Recovery Hopes Surge On Record New Home Sales

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Wed, 03/23/2011 - 10:16 | 1089800 Flakmeister
Flakmeister's picture

Splat....

 

Uh, no, you don't splat till you hit bottom....

Wed, 03/23/2011 - 10:20 | 1089824 AN0NYM0US
AN0NYM0US's picture

not so fast

Naples Rises From Florida Housing Swamp as Wealthy Buyers Return

http://bloom.bg/eXvFRn

 

 

(the only thing missing from the article is the dude with the sandwich board at a busy intersection trying to sell is million dollar home at half off

Wed, 03/23/2011 - 10:22 | 1089843 66Sexy
66Sexy's picture

more like 'boink'

 

head hitting the roof: a.k.a THE TOP

Wed, 03/23/2011 - 10:52 | 1090081 camaro68ss
camaro68ss's picture

growing a 3rd hand is a bitch

Wed, 03/23/2011 - 11:41 | 1090486 Harlequin001
Harlequin001's picture

apparently it's quite easy now in Tokyo...

Wed, 03/23/2011 - 10:32 | 1089880 hamurobby
hamurobby's picture

On the Treasure coast, you can buy a median home for 50-70% off the 2005 highs. Honestly you can buy them (existing homes) well below replacement, not a bad buying opportunity with the baby boomers retiring. Now if they could just find buyers for their northern homes...

Wed, 03/23/2011 - 11:55 | 1089951 Flakmeister
Flakmeister's picture

Go ahead fill your boots...

The only way real estate makes sense is if your fixed rate mortgage is hyper-inflated away while your property taxes are flat... 

 

Edit: The other possible way is do a move sideways, assuming you have a large amount of equity, replace your existing digs with something that will meet your future needs. Forget about any capital gains etc...

Wed, 03/23/2011 - 12:24 | 1090719 TruthInSunshine
TruthInSunshine's picture

HOA fees in some formerly exclusive areas in Miami have risen 200% to 300% due to all the empty units in multi unit high rises (fixed costs on large buildings suck and tend not to discern as to whether the building is 90% or 40% occupied), and they weren't cheap originally.

So, not only can you not get hurricane insurance, but take the $7,000 that you were paying in HOA fees yearly before and at least double them, and then, oh yeah, add another $23,000 a year in property taxes.

Carrying costs of $30,000 yearly in just taxes and HOA fees for a oceanfront (or view) condominium that has a new real value 50% less than it did 4 years ago? It's all good.

 

Wed, 03/23/2011 - 12:43 | 1090840 Flakmeister
Flakmeister's picture

Good point, HOA fees and the like will not deflate...

Wed, 03/23/2011 - 13:03 | 1090940 ElvisDog
ElvisDog's picture

You're shitting me. $23K in property taxes? That would be reason enough not to buy a condo in FLA.

Wed, 03/23/2011 - 14:07 | 1091169 cornedmutton
cornedmutton's picture

You'd really love California then as may new developments here include standard property taxes, HOA, and something called Mello-Roos, named after the two state bureaucrat assholes that drafted the legislation in 1982:

"A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within a Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing public improvements and services.  These services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds."

Makes you wonder the purpose of property taxes when Mello-Roos covers all the public utility infrastructure normally provided by the city.  Seems to me it's just an end-run around CA State Proposition 13 (passed in 1978) which limited property taxes increases from year-to-year.  Since they couldn't raise the rate they just came up with a new "tax" by requiring all real property owners within the district to sign on as payers for the bond that had been sold to finance the city's ongoing operations. Ta-da! No more maximum property tax restriction!

A couple of years ago I was considering buying a new home near Sacramento that included all three of these payments. The P&I on the mortgage would have been about $1,500 with an additional $700/month in tax and HOA dues. Suffice it to say, we did not buy.

The BEST part was that there was no assurance made the additional payment would go away, even if the 30-year bond was eventually paid off entirely.  And the HOA fees were projected to increase by 3~5% per year!

