August 9, 2018

How Much Room To Negotiate Downward?

A report from CBS 8 in California. “Sales of previously owned single-family homes in San Diego County dropped 10.5 percent in July compared to June, according to the Greater San Diego Association of Realtors. Month-over-month single-family home sales fell from 2,221 in June to 1,989 in July. Condominium and townhome sales fell from 1,162 to 994, a 14.5 percent drop, according to the association.”

“Single-family home sales and sales of condominiums and townhomes saw smaller decreases when compared to July 2017. The former decreased from 2,127 to 1,989 and the latter decreased from 1,136 to 994, drops of 6.5 percent and 12.5 percent, respectively. The year-over-year drop is in spite of the supply of homes for sale rising roughly 11 percent.”

“‘Demand is still outpacing the supply of homes,’ GSDAR President Steve Fraioli said. ‘But it’s clear that inventory of homes for sale has improved over last year. That should encourage buyers.’”

From The Signal. “With inventory on the rise, now’s the time to buy, is the message from Santa Clarita Valley Realtors for August. The number of SCV homes available hit the highest total since September 2016 — but sales remain ‘lackluster’ and resale prices are rising, Realtors said. ‘Inventory in the Santa Clarita Valley has almost doubled from last year this time to this year,’ said Mike Bjorkman, a broker for HomeSmart NCG and California Leasing. ‘Interest rates are slowing people’s buying powers down. There are some indicators that our market is softening.’”

“Some things Bjorkman noticed include: Price reductions are up more in the last 30 days than they have been in the last three months; open house signs are appearing more frequently; agents used to call and ask how many offers are on a house — now they tend to ask how much room there is to negotiate downward, he said.”

“For those in the market, there’s opportunity to be had, based on the numbers, Bjorkman added. ‘You’d get a much better deal this month than you would have 60 days ago — more to choose from and more negotiable prices,’ he said. ‘We pray the economy stays strong so we have stabilization.’”

The Sacramento Bee. “Home prices rose again in June for most of the Sacramento region’s neighborhoods, but an increasing number of them posted small price gains or declines amid potential signs of a market slump. Of the neighborhoods that had 10 or more resale home sales, 49 areas saw increases in the median sales price compared to the same month in 2017. Ten saw declines, according to new data from CoreLogic, and another 10 saw modest increases of less than 4 percent.”

“The largest decline in the median sales price for neighborhoods with more than 10 homes sold was in Truckee’s 96161, where prices dropped 40 percent. The median sales price was $839,500, down from $1.4 million in June 2017. But the area also had the most expensive home sale completed in the region in June — a transaction for $4.1 million.”

The Calaveras Enterprise. “According to Arnold-based broker associate Mike Karnes, the Calaveras County home market is slowly recovering from the 2007 collapse, though prices have not yet reached the peak experienced just before the crash. Despite widespread chatter about a recent downturn in the Southern California housing market, Karnes doesn’t believe that Calaveras County will be negatively affected and may actually benefit from the situation for the time being.”

“‘My opinion is that — at some point — how many buyers can spend $1 million on the low end? I’ve heard that the market is leveling and dropping a little bit, but I can’t believe that demand has dropped because people keep moving (to California),’ Karnes said. ‘In our area, we haven’t gotten to those prices yet, so we’re in a good spot. But if that market stays low, it will eventually trickle up to us. It always does.’”

RSS feed


Comment by Ben Jones
2018-08-09 12:39:30

There’s a chart at the Sacramento link. Lot’s of negative numbers on there.

Comment by azdude
2018-08-09 16:35:08

does that make u right?

Comment by Boo Randy
2018-08-09 17:13:57

You sound bitter, azdude.

“It takes a big man to cry, but a bigger man to laugh at that man.”

– Jack Handy “Deep Thoughts.”

Comment by rms
2018-08-09 17:53:13

The generic beer isn’t that bad once you’ve downed four or five.

Comment by Ben Jones
2018-08-09 17:54:24

And get it ice cold. You’ll hardly taste it.

