-- Posted Friday, 16 February 2007 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Friday, February 16, 2007
“Phenomenally accurate forecasts”
Urban homes prices fell across the U.S. in the fourth quarter, according to the National Association of Realtors. No surprise there, given the glut of supply and the growing feeling among buyers that waiting might bring even better deals come spring. This seems logical, since would-be sellers who gave up are apt to try again, flooding the market with re-listings.
The shocker in the Realtors’ report was that among cities where real estate prices rose, my hometown, Atlantic City, topped the list with a 26 percent gain. Twenty-six percent! When I left for California in 1978, the first casino had just opened and the faded Queen of Resorts looked like it was on its way to becoming Camden with casinos. And so it did, as anyone who has visited the town would attest. With all those new billions of dollars flowing through Resorts International, Bally’s, Golden Nugget et al., just enough of it trickled onto Atlantic City’s streets to make the city the ugliest, most unredeemably trashed-out cesspool-of-a-resort in the history of urban redevelopment.
Politics and Prison
Am I being a bit harsh? Well, you’d have to have grown up there to know just how far the town fell after it supposedly hit bottom as a result of a failed urban renewal project in the 1970s. The city had razed 80 acres of mostly big old houses built in the 1930s and 1940s, but when it came time to replace them with bigger and better amenities, the lead developer got cold feet and walked; then others followed. The city couldn’t sue the builders because it had negotiated contracts that were full of holes. After that, a few mayors and councilmen went to prison, an Atlantic City tradition. By the time the casinos got rolling in 1978, they were able to run roughshod, since there was no political leadership in Atlantic City to negotiate with them.
And that’s why the town, even with a dozen casinos, is such a dump. I grew up on the other end of the 7.8-mile island – “Downbeach” – in Margate, which was to Atlantic City what West Caldwell is to Newark. Margate continued to prosper when the casinos came along, and even the somewhat run-down neighborhood where summer rentals thrived grew less seedy over the years. But I can’t imagine which homes in Atlantic City might have helped to produce a 26% price gain in the last year. It’s certainly more appreciation than I’ve had in my home since moving to the Denver area in 1999.
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Beijing Seminar
Moscow? Just wanted to see if you were paying attention. In fact, I’ve received numerous requests to offer a Hidden Pivot seminar in Boca Raton, Florida, though not in Beijing, and will do so if there is sufficient interest. Please let me know if you would be seriously interested in attending a Florida class. The two-day session would be held sometime in the Spring of 2007. To get on my mailing list, drop me an e-mail, including your contact information. The cost would be $1,500 USD.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 16 February 2007 | Digg This Article | Source: GoldSeek.com
