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An Influx Of New Housing Supply Has Hit Various Markets Hard

A report from WTBW in South Carolina. “An off-campus student apartment complex near Coastal Carolina University could be foreclosed on after a bank accused it of owing more than $24 million. One of the newer off-campus housing options is The Provincial, which is right across South Carolina Highway 544 from Coastal. The 440-unit comple now faces foreclosure. Court documents filed Tuesday say U.S. Bank is taking legal action against Coastal 544 Ventures, which is the company that owns The Provincial.”

“U.S. Bank claims the owners haven’t made $24,201,193.50 in loan payments and interest. U.S. Bank is asking the15th circuit court to allow the bank to take over The Provincial and sell it. The owners were loaned $23.6 million in 2013, back when The Provincial was called Monarch 544. The suit also claims the owners haven’t paid county taxes this year.”

“In August 2018, The Buffalo News reported DHD Ventures, the parent company that owns The Provincial, has also faced foreclosure on student housing complexes in Buffalo, New York, and Johnson City, Tennessee. The Buffalo complex was Monarch 716, which is located near SUNY at Buffalo and SUNY Buffalo State College. The Johnson City complex was Monarch 815, located near East Tennessee State University.”

“When the phone number for The Provincial was called Wednesday afternoon, the person who answered hung up the phone immediately when asked to speak to someone about the possible foreclosure.”

From Indiana Public Media. “As someone who has lived or worked in Bloomington for the last 50 years, Kevin Burdeshaw has seen the city change a lot. And he isn’t loving what he’s seeing. He asked City Limits to look into the issue. Where did these large student complexes come from? And what is the city hoping to accomplish with them?”

“‘Certainly, I don’t think there’s any question that we’ve seen explosion in multifamily housing,’ says Tina Peterson, the CEO of the nonprofit organization Regional Opportunity Initiatives. ‘And that the vast majority of multifamily housing would probably fall under the category of student housing.'”

“Bloomington’s Senior Zoning Planner Eric Greulich says developers just went where the money was. ‘If this is what people are buying, this is what people are gonna build,’ he says. ‘So, high-end students, there was a market, there was a demand for that. The developers said, ‘Hey, we’re selling apartments like hot cakes here. We’ve got 95 percent occupancy rates. This is where the money is, so we’re gonna keep building that.'”

From Senior Housing News. “A continuing care retirement community (CCRC) owned by senior living nonprofit Lifespace Communities has filed for Chapter 11 bankruptcy. The 283-unit community, The Stayton at Museum Way in Fort Worth, Texas, defaulted on liabilities related to bonds issued in the amount of $109.7 million, including interest, according to a bankruptcy notice filed in the U.S. Bankruptcy Court for the Northern District of Texas.”

“Delays in construction coupled with poor move-in sales led to a ‘ripple effect’ that imperiled the community’s ability to honor its long-term debt obligations, according to the court filings. SQLC ended a previous management agreement with Greystone in 2017 and tapped Seniority, Inc., to take over and implement cost-cutting measures shortly thereafter — but those measures failed due to pressure from other industry competitors in the Fort Worth market.”

“An influx of new senior housing supply has hit various markets hard in recent years, and Dallas-Fort Worth has been among those to see a high percentage of construction compared to existing inventory, according to data from the National Investment Center for Seniors Housing & Care. Another Chapter 11 bankruptcy in the industry to occur this year was of Dallas-based developer The LaSalle Group, which cited competition in its home market as a contributing pressure.”

From WREX in Illinois. “In Winnebago County around 23 million dollars is owed from roughly 4,300 properties. One property in her neighborhood, a four-tenant apartment at 4217 Eastridge Drive has been vacant for roughly 7 years. It has boarded up windows, tall grass, uncut bushes and more. ‘It all affects the value of your house and the retail value of your house,’ said Eric Setter, the coordinator of the Northern Illinois Land Bank. ‘The most important thing people own.'”

From Habitat Mag in New York. “Habitat spoke recently with Daniel J. Wollman, chief executive of Gumley Haft Real Estate. You took over management of a condominium that had recently been converted from a rental. What sorts of problems awaited you?”

