Great article written by Jeff Nielson out of Canada. It's good to find real and valid information that answers all my intuitive doubts. The "shadow inventory" is still something I can't figure out. It would seem that the Banks under the guise of helping out the Government have withheld 20 million vacant REOs from the market in an attempt to allow stablization. In that I don't have any other premise that makes any sense, it continues to bother me. The logic of it all doesn't work for me. I continue to look for the answer. In doing so, I keep finding good balanced information that does answer many questions for me. This is a MUST read.
This is a good and solid article on why we will see the "double-dip" coming in the housing markets.
Here are a couple of excepts:
The “moon-shot” in the U.S. housing market over the decade from 1996 – 2006 was nothing but the hype of the U.S. media, the easy-money force-fed into the U.S. economy by the Federal Reserve, and the endless Ponzi-schemes which Wall Street used to pump-up the market even further, through “securitizing” mortgages and inflating their derivatives-bubble to a notional value exceeding $1 quadrillion.
and another....
As Alan Greenspan pointed out in a famous essay in 1966, “inflation” is the primary means for wealthy bankers to “confiscate” all the wealth of the average citizen, and the permanent era of high inflation brought about by the death of the gold standard has resulted in the greatest collapse in the standard of living of the average, Western citizen in centuries. This collapse in real wealth has been largely concealed through three parallel phenomena. First, there was the mass-entry of women into the workforce – creating more two-income households than at any time in history: two incomes in order to be slightly better off than a one-income family of a generation earlier. Second, Westerners in general, and North Americans in particular have allowed their savings to dissipate. Meanwhile debt-levels are now at their highest in history.
I'm not going to add anymore excepts. It is a very good read and a must. It is up to each and everyone of us to get out there and find the truth of where we are and what's gong to happen to our markets (not just real estate).
I owe it to my clients, friends and family. This is a good look at reality.
My Dad, Herbert F. Rule was an Air Force Pilot in World War II and flew a high altitude bomber called the "The Jug", "Thunderbolt" or the P47. He was kind and always taught me things. We took hikes together and he was always there for me. Thanks Daddy for being my best friend and for giving me the confidence to be a fighter in life! I've needed it!
We've been working hard to build a marketing infrastructure for the North State (California) for over five years now and we are successful in attracting the out of area Buyers from a national basis, state basis and even occasionally on an international basis.
Dunsmuir with a view of the Sacramento River and the City of Dunsmuir. Doesn't that sound appealing? Well, of course it does!
Up the street we go and once again we start to get wedged in by a very narrow road and half way up we see the address number of the property. Right at the property is a Street Sign for Bush Street. Very helpful indeed, this street sign. Yeah, we have found it. Our jubilation is short lived. We have now stopped the car and begin to look around for where we can park. There is a parking structure there and I remembered the owner mentioning a parking structure and I say to David (my patient and wonderful husband) that I believe the parking structure is part of the property. The numbers reside there right on the structure itself.
Now we are ready to see the triplex....hard part over although I am already wondering how I am going to protect Agents and Buyers who want to view this property. There is no space for any other parking. As we move toward the triplex, we realize that they are staggered down the hill. There is a very steep set of stairs that you have to go down to the three levels of the units. If you live on the third unit, you have many steps to go down to get to your unit. As I'm taking this all in, I realize that the roofs are at end of life. There is moss growing on the wrought iron railings. The first unit is currently rented and I would hazard a guess that this tenant has the car parked in the safest part of the parking structure. It would not be a bad walk to her place although still not easy. The other units are extremely difficult to get to. I can't imagine buying groceries. You would have to limit it to one bag that you could put in a back pack and pack it in. Well, I would say that I am exaggerating some what. If you are retired and need exercise...it could work. The staircase goes all the way to the bottom of the hill and to the street. Now my mind clicks in that it might be possible to park at the bottom and walk up the stairway to the units. Supercalifragilisticexpialidocious indeed.
Are You the 800 Pound Gorilla in Real Estate--I just met with a new client to list her country home. It is in a beautiful setting along the beautiful flowing Clear Creek in French Gulch, CA. It is a unique home and we are excited about creating the experience of this very much loved property for new Buyers. It is at the end of the lane and it is beautiful and peaceful.