October 24, 2006

Get ready for the slew of realtor jokes and videos as this discredited profession gets disintermediated


Anonymous said...

M.D.C. Holdings net drops 60%,home orders in the Q3 fell 40%, cancellation rate jumped to 48.5%
M.D.C. Holdings net drops 60%

By John Spence, MarketWatch
Last Update: 9:03 AM ET Oct 24, 2006

BOSTON (MarketWatch) -- M.D.C. Holdings Inc. before the opening bell Tuesday reported third-quarter net income fell 60% as profit margins narrowed in more competitive markets and home orders plunged 40% from a year earlier.
Profit at the Denver home builder (MDCM.D.C. Holdings, Inc.
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MDC ) dropped to $48.7 million, or $1.06 a share, from $121 million, or $2.62 a share in the year-earlier period. Sales fell to $1.08 billion from $1.17 billion. A survey of analysts by Thomson First Call produced consensus estimates of $1.35 a share of profit on $1.09 billion of revenue.
The "operating environment in most markets became increasingly competitive in the face of continued expansion of unsold new and existing home inventories," said Larry A. Mizel, chairman and chief executive, in a statement.
M.D.C. shares are off about 21% for the year-to-date period.

Home closings fell 20% to 2,955 from 3,686, while M.D.C.'s gross-profit margin on homes narrowed to 22.7% from 28.8%. The average sale price for the quarter rose $46,800, or 15%, to $358,200.
Margins thinned particularly in California, Nevada and Virginia, M.D.C. said.
In the third quarter the company said it booked pre-tax charges of $29.4 million for inventory impairments and project cost write-offs.

M.D.C. said home orders in the third quarter fell 40% to 2,120 from 3,551 in the year-earlier period. The cancellation rate jumped to 48.5% from 25.7%.

"We expect cancellations to remain high as long as home prices deteriorate," wrote Banc of America Securities analyst Daniel Oppenheim in a research note Tuesday morning.

"We believe land impairments will likely continue and increase from the $19.9 million charge in [the third quarter] due to the relatively young age and geographic concentration in stretched markets of the company's lots supply," he added.
The stock fell 28 cents to $48.38 on Monday.

John Spence is a reporter for MarketWatch in Boston.

devestment said...

This is bad for real estate in general. It portrays agents as shysters and pours gasoline on the HP fire.

Todd Tarson said...

The video would be funny if it was funny.

Anonymous said...

Hey Devestment - realtors are shysters!

Anonymous said...

Yeah, it's lame humor. Reality is often funnier than fiction. Some years ago we had a RE agent who drove a big, shiny Cadillac. Later (after the close) we found out that he was living in his car!

Anonymous said...

Hey Keith!

Does W know something we don't?


I remember reading a few years ago that if the USA ever slipped into anarchy (ie. a Mad-Max scenario), Paraguay is one of the few true safe-havens in the world, where if you have the $$$, you can live comparably to being in the USA. At the time, the story mentioned that the likes of Ted Turner, Sly Stallone, etc. have bought land there.

Interesting, eh?

AnonyRuss said...

Speaking of realtor jokes, Keith, you are being defamed over at Bloodhound by someone called Mike Bliss.

"I would offer a contest, Greg. The contest should be who can best insult the anti-housing websites out there on their own stupid anti-American websites. (I won’t name names, Greg, but you know of one in particular by some parasite living in Great Britain who is praying for a gret depression). I guess he never bought any Real Estate and now is envious of those of us who have. How would that be for a contest? He is already complaining of a conspiracy of Realtors who are out to get him. Feel free to link to his insane ranting site for your readers, but I personally won’t give him the publicity. (P.S., I found your educational and interesting site through him linking to it)."


Anonymous said...

"Paraguay is one of the few true safe-havens in the world"

You're kidding, right? The economy is supported mainly by pot growers who supply Brazil and Argentina. The politics could change overnight, and probably will.

Anonymous said...

>> You're kidding, right? The economy is supported mainly by pot growers who supply Brazil and Argentina. The politics could change overnight, and probably will.

God, you're stupid. Step away from the computer and go be the victim of a drive-by.

Anonymous said...

How many of you dipsticks have been to Paraguay? It's a third world sheet hole.

Anonymous said...

>> How many of you dipsticks have been to Paraguay? It's a third world sheet hole.

What, are you 2 idiots working together now? Sure it is - IF you have no money, like 99.9% of the people down there. If you've got the $$$, you can live like a f'n king.

FlyingMonkeyWarrior said...

Hey, Isn't that Greg Swann?

FlyingMonkeyWarrior said...

Todd godd,
It would be funny if it wasn't so true.

keith said...

anonyruss - thanks for the tip - I just put up a thread


Todd Tarson said...

monkey warrior... I have to admit that I laughed out loud when the one realtor kicked the picket fence.

Full disclosure and all... just saying.

Anonymous said...

In Todd We Trust

too funny

Anonymous said...

Ya gotta love how these desparate realt-whore cling to the flag and 'patriotism' when they're backed up against a wall. Now this REICnick is claiming that not pumping his real estate ponzi scheme is unamerican. You can smell the desparation from miles away. Poor bastard.

Anonymous said...

Last Anon: So true!
What a tool. I almost feel sorry for these asshats. Not. Go sign up for DeVry or sumthin.

Anonymous said...

What's that smell?

Oh... it's "commission breath."

Anonymous said...

Needs more cowbell. Going by the trailer, I don't know if I'd watch it - seems to be just missing an easy mark.