This 7br/8ba, 9,380sf house sold for $8,850,000 in December, 2016. The gorgeous red 1959 Cadillac Sedan de Ville is priceless!
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The N.A.R. rolled out a new logo a couple of weeks ago, and the response from agents was so bad they rescinded it. Undaunted, the California Association of Realtors did the same thing today (above), but at least they didn’t reveal the cost (N.A.R. blew $250,000).
They also released a couple of new ads (below). Both end with what must be a new slogan, “Who’s Your Realtor”, which is pretty vague. But below that is a mention of a website, championsofhome.com, which actually has some helpful information, including videos of real people talking about their experience and providing tips. Good for C.A.R., at least they are trying to help us!
This is their third round of layoffs, and I think it’s around 10% of the staff that’s been let go. One of these days, it could affect the real estate market. From the UT:
Qualcomm began notifying workers of layoffs on Wednesday as part of its previously announced plan to trim $1 billion in costs.
The number of employees being let go, as well as the departments affected, is unclear. So far, Qualcomm hasn’t filed a layoff notice under the state Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 day notice of significant layoffs.
In a statement late Wednesday, Qualcomm said the job cuts span permanent and temporary workers.
“A workforce reduction such as this one affects not only those employees who are part of the reduction but their families, co-workers and the community,” a Qualcomm spokesperson said in a statement. “We recognize this and have offered affected employees supportive severance packages to reduce the impact of this transition on them.”
The company said it initially evaluated cost cuts that would have avoided layoffs, “but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all of our stakeholders.”
The cellular technology giant employs about 13,000 workers in San Diego and 33,800 globally. Fifty-two percent of its workforce is based in the U.S. The remainder are employed overseas.
In addition to San Diego, the company has a significant number of U.S. employees in the Bay Area. Severance and other details were unavailable.
The Union-Tribune spoke with a handful of employees, who did not want to be identified, about the layoffs. Some were sad, while one expressed concern that U.S. workers in his product group were let go while foreign H1-B visa employees kept their jobs.
In 2015, Quacomm slashed 1,315 jobs in San Diego and thousands in other locations globally as it trimmed $1.4 billion in costs.
Despite those moves, Qualcomm’s 33,000-plus global workforce is roughly the same today as it was prior to the layoffs three years ago.
That’s partly due to acquisitions. Qualcomm bought British automotive chip firm CSR in 2015. A short time later, it absorbed a joint venture with Japan’s TDK that developed radio frequency front-end semiconductors.
In January, Qualcomm pledged to reduce operating expenses by $1 billion as part of its promise to deliver adjusted earnings of $6.75 to $7.50 per share in fiscal 2019.
That earnings target is significantly higher than adjusted earnings of $4.28 per share last year.
Qualcomm set the lofty financial goal during its brutal hostile takeover battle with chip rival Broadcom this past winter. During the fight, Qualcomm argued that Broadcom’s $117 billion buyout offer undervalued its growth prospects as cellular technology expands into gadgets beyond smartphones.
Broadcom’s takeover attempt was eventually scuttled by the Trump administration on national security grounds. But a significant number of frustrated Qualcomm shareholders supported the Broadcom bid, which puts pressure on the company to hit its per share earnings target.Link to full article
Reader AI wondered what happened to the homes for the middle class. The Seaport is a good example. In 1977, these 1,512sf to 1,946sf homes across the street from the La Costa Resort were priced reasonably:
A remodeled house with an extra 500sf addition just sold for $1,035,000!
Here are photos of it:Link to Photos
Excerpted from this NPR article:Link to article
New research and data suggest that the practices of house flippers fed the bubble of the early 2000s. Much of the blame for the housing crash has fallen on subprime borrowers and people who bought and lived in homes they couldn’t afford.
But researchers are now coming to understand that a big part of the problem was people with better-than-average credit scores who owned multiple homes — not subprime buyers, but real estate investors, landlords and flippers.
Stefania Albanesi, an economist at the University of Pittsburgh, argues that the rise in mortgage defaults during the housing crash was mostly attributable to real estate investors, including flippers.
