Jon Modene is a Northwest Ohio realtor who has taken to video, here’s a sampling of what he sees in his neck of the woods:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
John (aka JTR2) has it right…as go jobs, goes housing. Which is why our recent uptick is not sustainable locally….yet we are nowhere near the devastation they are feeling. Imagine if Quallcomm, Scripps, and the golf industry moved out…ouch
ps: great posting JTR1 as a little perspective on how good it still is here is refreshing.
Could hardly watch it due to the shaaaaaaaking camera. Jim – you need to teach this guy how to do it right.
Ooh. This video hits home for me. I’m from Indiana. A car parts manufacturer recently closed and an entire town near my hometown basically shut down.
The scenery looks almost identical to this video.
-Erica
Here’s a recent newspaper (page A1) from the area where I grew up:
http://www.newsexaminer.com/shared-content/e-edition/display.php?pubdate=2010-01-11&page=A1&pub=
Everyone is barely hanging on there.
-Erica
Well…Jon looks to still be eating well and driving a nice car! Somehow…
My wife is from Flint MI. Ohio and MI could be in the biggest race to the bottom for 2 stares in modern US history!
For my job I get to travel around the nation. In places like Illinois/Ohio/Michigan you have people that just want to work. Unfortunately often the local governments are corrupt. You can’t start an auto parts manufacturing business without union thugs muscling in. Or without local gov throwing up roadblocks if you don’t contribute to the right campaign.
It really is sad because like I said above in these areas there are highly skilled laborers and all they want to do is work.
Take Cleveland for example. There’s it’s on Lake Erie so it’s easy to ship products in and out. There’s all kinds of people that want to work, and there’s all kinds of manufacturing/warehouse space available. Why aren’t business taking off? Same thing with St Louis. China is an economic powerhouse and it’s because they manufacture products. It’s not like we don’t have the capacity to do the same thing. Something else is holding back production…
Wasn’t Klinger (MASH Tv show) from Toledo? He’d probably lose the dresses and lipstick and pray the Army didn’t discharge him these days.
“China is an economic powerhouse and it’s because they manufacture products.”
China is an economic powerhouse because they’ve got a lot of people that are willing to work cheap, and a government that supports dumping by buying US treasuries. The manufacturing there is a result of tapping into those resources.
“China is an economic powerhouse because they’ve got a lot of people that are willing to work cheap,”
If you have a restaurant that sells meals for $10 a plate. Then another restaurant opens next door and it sells roughly the same plate for $5. What do you do? Continue to sell the same plate at $10? Or do you lower your price to compete for customers?
Economics isn’t about being “fair” or “honest” or “ethical”. It’s about supply and demand plain and simple.
Unfortunately workers in the “rust belt” that put their trust in government + union perversion of simple economic principals are beginning to reap what they’ve sewn.
How I wish our present economic situation were as simple as “it’s all China”. I’ve been reading economics for years and read about this happening more than a decade ago. This is a global economy and most American workers are competing against workers all over the world. You can cry and complain all you want but it’s called capitalism folks. You know that way of doing business you love so much until your competition does you in.
Two things with housing. Either prices have to come down or wages have to go up, a lot. And wages aren’t going to go up. The median wage cannot buy the median house in America. In my lifetime, we went from three yrs to pay for a car to five to seven. We went from 1000 square foot homes to 3-4000 square feet. We went from a car you shifted yourself and rolled the windows down yourself to cars that will almost pick your nose for you. High living on infinite easy credit. We have charged our way into oblivion and oblivion is here. Good luck!!
I wonder if Jon knows this guy in Ohio who bulldozed his own house before the banks could foreclose: http://www.wlwt.com/news/22600154/detail.html
“If you have a restaurant that sells meals for $10 a plate. Then another restaurant opens next door and it sells roughly the same plate for $5. What do you do?”
Change to a Hooters-style format and raise prices!
The median wage cannot buy the median house in America. In my lifetime, we went from three yrs to pay for a car to five to seven. We went from 1000 square foot homes to 3-4000 square feet.
Let’s analyze this. The median US household income is about $50K, with the median home price being $174K. This is pretty affordable and within historical guidelines. The second thing is that very few people own 3-4000 sq ft. houses. While that’s the norm for new construction (more money per plot for developers), it’s not the normal house a person lives in.
Seriously though, you act like everyone has a Lexus and lives in a 4000 sq ft. house when that’s not the norm across the country.
