Housing Bust Casualties?
From the Sacramento Bee:
The NBA's longest active sellout streak officially ended at Arco Arena Tuesday with the Kings setting a home opener low for Arco, as well as recording the league's worst attendance for a home opener this season...The announced attendance of 14,908 ended the Kings' streak of 354 consecutive sellouts dating back to Nov. 26, 1999. Arco seats 17,317.From the Tri-Valley Herald:
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"That's sad and embarrassing," said Brandon Castillo, a season-ticket holder and Sacramento political consultant. "I was shocked when I walked in. It was empty. I couldn't believe it."
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Danette Leighton, vice president of marketing and branding...attributed the decline less to the Kings' 33-49 finish last season and more to the region's struggling housing market.
For 28 years, the Manteca community has stood behind the Boys & Girls Club. However, heading into this year's telethon that is no longer a certainty. Due to a crash in the housing market along with residual affects of a lawsuit, there are a lot of questions about whether the Manteca community will give as generously as years past. "It's going to be an uphill climb," said Dave Bricker, a board member with the Lathrop/Manteca Boys & Girls Club. "We are facing one of our biggest challenges this year, but I'm optimistic that the community will again stand behind us."From Bloomberg:
Toll Brothers Inc., the largest U.S. luxury homebuilder, said fourth-quarter revenue fell 36 percent and the cancellation rate rose to the highest ever as demand faltered in the weak housing market...The number of contracts in the company's western region of Arizona, California, Colorado and Nevada plunged to 17 from 131 a year ago.From the Stockton Record:
The country's largest foreclosure real estate auction firm, Hudson & Marshall, is holding a series of auctions throughout the state next week to try to sell about 600 foreclosed homes in cities across Northern California. That includes an auction of 60 Stockton-area homes...."There's so much in the pipeline right now that any method, even a departure from the traditional, would be good if they sell," said Frank Orello, a real estate agent with Coldwell Banker Grupe in Stockton.
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The auctions are reserve auctions, with no minimum starting bids, but sellers have the right to accept or reject any bid...Buyers also have to pay a "buyer's premium" of 5 percent of the winning high bid to Hudson & Marshall to cover various commissions and fees involving the sales.
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Kevin Moran, another agent with foreclosure homes up for auction, said he doesn't expect to see many bargain sales at the auction. A family hoping to get a great deal might be able to find one at the auction, he said, but he expects the banks will be inclined to accept only as low as 4 percent to 6 percent below the current listing prices.
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Hudson & Marshall spokeswoman Crystal...Wright said that with California foreclosures consistently climbing, Hudson & Marshall could be staging auctions in Stockton every 90 days or so until foreclosure activity dies down.
20 comments:
Well, the (lack of) Kings season ticket selling is most certainly tied directly to the housing market, but the primary reason why they can't sell out is pretty simple: they SUCK!
Anywho...
No shortage of folks out and about spending money/eating out/etc over here in Roseville/Rocklin. By my completely unscientific observations, it's status quo.
"Hudson & Marshall could be staging auctions in Stockton every 90 days or so until foreclosure activity dies down"
So what they're really saying is that Hudson & Marshall is relocating their offices to Stockton!
At the last H&M auction, I watched a Woodland Victorian go end 60K lower then it's REO price and 9K less then it's 03 selling price. The bank took it.
The banks can't hang on to these homes forever...their liquidity issues will overide non performing inventory assets as a way to improve cashflow. During the last bust, liquidity and credit quality weren't nearly the issues they are today. I would expect this to become the norm if these problems persist or get worse.
ditto dd, 6% for RE agents is unwarranted, and so is 5% for auctioneers. The middlemen "Trustees" at public auctions will probably make a killing, once that heats up.
As far as the Kings; seems like everything with Trumped-up value gets a pass when times are good. And when the economy gets tough, people become better stewards of their money. I love basketball, beer, and hot dogs. Me and my kids can watch a game, and have a meal, for less than $20....at home.
"The banks can't hang on to these homes forever..."
