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Tomorrow Isn’t Yesterday

A report from ABC News on New York. “‘Everyone’s scared. A lot of major landlords are extremely nervous,’ Chris Okada, a broker and investor in Manhattan, told ABC News. ‘I mean, the Upper East Side is a ghost town. There are moving trucks everywhere … But we’re hopeful.'”

“For many, experts said the pandemic was the excuse they needed to leave New York City. Lisa Chajet, of Warburg Realty, said she does think there is a demographic that is leaving the city and not coming back. ‘It’s the younger people who always had one foot out the door and this just pushed them,’ she said. ‘They were the 20 and 30-year-olds who were living here out of convenience and in small rentals. Why are they paying $6,000 a month for a crappy two-bedroom when everyone was working from home?'”

The Pittsburgh Post Gazette in Pennsylvania. “David Mike and Deanna Zaccagnini celebrated the purchase of their Lawrenceville home four years ago by getting engaged. They recently bought a home in Highland Park that gives them twice the interior square footage and an acre of land. They expect to sell the row house on 45th Street to another couple who wants to live close to all the action. But while it has only been a few weeks since the Zaccagninis listed their four-bedroom, three-bathroom unit for sale at $485,000, they’ve begun to realize that Lawrenceville properties aren’t flying off the shelf like before.”

“Ten years after the former working-class community took a leading role in the biggest real estate boom in Pittsburgh history, Lawrenceville is for the first time experiencing an overabundance of houses for sale and it appears the city’s hottest real estate market is showing signs of cooling down. Recent data from the real estate listing service West Penn Multi-List shows other city neighborhoods are suffering from lower demand from homebuyers, too.”

“The number of active residential real estate listings in Lawrenceville in the month of August stood at 228. That represented the highest number of homes available for sale in any single month in that neighborhood since at least 2015, according to West Penn Multi-List data. In May, 139 homes were on the market there.”

“‘The last decade has been the most extraordinary period for Pittsburgh real estate,’ said Mike Netzel, operating partner at Keller Williams Realty. ‘But tomorrow isn’t yesterday. That’s one thing we know for sure. Right now, we are in the middle and we don’t know where that is.'”

“Lawrenceville has become one of the city’s priciest neighborhoods, and in recent years, some say, it has become overdeveloped. John Petrak, executive vice president of the Realtors Association of Metropolitan Pittsburgh, said he’s not surprised that city home sales are lagging. ‘Lawrenceville has become over-saturated and priced out of reach for many people and the increased deed transfer taxes have added an additional burden,’ he said.”

“Many Lawrenceville properties saw triple-digit price appreciation during the gold rush of the past decade in that neighborhood, which helped earn Pittsburgh the reputation for being the No. 1 city for real estate investors in the country. Tim Gyves, a real estate agent at Re/Max Select, has two homes listed for sale in the neighborhood. He said the days when people lined up to pay six figures for a gutted shell of a building appear to be over and buyers have way more options now than before. Sellers there are competing with newly constructed homes, newly renovated homes as well as 100-year-old existing row houses and single-family homes.”

“Ken Nowosielski, a Hampton resident, has been trying to sell a home that he inherited from his mother on 45th Street in Lawrenceville for $450,000, since December 2018. He said he’s getting a bit concerned. It has recently been under contract twice, and both sales were canceled for COVID-19-related reasons. One buyer was unable to sell a house in Massachusetts; the other buyer lost a job.”

“‘We have not lowered the price,’ Mr. Nowosielski said. ‘The offers we’ve had were in line with what we wanted for the house. The thing now is we are competing with a lot of new construction.'”

From WHNT on Alabama. “The Huntsville Area Association of Realtors has been working with Huntsville City Council members to brace for potential housing impacts because of COVID-19. With evictions potentially on the horizon, many tenants and even property owners are expected to have issues paying their bills. HAAR says having abandoned or vacant houses in North Alabama is a larger concern because of the already low housing inventory. The potential for an increased number of vacant properties could have a major impact on home values.”

“‘If someone doesn’t want a property, there’s always some investor out there that wants to go in and renovate that property. Do something with it. Make it into a home for someone else,’ said Tim Brown, the Vice President of the Huntsville Area Association of Realtors. While waiting is one thing to do, the realtors decided to essentially offer several work sessions with council members to make sure they have the tools at their disposal to limit the impact of vacant houses on Huntsville. ‘We are giving them a playbook on how to avoid these situations and also the effects it’s going to have on particular areas,’ said Brown.”

“HAAR hopes the problem doesn’t present itself, but if it does, they have also been lobbying at the national level to find better protections for property managers. ‘We want to help them to not go into foreclosure. To not have bad strikes against their credit because their tenants can’t pay and they are dependent on that,’ said Brown.”

From Loop North News in Illinois. “The Windy City’s real estate market in the summer of 2020 was hit by the COVID-19 pandemic, protests, marches for black lives, riots, and looting from Michigan Avenue to the suburbs. Despite the turbulent season, Chicago’s August existing-home sales skyrocketed to a strong 3,154 properties closed – the highest level for the year and up five percent over the same month last year, reported a new survey by RE/MAX Next.”

“The RE/MAX Next August market survey also reported the following surprising findings: Pending under-contract home sales in Chicago are at their highest level in two years. The inventory of new listings reached its highest level since 2018. The current median price for a home sold in Chicago is $335,500, the highest price in two years.”

“‘Chicago as a whole saw a strong end-of-summer, but it does not paint a true picture of the market,’ noted Mike Opyd, broker/owner of RE/MAX NEXT. ‘The downtown Loop – plus immediate surrounding neighborhoods, including Streeterville, the New East Side, South Loop, and River North – have been flooded with new inventory resulting in widespread price corrections. Buyers are taking their time making decisions because they have many options from which to choose.'”

“Apparently, the increase in home and condominium inventory in the once-hot downtown neighborhoods is a direct result of Chicago’s rocky summer and the failure of Mayor Lori Lightfoot and Chicago police to control the streets. ‘Many sellers are opting to leave downtown for the suburbs and/or to sell their in-town properties because of the turmoil the Loop areas have recently endured,’ Opyd said.”

“One major downtown broker, who had a half-dozen luxury listings, said he did not show a single property over the summer.”