More here:

http://en.wikipedia.org/wiki/Mello-Roos

 

Wed, 03/23/2011 - 14:16 | 1091242 TruthInSunshine
TruthInSunshine's picture

Have there been any legal challenges to Mello-Roos Districts yet?

As you are aware, just because the state does something doesn't imply it can or will withstand judicial scrutiny.

That is total bullshit.

Wed, 03/23/2011 - 14:20 | 1091269 cornedmutton
cornedmutton's picture

Roger on the bullshit. One of the reasons we stayed away. We saw it for what it was.

I have no idea what can be done, if anything, though. To be honest, this state is so far past the point of no return, I'm not sure if it's even worth fighting anymore.

Wed, 03/23/2011 - 13:02 | 1090934 ElvisDog
ElvisDog's picture

I got news for you - the Baby Boomers are broke or enough of them are/will be broke so they won't be buying those Florida retirement homes. I would stay away from any investment strategy that relies on the untapped wealth of the Baby Boomers.

Wed, 03/23/2011 - 10:33 | 1089908 ptoemmes
ptoemmes's picture

Yeah, here in SouthEast Florida too: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/...

But note that they did change the way sales are reported. 

Hmmm....

Pete

 

Wed, 03/23/2011 - 10:32 | 1089895 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Hey everybody:

Since you can't send the Tylers prostitutes, why not send them some cash for all their hard work. hit that Paypal button!

 

Seriously, our fearless Tylers have not left their keyboards because of all the trainwrecks out there, so send $20 or so today. It won't hurt and you know you want to.

 

Its either that or the red pill.

Wed, 03/23/2011 - 10:44 | 1090006 malikai
malikai's picture

I took both pills and washed em down with a shot of diesel. My tummy hurts.

Wed, 03/23/2011 - 10:57 | 1090113 andybev01
andybev01's picture

I don't even give to NPR, but for you I shelled out $30.00.

when can I expect my tote bag and bumper sticker ;-)

Wed, 03/23/2011 - 12:54 | 1090898 TruthInSunshine
TruthInSunshine's picture

Cindy - just a suggestion, but maybe ZH can post an anonymous method of contributing. I happen to know from experience that many people with means and resources cherish their privacy.

Wed, 03/23/2011 - 16:16 | 1091963 Kayman
Kayman's picture

Cindy

How about getting a drop box.

Wed, 03/23/2011 - 10:41 | 1089988 oh_bama
oh_bama's picture

New home sales lower because

  • WEATHER AND JAPAN/MIDEAST SITUATIONS!!!
Wed, 03/23/2011 - 10:58 | 1090116 andybev01
andybev01's picture

Crap; it's snowing again in the N.E.

Wed, 03/23/2011 - 10:17 | 1089801 slow_roast
slow_roast's picture

Cramer's advice is financial cyanida.

Wed, 03/23/2011 - 10:18 | 1089812 Horatio Beanblower
Horatio Beanblower's picture

Caveat emptor.

Wed, 03/23/2011 - 10:33 | 1089924 Cash_is_Trash
Cash_is_Trash's picture

Caveat viewer.

Wed, 03/23/2011 - 11:34 | 1090430 TheMerryPrankster
TheMerryPrankster's picture

Caveat Empire

Beware of empires - especially financial empires.

Wed, 03/23/2011 - 11:45 | 1090498 andybev01
andybev01's picture

"Caveat Empire"...FTW

Wed, 03/23/2011 - 10:21 | 1089833 John Law Lives
John Law Lives's picture

Anyone who regularly listens to Cramer should be taken out by natural selection.

Wed, 03/23/2011 - 10:30 | 1089887 Gene Parmesan
Gene Parmesan's picture

You don't still think that natural selection is allowed, do you?

Wed, 03/23/2011 - 10:44 | 1090009 oh_bama
oh_bama's picture

DID HE TELL YOU THAT HIS COMMENTS ARE HIS PERSONAL VIEWS ONLY and you SHOULD NOT make investments on those comments?

DID I TELL YOU BTFD a fwe days ago???

