April 19, 2007

Bubble Sitters and Bitter Renters go mainstream: MSM reporting It's much cheaper to rent now than buy

Finally MSM and writers start sifting through the NAR and real estate clerk bullsh*t and spin and point out that it's MUCH cheaper to rent than own. With prices plummeting and unsold inventory skyrocketing, that simple truth is now glaring, no matter what the NAR says.


Too bad more people weren't reading HP in 2005 and 2006. Bet they wish they had been now.

Renting a home now cheaper than buying

A promotional spot for the National Association of Realtors came on the radio the other day. The spot, introduced as something called ‘Newsmakers,’ was supposed to sound like a news report, with the association’s president offering real estate advice.

“This is the best time to buy,” Pat Vredevoogd Combs, the president, said cheerfully. “There’s a lot of inventory in the marketplace. Interest rates are low. It’s a wonderful tax deduction.”
By the Realtors’ way of thinking, it’s always a good time to buy. Homeownership, they argue, is a way to achieve the American dream, save on taxes and earn a solid investment return all at the same time.

That’s how it has worked out for much of the last 15 years. But in a stark reversal, it’s now clear that people who chose renting over buying in the last two years made the right move.

The costs that come with buying a home — mortgage payments, property taxes, fees to real estate agents — remain a lot higher than the costs of renting. So buyers in many places are basically betting that home prices will rise smartly in the near future.

“House prices have to fall more before housing becomes a clear buy again,” says Mark Zandi, chief economist of Moody’s Economy.com, a research company that helped conduct the analysis. “These markets aren’t as overvalued as they were a year ago or two years ago, but they’re still unfriendly. And that’s one of the reasons the market is still soft — people realise it’s not a bargain.”

Back in 2005, near the peak of the market, the chief economist of the Realtors’ association, David Lereah, published a book called ‘Are You Missing the Real Estate Boom?’ The can’t-miss argument was wrong then, and it may still be wrong today.

After hearing that radio spot, I called Combs and asked her whether she thought there was any chance that she and her fellow realtors had gone a bit too far in promoting the boom. “I absolutely disagree,” she said, still cheerful. “We help people look at the marketplace.”

31 comments:

Bohica said...

UPDATE 1-U.S. March home foreclosures rise 7 pct-RealtyTrac

NEW YORK, April 18 (Reuters) - U.S. home foreclosures rose 7 percent in March from February to 149,150, reflecting the struggle of subprime borrowers to keep their homes, real estate data firm RealtyTrac said on Wednesday.

The figure, which comprises default notices, auction sale notices and bank repossessions, was 47 percent higher than a year ago, the Irvine, California-based company said.

Nevada posted the highest foreclosure rates of the 50 U.S. states for a third straight month, with Las Vegas posting the second-highest foreclosure rate among cities monitored by RealtyTrac.

Nevada reported 4,738 foreclosure filings, more than triple the number in March 2006. Its foreclosure rate showed 1 filing for every 183 households, more than four times the national rate of 1 per 775 households, according to RealtyTrac.

Default rates in the subprime segment of the U.S. mortgage market have jumped in recent months as the housing industry has slowed and prices have fallen.

At least 20 lenders in the subprime mortgage sector, which serves borrowers with poor credit histories at high interest rates, have gone out of business as a result.

The crisis has triggered broader concerns that the fallout may spread to mainstream lenders and damage the economy.

"While foreclosures are causing a major disruption in the subprime sector of the lending industry and saturating pockets of some local markets, it's important to note that U.S. foreclosure activity overall is not far above historical norms," James Saccacio, RealtyTrac's chief executive officer, said in a statement.

It is unclear whether the surge in foreclosures in the first quarter would continue. Last year, a spike in foreclosures in the first quarter leveled off through the second and third quarters, the company said.

"However, if that pattern does not repeat itself, and foreclosure activity continues to accelerate, we may see more widespread consequences," Saccacio said. ((Reporting by Richard Leong, editing by James Dalgleish; Reuters

Anonymous said...

Now she's even hotter with the for rent sign. SO before I'd just do her. Now I'd do her & likely give her some business.

Smart Realtwhores are shifting over to property management and showing places for rent. They may not get the big commission checks, but now they get some steady income for approximately the same effort and they can get something better than ramen noodles!!

Anonymous said...

Some folks must really be on a cold spell. She's cute but that doesn't mean you gotta come round and say you'd do her every time. Really.

anonymous wimp said...

The Indian Express is the Main Stream Media?

The NYT rent vs buy article did elucidate the topic rather well. And they are definitely MSM.

trashwacker said...

Off Topic,(but couldn't resist),as similar in that this guy is another exposed hypocritical liar as the realty whores.
(article follows).

