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Zillow Study Shows 1 In 3 Homes Are Unaffordable, But Vacation-Home Sales Are Soaring
zero hedge ^ | 4/5/14 | tyler durden

Posted on 04/06/2014 10:19:04 PM PDT by Nachum

In a further demonstration of the socially destructive and ever widening gap between the haves and have nots, we see that the affluent are buying second homes at an ever increasing clip (up 30% last year), while first home buyers recede into the abyss as private equity and Chinese buyers make purchasing a home unaffordable for the average American.

Specifically, a recent study from Zillow showed that more than half the homes in seven major American cities are unaffordable based on historical standards. Those cities are: Miami, Los Angeles, San Diego, San Francisco, Denver, San Jose and Portland, Ore. Nationwide, it found that 1 in 3 homes were unaffordable. The results seem to back up housing analyst Mark Hanson’s recent conclusion that despite low interest rates, housing is even less affordable than the most bubbly year ever, 2006.

This also appears to be a primary reason behind Zillow now actively pitching its U.S. real estate listing to the Chinese, many of whom are corrupt and looking to launder ill gotten gains.

First, from Housing Wire:

(Excerpt) Read more at zerohedge.com ...


TOPICS: News/Current Events
KEYWORDS: homes; housingmarket; sales; zillow

1 posted on 04/06/2014 10:19:05 PM PDT by Nachum
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To: Nachum

I like how they blame it on the Chinese and not local politics


2 posted on 04/06/2014 10:28:51 PM PDT by Fai Mao (Genius at Large)
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To: Nachum

I see Beach Front Bargain Hunting on HGTV.

There is a great demand for the vacation home lifestyle and not only from the jet set crowd.


3 posted on 04/06/2014 10:38:57 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Fai Mao; no-to-illegals; All

In Florida there were large numbers of unbought condos. From the late 1990s to 2004, I made a number of trips to Miami. We would come in the back way down the truck route from Lake Okachobi. Each year there were large numbers of houses being built ever closer to the Everglades. I kept thinking, “where are they going to get enough people to fill those houses?” Well, I guess they didn’t. I suspected it was one way to use drug money. Between the hurricanes and the Wall Street meltdown, the whole market there went kaput.

My son and family did a short sale of their home and left the area. I understand that large numbers of Brazilians have come in and paid cash for condos, to avoid inflation losses in Brazil. I haven’t heard anything about Chinese. I will ask though.


4 posted on 04/06/2014 10:53:45 PM PDT by gleeaikin
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To: Fai Mao

Foreign buyers are buying a lot of real estate, and they are driving up prices. But the only long lasting effect will be that they overspend for the houses, and prices will have to come down.


5 posted on 04/06/2014 11:57:13 PM PDT by Vince Ferrer
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To: Vince Ferrer

Unless, of course, that it’s the Russian and Chinese governments buying those properties in an attempt to wrech the US economy.


6 posted on 04/07/2014 12:09:17 AM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Jonty30
How can the Chinese wreck us by buying million dollar homes, and then selling them for $750,000 in a couple of years? It didn't work so well with the Japanese in the 80s, it won't work today with the Chinese.

We sent them our money to buy cheap plastic crap, and they will give it back to us on losing real estate deals. We will come out ahead. At least we keep the plastic crap.

7 posted on 04/07/2014 12:15:06 AM PDT by Vince Ferrer
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To: Nachum
The article seems to be missing an important point:

Housing is "unaffordable" mainly because most Americans looking to buy a home never actually buy one. Instead, they end up buying a mortgage. It's not the home that's "unaffordable" ... it's the mortgage that's expensive. And if the mortgage is expensive even with historically low interest rates, then there's obviously something wrong with this picture.

8 posted on 04/07/2014 1:54:50 AM PDT by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: Nachum

Probably has something to do with the regulations from Dodd-Frank Bill


9 posted on 04/07/2014 3:42:53 AM PDT by ballplayer
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To: Nachum

I started watching “House Hunters” again and just turn it off now when the queer couples come on. My unanswered question remains unanswered though. How in the world do couples afford these houses? I mean fairly young, first time buyers. Some homes they are buying are more than a million dollars. Mommie & daddy helping out?


10 posted on 04/07/2014 3:44:00 AM PDT by Graybeard58 (God is not the author of confusion. 1 Cor 13: 33)
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To: Graybeard58
I have a close friend who is a banker and is completely disgusted at having to provide home loans to people he KNOWS cannot, and should not be purchasing homes they clearly cannot afford. He claims that close to 80 - 90% of those same people will loose their expensive homes when one of the two “paychecks” the couples earn are either reduced or eliminated. These same people live from payday to payday, have an abundant supply of expensive “toys” (boats, ATV’s, motorcycles, etc., most of which are also not paid for) and blindly continue to struggle to make ends meet).