It's more than just liquidity, federally chartered banks are prohibited from owning property for a prolonged period of time... wait 'til that reality sets in and federal bank regulators get involved... look for a fire sale... kinda like the old federated departement store commercials with shadow stevens smashing tv's and whatnot... wonder if shadow's looking for work...
ditto dd, 6% for RE agents is unwarranted, and so is 5% for auctioneers.
My realtor got 1.1% and the seller's agent got a little less than 2%.
NO buyer in this market should let the realtors get away with charging that ridiculously inflated 6%, but most buyers are completely unaware that these commissions are negotiable (although it states it right on the contracts) and many realtors will tell you right to your face that 3% is what they are 'supposed' to get. Furthermore, many less-than-scrupulous realtors will tell you that the seller will not adjust the asking price if the agents will agree to give up part of 'their' commission.
Buyers need to understand that they - and not the sellers - ultimately pick up the tab for these commissions, so buyers are the ones who should take command of what the various players are getting from the kitty at closing.
Yeah, it's pretty absurd to tie the Kings to the housing market. This a team that thoroughly stinks, and whose owners have shown dis-loyalty to Sacramento.
...just sayin'...
Capital One to take charge offs up to $5B+ in '08
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/08/AR2007110802349.html
Looks like the credit mess is spreading. I guess when the Heloc runs dry, plastic works just fine.
Maybe they'll reduce their ad budget and quit sending me two and three irritating apps a month.
As an aside, on this blog site a few weeks ago, Gwyn posted a link to the details of Wachovia's earnings conference call. I was shocked how fast they had lost money on their subprime portfolio. Now, within a month, they are writing down another $1.1 Billion. And based on the way these notes are structured, I do believe they had no idea this further reduction was coming until it hit their books....
"No shortage of folks out and about spending money/eating out/etc over here in Roseville/Rocklin. By my completely unscientific observations, it's status quo."
I disagree; you can actually walk into a restaurant and get a seat immediately.
Gwynster said...
At the last H&M auction, I watched a Woodland Victorian go end 60K lower then it's REO price and 9K less then it's 03 selling price. The bank took it.
In 93 or 94 the same thing happened. The same bank sold that house for 10K less than offered price to this colleague of mine in 96 - after 2 years - yes, no one should be buying now if they want to come out even or ahead in 2-3 years. This sheite has't even been tossed yet, and the fan is off right now.
Cool.
Cow_tipping.
I disagree; you can actually walk into a restaurant and get a seat immediately.
Sure, at 3pm on a Tuesday.
Try just "walking in and getting a seat" at Claim Jumper, BJ's, Red Robin, Olive Garden, or even Chang's around 7pm tonight. Good luck.
Rocklin,
Last Friday I did just that at the old Chevy's on Douglas. No wait and no line. I have also had the same type of expirience at the Chili's on Fairway.
Cow,
The bank sold to.... wait for it.... a flipper!. MLS #: 70096097
As SMF has repeatedly pointed out, inventory isn't decreasing at all. Right now it's all just muscial chairs with no new players.
Well, there's the problem!
Chevy's? Eewwwwww.
Salty's err... Chili's? BLEH!
I don't go to any of those places I listed unless I am invited there (seems like a lot recently with birfdays and such), we usually eat at the locally owned places. Support your local restaurateurs!
Did anyone catch the bit about the Toll Bros CEO complaining about the negative media coverage?
For one, I didn't hear anyone complaining when times were good. Secondly, if he thinks the media is to blame for the housing problems, he needs to resign...go back to college and take some intro to econ classes.
"It's not the media, stupid!"
I maintain that this disaster is primarily the fault of the lenders. While borrowers do have to accept their fair share of the blame for not living within their means, I do not think it's fair to condemn them (borrowers) for trusting the professional bankers that we were raised to consider somewhat 'trustworthy'.
Shrew,
Funny, you sound so much like Sippin I feel like I'm seeing double.
Gwyn:
I read a SacBee editorial that stated that in North Natomas, 15,000 homes were built in 8 years. The original plan called for these homes to be built in 25 years!
So how do you fix a problem of this magnitude? I mean, they totally overshot the demand. And I doubt that N. Natomas is the only one that has this problem.
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