“It was a prewar rental building on the Upper East Side that was converted to a condominium in 2014. When we took over in August 2018, it had a significant amount of unpaid bills and almost no cash. The firm that was retained by the sponsor prior to and during the conversion was managing the building.”

From The Record in California. “Stockton made it into the Top 5 hottest housing markets in the nation based upon its median change in asking prices during the past month, according to the first ever RealtyHop Market Health Index. Stockton was ranked third for seeing only a -1.56 percent change in listing prices — or an average $4,999 drop — before a house is sold or delisted.”

“RealtyHop’s Shane Lee said it’s simply that ‘in Stockton, the demand is meeting the supply. Essentially, when sellers put their home on the market and they don’t see any interest, they have to lower the price. More millennials are seeing Stockton as an option. And that is why you are seeing a smaller price drop.'”

“In contrast to Stockton, San Francisco — the most expensive housing market in the nation — was among the Bottom 5 coldest housing markets, according to RealtyHop, based upon its median price drop of 5.63 percent per listing. With a median home price of $1,398,000, San Francisco’s median price drop for November is $90,000, representing a softening of the market from the highs seen earlier this year.”

From CNBC. “Competition in the fall housing market is falling. Just 10% of offers written by Redfin agents for their clients in October faced a bidding war, down from 39% a ear ago, according to the Seattle-based real estate brokerage.”

“‘Although the number of homes for sale is dwindling and prices are rising, homebuyers don’t yet feel the pressure to engage in bidding wars,’ said Daryl Fairweather, Redfin’s chief economist. ‘There are still homes on the market where sellers are willing to accept offers below list price, so buyers figure why get involved in a price escalation when there are still deals out there to be found.'”

This Post Has 86 Comments
  1. ‘Stockton made it into the Top 5 hottest housing markets in the nation based upon its median change in asking prices during the past month, according to the first ever RealtyHop Market Health Index. Stockton was ranked third for seeing only a -1.56 percent change in listing prices — or an average $4,999 drop — before a house is sold or delisted’

    So falling shack prices gets you into the hottest markets. Are we there yet?

  2. ‘In August 2018, The Buffalo News reported DHD Ventures, the parent company that owns The Provincial, has also faced foreclosure on student housing complexes in Buffalo, New York, and Johnson City, Tennessee. The Buffalo complex was Monarch 716, which is located near SUNY at Buffalo and SUNY Buffalo State College. The Johnson City complex was Monarch 815, located near East Tennessee State University’

    This appears to be part of the Morgan blow-up. Note that the MSM dropped this like a hot potato.

    ‘When the phone number for The Provincial was called Wednesday afternoon, the person who answered hung up the phone immediately when asked to speak to someone about the possible foreclosure’

    That’s one way to deal with it…

  3. ‘Bloomington’s Senior Zoning Planner Eric Greulich says developers just went where the money was. ‘If this is what people are buying, this is what people are gonna build,’ he says. ‘So, high-end students, there was a market, there was a demand for that. The developers said, ‘Hey, we’re selling apartments like hot cakes here. We’ve got 95 percent occupancy rates. This is where the money is, so we’re gonna keep building that’

    Selling, not renting. I was able to point out an apartment bubble in late 2014 precisely because the motivation to build was flipping, not supply or demand.

  4. ‘San Francisco — the most expensive housing market in the nation — was among the Bottom 5 coldest housing markets, according to RealtyHop, based upon its median price drop of 5.63 percent per listing. With a median home price of $1,398,000, San Francisco’s median price drop for November is $90,000, representing a softening of the market from the highs seen earlier this year’

    But zero-guts says the bay aryans “may” have peaked! And that wolf clown will run along any day now saying he discovered a senior housing bust.

          1. Except that this doesn’t sound like Tyler Durden at all. He’s on “our” side, so to speak. Maybe Zillow? Thornberg?

  5. Cant wait to see what happens when mortgage rates go up. Looks like the ATM’s are finally closed. Going to have to get that 2nd or 3rd job to pay down that debt.