 

Wed, 03/23/2011 - 11:35 | 1090440 defn8Dog
defn8Dog's picture

Pongee pit death awaits those who buy on GS "conviction buy" recommendations.  

Wed, 03/23/2011 - 13:46 | 1091119 MallaKite
MallaKite's picture

Its a GS convicted "Buy"

Wed, 03/23/2011 - 10:42 | 1089997 oh_bama
oh_bama's picture

You are so mean!!

HE IS NOT AS SMART IS HE IS TRYING TO APPEAR to be but he is an  OK DUDE!!

Wed, 03/23/2011 - 10:50 | 1090052 cosmictrainwreck
cosmictrainwreck's picture

*error* he's an asshole. to paraphase an old saw: "ya don't have to be an asshole to be at CNBS....but it helps"

Wed, 03/23/2011 - 10:16 | 1089803 101 years and c...
101 years and counting's picture

i've said it all along.  this is the greatest depression.

Wed, 03/23/2011 - 10:22 | 1089842 drbill
drbill's picture

No, the next time the world forgets what's real money and allows (central) bankers to control "money" via fiat, will probably be worse than this depression. That is assuming we don't all wind up in the next stone age.

And to think I used to be an optimist...

Wed, 03/23/2011 - 10:17 | 1089809 NoBull1994
NoBull1994's picture

This is great news.  Disinflationary!  More QE, please!

Wed, 03/23/2011 - 10:36 | 1089947 Hollywood
Hollywood's picture

Undisinflationary!

Wed, 03/23/2011 - 10:45 | 1089980 depression
depression's picture

QE-3 slam dunk  !

line up the cheerleaders !

 

Wed, 03/23/2011 - 10:55 | 1090094 oh_bama
oh_bama's picture

YES!! FINALLY people on this blog understand!!

BEN---QE3 PLEASE, JUST DO IT!

Wed, 03/23/2011 - 13:06 | 1090955 ElvisDog
ElvisDog's picture

Which is funny, because QE3 would further depress home prices, because home prices are a function of monthly payments. If the sheeple's gasoline/food costs go up by 50% due to QE3 that's less money left over to make the monthly mortgage payment.

Wed, 03/23/2011 - 13:49 | 1091121 oh_bama
oh_bama's picture

No you are not correct~~~

 

With QE3 everything will be JUST FINE!!

And people will be living happily forever and ever!!

DID YOU KNOW anythign about finance and economics?! HAVE YOU BEEN A PROFESSOR AT PLACES LIKE PRINCETON???

 

Wed, 03/23/2011 - 13:28 | 1091043 andybev01
andybev01's picture

Shhhh...use your indoor voice.

Wed, 03/23/2011 - 10:18 | 1089810 John Law Lives
John Law Lives's picture

I wonder what the Great Chairsatan will have to say about this.  I suppose QE3 is a certainty now...

Great Chairsatan = enemy of the world

Wed, 03/23/2011 - 10:19 | 1089811 ZippyBananaPants
ZippyBananaPants's picture

Did anyone see Biggest Loser last night? 

Wed, 03/23/2011 - 10:36 | 1089952 Sancho Ponzi
Sancho Ponzi's picture

I don't recall Obama speaking last night.

Wed, 03/23/2011 - 10:46 | 1090021 MsCreant
MsCreant's picture

He meant Ben. I know the competition is pretty tight, so I could see where you would make that error.

Wed, 03/23/2011 - 10:19 | 1089813 No One
No One's picture

awesome! so now the Realtors can scream "BTFD" too.

Wed, 03/23/2011 - 11:03 | 1090164 smithcreek
smithcreek's picture

They've been screaming that for a couple years now.  I pity the fools that jumped on the free government money.  They're only going to get more underwater over the next year.

Wed, 03/23/2011 - 11:39 | 1090456 TheMerryPrankster
TheMerryPrankster's picture

"There has never been a better time to buy a home than right now" said Lawrence Yun, NAR chief economist, as he tied a rope with a rock attached to it around his neck and prepared to leap off a bridge.

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