Existing-home sales fall 2.6% in March, adding to downward housing trend

posted at 1:36 pm on April 19, 2012 by Ed Morrissey

Yesterday, the Census Bureau showed new-housing starts plummeting 5.8% last month from February, which stunned analysts expecting a slight uptick in the series.  Today’s report from the National Association of Realtors shows that it’s not just the new-home market that tanked in March, a result which once again surprised analysts (via Instapundit):

Sales of previously owned U.S. homes in March unexpectedly fell for the third time in the last four months, showing an uneven recovery in the housing market.

Purchases dropped 2.6 percent to a 4.48 million annual rate from 4.6 million in February, the National Association of Realtors reported today in Washington. The median forecast of economists in a Bloomberg News survey called for an increase to 4.61 million. In January, sales at a 4.63 million rate were the strongest since May 2010.

Ah, yes — unexpectedly.  Why such a surprise?  Apparently, analysts didn’t figure in the decline in job creation last month:

Residential real estate remains the economy’s soft spot, challenged by stricter lending standards, lower home values and the threat of more foreclosures. An improved labor market and mortgage rates near historic lows have yet to stoke bigger gains in demand.

The description of an “improved labor market” applied more in February than it did in March.  Last month, the US only added 120,000 jobs, barely enough to keep up with population growth.  Even before that, the previous three months added around 650,000 jobs in the aggregate, which means actual growth above population increase of about 300,000 jobs — which wouldn’t greatly increase demand in the housing market, but shouldn’t result in a decrease in demand.  First-time buyers still only account for a third of these purchases, when the normal level is around 40%, according to Bloomberg News.  That’s an indication of a lack of confidence among younger adults.

Now that the churn rate on jobs has increased, as evidenced in the rise in weekly initial jobless claims, confidence and demand will likely decline a bit.  The soon-to-arrive flood of foreclosures and short sales might stoke demand for bargain hunters who have waited patiently for the settlement to take effect.    That may give a false impression of demand, though, as one analyst warns:

Investors accounted for 21 percent of purchases last month, down from 23 percent in February, today’s data showed. Such figures suggest the recovery in housing isn’t broad-based, said Jay McCanless, a housing analyst with Guggenheim Securities LLC in Nashville, Tennessee.

“We’ve seen investors and cash sales continue to be anywhere from 20 percent to 33 percent of monthly sales,” McCanless said. “That may be giving the appearance that there’s more activity, more demand for housing than may actually be the case.”

Cash buyers have been a big factor in the local Twin Cities foreclosure/short sale market for the past year already.  That will also likely spike upward when the pent-up foreclosures come to market, but the inventory will allow others to play in the same market, too.  We may not get a clear idea of how the resale market looks for several months after the release, so new-home sales and startups might give us a better indicator to watch.


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Recovery, b!tches!

catmman on April 19, 2012 at 1:38 PM

It’s Bush’s fault!

Opposite Day on April 19, 2012 at 1:38 PM

Siiigh

I sooo want to get rid of my house that I moved out of in 2010 and continue to make payments on.

Anyone want to buy a house in Northern Georgia? I’ve got renters in there now but I can’t rent it for a profit at all.

Defenestratus on April 19, 2012 at 1:39 PM

“We’ve seen investors and cash sales continue to be anywhere from 20 percent to 33 percent of monthly sales,” McCanless said. “That may be giving the appearance that there’s more activity, more demand for housing than may actually be the case.”

HUH? Demand by investors/cash buyers is still demand. Who writes this tripe?

In the past year I’ve bought 3 investment properties. 2 of them were cash, the third I took out a small mortgage. All 3 are rented with positive cash flow. I guess in this writer’s mind the 2 I bought with cash don’t actually count and the people who live in them don’t really live there either.

angryed on April 19, 2012 at 1:40 PM

It seems to me when you have persistent high unemployment, minimal job creation, rising energy and food prices — all those things just might have a negative impact on home sales. Of course, I’m not the brilliant economic expert that our president is so I’m probably way off base here.

natasha333 on April 19, 2012 at 1:42 PM

Yes, but, but cookies! And dogs! And a couple of silver spoons!

Doughboy on April 19, 2012 at 1:42 PM

From what I understand, we simpletons in flyover country deserve it even if we aren’t smart enough to understand it.
 