  6. “It all affects the value of your house and the retail value of your house,’ said Eric Setter, the coordinator of the Northern Illinois Land Bank. ‘The most important thing people own.”

    Um, no. That would be my savings, retirement, and brokerage accounts.

    Loanowners can’t comprehend the concept of renters with a higher net worth than them.

    You’re probably gonna loose the house in a divorce anyway, LOL.

    1. loose the house in a divorce

      Married folks with a massive mortgage are much more likely to loose the house in a divorce than single renters with savings.

    2. Loanowners have trouble comprehending the idea you can save money without a “forced savings account”.

  7. Don’t Worry, Be Happy! 🙂 Fed chairman Powell says everything is fine! Bubbles, what bubbles?

    “Fed Chairman Jerome Powell does not see signs of bubbles brewing in what he called “sustainable” markets.

    He also says the national debt and deficit do not pose any immediate threats for a “day of reckoning.” ”

    https://www.cnbc.com/2019/11/14/powell-no-day-of-reckoning-coming-for-the-us-anytime-soon.html

    WTF are these people smoking?! Indeed, it’s going to be just like last time, “no one could have seen it coming”!

    1. “it’s going to be just like last time,” … “wor$er & wor$er” Mr. Ben Jones

      re$tin’ & awaitin’ the colo$$al capitulation’$ of over.priced $helter.$hack$ to compliment the colo$$al panic$ of over.priced Equitie$.

      1. Whoh, the web listing for that house in Laguna Beach includes a blurb in Chinese. Yeah, who you trying to attract?

      2. Ha, Uncle Warren use to have a “love.$hack” in Emerald Bay … All tho$e improvement$ & what do you get? An above ground, plastic jaccuzzi on .22 acre piece of $liding $and$tone. $ad & “$pendy”

        (Eye used to anchor my Catalina just off shore & look back @ ’em whilst watching Sunday morning football with mimosas in hand. Pricele$$!)

    1. “About 1 in 5 middle-class workers are spending more than they earn.”

      Yeah, that’s sustainable. Not.

  8. This is what counts as “evidence” to impeach a US President, according to bug-eyed Adam Schiff and the deep state:

    “A second U.S. Embassy staffer in Kyiv overheard a cellphone call between President Donald Trump and his ambassador to the European Union discussing a need for Ukrainian officials to pursue “investigations,” The Associated Press has learned.”

    So some partisan nobody can claim to “overhear” one side of a cell phone convo? I don’t think so….

    https://news.yahoo.com/ap-source-2nd-us-official-165120774.html

    1. Meanwhile, there’s actual physical proof of payments to Biden’s son from Ukranian associates, video of Biden acknowledging his son’s “business” in Ukraine, pictures of him golfing with those people, more video of Biden denying knowing anything about his son’s “business,” and the net worth of the Obama family is approaching $100 MILLION when they didn’t have two nickels to rub together when they entered the White House. The American people may be stupid, but I don’t think they’re stupid enough to not see right through what’s going on here.

      1. “…but I don’t think they’re stupid enough to not see right through what’s going on here.”

        Sadly, the vast majority of them ARE that stupid.

        1. “You stop explaining yourself when you realize people only understand from their level of perception.” Jim Carrey

    1. PS – This guy has also moved this video over to Bitchute to protect it. I am happy to see that there is a massive migration to Bitchute by lots and lots of former Youtube posters. Youtube IS the deep state.

  9. Just got back from a trip to central Oregon (Bend, Sisters and Redmond) Observations, had a beer in a local dive bar and the locals were angry (never before have I heard a whole bar room bitching ) at the Californians driving prices up, traffic and political views. Traffic in and around Bend was the worst I have seen in 15 years of trips to that area. As I stated before, the drivers are much more aggressive and rude compared to the Willamette Valley. Bend is not a place I would want to live, but many others are ALL IN. The downturn will be rough in that area.

    1. Can’t say I blame them. I’ve considered off and on for a few years about leaving California but it just seems like these other bordering states will be as bad as California in a few years with the locusts bringing their political views and driving up prices. Now thinking I should just wait it out for the eventual cratering and maybe pickup the pieces.