Society tells them they NEED to have this stuff PLUS that very expensive home. IF you don't have it, you are not successful.

11 posted on 04/07/2014 3:54:59 AM PDT by DaveA37
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To: Alberta's Child

Exactly. In the long run the mortgage interest and the taxes end up costing more than the house.


12 posted on 04/07/2014 4:01:12 AM PDT by jersey117
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To: Graybeard58

We ask this all the time. I don’t get it. In our neighborhood, a young couple with a kid bought the most expensive house in the platte.


13 posted on 04/07/2014 4:10:41 AM PDT by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
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To: Graybeard58

“My unanswered question remains unanswered though. How in the world do couples afford these houses? I mean fairly young, first time buyers.”

I don’;t think they are buying them, because they can’t afford them and they don’t need them (no children anyway). The de facto amnesty is to put other people in those homes, including children brought across the border twenty years ago who would be in the market for their own housing now. Otherwise, the housing can at least be rented to current illegals.


14 posted on 04/07/2014 4:11:33 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: LS

“We ask this all the time. I don’t get it. In our neighborhood, a young couple with a kid bought the most expensive house in the platte.”

Are they tenured public school teachers? If so, they have employment for life, salary increases annually, and banks love lending to them.


15 posted on 04/07/2014 4:12:55 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Nachum

I would be very careful about relying on Zillow. I used to scan them a lot to compare against appraiser valuations. They tended to be very low


16 posted on 04/07/2014 4:20:00 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: Graybeard58

I’ve seen it, too. Who are these people and where do they get that kind of money?

Yes, they’re pushing this kind of fruity stuff, too.


17 posted on 04/07/2014 4:35:52 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
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To: Fai Mao

...”I like how they blame it on the Chinese and not local politics.”...

Just this a.m., I have read two articles which point to the need of politicians to always blame someone else for their sins. It is called psychopathology.


18 posted on 04/07/2014 5:40:51 AM PDT by jazzlite (esat)
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To: Nachum

The Entitled Generation can be viewed on HGTV as they shop for their first home, looking for one better than their parents have…for themselves and their dog.


19 posted on 04/07/2014 5:43:54 AM PDT by txrefugee
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To: kearnyirish2

No. They are in the private sector.


20 posted on 04/07/2014 6:30:20 AM PDT by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
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To: Nachum

This is stupid government thinking. The headline should be

1 in 3 homes are priced too high for their market.


21 posted on 04/07/2014 12:45:25 PM PDT by Organic Panic
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To: LS

“No. They are in the private sector.”

That is impressive; in my area the only ones laying out money like that are either wealthy foreigners or public employees with seniority (de facto employment for life).


22 posted on 04/08/2014 4:01:23 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: kearnyirish2

One guy just built, and is now selling, a $1.8m house. He had a drug-to-your-home pharmacy delivery company that went big.


23 posted on 04/08/2014 7:18:28 AM PDT by LS ('Castles made of sand, fall in the sea . . . eventually.' Hendrix)
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To: Nachum

What does Zillow really know, they can’t even get home prices right.


24 posted on 04/08/2014 7:34:41 AM PDT by CodeToad (Arm Up! They Are!)
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To: Nachum

My house shows as $367k on Zillow. If someone wants to write me a check for that amount, I can be out in 20 minutes. Hell, you can have the furniture.


25 posted on 04/08/2014 7:37:11 AM PDT by AppyPappy
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To: Nachum
Nationwide, it found that 1 in 3 homes were unaffordable.

So, that means that 2 in every 3 homes IS affordable. Are they suggesting that every home should be affordable to anyone for all to be right in the world?

26 posted on 04/08/2014 7:48:46 AM PDT by Cementjungle
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To: txrefugee
The Entitled Generation can be viewed on HGTV as they shop for their first home, looking for one better than their parents have…for themselves and their dog.

Or their "significant other".

27 posted on 04/08/2014 7:50:37 AM PDT by dfwgator
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To: Vince Ferrer

Excellent post.
Obviously you remember some history.


28 posted on 04/08/2014 7:52:34 AM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: LS

“One guy just built, and is now selling, a $1.8m house. He had a drug-to-your-home pharmacy delivery company that went big.”

Nice; people like that don’t even bother setting up shop in NJ anymore - they’d be taxed too much.


29 posted on 04/09/2014 3:37:31 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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