Obama 2012!!!/!

rogerb on April 19, 2012 at 1:43 PM

An improved labor market and mortgage rates near historic lows have yet to stoke bigger gains in demand.

No one has any real confidence with the disaster-in-chief at the helm, certainly not enough to buy a house.

Getting rid of Obama would be the biggest stimulus possible for the eeconomy.

Keeping him would be four more years of malaise and blame.

NoDonkey on April 19, 2012 at 1:44 PM

The best investment advice is this:

Sell when everyone says buy, buy when everyone says sell.

Everyone is screaming to sell r/e right now. Capitulation has arrived. Even the hard line real estate agents who in 2009, 2010 were saying the bottom is here, the bottom is here are saying the bottom ISN’T here. Which means the bottom is here.

The low end of the market, $150K and less is selling below replacement cost in most of the country.

angryed on April 19, 2012 at 1:45 PM

HUH? Demand by investors/cash buyers is still demand. Who writes this tripe?

In the past year I’ve bought 3 investment properties. 2 of them were cash, the third I took out a small mortgage. All 3 are rented with positive cash flow. I guess in this writer’s mind the 2 I bought with cash don’t actually count and the people who live in them don’t really live there either.

angryed on April 19, 2012 at 1:40 PM

….So, who’s the first to grab the worm on this line?

KOOLAID2 on April 19, 2012 at 1:46 PM

No one has any real confidence with the disaster-in-chief at the helm, certainly not enough to buy a house.

NoDonkey on April 19, 2012 at 1:44 PM

Wife: Honey you want to buy a house?
Husband: What? No way. Not with Obama president
Wife: OK dear, we’ll rent an apartment for 4 more years

Do you really think people make economic decisions this way?

angryed on April 19, 2012 at 1:48 PM

Yesterday, the Census Bureau showed new-housing starts plummeting 5.8% last month from February, which stunned analysts expecting a slight uptick in the series

Perhaps we need a 3 “stunned” and your out policy for analysts.

Should you really call yourself an analyst if you are in perpetual surprise at actual results?

MessesWithTexas on April 19, 2012 at 1:50 PM

Wife: Honey you want to buy a house?
Husband: What? No way. Not with Obama president
Wife: OK dear, we’ll rent an apartment for 4 more years

Do you really think people make economic decisions this way?

angryed on April 19, 2012 at 1:48 PM

No, they make their decision by determining whether or not they can afford a house. Which fewer and fewer people can under this President.

Doughboy on April 19, 2012 at 1:50 PM

Ah, yes — unexpectedly. Why such a surprise? Apparently, analysts didn’t figure in the decline in job creation last month

These analysts are pretty worthless. They’re always surprised by the actual results.

Bitter Clinger on April 19, 2012 at 1:50 PM

….So, who’s the first to grab the worm on this line?

KOOLAID2 on April 19, 2012 at 1:46 PM

Noooooo! Not touching it. I’ll just watch it wriggle around trying to attract attention to itself!

Trafalgar on April 19, 2012 at 1:50 PM

https://www.google.com/finance?client=ob&q=INDEXDJX:REIT

Obama’s been a disaster for the real estate investor. Only a 300% return since 2009.

angryed on April 19, 2012 at 1:51 PM

Oh no! It got Doughboy! Quick Doughboy, swim away, swim away!

Trafalgar on April 19, 2012 at 1:52 PM

From what I understand, we simpletons in flyover country deserve it even if we aren’t smart enough to understand it.

Obama 2012!!!/!

rogerb on April 19, 2012 at 1:43 PM

Be careful about burying your sarc tags amongst the exclamation points.

Bitter Clinger on April 19, 2012 at 1:52 PM

Imelda Obama says it best.

‘This President Has Brought Us Out of the Dark And Into The Light’

MNHawk on April 19, 2012 at 1:53 PM

Who knew that statistics were racist?

Look, it really comes down to a lack of confidence in the future. If you know people who have been unemployed for a long time or you fear that you might be laid off, then you are not going to be making a major purchase. If you don’t see the economy improving anytime soon, you are not going to be making a major purchase.

And our President out there making claims that we are well on the way to recovery does not change that dynamic. In fact it is so clearly a lie it just affirms the lack of confidence. When a company finds itself with year after year of mediocre results you fire the CEO and bring in a new team. On November 6th it is time to fire our CEO.