From CBS Chicago in Illinois. “Crazy parties, destruction, and violence – that is what is behind the City of Chicago’s new ban on one-night rentals. The ban was applied to Airbnb and other short-term property hosts with a unanimous City Council vote on Wednesday. People living in one section of the Old Town neighborhood know what it’s like to live next to a problem rental property. From wild parties to property damage, they call brand new rules a step in the right direction.”

“Diane Fitzgerald said when it comes to what her neighborhood calls the ‘party rental’ spot on her block, she has seen it all – traffic jams at 2 a.m. and hundreds of people coming in and out. ‘There was a bachelor party and they were having a golden arches contest,’ Fitzgerald said. ‘Off of there onto our roof. They were peeing on our roof.'”

From National Public Radio. “America may be seeing high unemployment and mounting bankruptcies, but the housing market is booming. And there’s a new kind of boomtown, actually – Zoom towns. Greg Rosalsky of NPR’s Planet Money has the story. ‘It’s not just vacation wonderland seeing home prices surging. Daryl Fairweather, the chief economist at Redfin says the boom is happening pretty much everywhere except New York City and San Francisco.'”

“‘Over half of all young adults aged 18 to 29 are now living with their folks. Others hit hard by the recession are doubling up or living in vans or tents. It’s affecting the rental market. And so it’s a housing market for two Americas – renters hit hard by the recession, living on the brink of eviction, relying on family or the government for help, and homebuyers bidding up prices, some literally headed for the hills, destination Zoom town. Broadcasting from my mom’s house in Sonoma, Calif., I’m Greg Rosalsky, NPR News.'”

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This Post Has 145 Comments

  1. ‘Many Lawrenceville properties saw triple-digit price appreciation during the gold rush of the past decade in that neighborhood, which helped earn Pittsburgh the reputation for being the No. 1 city for real estate investors in the country. Tim Gyves, a real estate agent at Re/Max Select, has two homes listed for sale in the neighborhood. He said the days when people lined up to pay six figures for a gutted shell of a building appear to be over’

    Gosh, I hope no one overpaid in such an environment.

    ‘has been trying to sell a home that he inherited from his mother on 45th Street in Lawrenceville for $450,000, since December 2018. He said he’s getting a bit concerned. It has recently been under contract twice, and both sales were canceled for COVID-19-related reasons. One buyer was unable to sell a house in Massachusetts; the other buyer lost a job’

    Wa? But Massachusetts red-hotcakes?

    ‘We have not lowered the price’

    That’s right Ken, don’t give it away!

      1. reminds me of my growing up wide open basement we used to have 20+ kids over when it was bad weather, so we played games even roller skated… then my father built a slot car track, looking back it was a pretty good childhood, mostly because we had so many kids on the street so we dint have to play with the same 3 people for years

    2. Visiting Pittsburgh years ago, apparently around the start of their “boom”, I was struck by a small amount of gentrification (and some absurd restaurant prices) surrounded by desperate, Appalachia-level poverty.

      And it’s a tiny city in the middle of nowhere. House prices of nearly half a million dollars in kinda gritty neighborhoods in Western Pennsylvania? Please.

      1. I guess, like any city, it depends on where you are. The downtown core was okay, but the immediate residential areas were a hole. I saw a lot of city blocks where 2/3 of the rowhouses had been torn down, leaving isolated skinny houses surrounded by weeds. I’m sure there were some very nice suburbs. Pittsburgh reminded me of mid-size cities like Baltimore or Cincinnati and possibly Richmond. The downtowns simply never recovered (gentrified) from white flight the way that larger metros did.

  2. ‘The current median price for a home sold in Chicago is $335,500, the highest price in two years…‘The downtown Loop – plus immediate surrounding neighborhoods, including Streeterville, the New East Side, South Loop, and River North – have been flooded with new inventory resulting in widespread price corrections’

    So Mike are you sayin’ median prices can be at at a two year high when at the same time actual prices are sinking like a turd in a well?

    1. Yup. A rising median giving a false sense of strength when the market is actually tanking. Ditto for most markets across the US.

      1. The Saturday HBB thread discussing the Burn Loot Murder terrorist organization was excellent.

        Meanwhile, the violent left’s west coast arson spree continues, with full silence from Real Journalists.

        1. Board of County Commissioners Emergency Meeting – Sept. 10, 2020

          The Clackamas County Board of Commissioners held an emergency meeting to consider a declaration of emergency to address an outbreak of wild fires throughout the County.

          https://www.youtube.com/watch?v=R6fidkEp1eY&t=1216s

          Sheriff spokesman starts at around 11:17.

          Some comments:

          ‘Under the circumstances, with Oregon going up in flames obviously started by arsonists, if there is even a suspicion that full gas cans are being staged, or chainsaws, which will be used to topple telephone poles, you act as if it were true and confirm later. Better safe than sorry. No one ever answered the question of how they were going to confirm these things. The way they’ll be confirmed is by them happening because you didn’t do your job and protect the public. These people are pathetic excuses for public servants.’

          ‘As a resident of Clackamas County, I am stunned (but not surprised) at the lack of any sense of urgency. The majority of you were essentially dismissing what the sheriff department was saying. For God’s sake, he is on the front line and was looking for any kind of leadership. You failed law enforcement and you failed us as concerned, and some panicked, citizens. Commissioners Bernard, Schrader, Humbertson, Fischer this will be remembered on Election Day.’

          ‘…last minutes of this “my county is concerned and needs to shut down LAWNMOWERS and anything YARD work necessary that could cause sparks”…No No! Not the full staged gas cans, confirmed looters, burglaries and chain saw wielding individuals!! The citizens mowing their lawns they are the culprets!! Why does it matter what the name if who is carrying chain saws?! Anif4, Santas carolers or the Easter brigade?! WhoEver is seen with CHAINSAWS & GAS CAN STAGING-why does it matter about the ‘Label’ for the meeting?! The National Guard has to be called in regardless of who the flying $%#× wants or doesn’t want it!! About the curfew? The ones causing the need for one aren’t going to follow it & don’t care…this will hurt the law abiding citizens period. Great idea…Lets just agree to put zero parameters on it and let individual law enforcement make the calls about enforcing…that’s worked out great so far’

          1. This should help explain their indifference to the fires:

            County Commissioners
            Office Name[15][16] Party
            County Chair Jim Bernard Democratic
            County Commissioner, Position 1 Sonya Fischer Democratic
            County Commissioner, Position 2 Ken Humberston Democratic
            County Commissioner, Position 3 Paul Savas Republican
            County Commissioner, Position 4 Martha Schrader Democratic

          3. a public hearing

            Ironically, that is the grass roots of a democracy. It’s carefully crafted narratives handed down by political bosses that lack credibility.