(Comments wont nest below this level)
Comment by oxide
2018-08-10 07:58:21

Sacremento is about Jingle Male. He rents out several houses there. He’s in the process of retiring to San Diego and selling off his Sacramento properties.

I wonder if he has an update. He may have sold out (mostly) at the top.

Comment by drumminj
2018-08-11 09:00:42

…and bought pretty much at the bottom.

Good on ya, Jingle (if your’e still reading), and thank you for your efforts trying to expose the fraud going on in Bubble 1.0!

(Comments wont nest below this level)
Comment by Mafia Blocks
2018-08-11 18:32:42

“…and bought pretty much at the bottom.”

Not remotely close to the bottom.

Comment by Boo Randy
2018-08-09 13:00:07

“With inventory on the rise, now’s the time to buy, is the message from Santa Clarita Valley Realtors for August.

Ya know, since this housing bubble bust is just gathering steam, I do believe I’ll wait and see how this is going to play out.

Comment by taxpayers
2018-08-10 06:15:55

2022 would be earliest for buying
the governmentarians will save buyers for a while

Comment by rms
2018-08-10 06:39:01

“the governmentarians will save buyers for a while”

When the fed “put a floor under house prices” it was to prevent too many loans originated at inflated prices from overwhelming the banks. Mortgage write-downs for buyers didn’t go anywhere.

Comment by oxide
2018-08-10 08:02:51

appreciation my nabe 3%/yr


waiting on bezos

Comment by oxide
2018-08-10 08:05:50

+1 for 2022

2018: 65 yo hang on another year at gov, pay parent-plus and/or HELOC
2022: 69 health problem, retire, sell

Comment by Boo Randy
2018-08-09 13:05:37

“For those in the market, there’s opportunity to be had, based on the numbers, Bjorkman added. ‘You’d get a much better deal this month than you would have 60 days ago — more to choose from and more negotiable prices,’ he said. ‘We pray the economy stays strong so we have stabilization.’”

Well now, Bjorkman, since the price trajectory is clearly downward - and accelerating - I suspect much, much better deals are in store for those who wait. And we won’t be “negotiating” prices - it’ll be a take it or leave it proposition for the greedheads.

As far as your “strong economy,” it has foundations of sand, since it’s built on debt-fueled consumption and people living beyond their means. It is going to crater just like the housing market.

Comment by BubblevilleCA
2018-08-09 22:30:54

This Bjorkman Guy sounds very optimistic especially being amongst a 10,300-member Southland Regional Association of Realtors. Bet his car and mortgage payments are overdue and he needs a sale before things go south for him. Keep praying buddy, not sure your real estate god is going to work in your favor though

Comment by Michael
2018-08-09 13:14:55

Buyers should go on strike. We aren’t going to enrich the sellers with their unjustified QE-profits. We will buy when you are begging to hand over your property at major discounts, especially because many people have over leveraged themselves in the last eight years. Other people’s pain is our gain.

Comment by Michael
2018-08-09 13:16:41

Buyers should go on strike. We are not paying your unjustified, artificial, QE-led prices. We will buy when quantitive tightening forces sellers to let go of their properties at major discounts/losses. We eagerly await major discounts. No reason to hand over a single dime to sellers until they become desperate. The sellers had the upper hand for many years, but no more!

Comment by SWFL
2018-08-09 14:21:27

I’m waiting for the market to correct before buying another house as well but rooting for people to lose their shirts out of jealousy or whatever is pretty pitiful.

One big problem with the theory of waiting until people are “forced” to sell is that, in these cases it’s almost always a foreclosure or short sale. Often times these houses aren’t in locations where you want to buy or in condition that you want to receive them in.

If you’re just looking for a cheap roof over your head you can probably find one in a crashed market. But, if you’re looking for a well maintained home in a desirable neighborhood, prices are notoriously sticky on them. Once the price drops below a certain point, most of these owners will just take the property off the market and either rent it out or wait it out.

Comment by Carl Morris
2018-08-09 14:42:51

In some cases you are right. But you will be surprised at how weak the hand is that many are holding…house appreciation is the only thing keeping them afloat.

