An Insider's View of Real Estate Across the Country

[Joseph Burkeson, CMI]

An Insider's View of Real Estate Across the Country



Robert Toll, Chairman and CEO of the leading luxury homebuilder Toll Brothers, Inc, is at the Milken Institute Global Conference. At a roundtable discussion on real estate he broke down the current housing market situation across the country:

-Boston is in the pits.

-In New Jersey things stink.

-New York City strength on top of strength.

-Pennsylvania burbs are okay.

-Florida, it's so bad "Death takes a holiday."

-Texas is good.

-Phoenix right into the bucket.

-Chicago not working.

-Southern California started to comeback but has dipped again.

-Michigan is a place that may never comeback.

-Las Vegas is terrible.

-Washington DC has comeback.

Toll also commented that the housing downturn was unique in that it isn't accompanied by a recession. He asked, "What happens if there is a recession?" He then answered his own question, "It would be cataclysmic for the housing industry."
Labels: MilkenConference, RealEstate

[John McKenna]

As the article states, there is NO recession...

and...

What will happen if there is not a recession and
the economy continues to grow?

Answer = ? We live and will not die.

[William J. Decker]

Originally Posted by jburkeson1

An Insider's View of Real Estate Across the Country



Robert Toll, Chairman and CEO of the leading luxury homebuilder Toll Brothers, Inc, is at the Milken Institute Global Conference. At a roundtable discussion on real estate he broke down the current housing market situation across the country:

-Boston is in the pits.

-In New Jersey things stink.

-New York City strength on top of strength.

-Pennsylvania burbs are okay.

-Florida, it's so bad "Death takes a holiday."

-Texas is good.

-Phoenix right into the bucket.

-Chicago not working.

-Southern California started to comeback but has dipped again.

-Michigan is a place that may never comeback.

-Las Vegas is terrible.

-Washington DC has comeback.

Toll also commented that the housing downturn was unique in that it isn't accompanied by a recession. He asked, "What happens if there is a recession?" He then answered his own question, "It would be cataclysmic for the housing industry."
Labels: MilkenConference, RealEstate

"Chicago not working".

That is because the stuff (at least the large development in the Northwest area is a complete disaster) is just plain wrong!

Development around a gold course (first mistake). Condos, townhouses, SFHs and large, multi-million collar houses. The big ones are a real mess.

I did a number of 'warranty' inspections on the big'ums. OSB floor joists spaced between 26 to 36 inches OC, randomly. Poured concrete foundations where the sub took off the forms in one day and broke off all the ties. One house had 620 tie holes, all seeping!

Mold in the attics (crushed cobra vents, nailed down bt the roofer, with cedar chake roofs).

No rebar in foundations.

Gutters with no downspouts (just open ends, where the gutter meets the roof around dormers).

They have gone from quality to shlock.

Must be the 'college boys' doing the supervision. They have no clue what to look for.

Cut costs, and ruin the house.

[William J. Decker]

Is he giving an assessment of 'marketing conditions" or of the quality of work that his company is putting out?

One, he can't control, the other, he has a fiduciary responsibility to control. WHich he hasn't!

CEOs. Can't live with them, and can't leave the on the curb.

[Joseph Burkeson, CMI]

Originally Posted by wdecker

"Chicago not working".

That is because the stuff (at least the large development in the Northwest area is a complete disaster) is just plain wrong!

Development around a gold course (first mistake). Condos, townhouses, SFHs and large, multi-million collar houses. The big ones are a real mess.

I did a number of 'warranty' inspections on the big'ums. OSB floor joists spaced between 26 to 36 inches OC, randomly. Poured concrete foundations where the sub took off the forms in one day and broke off all the ties. One house had 620 tie holes, all seeping!

Mold in the attics (crushed cobra vents, nailed down bt the roofer, with cedar chake roofs).

No rebar in foundations.

Gutters with no downspouts (just open ends, where the gutter meets the roof around dormers).

They have gone from quality to shlock.

Must be the 'college boys' doing the supervision. They have no clue what to look for.

Cut costs, and ruin the house.

You don't by any chance live in a state where the government is debating licensing home inspectors where building contractors go unlicensed are you?

[William J. Decker]

Originally Posted by jburkeson1

You don't by any chance live in a state where the government is debating licensing home inspectors where building contractors go unlicensed are you?

HIs are licensed.

GCs are not.

Nuff said!

[Joseph Burkeson, CMI]

Originally Posted by wdecker

HIs are licensed.

GCs are not.

Nuff said!

How did I know, in that scenario guess who gets to hold the *****y end of the stick? Here is a clue he ain't the one holding a hammer.

[William J. Decker]

Originally Posted by jburkeson1

How did I know, in that scenario guess who gets to hold the *****y end of the stick? Here is a clue he ain't the one holding a hammer.

Requirements for GCs in our state (mostly, some areas may differ).

Get a General Liability policy (NOT an E&O policy).
Get bonding.
Pay a $35.00 licensing fee (for one year).

Then:

All subs under the GC work under his 'license' (Issued not from the state, but by the local municipality or by the county).

No standards other than the local AHJ (which accepts no liability for not doing a good inspection. Usualy AHJ inspection time: 15 minutes.).

It is all about the liability.

Which means that the guy who messed up has to pay to make it right!

But, they never do! And they never have the proper insurance to pay for mistakes.

When in doubt, DEFER! Don't accept responsibility for the GC, SE, Architect or local AHJ when the refuse to accept their own liability!

They get paid way more. Make them earn their high fees!

Hope this helps.