Happy Nomad on April 19, 2012 at 1:53 PM

Which fewer and fewer people can under this President.

Doughboy on April 19, 2012 at 1:50 PM

Can they afford rent any better?

A report released today by Zillow shows that median rents rose 3 percent from January 2011 to January 2012 while, during the same period, home prices fell 4.6 percent. According to the report, over two-thirds (69.2 percent) of the metro areas covered saw year-over-year gains in rents but only 7.3 percent of the metros saw home values rise during the same period.

In some large markets, rents rose almost as much as home prices fell. For example, in Chicago, rents rose 9.1 percent year-over-year, while home prices fell 10.4 percent during the same period. In the Minneapolis-St. Paul metro, rents rose 11 percent and home prices fell 8.1 percent.

This is why I started investing in r/e. Rents are skyrocketing. I rented all 3 of mine in less than a week and had multiple tenants write applications.

angryed on April 19, 2012 at 1:53 PM

Wife: Honey you want to buy a house?
Husband: What? No way. Not with Obama president
Wife: OK dear, we’ll rent an apartment for 4 more years

Do you really think people make economic decisions this way?

angryed on April 19, 2012 at 1:48 PM

When the unemployment rate is in the double digits, which it surely is?

And even people who have started jobs, have likely been unemployed for many months prior?

Obama has been unable to decrease the unemployment rate and there’s no evidence that he will be able to, if he’s granted a second term. It’s not him specifically, but his poor policy decisions and overregulation that will keep the market depressed.

NoDonkey on April 19, 2012 at 1:54 PM

We are only just beginning to see the ripple effects of $4 gasoline.

wildcat72 on April 19, 2012 at 1:54 PM

https://www.google.com/finance?client=ob&q=INDEXDJX:REIT

Obama’s been a disaster for the real estate investor. Only a 300% return since 2009.

angryed on April 19, 2012 at 1:51 PM

That’s it. Keep blowing.

Chuck Schick on April 19, 2012 at 1:55 PM

NoDonkey on April 19, 2012 at 1:54 PM

NoDonkey grabbed the hook.

Bitter Clinger on April 19, 2012 at 1:55 PM

This is after NAR changed their counting method and retroactively reduced existing home sales by 14% so that data going forward would have a more favorable comparison for the Obama administration.

marketwatch 2011-12-21/finance/30811327_1_existing-home-sales-7-month-supply-current-sales-prices

Wigglesworth on April 19, 2012 at 1:56 PM

Out of the dark and into the light, I suppose.

Bmore on April 19, 2012 at 1:56 PM

Chuck Schick on April 19, 2012 at 1:55 PM

…and Chuck Schick….

Bitter Clinger on April 19, 2012 at 1:56 PM

Doughboy on April 19, 2012 at 1:50 PM

…you’re lucky you’re not a fish!

KOOLAID2 on April 19, 2012 at 1:56 PM

angryed on April 19, 2012 at 1:53 PM

I own a condo located within a half mile of Georgetown and maybe two miles of the White House. Prime location.

In the past three years, my property management company has recommended I up the rent a whole $75 ($25 per year). I don’t see that as skyrocketing.

NoDonkey on April 19, 2012 at 1:57 PM

…….So, who’s the first to grab the worm on this line?

KOOLAID2 on April 19, 2012 at 1:46 PM

Note. The. Discipline. ( Grinding teeth )

Jabberwock on April 19, 2012 at 1:57 PM

Rents are skyrocketing. I rented all 3 of mine in less than a week and had multiple tenants write applications.

angryed on April 19, 2012 at 1:53 PM

That’s because people can’t afford to buy a house and thus are renting you moron.

BTW, I don’t believe a word you say.

JPeterman on April 19, 2012 at 1:57 PM

NoDonkey on April 19, 2012 at 1:54 PM

…Bible’s version?
Gotta grab the hook?

KOOLAID2 on April 19, 2012 at 1:58 PM

https://www.google.com/finance?client=ob&q=INDEXDJX:REIT

Obama’s been a disaster for the real estate investor. Only a 300% return since 2009.

angryed on April 19, 2012 at 1:51 PM

That’s it. Keep blowing.

