Free Republic

Both ABC World News with Diane Sawyer and NBC Nightly News failed to mention a new, troubling report from the Census Bureau on Thursday night that sales of new homes decreased by 8.1% in June and that May’s originally reported double-digit increase was revised lower, from almost 19% to only 8%. The CBS Evening News did cover this story, but it only was in the form of a 12-second news brief from anchor Scott Pelley. Pelley grimly reported that: “Today's report on the housing market is raising concerns about the economic recovery. Sales of new homes dropped sharply last month,...

While the world is sizzling and percolating in conflicts and wars, and U.S. is roiling in manufactured crisis after crisis, real or imagined emergencies, overwhelmed by the constant invasion of illegal immigrants, The Washington Post writes on the front page, “Thinking inside the box on D.C. housing costs,” living in repurposed dinged freight shipping containers. Two days before, Deborah K. Dietsch featured “Thinking big in a small way.” (Michael Laris, July 21, 2014)

In testimony before the Senate Budget Committee, Department of Homeland Security Secretary Jeh Johnson shocked senators of both parties when he disclosed that it costs between $250 and $1,000 per day per person to house the illegal immigrants that have been surging across our border with Mexico. "There was an audible gasp, a bipartisan gasp," Senator Marco Rubio (R., Fla.) recounted. "I could take a luxurious Caribbean cruise every day of the year for a lower total cost. I cannot fathom why the spartan accommodations we are providing for these people should cost so much." Senate Budget Committee chairwoman Patty...

China’s new-home prices fell in a record number of cities tracked by the government as developers cut prices to boost sales volume, signaling curbs will be relaxed in more cities. Prices fell in 55 of the 70 cities last month from May, the National Bureau of Statistics said in a statement today, the most since January 2011 when the government changed the way it compiles the statistics. Prices in Shanghai and the southern city of Guangzhou fell 0.6 percent each from May, the biggest drop since January 2011, while they declined 0.4 percent in Shenzhen. Prices fell 1.7 percent in...

The one section of the housing market that is booming is housing for the wealthy. For example, the median home price in San Francisco just hit $1 million. An analysis by DataQuick of 25 of the top U.S. metropolitan areas for multimillion-dollar sales showed purchases for $2 million or more jumped 33 percent in January and February from a year earlier. Unfortunately for the rest of the United States (the mere mortals), the housing affordability (according to the National Association of Realtors) is declining. narafford This is particularly bad news since home prices are rising while real median household income...

US home construction fell 9.3 per cent in June, a surprising sign of weakness for a sector that has struggled to maintain momentum over the past year. Housing starts sank last month to a seasonally adjusted annual pace of 893,000, the weakest showing since September 2013, the Commerce Department said Thursday. It was the second-straight monthly drop....

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting the labor market recovery was gaining traction. However, a separate report showed U.S. housing starts and building permits unexpectedly fell in June, suggesting the housing market recovery was struggling to get back on track after stalling in late 2013. Initial claims for state unemployment benefits dropped 3,000 to a seasonally adjusted 302,000 for the week ended July 12, the Labor Department said on Thursday. The prior week's claims were revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast...

It's really hard for a middle class family to buy a house along the California coast.Real estate research and marketplace site Zillow routinely calculates an index of housing affordability. First, they use a proprietary statistical model to estimate housing values in a metropolitan area. Then, they calculate the monthly mortgage payment for a median price house in each metro area. Finally, they calculate the percentage of the median monthly income for each metro area needed to pay that mortgage payment.For example, Zillow's estimate for the median home price in Abilene, TX during the first quarter of 2014 was $98,600. After...

A few days ago we finally closed the door on any argument who the marginal buyer in the US luxury housing segment was - the answer: Chinese oligarchs, scrambling to launder their "hot" domestic money abroad (as we predicted first two years ago) and now that Switzerland is no longer a safe offshore venue where one can park cash, they picked US luxury housing as the best money laundering alternative. This means that far from indicating a recovery, as the recent surge in the high end of the US housing segment had long been touted, all the relentless move...

