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July 17, 2015 at 2:55 PM #788028July 17, 2015 at 4:45 PM #788029
CoronitaParticipant[quote=AN][quote=spdrun]Not all loans are GSE-backed…[/quote]Right, but 90+% are, especially around 2011/2012. Which is why I asked which bank he uses.[/quote]
Yeah, I want to find that 10% too. 🙂
Rocking time. Can you tell us how is that lender because I really want to find those that aren’t gse.
July 17, 2015 at 8:52 PM #788031fun4vnay2
Participantguys,
i am not sure what kind of bank it was but it was not probably gse.., for my second hse my lender was brian wada..
my first house was paid off almost and i had dti in control per my knowledge.
I am not financially very savvy when it comes to details but I definitely have an eye over the bigger pic.r u guys planning to buy now ?
July 18, 2015 at 8:32 PM #788033CoronitaParticipant[quote=rockingtime]guys,
i am not sure what kind of bank it was but it was not probably gse.., for my second hse my lender was brian wada..
my first house was paid off almost and i had dti in control per my knowledge.
I am not financially very savvy when it comes to details but I definitely have an eye over the bigger pic.r u guys planning to buy now ?[/quote]
I’m always looking. Would you mind digging up your old loan papers and find out which one of your lenders wasn’t GSE. I’d really really appreciate that because, it would be great to know in case I wanted to include my rental income more of my recent purchases as a means of borrowing for something else.
July 19, 2015 at 9:05 PM #788053equalizer
ParticipantJANA partners is biggest shareholder in QCOM ($2B) and they want some changes, like splitting up the company into two, but execs said no way. But execs did agree to hire “The Bobs” as consultants to look for cost reductions. July 22 shareholder meeting may provide some answers.
http://www.thedeal.com/content/tmt/why-qualcomm-could-end-up-as-the-biggest-proxy-fight-ever.php
July 19, 2015 at 9:18 PM #788055Participantexcuse my ignorance, what is gse ?
I had to be able to afford two mortgages whenever I bought the “other” home.
Also, when i bought home, I moved in there as my primary residence.July 19, 2015 at 9:18 PM #788056Participantexcuse my ignorance, what is gse ?
I had to be able to afford two mortgages whenever I bought the “other” home.
Also, when i bought home, I moved in there as my primary residence.July 20, 2015 at 3:49 PM #788076hillsilly
ParticipantSeems to have hit the news: http://news.yahoo.com/qualcomm-preparing-layoff-many-several-thousand-employees-tech-201352444–finance.html
July 21, 2015 at 8:53 PM #788099
svelteParticipantNo longer our little secret.
July 21, 2015 at 9:41 PM #788100Zaphod
ParticipantBy now several news reports from several sources have confirmed about Qualcomm announcing significant lay-offs (>10% of the workforce, ~4000 employees) and this will likely be confirmed by the company soon enough.
That poses a compelling question for the author of this blog to address — how will this impact the San Diego housing market?
The blog reports that the housing supply is very low (my personal experience as well as a recent buyer after looking for 1.5 years), pushing up prices in the short run. This development is likely to push out some high-income professionals from the market, sell their homes, and move to other locations for work.
I believe the author should analyze and comment on this significant development in the San Diego area.
July 21, 2015 at 10:46 PM #788103bearishgurl
Participant[quote=svelte]No longer our little secret.
. . . The company employs 31,000 workers worldwide, including more than 15,000 in San Diego. Two- thirds of its workers are engineers. Its last layoff occurred in December, when about 600 employees were let go.
In addition to San Diego, Qualcomm also has roughly 3,000 workers in the Bay Area from its 2011 acquisition of Wi-Fi chip maker Atheros. Other locations include Colorado, New England, North Carolina, New Jersey and Texas, as well as overseas.
The cuts are expected to occur across the board, impacting all business units. According to employees, the cuts have been characterized as a pruning but not a fundamental change in the way the company operates….
In the US alone, Qualcomm has 7 locations, including SD, which has the most employees (16K).
According to the article, QC’s roughly 4K in employee cuts will be worldwide. Assuming arguendo that they won’t cut employees in countries where wages are much lower than the US, 4K out of 31K employees is about 12% of its workforce. If the cuts are across the board, then 12% of its 16K SD workforce = 1920 employees. A handful of those employees also have other household members working at QC. So let’s say 1900 SD households are affected adversely by layoff (primary breadwinner of hshld). Let’s assume 75% of them are homeowners or 1425 of them. We should also assume that a large fraction of these layoffs could be forced retirements of longtime employees who may have their homes paid off or nearly paid off. A large fraction of the laid off employees may also have other household members working FT who are making just as much or more than they are.
Even if ~2500 employees are laid off in SD, I don’t think QC’s actions will cause cratering of property values, even in zip codes close to their HQ. I don’t believe that the majority of QC employees who are homeowners live in the same or an adjacent zip code as QC. Perhaps employees who are renters generally do but not homeowners. It didn’t always take as long as it does today to get to QC from various parts of the county. I feel that many/most? longtime homeowners who were in QC’s original groups of employees and have not yet retired actually never moved since their hire (or since they bought a home shortly after their hire) and still live in their original homes.
So I just don’t see where SD’s housing market will be affected at all by what happens at QC this year. I predict that whatever the effect of SD’s housing market in relation to whatever QC decides to do with its SD employees will be a drop in the bucket. At the very most, a few more listings may trickle on the market from lower-rung more newly-hired employees who can’t sustain themselves without their QC job … that is, from the laid off ones who are actually homeowners. That’s a good thing, isn’t it?