          4. Rants at a public hearing would be a welcome sight. This is an echo chamber comprised largely of non-locals.

      2. Scrolling through the comments, it reminds me how useless twitter/puddle watching is. I’m glad I never got into it.

        1. It is a cesspool but its good in that the psychopaths are outing themselves on it, e.g., if youre against pedophilia, youre an anti-Semite

          https://twitter.com/ajaromano/status/1304149302005116933

          The mask is really coming off, isnt it?

          Had Epstein not killed himself ;), he probably would have used that line of reasoning as part of his defense. I guess theres still time for Ghislane and Harvey though. Too bad it wont trend on facebook, who owns that again?

          3. who owns that again

            Can someone explain to me the importance of Ashkenazi Jewish descent? My mother was involved in clinical trials for Neimann-Pick disease and 23andme’s detection of BRCA variants are limited to this population. A number of Hollywood stars and MSM pundits also share this descent.

      3. Biden would like you to think that he will stop the riots if he was elected. He would like you to think that he would of done better with Covid 19 and Trump killed 180 thousand victims of Covid 19.
        I really hate the lies that Trump didn’t do anything about Covid 19.
        The fact that Harris is actually supporting the rioters by her statements is the real truth.
        These creepy Politicians either bribe or extort. It’s insulting, yet the mainstream news as their cheerleaders are distorting all facts or just outright lies.
        Any Political Party that has to resort to this sort of attack on their opponent has nothing good to sell.
        Biden/ Harris aren’t even talking about their policies because it’s all about ORANGE MAN BAD.,
        Wow, Trump must be the most evil man in 10,000 years.
        Biden sold out to big money every step of the way in his career, plus he’s senile
        for God sakes.
        It’s really scary when a party is this power hungry to win.
        Something wrong with a Political Party that’s this sour grapes over a different party winning and they call themselves the Resistance.
        Half the Country is their enemy ( Trump Voters.) .And the distain for that segment of the population by Dems is evident.
        The private sector working class has been ignored, gutted Globalized and looted for so long that they finally elected the outsider Trump.
        I just don’t want a party that can kiss off this much of the population and demonize them.
        It’s the rich and the poor that the Dems support, who are the greatest parasites of the productive working class, who use to be the biggest voting block in the US.
        Every hellhole Country has Rich and Poor.
        I probably identify with the working class because I always had to work for what I got. The give me, give me crowd that wants to be carried by the productive are just leeches. The rich Looters also want to get more than they deserve by rigged systems, monopolies, Ponzi Schemes etc.
        These rich and poor Looters are killing their host, being the middle worker.

          1. I don’t ever know why minorities would vote for him. Biden was just self serving every step of the way, the typical corrupt long term political.
            And, I hate to say it, but a dark cloud went over the White House the day the Clinton’s got in.
            Hilary is saying in essence that Biden shouldn’t give in should Trump win. What is this but refusal to accept the vote of the people like Hilary never did.
            So what, is Biden going to park outside the White house demanding that Trump leaves. IMHO, I think the Dems want to cheat somehow. They are already saying if Trump wins at first he really didn’t. What a bizarre Statement.
            Everybody know a lot of ilegals Citizens vote in every election, dead people, cats, people voting twice, senile people in nursing homes, etc.
            A rigged election would be just such a disaster , but I wouldn’t put it past these power mongers to try to pull that off, like the ends justify the means.

          2. So what, is Biden going to park outside the White house demanding that Trump leaves.

            I think the idea is to get the military to throw Trump out, or at least to stand aside and watch a BLM mob do it, which is effectively a coup d’etat

          4. I still think Biden is going to win outright. But if it’s close, Biden is going to continue to release canned statements from his basement while the DNC creates and mails votes in key states. It will be similar to 2000.

          5. I still think Biden is going to win outright.

            I don’t. I think the damage has been done with the vocal support for the whole anti-white rhetoric, the burnin’ and lootin’, and the general proliferation of lies from the lamestream media, which is in the bag for him.

          6. I don’t think they want to win (the White House) this time out. They might see the train on the tracks ahead.

          7. I don’t think they want to win (the White House) this time out.

            I’m not sure, but they certainly did not want to win with Sanders. They made it obvious they preferred Trump to that.

            RV update: was in Niagara Falls this morning. Headed east to Exeter country next. Gotta visit Grandma’s statue in Concord and let the step-daughter feel the family history. One piece of information I was missing is that RV parks in NY state can’t let you stay without papers for your pet. Makes it a bit more challenging tonight…almost had to stay on the road until I got to another state. Which is tough to do when the wife wants to stop at every f’n apple farm she sees…so progress is painfully slow. And we only have about 20 days left to make it to a family wedding in Utahhrrr…

          8. RV parks

            Could have given you a place to park if I had known. At least it is good traveling weather for now. They don’t ask for papers at rest stops or truck stops, but maybe parking with the trucks isn’t the misses’ style! It’s quite safe though IMO. Cracker Barrel also lets you park overnight.

            Safe travels.

          9. Could have given you a place to park if I had known. At least it is good traveling weather for now. They don’t ask for papers at rest stops or truck stops, but maybe parking with the trucks isn’t the misses’ style! It’s quite safe though IMO. Cracker Barrel also lets you park overnight.

            Thanks, all good to know. But had another big adventure after I posted that. Wife wanted to check out Lake Ontario so we drove up to Sodus Point Beach Park where she promptly buried the RV in the sand thinking it was part of the parking lot. I was still trying to get my work done in California with people in real time so I just called a tow truck and watched while she tried to prove me wrong with a shovel. I won that bet, and as a bonus the tow truck guy didn’t screw me nearly to the extent I expected. So all’s well and we are back on the road again…

          10. Sodus Point

            Directly north of my boat slip by a few miles.

