Category Archives: General Real Estate
Ms. Bolender was three days behind on her monthly car payment. Her lender, C.A.G. Acceptance of Mesa, Ariz., remotely activated a device in her car’s dashboard that prevented her car from starting. Before she could get back on the road, she had to pay more than $389, money she did not have that morning in March.
And for context, Zillow has a nice, digestible post (with pictures) in which they look at subprime mortgages' return:
Similarly, premiums charged to subprime borrowers remain higher than in 2011 and 2012, but have been mostly flat in recent months (chart below). For a 30-year fixed rate purchase mortgage, upper-tier subprime borrowers pay 70 more basis points while lower-tier subprime borrowers pay 120 more basis points.
I've written about student loans' impact on housing, notably its impact on the Charlottesville market, but these are two recent stories, each with its own take on student loans. (My short opinion: student loans are increasing for the same reason the housing bubble expanded ... we do remember what happened to that, right?)
Higher levels of student debt will reduce U.S. home sales by around 8% this year, according to a report released Friday by John Burns Real Estate Consulting, an advisory firm. ... Higher debt burdens will defer home purchases for many borrowers while requiring others to buy a less expensive home in order to qualify for a loan or save for a down payment. The paper estimates that every $250 per month in student loan debt reduces borrowers’ purchasing power by $44,000, and since 2005, some 3.8 million additional households have at least $250 per month in student debt. Put differently, around 35% of households under age 40 have monthly student debt payments exceeding $250, up from 22% of households in 2005.
And The Onion:
Lamenting that she will spend the foreseeable future paying off her college expenses, local 23-year-old digital marketing assistant Ashley Orlinsky expressed concern Wednesday that her student loans will prevent her from ever owning an entirely different type of utterly crippling debt. “Realistically, it’ll take years or even decades to fully repay $50,000 of loans, which makes me worried that I’ll never qualify for a backbreaking mortgage on a house that I can in no way afford,” said Orlinsky, adding that with $350 in monthly student loan payments, she will likely struggle to even borrow money to purchase a new car that will destroy her credit rating and may one day be repossessed by the bank.
It's all about your perspective!
Food for thought ...
A couple stories and trends that I'm trying to work through as they apply to real estate: Tesla and Uber/Lyft:
Tesla, the groundbreaking electric car company is slowly but surely breaking down archaic, consumer-unfriendly barriers to being able to sell their cars direct to consumers, and Tesla is in the midst of building a new infrastructure through which to distribute the fuel for their vehicles.
Uber/Lyft, brand new to Charlottesville, have seemingly led to a 65% decline in cab use in San Francisco.
The real estate world has its own parallels - real estate agents (some are middlemen, some are critical advisors), MLS (the infrastructure) and the shifting dynamics of ownership (do we really own our iPhones) and motivations to buy homes (see: millennials).I'm not yet sure where the real estate world is evolving, but it's going to be different in 18 months than it is today.
Hyperlapse by Instagram/Facebook is different, exciting - and differently useful. In comparison to the static, 360º images provided by the Photosphere app, Hyperlapse has been described as "a $15,000 Video Setup in Your Hand." I see great potential for Hyperlapse for telling stories - the stories that make a city, an area, a neighborhood, a street - compelling.Interesting times, and with the new iPhones being released with seemingly infinitely more powerful processors, I think we'll be seeing an a lot more Hyperlapses and Photospheres. An example - Downtown Crozet is in the midst of Streetscaping right now ...
Today was an interesting radio show - some real estate and more community, community building, and becoming part of the community. Iâ€™m going to update this post with detailed show notes, but in the meantime, the podcast is here.
Enormous thanks to those who responded so quickly on twitter to my question - how do you assess/define community? (Iâ€™d say community is something that helps answer a question about community quickly!)
A few stories we discussed:
- As Uber expands to Charlottesville, cab drivers speak out
- America is rapidly aging in a country built for the young
- The above led to this a particularly interesting part of the conversation in which we discussed exurbs, proximity to stuff, demographics of folks moving to the Charlottesville area, where theyâ€™re moving and more. These stories I wrote a few years ago are quite relevant - The Slums of Tomorrow Might be Here Today and Are People Really Moving to Cities? and Living Large, by Design, in the Middle of Nowhere and The Fear Factor in Americaâ€™s Growing Exurbs.
- Using Google to find your Triangles
- When buying a home, what do you want to live or not live next to/nearby?