Some of us have been here a long time, since well before the last aborted correction. We’ve heard all these arguments before many times. Last time the people making your argument ended up being buried by the weak hands folding. And that time wasn’t even allowed to fully price discover before the Fed stepped in to save the banks.

Comment by Magoo
2018-08-09 14:49:40

Well said. I have a feeling, given the plethora of new luxury rentals, that boomers will begin to sell en masse once appreciation stops. They can afford to take a $100k fall in price on a $700k home because they bought it at $150k 30 years ago.

I expect the selling to intensify as Fear of Not Getting Out (FONGO) kicks in. Maybe they should call it FONGOOC for California.

Comment by Carl Morris
2018-08-09 14:55:16

Maybe. But now that people have been conditioned to buy the dip there may be less fear if/until it becomes evident that this time it’s different (in a bad way). And if the Fed steps in again and allows some people to make a bunch of money again then everybody will be on board with the new way to get rich on the next Fed cycle. Last time was a gamble that paid off for the gamblers, next time will be seen as a sure thing.

(Comments wont nest below this level)
Comment by Lurker
2018-08-09 23:01:40

I agree people have been conditioned to buy the dip; moreover, this seems to apply to more than houses and stocks. It extends to consumer behavior now, people feverishly buying the “flash sale” before a discounted product goes back up in price.

Note a term mentioned above, “opportunity.” A chance to get in before everyone else, to get a deal others can’t. Speculation engineered into everyday life. It’s a sucker economy at this moment in time, puffed up by the greed and desperation in the air, moral considerations be damned.

To be “different this time in a bad way,” it will take a lack of funds and loans available for speculative activity. But it will also require an ethical reset where screwing someone over (the essence of speculation) is no longer a respectable way to operate, in asset markets and in ordinary transactions. Hopefully one will naturally go with the other, but it’s easier to root out buy-the-dip behavior than the thinking pattern behind it.

Comment by OneAgainstMany
Comment by Boo Randy
2018-08-09 15:34:23

I’m not even going to think about buying until we’re well into the Rage Over Not Getting Out (RONGO) phase.

(Comments wont nest below this level)
Comment by OneAgainstMany
2018-08-09 19:47:59

“People have been conditioned to buy the dip.”

The real correction occurs when there are simply less people to buy said dip. I posted last week a link to two studies, one by the Fed, that shows significant demographic pressure being put on prices simply due to baby boomers downsizing, dying, or moving in with family. There won’t be enough demand for the houses they are leaving behind.

Comment by Carl Morris
2018-08-09 22:22:14

The real correction occurs when there are simply less people to buy said dip.

Seems like a long term solution to a short term problem. Just make bankers take the loss for making bad loans and they won’t be buying anything.

Comment by Professor 🐻
2018-08-09 22:38:55

First comes FONGO followed by RONGO.

Comment by Professor 🐻
2018-08-09 22:44:58

As I have long suspected… don’t let the sad demise of a few alcoholics cast doubt.

The Financial Times
Cocktails & Drinks
Why drink is the secret to humanity’s success
Alcohol has been more valuable to our species’ survival than we might imagine
2 hours ago

Comment by oxide
2018-08-10 05:41:22

boomers will begin to sell en masse once appreciation stops.

Maybe, maybe not. Lots of boomers cashed out some of the house to send Junior to college. They are still paying off the mortgage.

On the other hand, many of these boomers are 62-68 and poised to get hit with a health problem. No more “hanging on for another year” at work. Those are the ones who will need to sell.

(Comments wont nest below this level)
Comment by taxpayers
2018-08-10 06:16:59

oxide- silver -paas made a big move

Comment by OneAgainstMany
2018-08-10 20:45:54

On the other hand, many of these boomers are 62-68 and poised to get hit with a health problem. No more “hanging on for another year” at work. Those are the ones who will need to sell.

