Mortgage modifications fail to stop defaults

[DWCAP]

population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.

[EconProf]

DWCAP: That post really hit home.
Last night a family friend from Oregon temporarily moved in with us.
A month earlier she had moved to CA, found a Mira Mesa room for rent & signed up. After a while the 8 (!) other tenants became too much for her, plus the uncleanliness of it all, and she moved in with us–for a few days until June 1 when her next room rental is available.
Is this housing model the future of the McMansions the builders threw up earlier in this decade? Despite demographic trends of the baby-boomers dictating downsizing they kept putting bigger and bigger houses on smaller and smaller lots. A lot of room-rental houses in such neighborhoods is something to look out for for you buyers with an eye toward the future. Neighborhoods with streets clogged with parked cars, noise, and higher density are to be avoided if you seek appreciation in values.

[EconProf]

DWCAP: That post really hit home.
Last night a family friend from Oregon temporarily moved in with us.
A month earlier she had moved to CA, found a Mira Mesa room for rent & signed up. After a while the 8 (!) other tenants became too much for her, plus the uncleanliness of it all, and she moved in with us–for a few days until June 1 when her next room rental is available.
Is this housing model the future of the McMansions the builders threw up earlier in this decade? Despite demographic trends of the baby-boomers dictating downsizing they kept putting bigger and bigger houses on smaller and smaller lots. A lot of room-rental houses in such neighborhoods is something to look out for for you buyers with an eye toward the future. Neighborhoods with streets clogged with parked cars, noise, and higher density are to be avoided if you seek appreciation in values.

[EconProf]

DWCAP: That post really hit home.
Last night a family friend from Oregon temporarily moved in with us.
A month earlier she had moved to CA, found a Mira Mesa room for rent & signed up. After a while the 8 (!) other tenants became too much for her, plus the uncleanliness of it all, and she moved in with us–for a few days until June 1 when her next room rental is available.
Is this housing model the future of the McMansions the builders threw up earlier in this decade? Despite demographic trends of the baby-boomers dictating downsizing they kept putting bigger and bigger houses on smaller and smaller lots. A lot of room-rental houses in such neighborhoods is something to look out for for you buyers with an eye toward the future. Neighborhoods with streets clogged with parked cars, noise, and higher density are to be avoided if you seek appreciation in values.

[EconProf]

DWCAP: That post really hit home.
Last night a family friend from Oregon temporarily moved in with us.
A month earlier she had moved to CA, found a Mira Mesa room for rent & signed up. After a while the 8 (!) other tenants became too much for her, plus the uncleanliness of it all, and she moved in with us–for a few days until June 1 when her next room rental is available.
Is this housing model the future of the McMansions the builders threw up earlier in this decade? Despite demographic trends of the baby-boomers dictating downsizing they kept putting bigger and bigger houses on smaller and smaller lots. A lot of room-rental houses in such neighborhoods is something to look out for for you buyers with an eye toward the future. Neighborhoods with streets clogged with parked cars, noise, and higher density are to be avoided if you seek appreciation in values.

[EconProf]

DWCAP: That post really hit home.
Last night a family friend from Oregon temporarily moved in with us.
A month earlier she had moved to CA, found a Mira Mesa room for rent & signed up. After a while the 8 (!) other tenants became too much for her, plus the uncleanliness of it all, and she moved in with us–for a few days until June 1 when her next room rental is available.
Is this housing model the future of the McMansions the builders threw up earlier in this decade? Despite demographic trends of the baby-boomers dictating downsizing they kept putting bigger and bigger houses on smaller and smaller lots. A lot of room-rental houses in such neighborhoods is something to look out for for you buyers with an eye toward the future. Neighborhoods with streets clogged with parked cars, noise, and higher density are to be avoided if you seek appreciation in values.

[(former)FormerSanDiegan]

[quote=peterb]

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]

I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.

It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.

[(former)FormerSanDiegan]

[quote=peterb]

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]

I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.

It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.

[(former)FormerSanDiegan]

[quote=peterb]

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]

I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.

It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.

[(former)FormerSanDiegan]

[quote=peterb]

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]

I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.

It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.

[(former)FormerSanDiegan]

[quote=peterb]

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]

I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.

It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.

[Anonymous]

EconProf and all.