            If you had roadside assistance insurance, it wouldn’t cost you for the call…Less than $100.

          11. “I still think Biden is going to win outright.”

            The silent majority’s comments in the, “No mo ghetto gross-re-stoe” didn’t convince you?

          13. Those silent majority comments are easily countered by the huge amount of TDS on every major website like WaPo, TheHill, Marketwatch, etc.

          14. Those silent majority comments are easily countered by the huge amount of TDS on every major website

            I think the idea is that the silent majority is … you know …silent, unlike the TDS stricken

          15. I don’t think they want to win (the White House) this time out.

            The Democrats need to win the White House to shut down the Durham investigation and to continue railroading Gen. Flynn.

          16. Directly north of my boat slip by a few miles.

            If you had roadside assistance insurance, it wouldn’t cost you for the call…Less than $100.

            Cool. How do you go south from there? Is there a canal?

            Actually I do have roadside assistance, but there could be an issue with my wife not being supposed to drive the vehicle because she’s still on a Chinese driver’s license because she can’t get an American one without an SSN, which she can’t get without a green card, which has been very delayed by the current admin. So if I’m going to use up some insurance company good will on a gray area claim I’m going to save it for something bigger than a $160 pull :-).

          17. How do you go south from there? Is there a canal?

            By car.

            Seriously, there are two paths south, the Hudson River to the Intercoastal or the Mississippi River. Some Easting or Westing on the Erie Canal/Great Lakes is a prerequisite. Some serious boaters spend the winter in Florida or such but it’s $1,000s worth of gas to get there.

      1. Relax my good friend…. relax.

        How bout them falling housing prices…… How bout it.

        Kensington, MD Housing Prices Crater 22% YOY As The Mortgage Fraud Epidemic Envelops Washington DC Area

        https://www.movoto.com/kensington-md/market-trends/

        As a noted economist questioned, “Why buy a house when you can rent one for half the monthly cost. Buy it later after prices crater for 70% less.

    3. I can’t imagine why someone would be hesitant to answer a poll question or otherwise acknowledge they were planning to vote for Donald Trump.

      This year I had to relegate my daily driver 2003 F-250 to hauling material needed on short notice and hauling debris to the dump on jobs without a dumpster. Bought a Silverado with Iridescent Pearl Tricoat paint, there is no Trump bumper sticker on the Chevy.

      If I wanted it keyed I’d do it myself.

      1. I’m not going to tell those pollsters anything.
        IMHO, polls are used to try to influence the public.
        Further, they take polls to try to figure out what to lie about. Than once they get in office they do what they want.
        So, you get this ever-changing Political speech that is based on polls of what to say to reel in the fish voters.
        The public ought to get wise to the Politicians game .
        It’s really icky that these self serving Politicians end up having the power to tax you or control your life by their stupid polices. And they even want more power.

        1. I’m not going to tell those pollsters anything.

          My step-mother tells pollsters my father hasn’t told her how she’s voting yet.

      2. I can’t imagine why someone would be hesitant to answer a poll question or otherwise acknowledge they were planning to vote for Donald Trump.

        Because they don’t trust the pollster and are concerned about being doxxed, cancelled or having thugs vandalize their property or worse?

        I just hope that swing voters for Trump don’t go and pull the D lever for everyone else.

        1. When you have to worry about being punished if you vote a certain way, than something is terrible wrong.

        2. I answer polls all the time. It’s usually foreigners who don’t understand the questions themselves. Sometimes I tell the truth, sometimes I lie, sometimes I switch back and forth. Here it’s all about the Senate so they use Trump to see how you lean.

        2. Back in the 70s the Greenwich Police treated me much better than I deserved. So many of them knew my Dad who besides leaving town for World War 2 grew up, went to school, ran a business and lived his whole life there.

  6. “They were the 20 and 30-year-olds who were living here out of convenience and in small rentals. Why are they paying $6,000 a month for a crappy two-bedroom when everyone was working from home?”

    And in case you are wondering how the afforded it, there were two of them in each bedroom and another on the couch. And still they had trouble affording the rent.

    1. You hear similar stories from other “world class cities”. The last time I was in London I wondered where did all the Eastern European workers, who perform all the menial jobs, hang their hats. I learned that many of them live in shocking squalor with long commutes.

      1. I saw a show on Hong Kong. There, workers literally rent pods. You get enclosed lockable bunk beds three high, and you store all your belongings at the foot of the bed. It’s like an old railroad sleeper berth.

        1. I saw something like that; it was a lockable cage so that your belongings were safe while you labored in a factory nearby.

      2. The last time I was in London I wondered where did all the Eastern European workers, who perform all the menial jobs, hang their hats. I learned that many of them live in shocking squalor with long commutes.

        The pigmen are pleased.

  7. — HAAR hopes the problem doesn’t present itself, but if it does, they have also been lobbying at the national level to find better protections for property managers. —

    HOW ABOUT NOT OVERPAYING!!!

  8. As long as housing prices continue cratering, all is well.

    God Bless President Donald J. Trump and God Bless America!

  9. ‘while it has only been a few weeks since the Zaccagninis listed their four-bedroom, three-bathroom unit for sale at $485,000, they’ve begun to realize that Lawrenceville properties aren’t flying off the shelf like before’

    When this happens, and it happens all the time, a reflection is in order. Wouldn’t this “flying off the shelves” thing, at $485k, be unusual? And wouldn’t an eventual end be expected?

    Not in a mania. No price is too high, and it’s never going to stop.

  10. “…Diane Fitzgerald said…” “…There was a bachelor party and they were having a golden arches contest..” “…Off of there onto our roof. They were peeing on our roof…”

    Diane Fitzgerald. Clearly you haven’t visited DTLA lately.

    Pee, Poop, Puke, Pot and Panhandlers

    Compared to DTLA, Chicago is nothing more than a quiet backwater.

    1. Compared to DTLA, Chicago is nothing more than a quiet backwater.

      I was in Chicago in December, stayed in a hotel just off the Magnificent Mile. The weather was nice and it seemed very pleasant. Of course now it’s a different game.

      1. Chicago is a great place with an (until recently) booming economy.

        Thus the evidence that its problems really are governmental.