My parents are boomers. My grandmother is part of the silent generation. She has probably a $500k place in the most desirable place in city. My grandfather passed away 3 years ago. She should be in an assisted living facility, but she just wants her independence. But my father spent all day with her dealing with meds and doctor diagnoses today. The house she lives in is ginormous and could hold 2, maybe 3 families. There is so much spare capacity in the US when it comes to space. If AirBnB were being done right, it would be just about renting out excess capacity like this, not turning apartments into virtual hotels. I just have a feeling that a wave of supply is coming due to aging out of being able to maintain a property.

Comment by OneAgainstMany
2018-08-10 20:48:43

I think in the coming years there will be a market for live-in aides. If the housing correction doesn’t really correct in earnest and rent continues to stay sky high, I think people will get creative. You might start to see Craigslist ads for background qualified nurse aides or in-home caregivers who are paid a stipend and rewarded with free rent. I was propositioned this by a friend of mine who was looking for someone to take care of his mother (I declined since I make a lot more at the hospital in acute care).

Comment by rms
2018-08-10 21:33:16

I think in the coming years there will be a market for live-in aides.

There’s a flock of these scammers who look for land rich grannies and groom them for their assets via will or as the executor of the estate. The LA Times had a huge piece on these thieves roughly ten years ago. Real low-life scum!

Comment by Boo Randy
2018-08-09 16:46:13

I’m waiting for the market to correct before buying another house as well but rooting for people to lose their shirts out of jealousy or whatever is pretty pitiful.

I will feel pure schadenfreude when it comes to the speculators and flippers who lose their shirts. They ran up the prices for everyone, and I hope they get burned badly. But in my own family there are good people who bought because they wanted to own their own home and thought high home prices are the new normal. I will not be happy to see them in distress.

The thing is, things have gotten so out of whack that a great reset - and a return to long-lost virtues like patience, fiscal rectitude, and not living beyond your means - is something that needs to happen to rectify the speculative excess that has had full rein since 2008.

Comment by BlueSkye
2018-08-10 10:24:58

long-lost virtues like patience, fiscal rectitude, and not living beyond your means…

Not lost. The ones who refused to sell their future were a healthy remnant.

(Comments wont nest below this level)
Comment by cassiopeia
2018-08-09 13:44:36

How much room to negotiate downward? That is the question. If history is any guide, we are in for a loooong process. At first, sellers want to get the price that their neighbor sold for 6 months ago. Then they get a little bit more realistic and drop 10k, 15k, etc., until all the theoretical “profit” gets eaten up even before there is any offer. And that is the moment when things get really, really thorny because beyond a certain “discount” the seller is looking at what for him/her is a “bad deal”, especially if the house was bought in the last few years. From what I witnessed the last time around, here is where things begin to branch off in all kinds of different ways. If the seller can afford to stay in the house, they stay and take the house off the market. If they begin to get clobbered by rising rates and a mortgage they can’t afford, then it’s months until any kind of determination allows for the house to be on the market, whether in foreclosure, short sale, etc. If there is a death in the family, divorce, new job out of state, etc., then you see all these intermediate arrangements like turning the house into a rental until further notice. If the house was bought 2 decades ago, taxes are low and the rent covers the mortgage, it’s a good way to go.
I guess what I want to say is I am not envisioning a collapse over one year. Property prices are very sticky on the way down and people have been conditioned to think of it as an investment they have to hold until it pays off. And then you have to account for what the government might do, which could negate a lot of what the natural process would be. I am watching it happen and I am ready this time, but I am not holding my breath.

Comment by SWFL
2018-08-09 14:30:39

Well said. I watched this entire process unfold first hand in ground zero, SWFL, from 2004-2014.

Once the market bottomed out, most of the great deals were on distressed properties that had been neglected and were in foreclosure. Some completely stripped of literally EVERYTHING of value by the previous owner, trying to salvage what $$$ they could on the way out. The nice houses in the nice neighborhoods just left the market all together. There were exceptions of course but not all homeowners are idiots and most didn’t get to the position of being able to buy a nice house in a good location by making terrible financial decisions.

If a buyer is willing to buy a fixer-upper and live in it while they rehab it can be a great opportunity.