Keith,

why or why do all the dead-enders, last-chancers, bottom-feeding scum wind up in Phoenix, AZ. looking for a "new beginning"?
No wonder this is the human cesspool of America.
The Horror..the trash..the Horror!

AZ Republic
The Rev. Ted Haggard moved Wednesday from his longtime home in Colorado Springs to Phoenix, where the disgraced minister will join the same church that helped fallen televangelist Jim Bakker.

Haggard, 50, resigned as president of the National Association of Evangelicals last year, after a former male prostitute alleged a three-year cash-for-sex relationship. The man also said he saw Haggard use methamphetamine. Haggard confessed to undisclosed "sexual immorality" and said he bought meth but never used it.

As part of his severance package from New Life Church, a 14,000-member congregation he started in his basement, Haggard agreed to leave Colorado Springs, a city he helped make an evangelical center.
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"When he moved out of town today, there was a kind of relief on the part of the church that life can get back to normal," said the Rev. H.B. London, one of three ministers overseeing what has been called Haggard's "restoration." "For the Haggards, it is the beginning of a huge new chapter. It's a brand new start for them, the beginning of a new beginning."

Before his fall, Haggard was an emerging voice in evangelical politics. He took part in White House conference calls and fought to broaden the movement's agenda to include environmental issues.

In Phoenix, Haggard plans to pursue a graduate degree in counseling at an area university, said London, who heads an outreach effort for pastors through Focus on the Family, the Colorado Springs-based conservative Christian group. London was not sure where Haggard would be studying. The Haggards and two of their children - another three are grown - are expected to live in a home made available by a supporter.

Ted and Gayle Haggard have ties to Phoenix. The couple spent three weeks at secular treatment center in the area after the scandal broke. And the Pentecostal church they will attend, Phoenix First Assembly of God, is led by the Rev. Tommy Barnett, another member of Haggard's restoration team.

Bakker, the televangelist, found refuge at Barnett's church after being released from federal prison for bilking supporters of $158 million. He volunteered at a Los Angeles church mission run by Barnett's son.

London said he believes Barnett told his congregation Sunday that Haggard would be joining them. Barnett and officials at his church did not return calls seeking comment.

Haggard faces a test in going from being on the pulpit to becoming just another face in the pews, London said.

"Once you were in charge of a megachurch and a mega-staff and making mega-decisions, now your main decision is where you're going to school, where to eat and what you're going to do on your day off," London said.

The Rev. Mike Ware, a member of a separate panel of pastors that investigated the claims against Haggard, said: "We've all been in agreement that Ted should have a fresh start, gain some fresh perspective, and it's very difficult for them to get the kind of healing they need staying in Colorado Springs."

Ware said Haggard is continuing to receive counseling, which officials said will include an exploration of his sexuality. Haggard has told his advisers he does not believe he's gay.

As part of a severance package that will pay Haggard through 2007, Haggard agreed not only to leave town but to refrain from discussing the scandal publicly. He did not return messages Wednesday. Haggard's most recent annual salary was about $138,000, benefits excluded.

His former congregation has felt the sting of the scandal. Since Haggard's fall, attendance has fallen 20 percent and giving has dropped 10 percent, said Rob Brendle, an associate pastor. As a result of the decline, the church laid off 44 employees, or 12 percent of its work force.

Anonymous said...

What a grip that lady has!
Visualize a sausage in that grip..'cause homies have really blown their wad!

--Laugin' Jack

Anonymous said...

4738 foreclosures in Nevada!!! Out of a population of 2.5 million. Run for the hills everyone!!

I keep reading how the housing crash is supposed to destroy the Las Vegas. How everyone in Las Vegas works for the REIC and is now unemployed. Odd that my commute is no different today than it was 6 or 12 months ago. Actually it's longer now than a year ago. Used to take me 10 minutes to get to I-15, now it takes me 15-20. And once I',m on I-15, if I hit 30 MPH, I'm lucky.

So I ask you HPers, where are all these layoffs that were supposed to result from the housing "crash"? Either you are all full of shit or all the laid of contrsuction workers, mortgage brokers, realtors, etc are driving up and down the road every morning just for fun. I'm betting on the former myself.

Anonymous said...

Anonymous said...
What a grip that lady has!
Visualize a sausage in that grip..'cause homies have really blown their wad!


Are you 12?

Anonymous said...

I'd like rent a house + her!!!

Anonymous said...

I keep reading how the housing crash is supposed to destroy the Las Vegas. How everyone in Las Vegas works for the REIC and is now unemployed.

Yeah, where'd you read all of that? That's a bit over the top.

The reality is that changes ARE occurring (noticed the sub-prime shift, the decline of the $, falling prices, etc). But if you're thinking you're going to witness people jumping out of windows ALA re-run of 1929, then you're going to be disappointed.

