Saturday, September 15, 2007

"A Very Cold Month"

From the Stockton Record:

August was a very cold month, at least in the home-sales market. The last time the median sales price of an existing Stockton home crossed the $300,000 mark - in November 2004 - it was a major landmark in a long-running boom market. Last month, the sales price crossed $300,000 again, but this time, on the way down. And sales - 118 in August - dropped to the lowest level not seen since the last real-estate downturn in the mid-1990s.
...
"It's slamming the psyche of the market for sure," said Mike Collins, of Collins Realty. "All people are seeing are foreclosures, lender layoffs and title company layoffs - all this bad news in the real-estate industry. That makes them want to wait to buy."
From the Stockton Record:
There is much talk about Lodi residents fearing the loss of their aging and dilapidated Grape Bowl stadium, home to young footballers and high school graduations. But persuading those residents to open their checkbooks to save the 67-year-old structure is proving difficult.
...
[Jack] Fiori said the fundraising group has few resources. The group doesn't have the manpower to canvass neighborhoods or visit every local business, he said. He also blames the drop in the housing market: Deep-pocket real estate developers are more reluctant to contribute their cash than perhaps they would have been years ago.
...
The housing market slowdown has had other negative impacts. Developers have had to re-evaluate auxiliary projects in San Joaquin County. In Lodi, FCB Homes has delayed its $8 million design-and-construction project at DeBenedetti Park on Century Boulevard at Lower Sacramento Road. The 49-acre site eventually will become Lodi's largest municipal park.
...
Things don't always work out as planned. Builders need buyers to create cash flow and they need cash flow to fulfill their promises of development extras.
From News10:
More than 70,000 families call North Natomas home and many are sounding the alarm. They want a new fire station to help cover the 7,388-acre community.
...
Sacramento City Fire Chief Forrest Adams is aware of the problem. He told News10 the emergency call volume in the area is on the rise and response times are taking a hit. "It's frustrating," said Adams. "Yes, I'd like to have station there, but it's all tied to funding." The funding to build the station comes from developer fees which apparently have been slow to come in due to the housing market slump.

17 comments:

Sippn said...

No problem I have your solution - tax rent.

If you want stuff, you have to pay for it.

Simple, nobody else left over to pay for it.

(its easy, just redeem the alum cans from the truck bed parked on the lawn)

lexi said...
This comment has been removed by the author.
lexi said...

Is the new ploy to push people into
buying, is to make them feel low
class for renting? Too funny.
I doubt any of this group parks
their cars on their lawns but
nice try!

Sippn said...

No, no, no - low class is changin' yur oil on the lawn.. . fur a cupl weaks while checkn the brakes and changn the bearings.

Where's the Pabst?


All that aside, just pointing out that when real estate was rising, everybody piled on, including cities, states, schools, parks, and fire departments.


Whos going to pay the bill now?

Sittin' Out This One said...

"....Whos going to pay the bill now?..."

Ultimately all of us. Right now it is a bunch of FB's, Realtors, and lenders.

Soon, the taxpayers.

I hope good laws are put in place to avoid this happening again.

Appraisals ordered thru double blind agency. No liberal lending (except VA & FHA, which pay their own way). Qualifying income ONLY used from tax returns. If you earn money under the table, don't plan on buying a house (this alone would double the tax revenue to the U.S. Govt.)

There are many good ideas, but all is see is proposals to give the idiots who got drunk on credit a big bail out. No way. Let them pay the consequences. If anything, give them a security deposit at their new rental unit, if they leave the foreclosure in good shape.

Sippn said...

" If you earn money under the table, don't plan on buying a house "

OK please do your part by having your housekeeper/gardener/weekend handyman fill out the w9 and do their payroll withholdings.

Chuck Ponzi said...

Sippn,

Talk about the law of unintended consequences...

Renters are just as strapped as buyers are. Nowhere to run, nowhere to hide in California then. Just pack up and leave.

Of course, I hate to point out that I dislike the smell of burnt troll. Clogs the sinuses.

Chuck Ponzi

Gwynster said...

"(this alone would double the tax revenue to the U.S. Govt.)"

You say this like it's a bad thing >; )

The more people that actually begin to pay their own way, the happier I'll be. Hell, a flat tax would be better then the crap we have now.

Sippin,

Why is it that when I want a few days away from the board, you start spouting crazy stuff? It's uncanny.

I think you need to toss those last catches back. Too small again. The renter trolling was a little too obvious. I know you can do better.

David said...

A flat tax would actually hurt the lower income folks more then the current system, especially if it is a flat sales tax. Lower middle and lower income families spend all or nearly all of thier income on things like food, fuel, clothes, etc. The rich only spend a fraction of thier income on these things, so the flat sales tax just takes a larger percentage of the poors income then it would the rich. This is by most reasonable people's definition an unfair system.
This isn't to say the current system is that fair either. In fact in California it is quite regressive when you factor in housing taxes and other things. The progressive income tax is really the only fair way to tax people, but it needs to be truely even handed. There shouldn't be loopholes, and tax breaks. Many of the largest corporations in this country have paid zero (0) taxes for years, because of the tax structure.
I personally believe that if you have more money you should pay more taxes. It is only fair. It's not like you don't want the services.

norcaljeff said...

Stockton is now the foreclosure capital of the US:
http://tinyurl.com/ynlygw

norcaljeff said...

David, where do you get your facts? Either from Sippin or Algore's playbook. Most if not all flat tax proposals come with excempting the first $25-100K of income, so I'd say if I were making $25-100K, it would hardly be punitive since I'd be paying no income taxes.

Cmyst said...

I always thought "flat tax" meant that everyone was taxed at the same rate regardless of their income. Everyone that talks to me about it is thinking that's what it means, in which case I'd agree with David: all sorts of taxes hit harder at those lower down the ladder, including a flat tax and sales taxes.
OTOH, if it's true that most people who advocate for a flat tax are going to exempt income up to 100K (which sounds a bit generous) then I'm personally all for it! Heck, I'd have my down payment and could pay off my house in about 5 years.

Sippn said...

Norcal - truly an insult.

Gwynster said...

flat normally means eveyone pays the same percentage.

There have been numerous proposals over the years.

PeonInChief said...

A flat tax that exempted $100,000 wouldn't raise enough money to fund the government. You only need to look at the median income to see that the vast majority would pay no income tax if a flat tax exempted that much income. And that would mean that the government would be looking for other sources of income (excise taxes, user fees etc.) to make up the difference.

Far better would be a tax system that eliminated the tax shelters and exemptions for the very rich and corporations. Not only would it be fairer, but it would be much cheaper to collect.

David said...

I will say it once. You will never get a tax code passed with the current governmental setup that exempts everyone below 100K. I was merely saying that any flat tax system that has a chance in hell of being past will likely hurt low and middle income people.

norcaljeff said...

David, one could argue we already have that.
Everyone else, read the proposals, they're out there and not hard to find or follow.