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Here is your open thread for the mid-week on February 20th, 2013. You may post random links and off-topic discussions here. Also, if you have an idea or a topic you’d like to see covered in an article, please make it known.
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I don’t know if this is a new phenomenon, but it looks like John Madrid of John L Scott is now “sponsoring” stories on local blogs. The latest one is on “MyBallard” (http://www.myballard.com/2013/02/19/where-are-all-the-homes-for-sale/) and asserts that “There is also a general belief that home prices and interest rates have only one direction to move and that is up.”
There was another one just three weeks ago (http://www.myballard.com/2013/01/24/big-turnaround-in-2012-for-northwest-seattle-housing-market-sponsored-story/).
I’m not sure whether this is a new low for John L Scott, MyBallard, or both.
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I don’t really see what your problem is with these stories. They’re clearly marked as being sponsored and they’re probably better than many of the newspaper stories that Tim covers in his roundup. With the possible exception of the “general belief” sentence you quote, most of it is pretty factual.
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RE: Kary L. Krismer @ 2 –
Because it’s sales hype. It’s just sales hype.
Real Estate sales people are really starting to bother me. There is no agency left in many transactions, it’s just a commissioned based sale.
Real Estate sales people don’t look at the data, or trends, or pricing, there are just making a sale so they can get paid.
There are good Real Estate agents and I’m lucky to be able to work with some of them. There are some caring, and concerned agents who are doing the best they can for the client.
It’s all the Real Estate sales hype, like what’s presented here in those sponsored articles, that I find disheartening.
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Kary, no argument that the owners of MyBallard can do with their site what they wish, I guess I’m just astonished that given their ~5 stories/week rate of update that they’d dedicate ~15% of their content the last few weeks to “sponsored stories”. Also, I didn’t mention it but the initial version of the latest JLS story also contained the phrase, “there’s never been a better time to buy a home”, later edited out. My real problem with these stories has to do with the fact that Madrid makes these sorts of statements as though the bubble never happened. He certainly won’t be getting any of my business and I’m amazed that anyone falls for that hype any more.
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RE: John Doe @ 4 – I’m not familiar with that site, but the local site like that in my neighborhood scrambles for stories. So I can see why they would take something like that.
I can also see what the never been a better time to buy comment was edited out. Clearly this is a sellers’ market.
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RE: David Losh @ 3 – Get off your high horse. The only reason you work with the agents you do is because they will give you part of their commission as a referral fee. You make money making introductions.
Other than that you have zero reason to keep your license active.
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RE: Kary L. Krismer @ 6 –
I don’t take referral fees, as you know, because it has been discussed by you into the ground.
I have past clients who still have questions about properties so I answer them.
It’s a service, done for free, or more specifically on my dime.
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The Seattle Economy Is Saved
The Boeing professionals voted not to strike, albeit the technicals voted to approve a possible strike.
Is it really good news for Seattle real estate to see Boeing wages with compensation union approved on a downward spiral? With no new Boeing engineer workers paying into the pension funds, I’ve read in about 8 years they become insolvent [more going out than in].
Not to worry, they’re replacing pensiions with 0% matching fund 401K type vehicles….I’m smiling now, that grim reality means more will gamble out of safe 0% funds [they can't retire on] and there’ll be more “Las Vegas Style” volume in the stock market?….
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By David Losh @ 7:
That type of activity doesn’t require a licence which means –
That type of activity doesn’t require that you attend 15 hours of continuing education each year.
That type of activity doesn’t require that you pay something to a designated broker each month and the state every other year.
That type of activity doesn’t require that you pay money to the NWMLS each month.
So if that really is the only reason you have an active license, it’s not a very good reason.
Now if you gave another reason, such as not wanting your license to lapse, I could understand that.
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By softwarengineer @ 8:
As I recall, that’s only for new hires. Back when I worked for UPS they came up with a contract that treated new hires worse too. It’s bad for the union long term, but good for the company.
I wonder what sorters make now at UPS?
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RE: Kary L. Krismer @ 9 –
You’re kidding, right?
How do I do CMAs without a license, or reasearch a property?
I have been providing Real Estate services for forty years, and have had a license since 1986. I also consult on what sells, or makes a property more salable. It’s easier to do that with access to the NWMLS.
I’m allowed to consult on a variety of Real Estate matters that also incudes Business Opportunities.
I do it for free as a part of my services, but don’t worry, I’m still getting paid through my business interests.