Instead, do a bit of reading of Germany's Weimar Republic deflation of the mark, as that might be a better scenario to depict what's in store. Sorry: that one didn't include people jumping out of windows, massive lay-offs, etc.

Unfortunately (or fortunately, depending on your point of view), economics ain't that exciting.... If you want death and violence, look no further than Iraq.

No, the powers that be prefer that you remain oblivious to the changes taking place around you, AKA being a sheeple.... Hell, even those of us who are aware of these trends are largely unable to do anything significant about it, side from plan and react in our best interests (just like the REIC is doing for IT'S members).

Markus Arelius said...

Keif, my rent did not go up this year. My landlord went George W. on me: "Stay the course."

I guess it's just better to have occupancy right now than to price gouge.

One note, while its still cheaper to rent in Southern California IMO, the monthly rent here could buy a freaking huge house almost anywhere else in the country! That sucks!

Anonymous said...

3:58,

There are always changes happening in the economy, some good some bad. Point is in Las Vegas, nothing is noticably different from a year ago or even 2 years ago. Every store I go to is as packed as always, same with restaurants, same with bars, theaters, you name it. People are out spending money. I went to have my car serviced last weekend and the salesfloor was packed with people.

As of right now the downturn in r/e has simply not affected the local economy. People are going about their everyday business and living their lives.

And the thesis that the only reason the economy was booming was due to housing is falling flat. Housing has been down for the past year or more. You'd think the effects would spill over by now. It hasn't not even close.

Only people convinced it has are bloggers, renters and goldbugs, each with their own agenda.

stuckinthecity said...

Well, duh! a day late and a dollar short.

Frank said...

But if you rent you can't artificially inflate your ego and pretend to be better than renters. And for the ego-oriented homedebtors, the ones in places like Vegas, Scottsdale, and SD, vanity and pretentiousness are far more important than anything.

For that kind of desperate homedebtor, being able to say "I own so I'm better than you" is more important than anything & everything else. Fundamentals? Bah, humbug they say!

www.scottsdale-sucks.com

stuckinthecity said...

The costs that come with buying a home — mortgage payments, property taxes, fees to real estate agents — remain a lot higher than the costs of renting. So buyers in many places are basically betting that home prices will rise smartly in the near future.


I thought you had to SPEND money to SAVE money?

Frank said...

"why or why do all the dead-enders, last-chancers, bottom-feeding scum wind up in Phoenix, AZ. looking for a "new beginning"?"

Because it's full of losers who are even lower than them and it's the only place left in America where they can actually feel superior to someone else. That's why the California rejects move there, the ones who couldn't hang in CA. Now that I live in CA I can see that secure, successful Californians would never dream of moving to Phoenix in a million years. It's the losers and rejects who go there.

Phoenix is also the capitol of easy credit, so people who cannot get approved for a lease and therefore cannot get a place to live in CA go to AZ where everyone else has bad credit too, so everyone therefore gets approved.

Vegas is the same, it's a bunch of hard luck losers looking for a last chance.

www.scottsdale-sucks.com

Anonymous said...

frankie,

like there is no pretentious bullshit in LA, SD, SF...give me a break man

I dunno what scottdale did to hurt you so much, but hating a city - any city - is retarded.

Anonymous said...

What's funny is all the AZ haters have probably never been to AZ. Hell they've probably never been 50 miles away from their momma's basement where they live.

Or maybe they went to Phoenix hoping to strat fresh, leaving behind the loser life they led in LA. However they quickly realized it was not LA but their own failure that held them back. So instead they blame AZ or Las Vegas, or Tucson or Reno or....

For you see a loser is a loser no matter where he lives.

And yea I know you all have $800K in the bank and make $175K a year and are married to a perfect 10, ex-Playboy model. Some of you even design pension "systems".

Anonymous said...

"So I ask you HPers, where are all these layoffs that were supposed to result from the housing "crash"? Either you are all full of shit or all the laid of contrsuction workers, mortgage brokers, realtors, etc are driving up and down the road every morning just for fun. I'm betting on the former myself. "

You recently told us you were living and employed in souther California. Either YOU are full of shit or managed to move and get re-eomplyed in a hurry. But we know you have been full of shit since the day you started trolling here.

"4738 foreclosures in Nevada!!! Out of a population of 2.5 million. Run for the hills everyone!!"

Yes! 4738 foreclosures out of a POPULATION of 2.5 million is significant, you dumb ass, since most homes have an average of 3 t0 occupants and there is a signifant number of people in Reno and L.V. who rent!

Keep trying, dumb shit!

honica jewinski said...

Keith, the chick in the pic in an attorney, not a realtor.