Relocation Map Key As with all maps, you can zoom in and out, and click and drag the map for a different view. (For a larger version of this map click here. You can see a full list of all the communities in the left column.) NumbersUSA is daily updating this interactive map to show which communities are under threat of the federal government moving large numbers of illegal aliens there from the border.

One thing we know about Mayor de Blasio is that he’s serious about creating affordable, quality housing for all New Yorkers. “This is literally the largest and most ambitious affordable-housing program initiated by any city in this country in the history of the United States of America,” de Blasio declared when he announced his “five-borough, 10-year plan” in May. “It is the largest, fastest affordable-housing plan ever attempted at a local level,” he added, vowing to “change the face of this city forever.” Hear that kids? Your rent worries will soon ease. Great news! I wonder if the new promise...

As the housing selling season winds down with the end of spring and the beginning of the summer months, it is a good time to get an informed perspective of housing demand for the year. This can be gleaned from three major metrics; mortgage purchase applications, existing home sales and new home sales, year over year (YoY). Six months of data for the first indicator, mortgage purchase applications, shows applications significantly down compared to the same period last year. 1. Mortgage purchase applications are down -16% YoY. (All charts from Professor Anthony Sanders, Distinguished Professor of Real Estate Finance at...

As homeownership rates tumble, perhaps it is not just the stagnation of income or piling up of 'other debts' disabling any organic buying frenzy; perhaps, as Bloomberg breaks down, it is the realization that real-estate is nothing less than another boom-bust roller-coaster ride. ??When so much wealth is tied up in one asset, the risk -- or stability -- of a local market can mean a lot to a homeowner and Bloomberg has quantified the 'riskiest' (and most stable) home markets in America... not Vegas, not Phoenix, and not LA... Full Breakdown here And the stablest real estate markets?5. Raleigh, North...

“Bigger is better,” as the old adage goes. When it comes to a juicy steak, or a diamond ring, these words always hold true. When it comes to 3D printing, however, there still remains some debate. The 2nd World 3D Printing Technology Expo was held in Qingdao, Shandong, China this past week (June 19-22). It featured thousands of individuals from China, United States, Germany, Belgium, the United Kingdom, and almost a dozen other countries. They were there to discuss the latest breakthroughs in 3D Printing, including possible applications, material use, business models and more. Qingdao Unique Products Develop Co., Ltd,...

A month ago we showed a chart that, in our humble opinion, summarized all that is wrong with the US housing market. The chart in question showed the April breakdown of existing home sales on a Y/Y basis by pricing bucket.   Needless to say, what the chart showed was the symptomatic, and schizophrenic, breakdown of US housing into two camps: the housing market for the 1%, those costing $750K and above, where the bulk of transactions are mostly between non-first time buyers, and typically take place as all cash transactions, and the market for "everyone else" which continues to...

Blame it on the... spring?Moments ago, in addition to reporting CPI numbers which showed that the Fed has already met and surpassed its 2.0% inflation target (credible or not), the Dept of HUD released Housing starts and Permits data for the month of May. It was, in a word, disappointing. It was so disappointing in fact, that both housing starts and permits not only missed expectations, but tumbled from the previous month by the most since January and the great "Polar Vortex" which was the kitchen sink used to explain the collapse in US GDP in Q1. Perhaps it...

In one of the most agonizing disconnects of the Bay Area's surging economy, far more people want to buy a home than want to sell one, making this the tightest housing market in the nation. Would-be homebuyers are crowding into scarce open houses and battling for the few available, leading to rising prices, rapid sales -- many homes sell within a week -- and frustrated house hunters. "This is the most sustained period of low inventory I've seen in 20 to 24 years," said Chris Trapani, head of the Sereno Group in Silicon Valley.