  13. Buyers of real estate just have to refuse to buy something that’s overpriced.

    Had people just stuck with not giving in to this they could of had some market say. The real truth is so many were gamblers wanting to get in on
    the appreciation game.
    BUY NOW OR BE PRICED OUT FOREVER, or REAL ESTATE ALWAYS GOES UP, are lies. Realtors are liars. I suppose any salesperson can’t really be trusted.
    Big ticket items like real estate are really big commissions for Realtors, so hype is their middle name.
    So, it’s unfortunate that you have a couple of generations that can’t begin to afford to buy shelter.

    And the Monopoly prices on other products are just taking to much from people like Health Care and higher education.
    Hard to watch, it needs to change.

    1. Had people just stuck with not giving in to this they could of had some market say.

      The problem is that if you did that, you got to watch friends and coworkers’ homes skyrocket in price. They you’d get to watch them cash out equity for toys, trips and boob jobs. And to rub the salt in, you’d get to listen to them brag about their appreciation in social gatherings. This is why almost everyone jumped in: fear of missing out. Of course, their kids got shafted, but that’s the way it is, right?

      1. You also had the privilege of paying ever-increasing rent, especially when those incentives run out after the first year. I have to say, it’s gratifying to see my paycheck go up a little bit most years, while my mortgage payment is roughly unchanged.

        2. oxide,
          You got in when the prices had crashed, so you got in at better pricing. Always nice to have good timing.

          1. credit cards

            After the BK reform, it is more difficult to get out from under unsecured debt than secured debt, if you have a decent job.

  14. From National Public Radio. “America may be seeing high unemployment and mounting bankruptcies, but the housing market is booming.

    “Daryl Fairweather, the chief economist at Redfin says ‘the boom is happening pretty much everywhere except New York City and San Francisco.’ ”

    “And so it’s a housing market for two Americas – renters hit hard by the recession, living on the brink of eviction, relying on family or the government for help, and homebuyers bidding up prices, some literally headed for the hills, destination Zoom town.”

    “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” – Charles Dickens, A Tale of Two Cities

    – So, what’s going on? Here’s an article from our neighbors to the north with their own a) central bank, and b) ginormous (and worse) housing bubble. Coincidence? I think not! This is a direct analogy to the U.S. market, IMHO.

    https://www.greaterfool.ca/2020/09/14/the-illusion-5/
    The illusion
    September 14th, 2020

    “Covid crushed rates. It could be the big story of our times.

    On the weekend we talked about Marie, the 60ish income-less single who sold her only asset (a house) to finance her remaining decades. But since central bankers tanked the cost of money to fight the virus, saving’s a disaster. GICs [Guaranteed Investment Certificates, similar to CDs in the US] are awful. High-interest accounts aren’t. There is no option but to onboard some risk in order to make money work.

    But wait. These bankers have not just squished senior savers. They’ve also brought panic buying and more debt for young families. The bug which came ashore in March might have its enduring impact here. In real estate. Mortgages, bloated and unwise

    The big news is we now have a major bank advertising five-year home loans for less than 2%. CIBC’s rate is 1.97%. Never before in Canadian history has this taken place (although sub-2 has been offered unofficially by the banks and smaller lenders for several weeks). It’s also interesting that this is just a skinny five basis points more than the cost of a variable rate mortgage (which would be foolish to take).

    Okay, so banks are giving 0.85% returns on a five-year GIC, and offering five-year debt at 1.97%. We know what those deposit rates are doing to savers – impoverishing them. What are the cheap mortgage rates doing to borrowers? Yes, indebting them. Plus, inflating houses. Oh yeah, and totally distorting the housing market. Well done, CBs.

    It’s all about demand. When it exceeds supply, prices rise. Demand can be manipulated. Normally when the economy tanks, jobs are erased and recession takes hold people lose confidence in their financial futures, hunker down and spend less. In other words, in bad times, real estate markets shudder to a halt.

    Now imagine if you layered over this economic collapse a global panic, endlessly bad headlines, plus a scary virus that floats through the air and which has killed nine thousand Canadians in the last six months. Oh, and lockdowns. Quarantines. Eight million people on government benefits. Four million more forced to work from home. No school, either. Did I mention no travel, concerts, sports or conventions? Right. Plus masks. And social distancing.

    Such things, in normal times, would lead to one result. Housing torpor. But these are not normal days. The CBs have seen to that. So they have taken demand from the future and pulled it forward to now. Hence a 1.97% mortgage at the Bank of Commerce.

    It’s a trick, of course. By collapsing the cost of borrowed money, central banks are trying to create economic activity by coaxing people into borrowing gobs and buying stuff. Like $1 million houses in the vacuous, soulless suburbs. As you know, it’s working. Sales and prices in the last two months have been off the charts. In the midst of economic collapse, real estate values in the GTA (for example) have just surpassed those of 2017 – when governments thought things were so out of control that new rules were required.

    The cheap Covid CB money has overwhelmed those safeguards. It has rendered impotent new restrictions imposed by CMHC. It’s made moot structural unemployment and the fact some industries (like oil and gas) may be forever wounded and starved of investment capital. But even as the head of the central bank, Tiff, warns, “We don’t expect the strong rebound we’ve seen to continue at the same pace in the months ahead,” the house-buying orgy continues as if the economic crisis is in the rear-view. But it’s not.

    Even as he says that, the CBs are further depressing rates and inflaming desire. Five billion dollars is being spent buying up mortgage bonds in Canada. Every single week. That supresses yields, pushes mortgages lower and property prices higher. In a recession with grinding employment lenders should be cautious. Loans harder to land. Rates stiffer. Instead, it’s party on.

    Well, what could possibly go wrong?”

    “Use cheap rates to reduce, consolidate and trash debt, not borrow more. It’s a trap.”

  15. The CFTC – the same regulatory agency that for the past decade has turned a blind eye to the rigging of precious metals markets by the Fed’s primary dealer trading desks – frets that US wildfires (caused of course by “climate change”) could spark a financial crisis. Hmm, investors losing faith in these rigged, broken, manipulated markets where see-no-evil regulators and enforcers are in bed with the market-riggers could spark a financial crisis too, CFTC.