Chuck Schick on April 19, 2012 at 1:55 PM

Are you denying the fact REIT is up 300% since Obama took office?

angryed on April 19, 2012 at 1:58 PM

This is why I started investing in r/e. Rents are skyrocketing. I rented all 3 of mine in less than a week and had multiple tenants write applications.

angryed on April 19, 2012 at 1:53 PM

Translation: I live in a van behind Arby’s.

Chuck Schick on April 19, 2012 at 1:59 PM

Don’t forget Dodd/Frank. It took me a month to refinance when I could have done it overnight before.

Les in NC on April 19, 2012 at 2:00 PM

analysts :-) they’re so…useful

DHChron on April 19, 2012 at 2:00 PM

I don’t see that as skyrocketing.

NoDonkey on April 19, 2012 at 1:57 PM

Discuss….

That’s because people can’t afford to buy a house and thus are renting you moron.

JPeterman on April 19, 2012 at 1:57 PM

angryed on April 19, 2012 at 2:00 PM

JPeterman on April 19, 2012 at 1:57 PM

…so!…let it talk to itself!…I think it’s funny when they keep posting trying to get someone to bite…and no one does! Some people have no sense of humor!

KOOLAID2 on April 19, 2012 at 2:00 PM

I’ve been told starvation works well in a down housing market.

Bmore on April 19, 2012 at 2:01 PM

Are you denying the fact REIT is up 300% since Obama took office?

angryed on April 19, 2012 at 1:58 PM

Totally, dude.

Chuck Schick on April 19, 2012 at 2:02 PM

JPeterman on April 19, 2012 at 1:57 PM

Damn! It got Peterman too. The b@st@rd!

Trafalgar on April 19, 2012 at 2:02 PM

Translation: I live in a van behind Arby’s.

Chuck Schick on April 19, 2012 at 1:59 PM

Arby’s?

I’d eat dog before that stuff.

NoDonkey on April 19, 2012 at 2:02 PM

Are you denying the fact REIT is up 300% since Obama took office?

angryed on April 19, 2012 at 1:58 PM

Totally, dude.

Chuck Schick on April 19, 2012 at 2:02 PM

Math is hard in flyover country.

angryed on April 19, 2012 at 2:03 PM

Starvation is hard.

Bmore on April 19, 2012 at 2:03 PM

I’m not sure if you know but Obama eats dogs…

just sayin’

DHChron on April 19, 2012 at 2:04 PM

Math is hard in flyover country.

angryed on April 19, 2012 at 2:03 PM

Have the Koz Kidz you a new insult.

Chuck Schick on April 19, 2012 at 2:05 PM

Damn! It got Peterman too. The b@st@rd!

Trafalgar on April 19, 2012 at 2:02 PM

I’m sorry, I was hungry. :(

JPeterman on April 19, 2012 at 2:05 PM

Chuck Schick on April 19, 2012 at 2:05 PM

Ever consider starving it?

Bmore on April 19, 2012 at 2:06 PM

Rents are also going up for commercial properties. I guess it’s all those companies going bankrupt under Obama creating extra demand for office space, huh?

http://www.bloomberg.com/news/2012-04-03/office-rents-increase-5-6-in-manhattan-s-midtown-south.html

http://seattletimes.nwsource.com/html/businesstechnology/2017234515_office14.html

angryed on April 19, 2012 at 2:06 PM

Chuck Schick on April 19, 2012 at 1:55 PM

Chuck! Come on! What the Ph_ck!
Let it eat the puppies!

KOOLAID2 on April 19, 2012 at 2:06 PM

It’s hard to beat STONE COLD REALITY.

Every week the local realtors are talking up the market. Have lost track of how many times I’ve heard “WE’VE TURNED THE CORNER!”.

In a pig’s eye! Until that U6 number starts going down appreciably, the real estate market is going nowhere.

GarandFan on April 19, 2012 at 2:06 PM

.

Wigglesworth on April 19, 2012 at 2:07 PM

There’s right wing nutjob wolrd where we’re in a great depression.

Then there’s the real world:

Rising demand for space from Internet and media firms helped boost rents at office buildings south of midtown Manhattan by 5.6 percent in the first quarter, according to a report by Cushman & Wakefield Inc.