A couple of recent reports will help put the bifurcated US home "recovery" in perspective. Priced Out First, please consider Many Seek New Homes Near Cities but are Priced Out The average price of a newly built home nationwide has reached $320,100 — a 20.5 percent jump since 2012 began. That puts a typical new home out of reach for two-thirds of Americans, according to government data. Yet many builders have made a calculated bet: Better to sell fewer new homes at higher prices than build more and charge less. Their calculation is partly a consequence of the growing...

Yes, neighbor, but what do YOU think? Among the many findings of a new Pew Research Center survey is this data about neighborhoods, and how Americans want them to look: more conservatives than liberals want to live in a place where most people share their political views. The survey found that, among the consistently conservative, 50% believe it’s important to live in a place where most think the way they do about politics. For consistent liberals, it’s 35%. Check out the Pew poll. The divide over neighborhoods doesn’t end there. Many more liberals than conservatives want communities where the houses...

As the housing market slowly recovers, a majority of homeowners and renters are finding it hard to meet rising rents and mortgage payments, new research finds. Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card...

Black Knight's April Mortgage Monitor shows almost 2 million modifications face interest rate resets, and 40 percent of those resets are underwater. Email News Release "We have seen a continual reduction in the number of underwater borrowers at the national level for some time now, but modified loans show a different picture," said Kostya Gradushy, Black Knight's manager of Loan Data and Customer Analytics. "While the national negative equity rate as of April stands at 9.4 percent of active mortgages, the share of underwater modified loans facing interest rate resets is much higher -- over 40 percent. In addition, another...

Have you always wanted to try your hand at 3D-printing a building? Are you jealous of the Chinese architect who 3D-printed 10 houses in 24 hours? Well, you might be interested in buying the world's first commercial house 3D-printer for £9,800 (€12,000, $16,000). Slovenian firm BetAbram have designed a 3D printer capable of printing a house, and they plan to release it in August under the name BetAbram P3. This 3D printer can print buildings measuring 12 sq m, and so far, the company has only produced miniature houses and sculptures with the printer. BetAbram is also planning to release...

While houses of varying quality have been 3D-printed before, one contractor in Minnesota wants to build one such home by using a specially designed 3D printer that uses cement as a filament, without compromising on build quality or design, 3DPrint reports. Furthermore, the contractor’s aim isn’t to finish the house as fast as possible, but rather to 3D print it efficiently and securely. “A cheap house built in 24 hours is not my goal,” Andrey Rudenko said. “My current focus is building well-insulated small or medium-sized homes of a contemporary design, definitely onsite. As an experienced builder, I know that...

I wrote here and here about the Obama administration’s proposed rule on “affirmatively furthering fair housing” (AFFH), an attempt to dictate how we shall live. In essence, President Obama seeks to use the power of the national government to create communities of a certain kind, each having what the federal government deems an appropriate mix of economic, racial, and ethnic diversity. The proposed AFFH rule, issued last July, was expected to be finalized by the end of last year. But the year ended with no further action. 2014 was supposed to be the year Obama’s “year of action” — the...

Mamta BadkarMay 27, 2014 We just got March S&P Case-Shiller home prices that beat expectations. The numbers showed home prices were cooling, but they nevertheless reflected increases on month-over-month and year-over-year bases. However, Ian Shepherdson chief economist at Pantheon Macroeconomics says "this report makes no sense." This is because "every indicator" of the house market he watches is slowing or falling. "We don't know if the March problem is Easter seasonal adjustments or the long-standing issue of fully adjusting for changes in the proportion of foreclosure sales in the sample, but we think the real trend in existing home prices...

Billy Gasparino and Jenna Dillon-Gasparino were savvy enough to wait out the housing boom of a decade ago as renters. Not until 2010, well into the bust, did they buy a house in the Venice neighborhood of Los Angeles, less than a mile from the beach, for $810,000. Only four years later, the couple see new signs of excess in the housing market and have decided to go back to renting. They are close to a deal to sell their house – for $1.35 million, a cool 67 percent gain. “It just seems like the housing market came back so...