“We have it good” – I was thinking about the weather not the economics…
Well, I agree with Shadash on this one. It is about supply and demand and currently we just don’t compete well enough. Our wages and cost structure are too high to complete globally.
If you don’t believe it, just read Mish for a while.
Mish’s Global Economic Trend Analysis
Let me add:
Sandy beaches and ocean sunsets or plowed fields with snow.
JtR1 is in the right market.
“Our wages and cost structure are too high to complete globally.”
A couple years ago, I would have agreed. Now I am finding that people here are willing to work for a lot less…so much less that it’s easier to hire Americans.
I just hired a well-qualified UI designer for my new startup for $50/hour. Equivalent experience folks overseas wanted $33. The difference between $33 and $50 is worth it to have someone in my time zone.
I am hiring locals for qualified PT jobs at between $10-$25/hour and finding really awesome people at those rates. This wouldn’t have been possible a couple years ago.
I still do hire a fair amount overseas, but the more specialized stuff is definitely coming back here in the US for me/my business.
-Erica
Re: the China discussion
I wouldn’t call the China situation “capitalism.” China depresses the value of its currency so that its labor is less expensive.
I think it is more of a “globalism” phenomenon. The U.S. has to compete with other countries that play by much different rules.
That’s a shame. I would always buy on Illinois Avenue whenever I had the chance. I wonder how the B&O Railroad, Ventnor Avenue, and Marvin Gardens properties are doing.
http://www.360sync.com/wp-content/uploads/2008/02/monopoly.jpg
PS Jim: Please do a video on El Camino Real in Carlsbad if you ever get a chance…it would be a nice companion piece.
“I wouldn’t call the China situation “capitalism.” China depresses the value of its currency so that its labor is less expensive.”
The Federal Reserve inflates the dollar so labor is more expensive.
Who gets the better deal?
China is now competing with Viet Nam on the real cheap stuff. China has had to go a little upscale to compete manufacturing.
What would happen to San Diego if a company in Qualcomm field decided to buy up the company for its technology. Then moved the top engineers to its own headquarters. Five to ten thousand jobs gone in six months. Possiblity. Probably not but its possible.
As America shifts to a service economy, the manufacturing base will disappear. Unfortunately, that base is concentrated in the midwest and the south where labor is relatively cheaper.
Where do these workers go? We can’t all work as Walmart greeters. We need manufacturing jobs in the US b/c those workers can’t retool at 40-50 to become service / IT workers. It just doesn’t happen
In my mind what saves San Diego is the relatively stable white collar job base. Govt jobs plus biotech / pharma and Qualcomm / tech friends. I would also throw SAIC in there.
@20 Qualcomm is the biggest baddest company in its part of the wireless value chain. The Jacobs are from SD so I think it’s safe
re: “Who gets the better deal?”
My point was that we aren’t working in a capitalistic structure.
But to try and answer your question, those currently in power under the respective regimes probably benefit the most at the moment, with future generations suffering the most.
I don’t think people have a real understanding as to what kind of hole we’re in.
http://www.usdebtclock.org/
$177,000+ debt on the books for every US citizen.
$348,000+ debt going to be on the books soon for every US citizen.
Random question…
Re: the various bailout programs, how come we didn’t just do the RTC again (like in the S&L bailout)?
JK,
The RTC was created after S&L Banks were taken over by the government.
One difference between now and then is when an S&L bank failed it’s “assets” were actually assets and not securities. MBS or mortgage backed securities are groups of mortgages that can be owned by multiple different entities. (or a single entity)
If multiple entities own a group of mortgages and some fail but the others don’t how do you break up the MBS?
But all that is just for the open market MBS. Recently the federal reserve has been buying MBS from banks. Eventually they’ll need to put these “assets” back on the market.
Once the Federal Reserve completes it’s mission of making all debt owned by the taxpayers and not banks. That’s when we’ll see an RTC part 2.
Nice and clear explanation. Thanks shadash
“We can’t all work as Walmart greeters. ”
Yes, well this is the problem with our economy. People want everything as cheap as possible, so the chains like WM go buy slave-labor production stuff from SE Asia and pay their employees here as little as possible and give them no benefits. Then the manufacturing leaves the U.S. and more people work at WM where they don’t earn enough to eat, let alone buy the $4.98 snuggie.
If maybe people would support local businesses and businesses would pay their employees living wages and give them benefits then it wouldn’t be such a race to the bottom. Sure, you might pay a bit more, but the postive effect on the economy is worth every penny and more.
