Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

10 responses to “Reporting Roundup: Empty Store Shelves Edition”

  1. softwarengineer

    Let’s Compare Real Estate to Farming

    Because of alcohol [banks] in the gasoline sucking the supply [FC'd homes] of corn [BTW, 10% alcohol in our gas, not only raises the price and lowers the mpgs; it takes more oil to add it than to just give us pure gas at the pump], the inventory of corn is inadequate to feed livestock economically. Hence, pigs [homes for sale] are running short worldwide, with bacon and such going up in price.

    Now the clincher for buyers at the supermarket for bacon and such, the price of pork [homes] is so high now; the sales rates are being mitigated and/or we’re just not eating pork as much anymore. I suppose that’s why Top Foods had pork sirloins for $2/lb last week, and WINCO has ‘em for $2.28/lb right now….the buyers are gun shy…..irrespective of inventory shortages of pork.

    Now let’s go “Macro” with this comparison, Albertsons is closing down in Auburn. Why? We’re just not buying high priced low inventory food anymore….in fact, I’ve learned to spot the overages they can’t sell [FCd homes] and stock up my freezer with sales when the buyers stop buying. I’d also compare this to saving your cash [not mortgaging it] for an economy that makes sense, not this quagmire.

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  2. Jill Schlicke

    “raise and teach our families”

    What, everybody homeschooling now according to George Moorehead?

    That seems like a weird comment. Buy now so you can raise and teach your families in a house instead of….a rental home or apartment?

    I’m lost. Somebody help me. What could he possibly have meant?

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  3. David S

    RE: Jill Schlicke @ 2 – ‘Because children raised in homes with mortgages have higher self esteem than those raised in rental homes’.

    I saw this on the NAR website a while back. My wife and I chuckled over the audacity of that statement.

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  4. Pegasus

    RE: David S @ 3 – They have a huge list of similiar benefits for home owners:

    According to several studies, children of homeowners score higher in reading and math than their counterparts whose families do NOT owner their own home. They also are also 25% more likely to finish high school, 116% more likely to graduate from college, and twice as likely to acquire some post-secondary education.

    The benefits are not limited to the area of education, however. The social benefits are even more pronounced.

    Daughters of homeowners are 40% less likely to become pregnant as teenagers. Children of homeowners have fewer behavioral problems. At age 20, children of homeowners are 40 % less likely to rely on welfare.

    http://www.habitatsa.org/about/benefits.aspx

    I am sure that financial wealth has nothing to do with these statistics. ;^)

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  5. Jill Schlicke

    “Thus it appears that the claims for some social and individual benefits from home ownership are supported but only weakly.”

    Here’s the full study:
    http://content.knowledgeplex.org/kp2/img/cache/kp/1374.pdf

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  6. Kary L. Krismer

    By Pegasus @ 4:

    I am sure that financial wealth has nothing to do with these statistics. ;^)

    Parental wealth, income, education and intelligence all undoubtedly play a big role in that.

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  7. David S

    RE: Jill Schlicke @ 5 – I think this study may fall short in one critical area. It seems that when they use the word ownership they are referring to anyone that has a 120% LTV with first and seconds, or a 2.5% down payment mortgage up to full title holders. Renters are all others.

    These studies use a pretty broad definition of home owner.

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  8. HappyRenter

    RE: Pegasus @ 4
    I think the problem here is that correlation does not imply causation. The fact that home owners tend to have more successful children does not necessarily imply that owning a home will make your children more successful.

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  9. HappyRenter

    RE: softwarengineer @ 1
    People not buying high-priced low-inventory homes = people don’t need to buy homes and can save their cash instead

    Also, I don’t understand why the “the rent versus buy conundrum” is an obstacle. It’s a choice and fortunately we can all make it in an informed way.

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  10. Kary L. Krismer

    RE: HappyRenter @ 8 – Correlation does imply causation, but it doesn’t prove squat.

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