Comment by Magoo
2018-08-09 14:58:39

Yes, but anywhere that has new home builds going on should expect comps to get murdered in a downturn as homebuilders aren’t sentimental. Agree it’ll take a few years if we get a decent correction which is rough as someone ready and waiting to buy.

Comment by GuillotineRenovator
2018-08-09 15:15:06

You have to look at it with a broader view. We were at absolute peak insanity in a lot of markets in January 2006. By January 2009, prices were down 45% in places.

So, given the fact we’re right about peak insanity in a lot of west coast markets right now (assuming things don’t go even higher in some places), it’s going to be at least 3 years before you see any sort of great deals. It’s time to be patient.

“…The waiting is the hardest part
Every day you see one more card
You take it on faith, you take it to the heart
The waiting is the hardest part…”

Comment by drumminj
2018-08-09 20:51:43

It’s time to be patient.

And also time to get to know the areas you’re looking in, to have a sense of the drop that is/has taken place

Comment by cassiopeia
2018-08-09 15:28:13

I guess the rule of thumb for those of us who sat out two bubbles is only pulling the trigger if you find the right house for you, at a price you are comfortable paying, with a good downpayment and a traditional mortgage, and making extra sure that you can ride it if prices continue to go down after you bought for some time longer. The main thing is not to buy at bubble prices, but it is impossible to time things in order to be able to write here “I bought at the absolute bottom”.

Comment by rms
2018-08-09 17:44:20

It used to be really tough to get a mortgage when home prices were falling, which usually meant a hefty down payment. Seventy year old cat food ladies living on SSI didn’t bother applying for a mortgage.

Comment by Ben Jones
2018-08-09 19:38:52

‘because beyond a certain “discount” the seller is looking at what for him/her is a “bad deal”

Only buy distressed, post foreclosure. Auction or REO. In these circumstances nothing else works. Then you have timing.

Comment by BlueSkye
2018-08-10 10:31:07

Some people who lived modestly and saved their money during this double peak bubble would have cash to buy distressed REO when the time is right.

Comment by Tikitaka
2018-08-09 15:26:16

Wow. What’s happened in Sacramento is ridiculous. I know the SFbay, LA, OC, San Diego are hot. But Sac is crazy… just non-sense.

I don’t know if houses will drop in value or not. Most of us who want to buy a peace of shelter hope so. But we will see.

Out here in the SV South Bay all I see is money splash everywhere… making it rain. I want to move somewhere out of here but, it’s overpriced EVERYWHERE… nowhere to run.

Comment by rms
2018-08-09 18:09:31

“Wow. What’s happened in Sacramento is ridiculous. I know the SFbay, LA, OC, San Diego are hot. But Sac is crazy… just non-sense.”

I have a friend in working-class Carmichael just east of Sacramento. Low-riders with loud music cruise the streets at all hours, and free metro passes have enabled the angry people downtown to prowl the area looking for anything not bolted to the ground while the employed are at work. Hot smoggy summers and foggy winters too.

Comment by Tikitaka
2018-08-09 18:37:29

Dang, I thought Carmichael was one of the better areas of Sac, at least not ghetto like South Sac or Del paso. Now houses are @400K there… jeeezz

My friend went to college there and in the last crash there were houses there going for 120K in working class areas.

I heard that is different now….
With a lot techies that work in Bay area living in Sac midtown - Folsom - Fair Oaks… so will see what happens in 2 years.

Comment by rms
2018-08-09 20:55:45

My friend inherited his father’s place, which was at the lower end of working-class when dad bought it. It’s paid for, so he has a good deal going, but he’s surrounded by Section 8, SSDI mongers and Idiocracy type $30k millionaires.

Seems like much better living in the Sierra Foothills, but then there’s the commute.

(Comments wont nest below this level)
Comment by Young Deezy
2018-08-10 07:40:50

There are iffy parts of Carmichael and there are also million dollar homes. Most of it’s pretty ok though. The prices I see tend to be high 200s to high 300s now.

