Nov
03
2008
WSJ Reports on Negative Real Estate Equity
By Charles Turner
The Wall Street Journal has a semi-interactive map showing state’s homeowner’s negative equity positions across the country. Nevada heads the list at 47.8%. New York is at the other end of the spectrum at 4.4%. Oregon is at 7.7% with another 2.2% within five percent of falling into negative territory. The title of the page: Haunted Houses.End
I was surprised to see my home state of Iowa and close neighbor Nebraska in the 10-20% range. It’s not like folks were flocking there and driving up prices due to short supply of land.
could it be from using the house as an ATM?
That would be my guess combined with depreciating values. I am not sure what kind of price inflation Iowa experienced that would allow folks to access the wind fall of equity like Oregonians and other states have experienced. Did Des Moines inflate while rural areas stayed constant 3% appreciation? Is Des Moines bringing down the rest of the state? We have to remember that we are also talking about a different price scale. You can get a decent 3/2 for $100K in Sioux City. Even if your home appreciated 10% that is only 10K.
I can say that in the Sioux City, IA area which is located at the Nebraska and South Dakota border job loss is impacting housing. Over the past approximately 5 years they have lost major employers like the Tyson/IBP headquarters, Gateway Computers was shrinking and eventually bought out by MPC and just laid off another 200 people in October. A couple of call centers closed. The meat packing plants pay minimum wage and 95% of the those employees tend to be recruits from ‘Texas’.
Though the lay-offs may sound miniscule, a hundred here and a hundred there, when the area population is only about 100K people it hurts.
I understand that First Federal Bank, a locally based bank, is in trouble though I am having trouble tracking down details. The details might give me a better understanding of the area economics and why folks are upside down…unless, of course, home loans/equity lines of credit were obtained through various other lending institutions like CountryWide, INdyMac, etc. I do not know if there were a large percentage of folks partaking in risky loans, ie, subprime, ARM’s, interest only, neg am, etc.
It’s depressing enough keeping up with Oregon’s stats.
Gee, did I jinx it by saying this has been depressing…just saw that Genoa on SE Belmont is closing after 30+ years (not that I could afford to dine there).
And Tektronix is letting another 150 go after already laying off 464 earlier this year.
I came across this blog that tallies Oregon tech lay-offs:
http://blog.oregonlive.com/siliconforest/2008/10/tallying_the_toll_on_tech.html
Carey’s restaurant empire is on thin legs. Multiple tax liens, and coupons for bluehour, clark lewis, and saucebox.
Also the nines and urban farmer are bk. (unpayed liens and firings.)
ROFLMAO!
Come on Squeezed. Times might be tough, but don’t contribute to the age of self evidence with your misdirected (misinfored?) blather.
Coupons don’t smack of desperations, they are part of a change in strategy neccesary for survival in a changing environment. Just like the post dot com bubble Happy Hours in Portland.
The Nines has liens because of cost overruns still being sorted out. Very normal for a project of this magnitude in any market-
http://blog.oregonlive.com/frontporch/2008/11/third_lien_on_the_nines.html
Firing of the head chef (versus line cooks and dishwashers) more likely signifies differing opinions than cash flow issues-
http://wweek.com/editorial/3452/11796/
The Nines is just opening. It’s far too early to cal a time of death. I’m not saying it will last, but give it a chance. Many, including supermarket insiders, gave Portland’s first Whole Foods six months to live when it opened.
Coupons don’t smack of desperations
For trendy restuarants they most definitely do.
they are part of a change in strategy neccesary for survival in a changing environment.
This is just a euphemism for cash flow problems.
It’s far too early to cal a time of death.
Opening a luxury steak house with appetizers in the 50 buck range in the midst of a massive recession is more than enough reason to call time. The fact that they called it “Urban Farmer” also speaks to their abysmal business sense.
And the fact that they had the gall to name it “Urban Farmer” speaks volumes.
Coupons don’t smack of desperations
For trendy restuarants they most definitely do.
they are part of a change in strategy neccesary for survival in a changing environment.
This is just a euphemism for cash flow problems.
It’s far too early to cal a time of death.
Opening a luxury steak house with appetizers in the 50 buck range in the midst of a massive recession is more than enough reason to call time. The fact that they called it “Urban Farmer” also speaks to their abysmal business sense.
And the fact that they had the gall to name it “Urban Farmer” speaks volumes.
I thought Blue Hour offering coupons was hysterical. After all the pretentious advertising they’ve done, now your supposed to whip out your two fer coupon at the end of your meal. How classy is that? If you want to maintain your status as high end, coupons are a no no.
I normally don’ agree with squeezed, but I have to say, the sooner we see the dimise of the Urban Farmer the better. If I wanted to deal with *%#@A like that I’d move to SF.
Common ground with Mr. Thrifty…it really is the end of the world as we know it!
Common ground with Mr. Thrifty…it really is the end of the world as we know it!