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RE: Kary L. Krismer @ 10 –
The Machinists Got to Keep Their Pensions
But I saw Boeing Machinist new hire rates in the $12-15/hr area [$15/hr with two years of certification training]….two tiered.
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C’mon…he’s trying to find a viable Northwest Passage.
http://www.ajc.com/news/business/boat-belonging-to-missing-banker-also-missing/nWTk6/
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Interesting developments on FHA Loans. Rhonda Porter just posted the changes coming April 1, 2013 from the HUD Press Release.
1) Mortgage Insurance Premium will be in effect for the life of the loan. I think this is the first time I have seen MI on the top 20% of the loan become a permanent cost.
2) Loans over $417,000 will have a 5% down requirement.
There are a few other changes, but these are the two that will have the largest impact on the housing market generally.
While the changes made are to strengthen the resources of FHA, I think it will send the most qualified buyers in the direction of Conventional Lenders and Credit Unions, leaving the weakest borrowers in the FHA program.
Mortgage Insurance Premium for the life of the loan doesn’t make a lot of sense when it gets down to 50% and below LTV. I don’t expect that one to stick long term.
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The Tim:
I see you’re now rationing posts. Looks like 15 on the open thread and 5 on a “main” line post.
When did you make the change? I missed the announcement.
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If You’re An Engineer Like Tim and I
Hold your head up PROUDLY this week!!!!
Its NATIONAL AMERICAN ENGINEER WEEK this week.
We’re the best darn engineers in the world BTW, the foreign engineers couldn’t design a 4200 lb automobile that gets 31 mpg and 300+ HP with an 8 speed automatic and 0-60 in 6.2 sec….nope, that takes American engineers!!!!
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RE: No Name Guy @ 15 – I’ve been wanting to implement something like this for quite some time, but yesterday I was finally pushed over the edge. See this comment thread for the discussion. I also updated the comment policy rules that are linked below the comment entry box to reflect this change.
Note that these limits aren’t set in stone, I may adjust them if necessary. We’ll see how things go.
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Could interest rates finally start rising? I’ve been unwilling to buy a house because I think the prices are too closely related to monthly payments, and believe that the eventual increase in interest rates could have a substantial impact on home prices. I really don’t know much about economics, but I’ll be interested to see what’d happen if the Fed actually goes through with this.
http://www.bbc.co.uk/news/business-21530624
By buying bonds, the Fed keeps interest rates low, which keeps the cost of borrowing for mortgages and other loans low.
However, the minutes of the Fed’s meeting in January showed that some members were concerned that the bond-buying programmes could push up inflation or could “foster market behaviour that could undermine financial stability”.
The minutes said that “a number of participants” commented that an ongoing review of the effectiveness of the bond programme “might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labour market had occurred”.
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RE: Sparky @ 18 – The very best technocrats are at the helm. Nothing to see here, citizen. Move along.
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RE: ARDELL @ 14 – This is all unecessary as real estate never goes down.
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So you can open a Private Wealth account with Goldman Sachs and never identify yourself. For example, you might be a money launderer or international terrorist transfering money to an agent in the USA, for example, and GS has no idea who you are, apparently. Incidentally, it is the Private Wealth client base that was in danger of losing substantial amounts of their billions if GS went down. Shouldn’t they say Thank You?
“In another application also dated February 15 and filed Wednesday, Brown’s colleague Megan Bergstrom said Goldman had informed the SEC “it does not have direct access to information about the beneficial owner or owners behind any particular transaction or position” in the account.”
http://finance.yahoo.com/news/goldman-private-wealth-client-holds-182759624.html
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RE: Sparky @ 18 –
Good Question Sparky
Many factors play on interest rates predictions….like if the possible nearterm sequestration makes it impossible for the feds to buy their own excess debt….causing interest rates to spike to attract federal debt investors.
I’m biased though [debt free and no mortgage]; and see my old house principle as a substitute to a 0% savings account [bought a new car with the interest I wasn't paying anymore the last few years]. I also see my house as “just a piece of escrow paperwork”….can’t put burgers on the table….but can be traded for another theoretically devalued unit [no matter what its worth in the future] paperwork.
I’ll be blunt; in my “no debt” situation, low interest rates are a curse. I wish home prices would devalue in half and interest rates on my savings go back up to safe deposits at 5-10% that I can withdraw immediately [not current 10 yr 1% CDs]….now that puts hamburgers on my table….
Meanwhile I gamble in stocks…they’re plummetting lately….
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