(Comments wont nest below this level)
Comment by aNYCdj
2018-08-09 15:31:32

Will New York’s New Airbnb Law Stop Illegal Listings?

Legislation signed Monday by Mayor de Blasio will give the city the power — but not the obligation — to fine those who rent out illicit short-term stays

Comment by taxpayers
2018-08-10 07:02:20

can’t stop craigs list

Comment by Ben Jones
2018-08-09 16:33:03

‘‘Inventory in the Santa Clarita Valley has almost doubled from last year this time to this year…Interest rates are slowing people’s buying powers down.’

This is emerging as the reason, rightly or wrongly. But notice there’s no subprime “crisis”. No big bad banks failing. Just formerly “hot” markets getting a bucketful of ice thrown on them. Boy there’s a bunch of people here who said it would never pop like this.

Comment by Boo Randy
2018-08-09 16:51:16

But notice there’s no subprime “crisis”. No big bad banks failing.

I would say there’s no VISIBLE indicators of a systemic crisis. But consider that household debt has tripled since 2008, as has the national debt. No big banks are failing, because for the most part the debt donkeys are staying current on their payments and their loans are performing. But that is subject to change, rapidly, if we starting seeing cascading defaults due to people racking up dangerously unsustainable debt levels and then not being able or willing to continue making their payments.

Comment by Ben Jones
2018-08-09 17:48:29

Foreclosure are way up, the most in “hot” markets. Florida has 10% of housing loans in some form of default. But my point is there is no catalyst to point to. Even Yun said today that prices got too high. I do think some scapegoat will be brought forth, but will it stick? I am optimistic that the idea that stupid high house prices are OK as long as loans are (insert lame reasoning here) will be dead as a door nail.

Comment by Mike
2018-08-09 16:39:50


The MSM gets pessimistic

Comment by rms
2018-08-09 18:27:20

Looks like we’re past Hemingway’s slowly, experiencing suddenly?

Comment by Anonymous
2018-08-09 20:03:30

Am I the only person who hates web sites with pop-up video windows that cover part of the article and can’t be closed?

Comment by sod
2018-08-09 20:09:38

No, everyone hates them. But we put up with them, like we do taxes, asset bubbles, and mother-in-laws.

Comment by Boo Randy
2018-08-09 16:57:28

Redfin stock tanks after CEO says housing has hit a “significant slowdown” in recent weeks. Potential homebuyers, especially those with memories of the 2007 housing bubble meltdown, might not fall for the standard NAR line that now is always the best time to buy.

Comment by Boo Randy
2018-08-09 17:11:05

“June sales were down in these markets by double-digits and inventory was up also by double-digits,” he said of the West Coast cities. “The trend is continuing in July and reports are now coming in from Washington, D.C.; Boston; Virginia and parts of Chicago as well that homes there are getting harder to sell.”


Comment by Professor 🐻
2018-08-09 18:41:01

Nobody could have seen it coming!

Comment by Anonymous
2018-08-09 17:04:34

The money quote from 2006: “The most immediate risks to the housing market now come from the rise in interest rates, the erosion of affordability after years of strong house price appreciation, and the growing inventory of both new and existing homes for sale. But unless the broader economy stumbles and job losses mount, home sales and construction activity will likely dip only modestly.”

Vaguely familiar situation. I can’t remember that far back.. was it just a modest dip?

Comment by Mr. Banker
Comment by Anonymous
2018-08-09 20:04:58

I guess I’ll have to change my screen name to “The Original Anonymous” :D

Comment by Ben Jones
2018-08-09 18:58:34

‘My opinion is that — at some point — how many buyers can spend $1 million on the low end?’


Comment by BottomFisher
2018-08-09 19:45:47

IMHO political situation now suggests - if you are a buyer, wait, if your a seller and must sell, sell now. if you can wait …wait for now until after the Nov elections to decide. very important who wins.

Comment by sod
2018-08-09 20:02:26

$40k for a used pickup with 133,000 miles? Everything is still overpriced, housing included. 25% off a house that was 500% overpriced to begin with still isn’t good value. I need to see nice houses in nice neighborhoods in the $175k range to consider buying again.