    US wildfires could spark financial crisis, advisory panel finds

    https://www.theguardian.com/world/2020/sep/10/us-wildfires-financial-crisis-markets-cftc-report

    1. “US wildfires could spark financial crisis, advisory panel finds”

      – Using the analogy of the current financial crisis (CCP virus pandemic is just cover) to a wildfire, the Fed is doing a fine job of claiming to be the fire department, while fanning the flames by pouring gasoline on the fire with central bank liquidity. This is the already existing financial crisis as a slow-motion train wreck, and has been going on since at least the GFC.

      – I also think it’s a stretch for the CFTC to link actual forest wildfires to a financial crisis, not that they are “experts” in wildfires, or anything financial for that matter, including commodities. What, exactly, makes them qualified to propose such a (dubious) linkage? Commodity Futures Trading Commission = Wildfire experts? Really?

  17. and homebuyers bidding up prices, some literally headed for the hills, destination Zoom town.

    How dare they flee vibrant, urban sh!tholes!

  19. Ok, I’m a homeowner but something really bothers me about rooting for real estate to go up when so many people get harmed by shelter prices.
    That’s why I really liked it in the good old days when rents and shelter prices tracked with average wages.
    Since shelter is a basic need, people not being able to afford shelter is horrible. And for what, so some equity locust can use a house like a ATM machine.
    Than RE crashes and the bail outs begin. It just seems crazy to me. It’s even created generation warfare when I never saw that when pricing tracked with wages.
    What do you gain if your whole society goes to hell?

    1. Darn right about the generational warfare. The old people better be careful, they may lose their social security and Medicare if young people ever wake up and vote. It’s not nice to be old and poor when government coffers dry up. Maybe they can learn to code?

      1. The old people

        We would then have to give up our expensive toys, houses, exotic vacations and such. Maybe even single malt scotch. Then we would lean into our family like people used to do. A serious illness in old age might just be handled in the old fashioned way as well.

        I’d be OK. I saved. It’s unlikely I’ll ever go hungry. Besides I like to fish and such and live on the water. I do think though that if “young people” decide I won’t get back anymore of the hundreds of thousands of dollars I paid into this imposed insurance racket, laugh at elders falling on hard times and all, they’ll deserve the bed they make for themselves.

      2. Younger people not having the same opportunities that prior generations had is the fault of the usual suspects.
        No reason to throw granny over the Clift. . Look to the real culprits.

        1. Eventually we will run out of road to kick the can. Look at how the elderly are treated in places like Singapore, where state support is limited. That is a reasonable outcome.

          It’s not throwing granny over the cliff, it’s just admitting we are out of money and you can’t get blood from a stone.

          All that money paid into medicare and social security was already spent. Robbing the young to keep the ponzi going is just going to foment anger and cause a violent backlash (which we are already experiencing).

          1. So , you don’t seem to acknowledge that all those older people paid into the plan for 30 to 40 years .
            Those people didn’t bitch when their payments were going to the generations ahead of them.
            In 2035 they say Social Security will be underfunded by 20 %.
            So, if they are going to do something I think it should be done way ahead of time.

          2. SS doesn’t work. Not when the payout is many multiples more than contributions.

            Cut everyone a check for their amount of their contribution and shut it down.

            Problem solved.

          3. “Those people didn’t bitch when their payments were going to the generations ahead of them.”

            The idea of allowing people to opt-out of programs like social security has been around a long time ago. I’d call that “bitching” by those older people.

      3. Social Security was a pay into for 30 or forty years plan, a forced pay retirement plan . Medicare isn’t free for elders, and the Government enacted it because the health insurance companies refused to insure older people , even when they had payed into the system when they were younger.
        I suppose FDR didn’t want a bunch of old people dying in the streets , so the forced programs.
        Globalism that cheated this Country out of higher paid jobs and other rigged systems and monopolies are the Looters.
        Young people voting to defund Social Security , that was paid into for years and relied on seem a little harsh as well as misplaced anger.
        I never wished my elders were de-funded and thought they should learn to code. They were to old to learn to code.
        There has to be better solutions than generation warfare.

        1. One other thought.
          The Greatest Generation that fought World War II, so everyone got the freedom ,gave a priceless gift to the generations that followed..

          To think that this insurrection group of Commie America haters is being supported by Big Corporations and the Dem Party is appalling.
          What kind of World do they want to replace America with? Nothing good, just look at the Looters ideas of equity and Justice.
          True colors shining through.
          You see the true colors, that want to kill you.
          You see the true colors, that want to control you, the true colors that want to destroy you. You see the true colors that want to invade, the true colors that want what you made. True colors shinning through.

          1. Look, by the posts it appears like some people equate Social Security with Commie.
            It’s more like a pay into insurance model forced retirement plan.
            Commie is more like give me this for free because it’s my right. Commie is more like regardless of effort you get the same as the slacker.
            Commie is more like I’m entitled to this, that, or the other thing regardless if I pay in or not. Commie is more like Big Gov going to tell you what you get. Commie is more like no property rights, no reward for merits, no Constitution, no personal responsibility , just big central government calling the shots. It always has to be forced because people do not willingly give up what they have earned, to people who haven’t earned shit.

        2. “Young people voting to defund Social Security , that was paid into for years and relied on seem a little harsh as well as misplaced anger.”

          This isn’t a new idea, though. I was a young-ish person that supported the “privatize Social Security” idea in the Bush years, with a few caveats:

          1. Eliminate payroll tax on a sliding scale over X number of years. (ie – let me control it, no government program)
          2. Don’t defund my parents’ generation. (Hence, the sliding scale above.)

          2. ^You support unlimited theft, boomer?

            See also: they won’t live forever yet here we are, 20 years later, solution-less…

          4. They have many solutions such as taking the cap off the social security deduction. Richer people have gotten away with that for years.
            They have talked about many different solutions for years, but nothing ever happens.
            Government pensions are also a problem, but again they don’t want to talk about
            But, don’t talk to me about getting screwed because I already had 2 private sector pensions go bankrupt.
            Many issues to think of. Older generations paid much higher tax rates, and paid much higher interest rates. Younger generations don’t know how we were hosed. Your just told your getting screwed without perspective.
            Admittedly, the job thing sucks compared to 60 years ago, and the shelter Ponzi Scheme sucks. The monopoly health care costs are absurd, and Globalism is a great looter. The old people didn’t vote for this stuff, they just paid into the system.