Wow! I used to live in Toledo and Bowling Green. I even went to school at the Univ of Toledo! Nice, though sad, video.
Jim–I didn’t know you were franchising–“John the Realtor”–he does need a bit more training on the camera.
Jim, If you come up here to Carlsbad either side of Palomar Airport, but especially the Camino Vida Roble side, you can make the same video. Virtually not one CRE around here without a lease sign.
Jim,
regarding SJ suggestion, I wonder if you know anything about the closing and tear down of the Olympic Resort & Spa at the corner of El Caminio and Palomar Airport Rd. I work next door in the ViaSat complex (not for ViaSat) and have watched in curiosity over the past year or so as it’s been dismantled and demolished.
SJ – Commercial brokers/owners keep leasing signs up all year long regardless of their vacancy levels. The brokers are always looking for new leads so it isn’t a ‘sign’ of a good, or bad, market (although it is a horrible market).
In fact, there is a building complex that was built/foreclosed on nearby (brown split-block) that is 100% vacant and has no sign…odd.
oside – re: Olympic Site: The land is owned by the County and controlled by the Airport Authority. The old timer who built the Olympic club, Morgan Run, etc was going to renovate and add more rooms in a timeshare manner.
When he got grief from the County/residents, he convinced the people from KSL (former owners of La Costa Resort) to buy it. The bought the improvements on a land lease from the county without a real plan which is why it has just lingered. They just figured they could come up with some good complimentary use to the LCR.
Odd part is KSL only buys cash flowing properties so it was a bit of a boom purchase.
As an aside, the Citibank/LCR debt of $320mm was just sold to an investment group for $120mm…ouch. I believe it was headed by the group that owns LCR now.
As an aside, the former Olympic club owner is planning to start a new airline out of Palomar flying to Oakland, and Vegas with 2x/day…bring it on!!!!
The snow and open terrain are haunting reminders of life back east. I can feel the cold. Fresh out of UCD graduate school I naïvely accepted an offer of “adventure” for high pay potential only to get stuck in a spooky world for decades! Regarding weather, the chasm of disparity is so extreme I still can’t fathom it . . . it’s simply metapsychological. We’re so glad we moved home, no small thanks to Jim for finding us a great house. I keep trying to think of antonyms for paradise to describe what were years of insanity back east.
I am from Canton, Ohio long ago, but my sister and nephew still live there – my nephew can’t even get a job at McDonalds, because there is a long waiting list there. . .nearby Youngstown is shutting down parts of the city, and closing down houses to save money on water and sewer pipes, etc. It is the de-evolutin of an entire state. The good news for San Diego is that a lot of us who were from the midwest, and had the money left for SoCal and bought here.
We are so lucky – I am looking out my window right now at the Ronald Reagan carrier which is being re-done here – lots of good jobs at shipyards and defense contractors – SPAWAR, etc.
KSL bought The Del–with a loan of roughly $1M per room I have no idea how that can possibly cashflow–they are a bunch on greedy $#@*%$#!!! Took over vertually all of the retail shops from private owners by simply not renewing their leases–theft of goodwill!!!!
Funny, I drove that stretch of 20A last summer, diverted off of the turnpike because of an accident.
It’s definitely about jobs. That area is not Detroit — it’s a reasonably viable economic center with some nice places to live. I don’t believe the real estate situation is anything like it is in the worst parts of the rust belt, but it’s not a good time anywhere in the US. The reason isn’t because the evil unions and politicians make it so hard for people to do business, it’s that even if you ignore economics, northwest Ohio is not a place people want to live. If it were about unions and government interference, right to work states like South Carolina would be doing great. They’re not. Hell, I live in Pennsylvania, where corrupt local government is a fine art, and the unemployment rate is relatively low (as it is across the northeast).
The snow and open terrain are haunting reminders of life back east. I can feel the cold. Fresh out of UCD graduate school I naïvely accepted an offer of “adventure” for high pay potential only to get stuck in a spooky world for decades! Regarding weather, the chasm of disparity is so extreme I still can’t fathom it . . . it’s simply metapsychological.
I think it was mythically attributed to Kurt Vonnegut, the advice to make sure and live in California at some point in your life, but move away before you become too soft. Having grown up in California and moved to various other parts of the country, and having settled in as a happy ex-pat in Nowheresville, PA, I think this is good advice. I like having four seasons. The winters can be a trial, but it’s good for you. And if you don’t have a real winter, spring and summer are trivial.