In the wake of reports that teachers are being dramatically priced out of the San Francisco area and that 45% of Manhattan homes are purchased in cash, sometimes you just have to wonder: Who can actually afford to buy a home? Mortgage website HSH.com analyzed median home prices and interest rates for common 30-year, fixed-rate mortgages, as well as property taxes and insurance costs, to figure out how much money it would take to pay a home's mortgage principal, taxes, and insurance — and how much you would have to earn to afford it. You can check out its website...

For $37,000 you can live in what used to serve as a shipping container. Steve Harrigan reported today on a new out-of-the-box idea that could solve several problems at once. Florida-based New Generation Builders is taking old cargo shipping containers and retrofitting them into dwellings. To look at one, you might think of a mobile home, but the company’s owner, Steven Sawyer, resents the comparison. He notes that when a hurricane comes through, it levels mobile homes. But Sawyer says by using corrugated steel and concrete pilings to anchor down each side, his homes will be totally undamaged. …

(VIDEO-AT-LINK)Weave your way to the top covered-floor of a parking garage in Midtown Atlanta, shielded from heavy rain and direct sunlight, and you won't find cars filling the spaces between the yellow lines. Instead, you'll find three micro homes and a handful of outdoor patios, all part of a micro-housing experiment the Savannah College of Art and Design (SCAD) calls SCADPads. As city populations boom — the World Health Organization says 6 out of 10 people will live in a city by 2030 — urban planners are pressured to seek out wise housing methods. "If you look at where parking...

Each quarter, when we perform our regular update on trends in US homeownership and rents using Census Bureau data, we say that "The American Homeownership Dream is officially dead. Long live the New Normal American Dream: Renting." One thing we added in 2013 is that the American Dream has now officially became a full-blown nightmare after mortgage rates exploded, even if declining modestly afterward, and in the process pummeling the affordability of housing as well as grounding any new mortgage-funded transactions to a complete halt (don't believe us - just ask the tens of thousands of mortgage brokers let...

Scientists claim to have developed a revolutionary new giant 3D concrete printer that can build a 2,500-square-foot house in just 24 hours. The 3D printer, developed by Professor Behrokh Khoshnevis from the University of Southern California, could be used to build a whole house, layer by layer, in a single day. The giant robot replaces construction workers with a nozzle on a gantry, which squirts out concrete and can quickly build a home based on a computer pattern, MSN News reported. It is "basically scaling up 3D printing to the scale of building," said Khoshnevis. 'Contour Crafting' is a...

US Housing Market Is Down For The CountHousing-Market / US Housing Apr 27, 2014 - 10:55 PM GMTRaul I Meijer Recent news, graphs and data confirm what we have long said would inevitably become clear: the entire global economy appears to have “functioned” through an orgy of refinancing, LBO and M&A lately. That is to say, zombie money has been enthusiastically slushed and re-slushed around to provide commissions, bonuses etc. to bankers and brokers, a process enabled by central bank and government policies in which large amounts of credit were thrown against the wall like so much Jello, hoping –...

Six years ago, Senate Majority Leader Harry Reid celebrated what he called a "love fest" of government support for the construction of a proposed 150,000-home community in the Nevada desert and the lobbyist-turned-developer behind it, Harvey Whittemore. Last week, a federal grand jury charged Mr. Whittemore with making illegal political contributions to Mr. Reid, a Democrat. Even before the indictment, Mr. Reid and other politicians had begun to distance themselves from Mr. Whittemore—long one of Nevada's most powerful lobbyists—by pledging to charity money to offset donations they had gotten from him. ~~snip~~ The allegations against Mr. Whittemore stem from a...