July 22, 2015 at 10:26 AM #788109CoronitaParticipantWell, we will find out this afternoon. I don’t think the bulk of the cuts, if anything major will come from San Diego. I think the bulk of the cuts will come from Bay Area and elsewhere.
They bought like 3 wireless connectivity companies (Atheros, CSR, and I forget some one before Atheros). There’s probably more than one team competing against each other doing the exact same thing. kinda like we were when our company bought 3 LTE companies…. We know how that ended. 🙁
I don’t think this will drastically impact SD housing market per se, since it seems like the SD professional market is now pretty well diversified. Biotech seems to be doing very well at this moment.
A lot of the engineering households that are already able to afford north county (which itself is a problem…affordability), for example, tend to be dual income households to begin with, most likely both professionals (particularly the asian and indian households). So the difference is that a $300-400k/year household goes to about around $200k/year household. There’s probably going to be some people that relocate out (single income households, that also has the bad luck of not being able to find something else), but then there’s still these influx of other buyers (foreign and domestic) that aren’t even tied to Qualcomm or engineering for that matter.
It sucks for the people impacted, but life goes on for everyone else.
July 22, 2015 at 12:01 PM #788116July 22, 2015 at 12:04 PM #788110Participant[quote=flu]Well, we will find out this afternoon. I don’t think the bulk of the cuts, if anything major will come from San Diego. I think the bulk of the cuts will come from Bay Area and elsewhere.
They bought like 3 wireless connectivity companies (Atheros, CSR, and I forget some one before Atheros). There’s probably more than one team competing against each other doing the exact same thing. kinda like we were when our company bought 3 LTE companies…. We know how that ended. 🙁
I don’t think this will drastically impact SD housing market per se, since it seems like the SD professional market is now pretty well diversified. Biotech seems to be doing very well at this moment.
A lot of the engineering households that are already able to afford north county (which itself is a problem…affordability), for example, tend to be dual income households to begin with, most likely both professionals (particularly the asian and indian households). So the difference is that a $300-400k/year household goes to about around $200k/year household. There’s probably going to be some people that relocate out (single income households, that also has the bad luck of not being able to find something else), but then there’s still these influx of other buyers (foreign and domestic) that aren’t even tied to Qualcomm or engineering for that matter.
It sucks for the people impacted, but life goes on for everyone else.[/quote]
Agree with this whole post expect for one minor caveat. That is, housing unaffordability problems exist ALL OVER the county, not just in North County. It is just as far of a commute to QC from many points in North Coastal and North Inland County as it is from “affluent areas” in East and South County (SD affluent areas such as LJ, PL, MH and CV are situated closer to QC), thus QC employee-homeowners have always been spread out across the county, especially the more senior ones who joined QC long ago, when commuting was easier.
This QC action speaks LOUDLY for having a dual-income household in SD …. MOST ESPECIALLY during the years one is attempting to raise minor children and give them a long-term, stable home.
Similar mass layoffs occurred in SD in the early nineties but they were mostly the fairly well-paying factory jobs of SEVERAL major local employers at one time, causing more widespread local layoffs. As I recall, these laid-off employees’ homes that flooded the market were listed by sellers who either retired in lieu of layoff and decided to relocate or by sellers who could no longer sustain themselves in the area after layoff (single-income households with minor children). The second type of seller is particularly (financially) vulnerable to layoffs … almost immediately to the point of relocation being a necessity for them. Yes, many single-family listings flooded the market at that time (I believe the worst year was in ’94) and I recall most of them were located in Clairemont, Allied Gardens, Linda Vista and all points south within SD and South County (Rohr Industries and Vulcan Rubber in South County were among the closing plants during this era).
Correction: the Vulcan Plant has apparently moved to Otay Mesa and is still in (limited) operation … my bad. I was referring to the power plant located on the bottom of SD’s bayfront, which employed several hundred local workers, including boilermakers making $27 – $37 hr. After closing over 20 years ago, it was finally demolished in 2013 with much aplomb:
http://articles.latimes.com/2013/feb/03/local/la-me-0203-power-plant-20130203
July 22, 2015 at 12:09 PM #788115ParticipantI want to repeat here again that the climate in SD County has NEVER been conducive to operating a single-earner household of 3 or more persons while simultaneously a homeowner with a mortgage plus all the other expenses which go along with homeownership.
The exception is if one of the owners “inherits” their residence from parents/grandparents or the “sole breadwinner-borrower” makes $200-$250K per year, depending on size of mortgage taken out.
This has ALWAYS BEEN the case in SD County so it should come as no surprise to those families affected by QC’s layoff who elected to “put all their eggs in one basket” . . . in my mind, a very unwise move in this day and age.
Because of the prevailing mortgage interest rates of different eras, it DOESN’T MATTER how much the household’s mortgage balance is/was as the higher or MUCH higher interest rate and lower wages of each previous era resulted in the same declination of standard of living as experienced today in single-income 3+ person households.
So for those who live in areas with many paid-off homes, it should be some consolation to know that your neighbor who paid off their $45K to $150K mortgage years ago likely did so after a lot of blood, sweat and tears. It was no easier for a homeowner to attempt to pay off $97K at 9-14% than it is to attempt to pay off $417K at 3-4% today, especially when factoring in the lower salaries of previous decades.
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