BI, I’m an ex-pat from California as well now living in Lancaster. There’s some truth in what you say and I love Lancaster for all that it is.
That said, the fallow times in the winter are intolerable for me. I’m moving back west at my earliest opportunity. Seven years here has been long enough.
clearfund, I work of Vida Roble, as I drive around the area as there, very little in way of occupancy. Our building is one with a lease sign out front and I think very typical, 2 out of 4 or 5 units(they might be splitting one) are leased, the rest vacant. The amount of signs in the last 2 years also about doubled estimating from eye clutter. At one time our building had no vacancies and no sign. So while they may leave them up it’s not a given as it looks like shyte. Caterpillar rental was the latest, no sign, they left, sign.
If maybe people would support local businesses and businesses would pay their employees living wages and give them benefits then it wouldn’t be such a race to the bottom. Sure, you might pay a bit more, but the postive effect on the economy is worth every penny and more.
Former RB Resident | February 23rd, 2010 at 1:45 pm
—————
Totally agree with this. If people had listened to those “evil union thugs” decades ago and insisted upon only buying U.S. made products, we wouldn’t be in the situation we’re in now. A small sliver of our society was able to make great sums from this “globalization” but the vast majority of Americans have been sacrificed in order to make it happen.
We were the world’s top consumer because we had the jobs and the high wages that came from those jobs (thanks to unions!). We did not have to trade with countries that didn’t have the same labor, wage, and environmental standards that we did. People were brainwashed into thinking “cheap” products were good for us. They never bothered to look into the future to see that those “cheap” goods would end up costing us our jobs and our way of life. I won’t even go into the environmental impact of the short life-cycles of those “cheap” goods.
Globalization was the worst thing to happen to the U.S.
CA renter,
If you really believe Unions help give people jobs try reading this…
http://www.timesonline.co.uk/tol/news/world/europe/article6991798.ece
And by the way the same Union thugs just went on strike again. Apparently the parasites haven’t bled the host dry yet.
http://www.nytimes.com/2010/02/24/business/global/24air.html
SJ – Agreed that vacancy in Carlsbad is WAY UP….next year should be a good time to pick up 1 or 2 commercial properties.
Last I checked, office vacancy in CBAD was 35% or so, I imagine industrial is close or higher…
Can you say Overbuilding…
Shadash,
From the first link:
The average basic salary is €200,000 but most double or triple this amount by working overtime.
In contrast, José Luis Rodríguez Zapatero, the Spanish Prime Minister, is paid €91,982 a year and the average salary in Spain is €18,087, according to government figures.
“Scandalous” harrumphed an editorial in El Mundo, the right-wing daily. “Half earn more than double the salary of a government minister.”
One cartoon showed a character, which resembled Emilio Botin, the chairman of Banco Santander, Europe’s biggest bank, studying how to be an air traffic controller.
—————
Firstly, the “scandalous” pay is earned by working a lot of overtime (just like the much-maligned “scandalous” pay of local union workers). If someone works 80, 100+ hours a week, do you think they should do so for free?
Also funny is the notion that the PM **or a banker!** should make more than air traffic controllers (a notoriously difficult job). There are plenty of executives and bankers in the U.S. who make much more than the President of the United States — presumably a more powerful (important?) job than PM of Spain.
Not saying these ATCs are making a justifiable wage. I don’t have enough information to know that. Just that it’s funny how people perceive the value of different occupations. Personally, I think those who provide for the health and well-being of people and society (including doctors, emergency service workers, military personnel, police, etc.) should be the highest paid. Without them, nobody would be able to devote the necessary time and energy to their respective careers, as everyone would have to be primarily concerned about their day-to-day survival.
I’d like for someone to show me a single successful country that has low-paid, private police, fire, military personnel. Even show me a single successful country (defined as a country with a quality of life that is equal to or superior to what we have in the U.S. or Europe)that doesn’t have strong unions and/or a fairly socialistic economy/govt structure. I’ve never seen nor heard of such a place, but would be more than willing to change my perspective if someone could show me a country where everything was provided solely by private money (NO govt money, whatsoever) and without organized labor.
Yes, we need people to keep workers in check, but we also need people to keep corporations/financiers in check. It doesn’t work well if only one group has unilateral power over all other people. I firmly believe the decline of our country is directly attributable to the weakening power of unions over the past few decades.