The Census Bureau report New Residential Sales Report shows sales of new single-family houses in March 2014 were at a seasonally adjusted annual rate of 384,000. Sales are 14.5 percent below the revised February rate of 449,000 Sales are 13.3 percent below the March 2013 estimate of 443,000 Median sales price was $290,000 vs. $260,900 in February, $257,500 in March of 2013 Average sales price was $334,200 vs. $318,900 in February, $300,200 in March of 2013 Median sales price was up 11.5% from last month, 12.6% from year ago Average sales price was up 4.8% from last month, 11.3% from...

Most people include home ownership as one of the basic elements of the American Dream. It stands not just for independence, but also in most minds an investment in tangible and significant property. It’s not a universally-held goal — some people prefer to rent even with the means to own — but home ownership is usually seen as one of the building blocks to middle-class wealth.As I noted, some people prefer to avoid home ownership, but not usually on the basis of it being a lousy investment. See if you can pick out the huge, gaping flaw that the Washington...

Liberals advocate many wonderful things. In fact, I suspect that most conservatives would prefer to live in the kind of world envisioned by liberals, rather than in the kind of world envisioned by conservatives. Unfortunately, the only kind of world that any of us can live in is the world that actually exists. Trying to live in the kind of world that liberals envision has costs that will not go away just because these costs are often ignored by liberals. One of those costs appeared in an announcement of a house for sale in Palo Alto, the community adjacent to...

The 3D printer has been revolutionizing everything from art to medicine to accessories, and its latest foray has been into the field of architecture. Peter Ebner, architect and UCLA professor, tasked his architecture students with a homework assignment for the ages: develop a 3D-printed apartment that’s easy to transport and manage. The class rose to the challenge and then some, constructing mini mobile homes that measure 50 square feet and are equipped with thermal insulation, electricity, water, heating, and sewage systems (which are also 3D printed). The living area comes with a collapsible counter, a foldaway toilet, a pullout bed,...

America’s foreclosure crisis has been over for more than a year, if it ever really existed. But the government/activist/media blob is still trying to convince the public that there is an epidemic of bad borrowers who need public relief. At Harvard Law School, a student group called Project No One Leaves recently concluded its fourth annual conference aimed at creating what one attendee called “a multi-faceted, national housing justice alliance.” Milwaukee mayor Tom Barrett recently gave $200,000 to a community organization called ACTS Housing to fight the foreclosure crisis by buying up bank-owned properties — even as the number...

Housing markets have remained relatively weak in many areas of the U.S., with two notable exceptions: Washington, D.C. and Texas. Overwhelming evidence suggests that while the federal government, one of the nation's largest employers, is responsible for the ever-increasing housing demand in D.C.--the private marketplace is behind Texas' boom. The Lone Star State's pro-business environment, low taxes and reliable regulation have caused businesses to flock to the state. The result has been a bountiful job market, which draws individuals and families to Texas from around the world--many are eager to purchase homes upon arrival. Fresh statistics released by the federal...

From Oreos to body parts, 3D printers have been cranking out some pretty unbelievable stuff lately. But in Shanghai, WinSun Decoration Design Engineering Co. has been using a monstrous printing device to build homes at a breakneck pace — 10 homes in 24 hours. Measuring out at roughly 105 feet long, 33 feet wide, and 21 feet tall, this clearly isn’t your average retail printer. Unlike most 3D printers, this printing giant is fed with cement rather than plastic, making it especially well-suited for home construction. The best part is the houses are super cheap to make and they’re made...

International homebuyers are attracted to the United States for a number of reasons. These include favorable housing prices, good weather, the country’s relative economic stability and an attraction to America in general. As the housing market improved and home prices rebounded, the interest of foreign buyers in U.S. properties has soared. Interest in U.S. property increased dramatically in a number of countries between 2009 and 2013. In all, interest in home buying, according to housing market firm RealtyTrac, increased by 95% or more in 10 countries, and at least doubled in nine of these nations. Interest in U.S. property by...