        3. MB,
          Ok, you fail to compute how much the person could of earned had they put SS payments into private pension. Do you realize how much would of added up after 30 to 40 years.
          Nobody ever wants to add up opportunity cost lost. I figured it out one time but there are different formulas used. So, just what the raw payment was does not suffice.
          There were long periods of time when saving rates would double money in 10years.
          So, add up the opportunity cost lost for those exact periods, than it’s more accurate.
          Also, older people have no time to make up for the loss, like anybody wants to hire older people.

          So, telling people who are old, who many can’t work anymore , that they just get raw pay in, and lose opportunity allotment, would be a rip.
          I suspect that they are going to raise retirement age to 70 or older because people are living longer as one of the adjustments.
          But, why would people want a lump sum pay out when they are not in the position to redo what was promised at the time. New programs have to be phased in as opposed to overnight changes.
          Also there might be a issue of means testing. Some little old lady living on 800 a month SSI would starve if her payment was cut in half for example.
          Sure there are people that live until they are 105, but the average is about 79.
          As far as Medicare your not calcauting all the years since 1970,payments paid in, while the person had to pay into regular health insurance because they were under 65.
          So, I know your a thinking person Mafia Blocks by your posts. It’s not as simple as it seems.

          1. but the average is about 79.

            When I made it to retirement age, SS told me my life expectancy had increased to 85. I guess I’m not in danger of infant mortality.

            the opportunity cost

            I would have spent the money on women, single malt scotch and boats or just wasted it!

          2. I would have spent the money on women, single malt scotch and boats or just wasted it!

            A George Best fan, I see.

  21. Just read that the LA Rams new stadium cost a cool $5B smackeroos.

    So I’m wondering, how will the bonds get paid back?

    Say the team sells 500,000 tickets per season, times 20 years (by then they’ll want to tear it down and replace it with something even more expensive). That’s 10 million tickets. That’s still $500 per ticket to pay for the stadium. Say the Chargers also play there, $250 a ticket. Throw in some concerts and other events. Maybe you get it down to $100 a ticket. How will the bonds get paid back? Of course the venue will have huge maintenance and utility costs as well, which will only grow with time.

    Anyway, Oxide asked how it was possible that the Denver airport remodel cost about $1B. I think there must untold graft involved in these projects. IIRC, some retired athlete (Magic Johnson?) was involved with the the Denver airport project. I’m sure he wasn’t involved out of the goodness of his heart, and I wouldn’t be surprised that the remodel project came to a grinding halt because who knows where the money went? Months after the remodel was halted it was disclosed that more bonds would have to be sold to finish it. Perhaps pricing the stadium at $5B ensured that there would be enough graft to go around.

    1. We are in the “Financialization Age.” Wall St. and the central bank cucks have figured out how to fund anything.

  22. “‘Everyone’s scared. A lot of major landlords are extremely nervous,’ Chris Okada, a broker and investor in Manhattan, told ABC News.

    I’m not scared, Chris. Then again, I didn’t lever up on debt to speculate on a housing bubble.

  24. “‘We have not lowered the price,’ Mr. Nowosielski said. ‘The offers we’ve had were in line with what we wanted for the house.

    You stick to your guns, Ken. No need to give it away…surely a Greater Fool will be along with a full-price offer any day now.

  25. @BlueSkye Did you ever see the show “Northern Exposure”? I get the feeling that you’re town is kind of like Cicely.

    1. see the show

      Maybe once. Moose walking through Yukon boom/bust town with just a few eccentric inhabitants?

      We have a lot going for us here, but no moose.

      1. From what I remember, it was an eccentric and intelligent close-knit community who appreciated the outdoors and looked out for one another.

      2. “We have a lot going for us here, but no moose.”

        Being mooseless is a good thing.

        Why Are Moose More Dangerous Than Bears?

        BY CRISTEN CONGER & KATHRYN WHITBOURNE

        Since the Alaskan moose population can exceed 175,000, you may run across one accidentally at a campsite, on a trail or even in your own backyard. Imagine a 1,500-pound (680-kilogram) brown mass galloping toward you as fast as an overgrown rabbit. Antlers 6 feet (1.8 meters) from end to end splay outward like a pair of bizarre antennae. When you see a bull, or male moose, charging at you, there’s only one thing to do – turn and run to avoid getting trampled. Duck and hide behind the nearest tree, building or car if you don’t have time to get inside [source: Alaska Dept. of Fish and Game].

        Although moose can outrun humans at their top speeds, many times, they won’t chase you far if you run away from them. If you don’t get away fast enough, and a moose knocks you down, don’t struggle. Curl into the fetal position and cover your head with your arms. Trying to move or beat it off will only cause the moose to continue kicking and stomping you.

        If you see one that isn’t approaching, your best bet is to avoid it and allow it to move out of your way. However, if you notice its hairs raised, head down and ears back, that’s your cue to hightail it in the opposite direction. And when a moose licks its lips that doesn’t mean it finds you attractive. That’s your signal to make tracks.

        Although moose aren’t more dangerous than bears in terms of behavior, they pose a greater threat of injuring you simply because of their population size. Moose outnumber bears nearly three to one in Alaska, wounding around five to 10 people in the state annually. That’s more than grizzly bear and black bear attacks combined [source: Smith]. A 2011 CBS news report said that more people are injured by moose than bears each year but rarely are people killed by moose attacks.

        https://animals.howstuffworks.com/animal-facts/dangerous-moose.htm

        2. I was at a gas station in Alaska, and a moose sauntered through casually. Nobody really paid attention except for some kids in a car. It had long legs with wide hooves and the huge antlers. We encountered another one while driving along a curved mountain road, and we stopped and stared at each other before it turned and trotted up the steep mountainside. If you’re going to try and outrun of these powerful animals it had better be downhill!

  26. Thinking about the cops who are being assaulted with bricks, bottles of urine, fireworks, lasers and at this point executed and how it got to this point. All by the weak people who have bought this line of not only the police but the country being racist and black people being hunted.

