Posted: 12/24/2015 1:40:19 PM EDT
Housing Permits for apartments/duplexes are on the rise.
Baltic Dry Index 
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Interesting info on the BDI.
I can offer a little tidbit on the housing market: The banks Still don't want to lend money. I just got a normal conventional 15 year loan. 20% down. House appraised for the sale price, and I have a tier 1 credit report and job. It was still like pulling teeth. The hoops they made us jump through, were just retarded. Not many people can stand up to that kind of scrutiny, or want to. All for the privilege of spending $9000 per year in property taxes. Renting is a better idea, if you live in an expensive area. |
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I think many banks got burned by the bad debt and debt leveraging schemes that were concocted after 1977, which were social justice initiatives designed to award home loans to people who should never have been allowed to finance furniture, let alone real estate. 7 Years after Affordable Housing Mandates from DC, the decline of smaller community bans began declining.
The lending agencies, not being morons, found ways to sell these loans after being pressured to bankroll them, passing the bad debt around the financial world in not only the US, but Europe and Asia. When the chickens came home to roost in 2007-2008, most of the big banks who had circulated this mess were allowed to survive with TARP, while a lot of smaller banks got left out in the cold in the cash vacuum. These little banks that have survived simply don't want to get burned again, so they are protecting their liquid assets and paper by screening lendees closely. Dodd Frank only made it worse, effectively cooling down incentive to invest, while imposing insane regulations on large companies. After 5 Years, Dodd-Frank is a failure Just look at home ownership rate: 
Mortgage applications: 
When you look at new housing starts, the increase of multi-family units, applications for loans, plus the BDI, it does not bode well for what was typically the American Dream, and looks more like a 21st Century Post-American, Euro-like landscape developing before us. There's this new development right near us, where all the single family residences look like the size of tract homes in the UK, but are independent structures. Prices start at $299k and go up from there. Investors are buying all they can and renting them out. Utah has some of the best stats right now compared to other States too, looking at unemployment, State economy, new technology, diversified industry, and education. |
International Shipping is Bad Enough, no need to exaggerate
This is in response to the claims that shipping has come to a standstill. It hasn't, of course, but volume is way, way down. |
| If you want to make money in this economy, owning properties that appeal to working families who are denied loans by the banks, will be very profitable to the investors and real estate managers who know how to pick multi family unit properties, and how to select good renters. |
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The economy is going south again and people are renting rather than buying. Not good... Quoted:
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What does all of this mean in layman's terms? I'm not a financial guy. The economy is going south again and people are renting rather than buying. Not good... BTI is an indicater of how much freight is moving, a pretty good indicator of the "real economy" as opposed to stock market values, for example, which can sometimes operate indepnently of "fundamentals" purely on fear/greed psychology/sentiment. That link above about the BDI is good, it does show that the BDI is slightly more complicated, it idcidates excess capacity, not exactly lbs moving. |
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If you want to make money in this economy, owning properties that appeal to working families who are denied loans by the banks, will be very profitable to the investors and real estate managers who know how to pick multi family unit properties, and how to select good renters. so at somepoint, it might be better to just wait for sale prices to collapse and pay cash for a home in a more rural area, if you don't hvae a job where you have to communte into downtown every day?? |