      1. I ate lunch with a CA transplant from the Bay Area. He left 12 years ago and he told me he did programming in Cobol for the telcos and got a pension when he was asked to leave. He said he retired early then worked on a winery for 5 years. Eventually made his way to So. Utah. Still has a property in CA valued at $650k and pays $8k in property taxes annually (which he proceeded to complain about).

        We basically agreed on all of the problems of CA (homelessness, fires, foreign money, lack of being able to build enough affordable, etc.) and all the causes that are causing CA transplants (like himself) to leave. The most interesting thing was that he said his daughter was making $160k as a dean of a college in Pasadena but had to live in Rancho Cucamonga to afford housing. She says she is barely making it on her salary with two boys.

        1. The most interesting thing was that he said his daughter was making $160k as a dean of a college in Pasadena but had to live in Rancho Cucamonga to afford housing.

          How uniquely Californian.

        2. “…he said his daughter was making $160k as a dean of a college in Pasadena but had to live in Rancho Cucamonga to afford housing. She says she is barely making it on her salary with two boys.”

          He’s so full of sh!t his eyes are brown. I can’t stand liars like this. She could make it on $80k in Pasadena.

          1. Supporting a family on $160k in So California is certainly doable, but it is a far cry from “tall cotton.”

          2. +1! … (Exactly, she could move to Azuza or Arcadia, & take the “goldline” into Anywhere, Pa$adena & completely eliminate a stressful daily auto commute)

            Like many of the comment$ about 950 mile long $horeline Clownifornia, : “the map is knot the territory”

          3. Zillow says median home price in Pasadena is $830k, so even if she makes $160k, that is over 5x income.

          4. ” median home price in Pasadena is $830k”

            The only “$helter.in.place” option$ with a $13,333.00 $alary allotment is to: Purcha$e an over.priced $helter.$hack?

          5. The only “$helter.in.place” option$ with a $13,333.00 $alary allotment is to: Purcha$e an over.priced $helter.$hack?

            I don’t know. I didn’t eat with the gentleman long enough to find out. It’s certainly not what I would do as I would never tolerate that type of commute every day. I’ll bet the effective tax rate on $160k for this individual is probably around 26% including state and federal and with inflated cost of living in CA, I am sure her salary doesn’t go as far one might assume.

        3. “he said his daughter was making $160k as a dean of a college in Pa$adena but had to live in Rancho Cucamonga to afford hou$ing”

          160k / 12 = $13,333.00 per month

          Anyone who can’t feed, clothe, & $helter themselves & x2 children in Pa$adena, (& eliminate the total $tre$$ of a horrible traffic commute) does knot know how to manage their living expen$es $ituation. Imhto

          1. Perhaps. We didn’t get into the conversation long as we were just sharing a table at a Poke Bowl joint in town. It’s hard to know if there are other financial obligations like debt, car payments, student loan, etc.

            But Zillow does show median home prices in Rancho to be $522k vs $830k in Pasadena, so that’s a pretty big differential.

          2. “160k / 12 = $13,333.00 per month”

            This income bracket is a huge target for taxes. And with children you have many additional expenses that single folks can’t begin to imagine.

    2. “at the Californians driving price$ up, traffic and political view$”

      That musta been $ome “dive” bar! … So, ya reckon any born & rai$ed Oregonian $helter.$hack u$ed.hou$e $eller can run a succe$$ful campaign for city council or Mayor?

      Sisters = $i$ter$, OR … They got tho$e type town$ in every $tate of the Union:

      Pagso $pring$, CO
      Whitefi$h, MT
      Truckee, CA
      $edona, AS
      $anta Fe, NM

    3. I visited Oregon recently. The rental car had a California plate. The street had a parking lane, then a bike lane, then the travel lanes in the center. I had to parallel park, but, of course, in order to parallel park I had to get in the bike lane. I got yelled at by a biker.

      Did I do anything wrong, or was it the California plate?

    1. The pictures have changed. Someone added “Live Laugh Love and” to “Epstein Didn’t Kill Himself”. Lol

    1. They can try to manufacture a new image, but they’ll still be greedy until they address the agents issue.

    1. Lots of flips like this in my area too. They don’t appear to be losing their shorts… yet. In the end I think they will make $15K profit instead of $80K profit.