The time is near that phone jacks will be obsolete.
From my Instagram post: Daughter of my client saw this and said, "is that the thing you plug the phone into?" She had just bought an old phone at an antique store. #history
This Sunday should offer a fun hour of radio. Thanks to Rick for asking me to join him on Sunday, I asked friends for topic suggestions to fill an hour of live radio. We should be ok.Suggestions welcome. I asked for suggestions, and some of the early ones are -
- This should be a fascinating topic, should be get to it - America is rapidly aging in a country built for the young
- Which meshes well with this - "What will be/is the impact on the Charlottesville / Albemarle economy as the aging baby boomer population moves from homes, to apartments to retirement communities and assisted living over the next ten years."
- And this - "Who are the local first time buyers? Are they local? What types of jobs do they have? Starter properties affect the entire real estate food chain, so I'd like to know if our local economy provides opportunities for them."
- And ties in with this - "Impact of bringing to market so many high-end apartment plexes in Charlottesville over the last decade, most recently The Flats at West Village for the students and CityWalk for the yuppies."
We have a lot to talk about.
- "Realistic pricing for sellers. when I had to sell my mom's condo in CT, I first visited competing units and saw how long they had been on the market, and then priced to sell within 90 days - didn't give it away, but did not want to sit on it for a year, either!"
Some of Rick's early thoughts as we prep -
- What makes a good neighborhood? (coincidentally, I've had this tab open for a couple days - When buying a home, what do you want to live or not live next to/nearby?)
- Uber (and urban vs suburban vs rural)
- Triangles (a story I wrote last month)
And I love this prompt - "What do we discuss for listeners who aren't buying/selling but want to learn more about our area?"
I spend a lot of time thinking about connectivity and connectedness - â€œbeing part of somethingâ€ is one of the most important criteria my buyer clients define.The end of neighbours - How our increasingly closed-off lives are poisoning our politics and endangering our health
Itâ€™s a new day in the neighbourhood all across the Western world. More than 30 per cent of Canadians now say they feel disconnected from their neighbours, while half of Americans admit they donâ€™t know the names of theirs. An Australian sociologist investigating community responses in the wake of the 2011 floods in Queensland found relations in â€œa precarious balanceâ€; neighbours were hesitant to intrude even in emergenciesâ€”leading the scholar to conclude that â€œwe are less likely than ever to knowâ€ our neighbours. Quite right, too: A recent poll of 2,000 Britons found a third declaring they couldnâ€™t pick their near neighbours out of a police lineup.
Yet itâ€™s hardly surprising, given how lengthy working days, long commutes and having both parents in the labour force have combined with the way we raise our children to create suburban neighbourhoods that are empty more than half the day, with scarcely a neighbour to encounter, let alone recognize, trust or befriend. But, however powerful the economic and social forces behind the disappearing neighbourâ€”and however positive many of its resultsâ€”according to reams of new research, the transformation is also poisoning our politics and, quite literally, killing us.
And another perspective on similar studies:
Always Talk to Strangers - People who know and trust their neighbors are less likely to have heart attacks. New research builds on the understated health benefits of a sense of belonging and community.
The study du jour, published in Journal of Epidemiology and Community Health, is based on assessments of social connectedness in 5276 adults in urban, suburban, and rural areas. The subjects rated how strongly they agreed with the following four prompts:
â€¢ "I really feel part of this area."
â€¢ "If [I] were in trouble, there are lots of people in this area who would help."
â€¢ "Most people in this area can be trusted."
â€¢ "Most people in this area are friendly."
The responses landed the participants on a seven-point Likert scale. And then they were followed. Four years later, 148 of them had experienced heart attacks.
â€œOn the seven-point scale,â€ Kim explained, â€œeach unit of increase in neighborhood social cohesion was associated with a 17 percent reduced risk of heart attacks.â€
â€œIf you compare the people who had the most versus the least neighborhood social cohesion,â€ Kim continued, â€œthey had a 67 percent reduced risk of heart attacks.â€
But how does a stranger assess neighborhoodiness?
- How friendly is the neighborhood?
- Knock on doors
- Walk your dog or kids (borrow one or the other or both if you don't have them) in the neighborhood
- Drive through and see who waves (really).
- Does the neighborhood have a Facebook or Nextdoor group? I haven't tried this yet, but I think i might start asking for a printout of the past few conversations if such a page does exist â€¦