K staff, $10K utilites, $10K repairs equipment/month.

        So that’s $150K/month operating, or $1.8 million/year. That’s more like the 0.1%.

        1. Looking at the realtor.com listing info, it’s $101k a month in Taxes and another $24k for insurance, so more like $200k a month or $2.5M a year.

          Of course, the house was designed by the architects who did the Getty Center.

          So yeah, were in more like 0.001% territory. Interesting listing for sure, but probably the kind of outlier that reflects the current market, but doesn’t impact it.

          1. You could probably fit two or three families in there and maybe split the expenses such that each family only paid about $800k a year to live there.

  14. Iconic Chrysler Building is selling at massive 80-percent discount, reports say

    Janna Herron, USA TODAY Published 1:28 p.m. ET March 10, 2019

    One of New York’s most recognizable skyscrapers is reportedly selling for a song.

    RFR Holding LLC, a New York real-estate firm led by Aby Rosen, and the Austrian real-estate firm Signa Holding GmbH is buying the Chrysler Building for $150 million, according to reports from Reuters, The Wall Street Journal and The Real Deal, citing unnamed sources knowledgeable of the deal.

    The sum is 81-percent less than the $800 million the seller – Abu Dhabi Investment Council – paid in 2008 for a 90-percent stake in the art-deco tower

    https://www.usatoday.com/story/money/2019/03/10/new-yorks-chrysler-building-selling-150-million/3123340002/

  15. Early buyers livid after Tesla slashes price of its cars

    ‘One Tesla car owner said helplessly: I bought a car worth NT$6 million, only to read in the news the next day that the car was now worth only NT$3 million, exactly half the value of the original purchase price — I could have bought two cars at the new price. It feels like having NT$3 million stolen from you in the middle of the night — am I really supposed to just stay silent and suck it up?’

    http://www.taipeitimes.com/News/lang/archives/2019/03/12/2003711289

    1. Given the over the top defect rate and explosive unexplained crashes, these people are fortunate to still be alive.

      They bought a lemon and a fad and lost their shirt.

    3. Careful, Ben. Elon might start targeting HBB for all the FUD (fear, uncertainty, doubt) we put out! Wouldn’t that be a boon for your exposure!!

      1. Self-driving cars are an idea lacking a need. Lots more innocent pedestrians will have to get run over and killed by dumb robotic drivers before they are ready for prime time.

        1. Don’t tell Netflix. Their growth narrative not too long back was premised on people having more time to consume content because of autonomous vehicles.

      1. Sarcasm aside, erosion of brand value is a serious financial concern, particularly in M&A.

          1. Corporate governance (i.e., BOD) is a joke. Management turnover should tell any investor all he/she needs to know.

    5. “I could have bought two cars at the new price.”

      Look at the bright side you didn’t buy two cars at the old price.

    6. ‘…am I really supposed to just stay silent and suck it up?’

      Try stamping your feet.

Comments are closed.