Anonymous said...

You recently told us you were living and employed in souther California. Either YOU are full of shit or managed to move and get re-eomplyed in a hurry. But we know you have been full of shit since the day you started trolling here.

Are you high? I am the one that wrote that about LV. I have lived in LV for 7 years moron. In case you haven't clued THERE ARE MULTIPLE POSTERS HERE. Some live in SoCal. Some don't.

God almighty you really cannot be this stupid.

As for the forelcosure rate, yes it is insignificant when 4700 homes are foreclosed out of a population of 2.5 million. 70% of people own their homes. So 70% of 2.5 milion is 1.75 million. If as ou say the average household is 3 people then there are 583,000 homes owned in Nevada. So 4700 out of 583,000 is less than 1%. Meaning 99%+ of people are NOT foreclosing and going about their daily lives.

sinis said...

As for the forelcosure rate, yes it is insignificant when 4700 homes are foreclosed out of a population of 2.5 million. 70% of people own their homes. So 70% of 2.5 milion is 1.75 million. If as ou say the average household is 3 people then there are 583,000 homes owned in Nevada. So 4700 out of 583,000 is less than 1%. Meaning 99%+ of people are NOT foreclosing and going about their daily lives.

April 19, 2007 9:15 PM



Key word is YET. Have you even looked at an ARM and other reset schedules. The majority come due this year and next. Its just a matter of when not if...

Pete said...

Keith, I know you hate realtors, but I gotta say that the realtor chick you have on that pic is pretty hot LOL.

Anonymous said...

That bitch would sell her Grandmother.


"It's always a great time to sell your Grandma."

chris g said...

"If as you say the average household is 3 people then there are 583,000 homes owned in Nevada. So 4700 out of 583,000 is less than 1%. Meaning 99%+ of people are NOT foreclosing and going about their daily lives."

Sorry to interject here, but that is a problem. Not exactly the right percentage, since the article says 1 out of 183 households (~0.55%), but that's in only 1 month. Now multiply that rate by 12 months and you're talking 6.6% of all households in foreclosure in a given year. Of course it will be higher because foreclosures are continuing to grow at an alarming rate, so the figure could be close to 10% before the year is over. Think about that --- 1 of every 10 houses in the entire state of Nevada having a foreclosure filing in 2007 (assuming the population is 2.5 million which I did not verify).

That, my friend, is a problem.

Anonymous said...

chris g,

The number of foreclosures is the number of people under foreclosure proceedings. A foreclosure proceeding can take months and months, meaning the same people are counted 2, 3, 4, 5, 6 times ove the course of a year.

And some people can file foreclosure, get out and then a few months later file again, getting counted twice yet again.

1 in 10 homes are not nor will they ever be in foreclosure. This pure hysteria on your part and some pretty shoddy math to go along with it.

Anonymous said...

"The number of foreclosures is the number of people under foreclosure proceedings."

No, bonehead! "Number of Foreclosures" is the number of homes foreclosed upon (i.e. procedings have concluded with the bank taking ownershit).

"And some people can file foreclosure"

People do not file foreclosure; banks do, you twit!

"1 in 10 homes are not nor will they ever be in foreclosure."

I'm sure they said that in 1929 also, twit.

Go on now, and fill the empty space between your ears with more of the brainfarts of your hero, Rush Limbaugh.

Anonymous said...

I rented for all of 2006, and I'll tell you...it wasn't that great.

Yes, I was able to save money. That was cool. But I was at the mercy of a retarded FB who wanted to put his house back on the market, and I was not going to put up with the intrusions (not that anyone ever came to look at the sh|th*le anyway).

So I bought a new house from a good builder offering an $80k incentive. I understand that many of you will think I'm dumb for buying now. That's cool. I understand fully that the housing market is probably going to go down quite a bit more, and that I could be in a real bind if I need to sell my house.

I financed with a conventional mortgage, can easily afford the payment, am very happy to not be slave to some idiot FB who was trying to get rich flipping houses.

To those who find good rental situations: good for you, rent as long as you can and be sure to save your money. You'll be glad you did.

Anonymous said...

Pete said...
Keith, I know you hate realtors, but I gotta say that the realtor chick you have on that pic is pretty hot LOL.
&&&&

She's probably not a realtor...more likely a model...mayeb just a pretty pole dancer who would do the photo shoot for cheap...

Anonymous said...

"pretty pole dancer who would do the photo shoot for cheap"

...

Sounds like a realt-whore.

Frank said...

like there is no pretentious bullshit in LA, SD, SF...give me a break man

Of course there is but it's maybe 10% of what's going on in Scottsdale. If you don't believe me you're either an idiot or you're one of the Scottsdale phonies who will deny all knowledge no matter what.