MSM PORE on the Real Estate Market

OK Folks the MSM’s PORE (PSY-OPS Reporting and Editorializing) is now kicking in high gear with this article.  In other words the PTB (Powers That BE) have decided that it is now time to move the ”Sheeple” back into Real Estate, so that the FED’s Member Banks can clear their Balance Sheets of Toxic assets and move on to the next game, i.e. the coming EXPLOSION in the world’s Stock Markets! 

AND, what follows is the ultimate example of what we have witnessed over the last fifty years.  Namely, articles in the MSM that are - in our opinion - very clearly well-planned, choreographed and thought out and structured WAY ahead of time to create the desired economic decisions amongst the great unwashed masses of the “Sheeple,” so that they are suitably primed to buy Real Estate in 2013 and 2014 JUST before the second wave of the Super Tsunami "Kondratieff" Long-Wave does totally swamp all real Estate in 2014 to 2015! 

  (These original projections of ours were extended over five times: we were forced to do so by the continual extension of the FED's ZIRP - by the Panicked Banking Authorities.  Therefore, we were forced to extend the projected timing of the ultimate Mother of All Crashes out to roughly the summer 2016!)

We predicted last year that Real Estate would bottom in late 2012 to early 2013.  At the same time we predicted that it would NOT be the place to commit investment capital, because Real Estate will NEVER recover the insane Pricing Metrics of the Halcyon days of 2002 to 05 until roughly 2037 to 2045!

Furthermore, we stated that while Real Estate would begin to recover in early 2013 that it would only be in ABSOLUTE TERMS and NOT in INFLATION ADJUSTED TERMS!

Our original estimates of these coming horrific attractions had to be extended from late 2013 to Winter 2014/Summer 2015 to match the time-frames now ordained by the FED’s radically insane stretching out of their ZIRP and their replacement of the all too-obvious QE’s with their “Twisted Sister” Campaigns, see our recent Blogs on these totally bizarre Yield Curve Machinations that will result in macro-economic altering dislocations of capital flows!

WARNING FOR ALL:

Furthermore, we have stated quite clearly that ALL Real ESTATE would suffer a second and even greater cataclysmic collapse with the onslaught of the second wave of "Kondratieff" in 2014 to 2015 and then continue collapsing on into the early 2020’s, when the Third Wave of the SUPER-TSUNAMI “Kondratieff” Long-Wave breaks over all the earth and finishes the job.  

And it is now all too clear that the cataclysmic collapse of 2014 to 2015 will begin when interest rates quite literally explode as the BIGGEST BUBBLE OF ALL EXPLODES with the BURSTING OF THE BOND BUBBLE, which is now being inflated to extreme and quite mortally toxic levels with the FED’s totally insane ZIRP (Zero Interest Rate Policy)!

Are you and your company ready for these coming Macro-economic attractions?

Hoboken Homes Gone in 60 Minutes Signal U.S. Recovery: Mortgages

Bloomberg: By Prashant Gopal and Brian Louis - May 25, 2012 4:22 PM ET

For the latest sign of a U.S. housing rebound, Toll Brothers (TOL) Inc. Chief Executive Officer Douglas Yearley (1) points to Hoboken, New Jersey: A couple torn between two condos last month at the sales office for its Hudson Tea complex decided to think about it over lunch. When they returned an hour later, both units were gone.

“People feel like now is the time to buy and they aren’t isolated to one building in Hoboken,” Yearley said in a May 23 conference call with analysts after the Horsham, Pennsylvania- based luxury homebuilder reported that quarterly orders for new homes surged 47 percent. “Confidence is up. The interest rates are there and they’ve been waiting so long to move on with their lives that they came out this spring.”

U.S. homebuilders are reporting their most-improved spring selling season (2) in seven years as record low mortgage rates, job gains, and shrinking inventories are drawing buyers to sales offices that have been quiet since the property market collapse. …

Off the Fence

While demand for existing homes has been on the rise in recent months, the improvement in new home sales signals that the growing appetite for residential real estate goes beyond foreclosures and other distressed sales targeted by investors. Traditional homebuyers, including those who have to sell another property to upgrade, are coming off the fence, Stan Humphries, Zillow Inc.’s chief economist said.

…In Hoboken, Toll Brothers increased prices six times (3) since it began selling apartments last spring in the 157-unit 1450 Washington at Hudson Tea, where prices now range from $450,000 to $1 million, said Todd Dumaresq, marketing manager for Toll’s City Living division. The company has sold 108 units in the building and is now selling about 12 homes a month, he said.