    No mention that these high profile victims had committed a crime, had the police called to deal with the crimes they committed, did not comply and resisted arrest, in two of the cases fought with police and took or reached for a weapon before the police used deadly force. It is never mentioned in these fist raising moments of protest that police kill more than twice as many white people as black people in this country every year. They just keep pushing the narrative racist cops racist country. Is it any wonder that the consumers of this cr@p walk up to a police car and shoot two young people in police uniforms in the head?

    At this point I think it is fair to ask the people of the MSM, the people of the pro sports leagues and the politicians pushing the narrative if they think they have blood on their hands. I think they do.

    Perhaps if they put a little thought into it they may not blindly follow the crowd, raise their fists, or take a knee before they cash their fat checks.

    LA SHERIFF CHALLENGES LEBRON JAMES TO MATCH REWARD MONEY ON SHOT OFFICERS SUSPECT

    by OUTKICK
    about 5 hours ago

    Los Angeles County Sheriff Alex Villanueva has upped the ante for social justice warrior, LeBron James.

    Following the horrific incident involving a gunman shooting two deputies in Compton, Villanueva publicly issued a challenge to the Laker star to match the reward money for information leading to the arrest of the individual. The County has put up $100,000 while private citizens have offered $75,000.

    LeBron has been a public critic of violence and has used his public spotlight to draw attention to many cases involving the police.

    https://www.outkick.com/la-sheriff-challenges-lebron-james-to-match-reward-money-on-shot-officers-suspect/

  27. Dumb question of the day:

    With the Fed pumping in over $1 billion in Quantitative Easing per hour since late March, is fiscal stimulus really needed?

    1. The Financial Times
      Coronavirus business update 30 days complimentary
      US economy
      Economists warn of US ‘wasteland’ without stimulus deal
      Hopes fade for $1tn or more in government aid for workers, businesses and local governments
      Alan Blinder, former Fed vice-chair, says ‘you’re really playing with fire’ if state and local governments have to cut spending
      © Bloomberg
      James Politi in Washington yesterday

      The US economic recovery is in danger of being weaker and more uneven if Congress and the White House fail to agree on a new round of fiscal stimulus, according to mounting warnings from Wall Street and academic economists.

      In recent weeks, hopes have faded for an accord before November’s election to pump $1tn or more in government money into the world’s largest economy through direct payments to households, enhanced jobless benefits and aid to small businesses and state and local governments.

      The diminished chances of additional fiscal support have caused many economists to fret that the US rebound will lose steam in later 2020 or early 2021, creating a drag on the global economy as it tries to recover from the worst contraction since the second world war.

      “The risk of fiscal fatigue where policymakers stop providing stimulus or start trying to claw back too early is a meaningful global risk,” said Nathan Sheets, chief economist for PGIM Fixed Income. “What’s going on in Washington right now is in some sense exhibit A for that.”
      …

  28. Do you all realize that the number of U.S. COVID-19 deaths is set to pass 200,000 by around October 1? How many 9-11s is that?

    2. The Covid death count is zero 9/11s. It’s a travesty of a different nature. It’s a travesty of obscured statistics, manipulated fear and failed logic.

      1. There was plenty of twisted logic applied in both of these crises.

        Never let a good crisis go to waste.

        — Sir Winston Churchill

      1. Yes, the evidence is stacking up that Covid 19 was political. Not that there wasn’t a virus.
        I can’t get into a grocery store in California without a mask.
        The thing is if they come up with this vaccine in October, the so called cure, that will be to early for the Dems based on the Political objectives.
        Really, when I see Biden wearing his show mask , than he takes it off to spew his nonsense, I want to puke.
        The damage done by this Political abuse by using a virus just tells you that these powers are pretty evil in the final analysis.

  29. Typical bull argument: We’re already in 2009 recovery mode, even though we never relived the Fall 2008 financial collapse.

    Shouldn’t we wait for Fall 2020 to play out before jumping to conclusions?

    1. The Tell
      Stock market’s 7% pullback? Get ready for more, as a 2009-style ‘stair-step’ rally continues, says Wall Street bull
      Last Updated: Sept. 14, 2020 at 4:34 p.m. ET
      First Published: Sept. 14, 2020 at 4:11 p.m. ET
      By William Watts
      Drawdown ‘likely the first of a few,’ says Canaccord’s Dwyer
      Referenced Symbols
      SPX
      +1.27%
      COMP
      +1.87%
      DJIA
      +1.18%
      VIX
      -0.89%
      That last step was a doozy.
      AFP/Getty Images

      The stock market’s September pullback was likely the first of many as it follows a “stair-step” playbook that echoes the rally off the financial-crisis low in 2009, one prominent Wall Street bull argued in a Monday note.
      …

    2. This explains alot!

      People
      ‘It could get really messy’: Finance workers’ cocaine use spikes in lockdown
      Addiction service for financial services workers warns that drug use is massively underestimated
      Getty Images
      By Paul Clarke and
      Shruti Tripathi Chopra
      September 15, 2020 12:01 am

      The Covid-19 lockdown has led to a surge in cocaine use among City professionals, raising alarm bells over drug abuse and mental health issues.

      The problem is particularly acute among those already struggling with addiction, say psychologists and specialists.
      …

      1. During the 2008 financial crash, a lot of drug dealers ended up in homeless shelters because their former Wall Street clientele could no longer afford cocaine once they were unemployed.

      3. Color me naive, but who would want to be hopped up on cocaine while watching speculative bets vaporize? Sounds like a recipe for a heart attack.

  30. The latest Commitment of Traders report shows Commercial Speculators, aka the Fed’s bullion bank accomplices in market-rigging, have increased their already massive gold short position of 403,000 contracts of 100 oz each by a further 4,400 contracts. Meanwhile, gold prices keep pushing higher as the Fed’s debasement of the currency continues apace. Clearly “Da Boyz” are expecting a sharp drop in gold prices, but their usual manipulation tricks don’t seem to be working.

    https://www.cftc.gov/dea/futures/deacmxsf.htm

  34. The Detroit News
    Detroit area landlords fear evictions halt spells their doom
    Mary Cunningham, a housing expert with the Urban Institute, said having a … he’s decided not to put any new renters into his vacant homes because it’s too big …
    9 hours ago

    2. Unintended consequences of gub’mint meddling in the housing market: landlords refusing to rent vacant properties since they could be saddled with indefinite freeloaders. We know what the road to hell is paved with.

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