  10. Dumb question of the night: With massive outflows from US stocks and junk bonds underway, what mysterious force is propelling them to new highs?

    1. The Financial Times
      Investors pull money out of US stock and junk bond funds
      More than $1bn withdrawn in past week as struggle over trade truce clips run of inflows
      Specialists Mario Picone, left, and Anthony Rinaldi work on the floor of the New York Stock Exchange, Monday, Oct. 7, 2019. Stocks are opening broadly lower on Wall Street, extending the market’s losing streak into a fourth week. (AP Photo/Richard Drew)
      Despite trade talk setbacks, US stocks have continued to rally, with the S&P 500 index notching a fresh all-time high on Thursday © AP
      Joe Rennison in New York yesterday

      Investors cautiously pulled money from US stock and junk bond funds over the past week, as the US and China struggled to finalise a potential trade truce.

      Funds focused on buying US equities suffered just over $400m in withdrawals for the week ending November 13, according to data from EPFR Global, clipping two consecutive weeks of inflows that had added up to about $7bn since a potential deal between Washington and Beijing took root.

      Investors also pulled $658m from funds invested in US high-yield corporate bonds, ending four weeks of inflows.

    2. “what mysteriou$ force is propelling them to new high$?”

      Anti.gravity thru$ter$ = “$oft landing$!”

    3. New record high$ @ $tock.Market$ open$!

      More! More! More! … Fa$ter! Fa$ter! Fa$ter!

      (Eye like Jimmy in the morning, he soooo @ peace with him$elf!)

  11. Here’s a fun read …

    I wish I’d never been born: the rise of the anti-natalists | World news | The Guardian
    https://www.theguardian.com/world/2019/nov/14/anti-natalists-childfree-population-climate-change

    (snip)

    Adherents view life not as a gift and a miracle, but a harm and an imposition. And their notion that having children may be a bad idea seems to be gaining mainstream popularity.

    (snip) “… he believes it is wrong to bring new people into the world without their consent.”

    😁

    (snip)

    “The basic tenet of anti-natalism is simple but, for most of us, profoundly counterintuitive: that life, even under the best of circumstances, is not a gift or a miracle, but rather a harm and an imposition. According to this logic, the question of whether to have a child is not just a personal choice but an ethical one – and the correct answer is always no.”

  12. People are stupid.

    German man ‘who persuaded young girls to shock themselves on Skype’ faces 88 attempted murder charges
    https://news.yahoo.com/german-man-who-persuaded-young-girls-to-shock-themselves-on-skype-faces-88-attempted-murder-charges-133027364.html

    A German man who allegedly convinced girls as young as 15 to electrocute themselves while he watched them on Skype is facing 88 counts of attempted murder.

    David G., 30, from Wurzburg, in Bavaria, is on trial in Munich after being accused of giving several women instructions on how to administer potentially deadly 230v electric shocks.

    The defendant, who is an alleged foot fetishist, posed as a scientist carrying out research in order to convince the women to shock their bare feet, the court heard.

    He allegedly targeted his victims aged between 15 and 30 via eBay adverts claiming to be Dr Christian Vogel who was looking for participants for a study on sexual electric shock fetishes.

    He also promised they would receive €3,000 (£2,572) for their participation but none of those who took part were ever paid, the court heard.

  13. “How do debt explosion$ end?”

    Eye asked a $imilar debt$ question yesterday dear Professor:

    I$ it possible to have & hold a “ma$$ive over$upply” … of Debt$?

    U.$. Corporate Debt Continues To Ri$e As Do Problem Leveraged Loan$

    Forbes |Mayra Rodriguez Valladares |Contributor Banking & Insurance

    American$ now have a record $14 trillion$ in debt$

    By Matt Egan, CNN Business |November 13, 2019

  14. oh i forgot i used to work at wbtw tv 13 when it was in Florence SC, nice little town we used to have a Farm show at 6am ….. hog futures anyone?

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