Rents in Midtown South (CWRR1NMS), the area below 32nd Street and north of Canal Street, rose to $48.45 a square foot from $45.90 at the end of 2011, Cushman said today in a statement. Asking rents at the highest-quality office properties rose 18 percent to $67.52 a square foot, or about $4.56 less than Midtown’s so- called Class A buildings.

angryed on April 19, 2012 at 2:08 PM

what the heck does in a pig’s eye mean?

DHChron on April 19, 2012 at 2:08 PM

.

Wigglesworth on April 19, 2012 at 2:07 PM

,

Bmore on April 19, 2012 at 2:09 PM

In a pigs eye.
Meaning:

Very unlikely

Synonyms:

in a pig’s eye; not very likely

Domain usage:

colloquialism (a colloquial expression; characteristic of spoken or written communication that seeks to imitate informal speech)

Bmore on April 19, 2012 at 2:13 PM

In a pigs eye.
Meaning:

Very unlikely

Synonyms:

in a pig’s eye; not very likely

Domain usage:

colloquialism (a colloquial expression; characteristic of spoken or written communication that seeks to imitate informal speech)

Bmore on April 19, 2012 at 2:13 PM

Do you really think people make economic decisions this way?

angryed on April 19, 2012 at 1:48 PM

What year did you graduate from Wharton?

Lets say O get reelected and Reid holds the Senate. Since you’re an “Insight” guy, what bets do you make on the tax cuts going away on 1/1/13? Do you understand the concept of disposable income? Do YOU feel lucky?

Let say O doesn’t get reelected and Reid doesn’t hold the Senate.

Those possibilities probably never cross anyone’s mind when making one of the biggest financial decisions of their lives, does it?

VietVet_Dave on April 19, 2012 at 2:13 PM

Angry Ed! stop being foolish

DHChron on April 19, 2012 at 2:13 PM

In a pigs eye.
Meaning:

Very unlikely

Synonyms:

in a pig’s eye; not very likely

Domain usage:

colloquialism (a colloquial expression; characteristic of spoken or written communication that seeks to imitate informal speech)

Bmore on April 19, 2012 at 2:13 PM

.

Wigglesworth on April 19, 2012 at 2:07 PM
,

Bmore on April 19, 2012 at 2:09 PM

Yeah. I could use two week of that, right now.

Jabberwock on April 19, 2012 at 2:13 PM

Took my boss about 3 years to sell his condo in Minneapolis. And that’s with a growing population. He took a real bath on it too.

rbj on April 19, 2012 at 2:13 PM

what the heck does in a pig’s eye mean?
 
DHChron on April 19, 2012 at 2:08 PM

 
It’s a traditional Indonesian term. It translates poorly, but it means, roughly, “I’d eat your dog before I’d believe that.”

rogerb on April 19, 2012 at 2:13 PM

In a pigs eye.

Very unlikely.

Not very likely.

Colloquialism.

Bmore on April 19, 2012 at 2:14 PM

Don’t forget the NAR tweaked their methodology and retroactively reduced their existing home sales data going back several years so numbers starting in 2012 will look better for the Obama administration in an election year.

Wigglesworth on April 19, 2012 at 2:14 PM

Look at what the mill just did. I should learn to starve the mill.

Bmore on April 19, 2012 at 2:15 PM

Manhatten, now that’s what you call a representative sample right there.

NoDonkey on April 19, 2012 at 2:15 PM

Look at what the mill just did. I should learn to starve the mill.

Bmore on April 19, 2012 at 2:15 PM

Mea Culpa. It was just too shiny to resist.

VietVet_Dave on April 19, 2012 at 2:16 PM

I think I have found a way of tricking the mill. Interesting.

Bmore on April 19, 2012 at 2:16 PM

VietVet_Dave on April 19, 2012 at 2:16 PM

I know, trust me no one wants to be the door walker, worse than me. ; )

Bmore on April 19, 2012 at 2:17 PM

VietVet_Dave on April 19, 2012 at 2:13 PM

…don’t feed it…let it eat Pit Bulls.

KOOLAID2 on April 19, 2012 at 2:18 PM

REIT performance is down this year. Nowhere near where it was 2 years ago.

http://www.msci.com/products/indices/country_and_regional/domestic_equity_indices/reit/performance.html?undefined

Del Dolemonte on April 19, 2012 at 2:18 PM

Colloquialisms are the bees knees! So are dogs…with barbeque sauce

DHChron on April 19, 2012 at 2:18 PM

What year did you graduate from Wharton?