Overlook Hudson River

….Rising apartment rents also are driving Americans who have good credit and enough money for a down payment back into the housing market…

‘Broader-Based Recovery’

“There are signs that this is a broader-based recovery,” Humphries said.(1)  “It is really driven by affordability and buyers feeling more confident about the housing market.”

Dennis and Sally Webert were renting when they decided to buy a home in PulteGroup Inc. (PHM)’s Trailside at Huning Ranch development south of Albuquerque, New Mexico for $140,000, prompted by a special promotion. “We’ve been eyeballing these homes for several years,” Dennis Webert said. “The timing was just right.” (3)

About 5,000 potential buyers showed up for the opening of nine model homes last weekend at The Bridges, (3) a community in Delray Beach, Florida built by GL Homes, said sales agent Robert Macias, 54. The company used eight golf carts to shuttle customers from their cars and sold 18 homes over the weekend and another handful this week, he said.

The company, which sells homes in the community for about $500,000 to $1.5 million, has raised prices about 5 percent since preconstruction sales began in February, East Coast Division President Marcie DePlaza said.

50 In a Room

“There were times when you’d walk into one of the models and there would be 50 people in a room,” (3) Macias said. “This is not like the boom because they were buying here because they want to live here, not because they want to make an investment.” …

Fragile Recovery

Homebuyers are choosing to pay a premium for a new home because foreclosures often require repair, and short sales, where the property is sold for less than the amount owed, can take too long to complete, Hunter said.

The jump in demand is encouraging, though the recovery in housing is fragile and faces economic headwinds, including Europe’s sovereign debt crisis and possible U.S. government budget cuts next year. While unemployment has dropped to 8.1 percent from 10 percent in October 2009, it’s still above the 10-year average of 6.6 percent. (4)

The pace of new home sales last month was less than half the average of the past 10 years, according to Commerce Department data. While property prices fell 3.5 percent in February, the smallest 12-month drop since February 2011, it extended the decline since the 2006 peak to 35 percent.

Home sales are also limited by tight lending standards, as lenders require higher down payments and credit scores.

‘Sure Feels Good’

Toll Brothers has the advantage of selling to wealthier buyers with better access to cash and debt. Potential acquirers also have better access to jumbo mortgages, including an “18- month lock option,(2)  which we haven’t had since Moby Dick was a guppy,” Donald Salmon, who runs Toll Brothers’ mortgage company said during the May 23 conference call.

“While domestic and global headline risk remains a concern that could potentially undermine buyer confidence, with mortgage rates at historic lows and inventory supplies dropping in many markets, we are feeling better than we have at any time in the past five years,” Robert Toll, executive chairman of the builder, said during the call. “We would like to say we’re back, but we need a little more confirmation. Nonetheless, it sure feels good compared to the desert we’ve just crossed.”

Publicly-traded homebuilders are taking market share from private firms because they have better access to financing (2) and are able to buy land and build in the best locations, said Foley of Barclays. Toll Brothers rose 0.9 percent to $28.20 at 4:15 p.m. in New York, the highest since June 2007. The company has gained 38 percent this year, compared with the 37 percent advance of the 11-member Standard & Poor’s 1500 Homebuilding index.

(1)The correct questions that all readers should ask is what did Mr Yearely and Mr. Humphries and Mr. Toll see and say in 2005 and 2006 and 2007 and 2008 BEFORE the crash, and what did they see and say about the prospects for a recovery in the Spring of 2009 and 2010 and 2011?  We know.  Can you guess?

(2) This polling of the so-called experts is reminiscent of nothing but pure out and out hype intended to benefit a VERY special class of recipients of the largess of the FED via the insane ZIRP, which largess is used to induce the “Sheeple” to make the exact wrong decision yet again and buy Real Estate at too high prices - just before the second wave of the Super Tsunami “Kondratieff” Long-Wave does implode all Real Estate markets for the next twenty five to forty years!

(3) In PORE terms this information is called ‘bait.’ The very nature of this is intended to ignite the greed of the masses and to instill fear into them that they will miss the next big move in Real Estate.  Fear and Greed are the pillars of the FLEGS and are only outgunned by Stupidity, as the “Sheeple” who read this MSM PORE will be motivated to move back into Real Estate NOW, to be slaughtered yet again in 2014 to 2015! 

Fishermen know this type of activity as “Chumming” the waters, and the MSM is most expert at “Chumming” of the masses, after having honed their skills for the last hundred years or so!

(4) We have covered ad nauseum why these numbers are totally fictional!