During the bubble, about two-thirds of home flips nationwide were financed with loans, according Attom. In places like Phoenix and Florida, that number approached 80 percent.
The problem with that, Albanesi says, is that real estate investors such as flippers are at greater risk of defaulting on their mortgages than normal homeowners.
“If you lose your home that you’re living in, you have to relocate your family, find other housing, and maybe have a longer commute,” Albanesi says. “This is not something that’s there for the investor. Overall, their default probability is much greater.”
Normally, people with above-average credit scores are unlikely to default on their mortgages. But during the crisis, Albanesi’s research shows, it was borrowers with good credit scores who had taken out mortgages on additional properties — mostly investors — who defaulted at historically high rates.
Real estate experts in Phoenix, where these risk factors are ahead of national levels, say there’s no reason to sound the alarm yet.
During the housing boom, prices were rising so quickly that inexperienced real estate investors could turn a profit despite their lack of expertise, says Mark Stapp, who teaches real estate development at Arizona State University.
“Today, you can’t. It’s harder,” he says. He points to financing and commercial lenders. During the bubble in Phoenix, more than 75 percent of flips were financed with loans. Now, flippers in the area acquire about half their homes with financing, half with cash.
“Commercial lenders have been very disciplined,” Stapp says. “The loan-to-value, loan-to-cost, those kind of metrics, they’re keeping very low and tight control over. The issues we had previously with abuse through manipulating appraisals, that isn’t really happening.”
Simply put, Stapp says, though some of those inexperienced flippers are back, they’re still too small a portion of the market to worry about.
“I think it’s such a small number,” he says. “I don’t think it’s to the point where it so dramatically affects the market that the market gets hurt by it.”
The real estate business has been too easy the last few years, and it appears a tougher market is coming, which will help weed out the agents. Unfortunately, downturns don’t discriminate – a slower market will cause the retirements of realtors young and old, of every age, and every color. Be happy it lasted as long as it did, and you made the best of it. I hope we all make it!
But let’s deal with the reality – we can handle the truth:
Apparently, this is a topic that draws interest. When first mentioned on Monday, we had the highest readership of the year:
P.S. The 60,949 is the # of comments over the years – thanks for being here!
I am the QUEEN of buying tons of groceries/bringing home all my leftovers and just throwing them in the fridge … and then eventually throwing them out – ask any of my roommates!
Did you know that 40% of the food in the US goes uneaten? Which means that Americans are throwing out the equivalent of $165 BILLION each year! Yeah, I’m not helping the cause but HEY it’s time to change!
Some of you might already know these, but here are some tips I have learned about organizing your refrigerator!
1. Set your refrigerator to 40 degrees or lower – bacteria grows rapidly between 40-140 degrees.
2. Refrigerator door is the warmest – try to only store condiments in this area. Anything dairy (especially milk) or eggs will go bad quickly – the temperature fluctuates too much in the door.
3. Upper shelves are the slightly-warmer section – store foods that don’t have a health safety risk aka leftovers, drinks, ready-to-eat foods. Getting clear containers for leftovers is also helpful because it will help you see what the heck are in those white take out boxes!
4. Bottom shelves = coldest section – store meats, poultry, or any other raw meats. This also prevents drips from contaminating food below. If you take it out of the meat packaging, put it in a bowl.
5. Mason jars for salads – mason jars are the longest-lasting way to keeps salads. Dressing on the bottom, veggies and other salads goodies get piled on top. If you have a lid for your jar, they can last up to 5-7 days!
6. Containers – if you haven’t figured it out by now, I LOVE the Container Store! Here are some great containers to use for wine bottles, soda cans, eggs, etc!
7. Produce keepers – this will help you keep your produce fresh. Waste less and save more!
This is pretty much the same thing – if you want to keep produce in your drawer rather than a separate container, buy this insert!
8. Allow enough space between foods – air needs to circulate around food to keep it cool. A crowded fridge can create warm spots and cool spaces, which can lead to spoilage.
Happy Tuesday everybody!