The U.S. Department of Justice sued the Town of Oyster Bay and Town Supervisor John Venditto Thursday for allegedly discriminating against black people in two affordable housing programs -- one aimed at first-time buyers, the other at senior citizens. In a complaint filed in federal court in Central Islip, prosecutors said both programs violated the federal Fair Housing Act because preferences were given to residents, or their children, living in the town, which has few black residents. To ensure that black people were not discriminated against in the selection process, the town should have given equal treatment to prospective occupants...

In many circles -- including advocates for cleaner air, safer streets, public transit -- it's a major policy goal to get people out of cars. Reduce car use, and you reduce pollution. Reduce car use, and we'll need fewer costly roads and parking garages. Reduce car use and shift more people onto bikes and trains, and maybe we'll all spend less of our lives idling in traffic. That line of thinking, however, seldom considers a group of people for whom more car use might actually be a good thing: the poor. A group of researchers at the Urban Institute, the...

As home prices have soared in cities around the country, sales have cratered. The weather has been blamed, though the weather has been gorgeous in California where sales have crashed too, even in temporary boom town San Francisco. The “lack of inventory” and other excuses have been dragged out as well. In reality, homes have gotten too expensive.... Even for hedge funds, private equity funds, REITs, and other forms of Big Money with access to the Fed’s limitless free juice. They’d become powerful buyers over the last two years, gobbling up vacant homes sight-unseen by the thousands, in order to...

The rising insurance rates on Federal Housing Administration mortgages are putting home purchases “increasingly out of reach” for many qualified buyers who rely on FHA financing, National Association of REALTORS® President Steve Brown wrote in a letter to FHA Commissioner Carol Galante. In the letter, Brown urged FHA to lower its annual mortgage insurance premiums. Brown acknowledged the significant losses that FHA’s Mutual Mortgage Insurance Fund faced during the housing crisis. FHA increased its premium structure as one way to reach a required 2 percent capital reserve ratio. But now that the agency is on the path to recovery, NAR...

Sometimes success creates a problem. That's what happened in New York City with housing and homelessness. New York's housing market is very strong. The median price for a new condo in Manhattan rose to $1.73 million during the first quarter of 2014, up more than 30.6% from the first quarter of 2013, according to a market report from the real estate firm Douglas Elliman. Across the East River, the median price for a Brooklyn home reached $570,110, up 11 percent from a year earlier. The average monthly rent in Bushwick, a central Brooklyn neighborhood, which as recently as the 1970s...

Last Sunday, The New York Times published a front-page article about the heartfelt need of California farmers for more illegal aliens. The first tip-off that heinous public policy ideas were coming was that the Times introduced farmer Chuck Herrin, owner of a farm-labor contracting company, as a "lifelong Republican." That's Times-speak for "liberal." Herrin admitted that he employs a lot of illegal aliens and bitterly complained that they lived in fear of "Border Patrol and deportations." (But, apparently, he doesn't live in fear of admitting he's violating our immigration laws.) Sorry that running a country inconveniences you, Chuck. He said...

The liberal dictatorship of Richard Cordray at the Consumer Finance Protection Bureau (CFPB) came under fire this week when the head of the House Financial Services Committee (HFSC) called for the agency to open up its four advisory council meetings to the public and press. “Instead of operating behind closed doors, it’s time for the CFPB to live up to its oft-stated commitment to transparency and openness ... Wielding the power of the Dodd-Frank law, the CFPB has become an instrument for liberal tyranny focused against banks, mortgage companies, realtors, and other consumer credit professionals. The agency has been holding...

<p>Hell hath no fury like a woman scorned or, it seems, like a Chinese real estate speculator who is losing money. After four years of talking (and not doing much) about cooling the hot-money speculation that is the Chinese real-estate bubble (mirroring the US equity market bubble since stock-ownership is low in China), the WSJ reports that the people are restless as the PBOC actually takes actions - and prices are falling. With new project prices down over 20%, 'homeowners' exclaim "return our hard-earned money" and "this is very unfair" - who could have seen this coming?</p>