Longtime lurker, new member. I’ve found the Pigginton topics and regulars to be the best semi-secret source of real time, local RE and economic information – thank you. I am an early 40’s, native San Diegan, married with 2 kids, living in Carlsbad.

I wanted to add a recent, local anecdote from a Memorial day community BBQ. I saw the dad of a boy on my son’s T-ball team. I said, hi, and exchanged small talk. A few minutes later, I saw the Grandpa of my son’s t-ball teammate. I said hi, and mentioned how fortunate he is to live close enough to his grand children to attend events together. Grandpa replied, “Well, we live very close to my son, wife, and grandkids.” He went on to say that his son had sold their home in CBad, moved in with the Grandparents, and “were waiting out the economy.” Granted, this area has 3,000 sqft homes, but three generations under foot can be problematic in cultures where this isn’t the norm. I don’t know if the family was savvy enough to “sell at the top” and move in, or was forced to move in do to financial reasons. I do know that the couple is very educated, yet “showy” so draw your own conclusions. IMO, we will probably see more financially-induced generational living (FIGL) in SD.

QC

[Anonymous]

EconProf and all.

Longtime lurker, new member. I’ve found the Pigginton topics and regulars to be the best semi-secret source of real time, local RE and economic information – thank you. I am an early 40’s, native San Diegan, married with 2 kids, living in Carlsbad.

I wanted to add a recent, local anecdote from a Memorial day community BBQ. I saw the dad of a boy on my son’s T-ball team. I said, hi, and exchanged small talk. A few minutes later, I saw the Grandpa of my son’s t-ball teammate. I said hi, and mentioned how fortunate he is to live close enough to his grand children to attend events together. Grandpa replied, “Well, we live very close to my son, wife, and grandkids.” He went on to say that his son had sold their home in CBad, moved in with the Grandparents, and “were waiting out the economy.” Granted, this area has 3,000 sqft homes, but three generations under foot can be problematic in cultures where this isn’t the norm. I don’t know if the family was savvy enough to “sell at the top” and move in, or was forced to move in do to financial reasons. I do know that the couple is very educated, yet “showy” so draw your own conclusions. IMO, we will probably see more financially-induced generational living (FIGL) in SD.

QC

[Anonymous]

EconProf and all.

Longtime lurker, new member. I’ve found the Pigginton topics and regulars to be the best semi-secret source of real time, local RE and economic information – thank you. I am an early 40’s, native San Diegan, married with 2 kids, living in Carlsbad.

I wanted to add a recent, local anecdote from a Memorial day community BBQ. I saw the dad of a boy on my son’s T-ball team. I said, hi, and exchanged small talk. A few minutes later, I saw the Grandpa of my son’s t-ball teammate. I said hi, and mentioned how fortunate he is to live close enough to his grand children to attend events together. Grandpa replied, “Well, we live very close to my son, wife, and grandkids.” He went on to say that his son had sold their home in CBad, moved in with the Grandparents, and “were waiting out the economy.” Granted, this area has 3,000 sqft homes, but three generations under foot can be problematic in cultures where this isn’t the norm. I don’t know if the family was savvy enough to “sell at the top” and move in, or was forced to move in do to financial reasons. I do know that the couple is very educated, yet “showy” so draw your own conclusions. IMO, we will probably see more financially-induced generational living (FIGL) in SD.

QC

[Anonymous]

EconProf and all.

Longtime lurker, new member. I’ve found the Pigginton topics and regulars to be the best semi-secret source of real time, local RE and economic information – thank you. I am an early 40’s, native San Diegan, married with 2 kids, living in Carlsbad.

I wanted to add a recent, local anecdote from a Memorial day community BBQ. I saw the dad of a boy on my son’s T-ball team. I said, hi, and exchanged small talk. A few minutes later, I saw the Grandpa of my son’s t-ball teammate. I said hi, and mentioned how fortunate he is to live close enough to his grand children to attend events together. Grandpa replied, “Well, we live very close to my son, wife, and grandkids.” He went on to say that his son had sold their home in CBad, moved in with the Grandparents, and “were waiting out the economy.” Granted, this area has 3,000 sqft homes, but three generations under foot can be problematic in cultures where this isn’t the norm. I don’t know if the family was savvy enough to “sell at the top” and move in, or was forced to move in do to financial reasons. I do know that the couple is very educated, yet “showy” so draw your own conclusions. IMO, we will probably see more financially-induced generational living (FIGL) in SD.

QC

[Author]

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