Lets say O get reelected and Reid holds the Senate. Since you’re an “Insight” guy, what bets do you make on the tax cuts going away on 1/1/13? Do you understand the concept of disposable income? Do YOU feel lucky?

Let say O doesn’t get reelected and Reid doesn’t hold the Senate.

Those possibilities probably never cross anyone’s mind when making one of the biggest financial decisions of their lives, does it?

VietVet_Dave on April 19, 2012 at 2:13 PM

You’re absolutely right. Pre-Bush tax cuts, the economy was in shambles. I remember those depression days of 1995 to 2000. Why I think a total of 16 houses were sold the entire time.

angryed on April 19, 2012 at 2:20 PM

Rents are skyrocketing.

angryed on April 19, 2012 at 1:53 PM

Rents are also going up for commercial properties.

angryed on April 19, 2012 at 2:06 PM

Funny… so are food, gas, and just about everything else.

I wonder if it has anything to do with INFLATION. (You know… what happens when you increase the money supply and devalue our currency.)

Common sense is only common in flyover country.

dominigan on April 19, 2012 at 2:20 PM

Manhatten, now that’s what you call a representative sample right there.

NoDonkey on April 19, 2012 at 2:15 PM

Well yes, but you’re obviously some sort of stay-at-home mom, Jesus believin’, home-schoolin’, Iraq war veteran, flyover country, pick-up driving, NASCAR-loving hick…or something ;)

Trafalgar on April 19, 2012 at 2:20 PM

VietVet_Dave on April 19, 2012 at 2:16 PM

I’m not sure if this will help. Its a little tune I hum when starving the beast. Maybe it will work for you also. ; )

Bmore on April 19, 2012 at 2:22 PM

The best investment advice is this:

Sell when everyone says buy, buy when everyone says sell.

Everyone is screaming to sell r/e right now. Capitulation has arrived. Even the hard line real estate agents who in 2009, 2010 were saying the bottom is here, the bottom is here are saying the bottom ISN’T here. Which means the bottom is here.

The low end of the market, $150K and less is selling below replacement cost in most of the country.

angryed on April 19, 2012 at 1:45 PM

You are correct. This is particularly true for hard hit areas such as AZ and NV.

Had a friend who just bought recently a 2,000 sqft home in Phoenix for $60,000. His monthly mortgage payment is about $250. He can easily get $700-$800 rent/month from this property, perhaps even more.

Norwegian on April 19, 2012 at 2:22 PM

…don’t feed it…let it eat Pit Bulls.

KOOLAID2 on April 19, 2012 at 2:18 PM

Deal… its busy right now on Google looking for more libelous words for ‘flyover’ and ‘redneck’ to use in it’s next post.

VietVet_Dave on April 19, 2012 at 2:23 PM

Trafalgar on April 19, 2012 at 2:20 PM

Did I forget any?

Trafalgar on April 19, 2012 at 2:23 PM

Funny… so are food, gas, and just about everything else.

I wonder if it has anything to do with INFLATION. (You know… what happens when you increase the money supply and devalue our currency.)

Common sense is only common in flyover country.

dominigan on April 19, 2012 at 2:20 PM

So why aren’t you happy about real estate deflation?

angryed on April 19, 2012 at 2:23 PM

s busy right now on Google looking for more libelous words for ‘flyover’ and ‘redneck’ to use in it’s next post.

VietVet_Dave on April 19, 2012 at 2:23 PM

Damn! “Redneck”. I missed that one!

Trafalgar on April 19, 2012 at 2:25 PM

You are correct. This is particularly true for hard hit areas such as AZ and NV.

Had a friend who just bought recently a 2,000 sqft home in Phoenix for $60,000. His monthly mortgage payment is about $250. He can easily get $700-$800 rent/month from this property, perhaps even more.

Norwegian on April 19, 2012 at 2:22 PM

Finally someone on HA who can think for himself without Sean or Rush telling you what to think.

angryed on April 19, 2012 at 2:25 PM

REIT performance is down this year. Nowhere near where it was 2 years ago.

Del Dolemonte on April 19, 2012 at 2:18 PM

https://www.google.com/finance?client=ob&q=INDEXDJX:REIT

YTD up 9%.

Do you have any clue what you’re talking about?

angryed on April 19, 2012 at 2:27 PM

I’m not sure if this will help. Its a little tune I hum when starving the beast. Maybe it will work for you also. ; )

Bmore on April 19, 2012 at 2:22 PM

Dang it! All this “infrastructure from the dot com boom” has me firewalled out. I’ll check it later.
:-)

VietVet_Dave on April 19, 2012 at 2:27 PM

You’re absolutely right. Pre-Bush tax cuts, the economy was in shambles. I remember those depression days of 1995 to 2000. Why I think a total of 16 houses were sold the entire time.

angryed on April 19, 2012 at 2:20 PM

Clinton cut taxes on investment heavily in 1997, as you liberal clowns always forget.

And you didn’t sell anything, ed. If you were actually a success, you wouldn’t be here day and night pretending you’re something you’re not. That’s what angry losers do.

Chuck Schick on April 19, 2012 at 2:28 PM

Manhatten, now that’s what you call a representative sample right there.

NoDonkey on April 19, 2012 at 2:15 PM

Do you mean Manhattan? Sorry, yes it does matter what happen there. You see the city is important. People care what happens there. Nobody gives a shit what happens in rural Alabama.

angryed on April 19, 2012 at 2:29 PM

VietVet_Dave on April 19, 2012 at 2:27 PM

It may not suit your taste. The Talking Heads Here are the lyrics. Maybe you can view them.

Bmore on April 19, 2012 at 2:30 PM

Clinton cut taxes on investment heavily in 1997, as you liberal clowns always forget.

Chuck Schick on April 19, 2012 at 2:28 PM

Wait what? I thought Clinton was a Marxist anti-American radical communist. But he cut investment taxes too? So confusing trying to keep up with flyover logic.

angryed on April 19, 2012 at 2:30 PM

You are correct. This is particularly true for hard hit areas such as AZ and NV.

Had a friend who just bought recently a 2,000 sqft home in Phoenix for $60,000. His monthly mortgage payment is about $250. He can easily get $700-$800 rent/month from this property, perhaps even more.

Norwegian on April 19, 2012 at 2:22 PM

what are his property taxes? Upkeep costs? Special assessments? Liability insurance? etc, etc, etc

WryTrvllr on April 19, 2012 at 2:31 PM

Trafalgar on April 19, 2012 at 2:25 PM

An inherent problem with the starvation concept. As witnessed on this thread.

Bmore on April 19, 2012 at 2:32 PM

Had a friend who just bought recently a 2,000 sqft home in Phoenix for $60,000. His monthly mortgage payment is about $250. He can easily get $700-$800 rent/month from this property, perhaps even more.

Norwegian on April 19, 2012 at 2:22 PM

EH ?
Sounds like money laudering to me.
If you can affort a rent that is 3X mortgage you buy it.

Jabberwock on April 19, 2012 at 2:32 PM

Pre-Bush millionaire tax cuts:

4% unemployment, booming stock market, balanced budget. We must NEVER go back to those hellish days.

angryed on April 19, 2012 at 2:32 PM

Clinton cut taxes on investment heavily in 1997, as you liberal clowns always forget.

Chuck Schick on April 19, 2012 at 2:28 PM

Wait, I am from flyover land. Was ’97 before or after ’96?

WryTrvllr on April 19, 2012 at 2:32 PM

That was for “it”

WryTrvllr on April 19, 2012 at 2:33 PM

Where do these analysts live? Shanghai? Addis Ababa? How can they live in the US and be surprised by these numbers?

I am happy to report, however, that the house next door to me, on which the owner — who used it as a rental property — had ceased paying the mortgage in 2008, and which was foreclosed in 2010, finally SOLD in March. I have neighbors again. With dogs and kids! And cars with Ron Paul stickers. Ha!

J.E. Dyer on April 19, 2012 at 2:33 PM

Wait what? I thought Clinton was a Marxist anti-American radical communist. But he cut investment taxes too? So confusing trying to keep up with flyover logic.

angryed on April 19, 2012 at 2:30 PM

Yawn.

Chuck Schick on April 19, 2012 at 2:34 PM

EH ?
Sounds like money laudering to me.
If you can affort a rent that is 3X mortgage you buy it.

Jabberwock on April 19, 2012 at 2:32 PM

Haven’t you heard? Nobody wants to buy because of Obama.

angryed on April 19, 2012 at 2:34 PM

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