Comment by Anonymous
2018-08-09 20:06:47

“I’ve got it priced well below market to account for the few flaws.”


$40K is prob what bro still owes on the loan!

Comment by sod
2018-08-09 20:18:45

I mean, am I that out of touch? Seriously. $40k for something that somebody else has already driven the best 133,000 miles out of? But, diesels run forever! Ok, what about everything else? I mean it’s only 3 years old I guess but good lord.

Comment by OneAgainstMany
2018-08-09 20:20:28

Yeah, that is ridiculous. I’m very happy with my civic that get’s great gas mileage. I don’t understand these truck people who buy trucks when they don’t need them for their work.

(Comments wont nest below this level)
Comment by sod
2018-08-09 20:23:59

I don’t understand most of what most everyone else does.

Comment by Mr. Banker
2018-08-09 20:54:10

I don’t yearn to understand, I yearn to profit.

Comment by rms
2018-08-09 21:04:07

“I mean, am I that out of touch?”

You took the red pill… welcome to reality!

(Comments wont nest below this level)
Comment by rms
2018-08-09 21:12:04

“I mean, am I that out of touch?”

You took the red pill… welcome to reality. That said, the last thing you need during this downturn is to be chained to $40k used truck with a diesel engine. Look up the price and labor for a new fuel pump and injectors, and at 133k miles it could happen any time. In less than six months the For Sale sign will say, “Take Over Payments” if it hasn’t been repo’d by then.

(Comments wont nest below this level)
Comment by oxide
2018-08-10 08:18:20

btw I’ve been seeing a LOT more tow trucks cruising on the roads, the flatbed type. Some with cars, some without. Almost all of the cars look drivable ie. no dents or airbags. I looked for “asset recovery” print on the cab but didn’t see any. Are these still repos?

Comment by rms
2018-08-10 15:18:33

In California the repo tow trucks used to have a license number that had to be displayed, RA#####. I had a magnetic sign that I applied once I was ready to tow the car I spotted. The real work is locating the car(s). Most debtors usually “skip” meaning they don’t leave a forwarding address… imagine that? :)

Comment by OneAgainstMany
2018-08-10 20:52:26

Some of the new tech is enabling remote kill of the vehicle if payment is missed, allowing repo man to use installed GPS tracker on vehicle to come and get the vehicle on demand.

Comment by rms
2018-08-10 21:38:24

“…enabling remote kill of the vehicle…”

These allow the vehicle to run, but once it is turned-off… it’s all over as it won’t start-up again. If it get’s to a dealer the code from the computer reveals the truth… no getting the car out of the dealership. A brave new world.

Comment by tresho
2018-08-10 22:00:48

remote kill of the vehicle

That sounds like a remote controlled explosion to blast it to smithereens.

Comment by OneAgainstMany
2018-08-11 10:21:13

Well, the old-fashion repo business is full of life and death high-stakes situations:

Comment by rms
2018-08-11 12:52:03

“…repo business is full of life and death…”

The lien holder has to pay good money to have their car repo’d by an outside company so that means the Best family was more than two payments behind and likely lied about making some good faith effort. A 2002 Lincoln Navigator means it was a used car purchase… not worth speeding away from a collection activity at high speed through a residential neighborhood. If this was the police rather than the repo man there would be no sentence. Best escalated the event, and Drew was stupid enough to act on it.

Comment by OneAgainstMany
2018-08-11 17:47:44

I agree on all accounts. But given the desperation that this person felt, and the carnage involved, I’m thinking that a tech solution to just disable the ability for the car to be turned on while the car still has payments on it would have led to a less tragic situation.

Comment by GuillotineRenovator
2018-08-09 23:56:12

This is the stuff I’ve been complaining about for years. It’s part of the everything bubble. Prices on used automobiles went through the roof. It’s despicable. That being said, there is no way in Hades that guy is going to get anywhere near that price.

Comment by aNYCdj
2018-08-10 06:20:35

thats about 1000 miles a week GF and i lived on Fassit rd, off Ashley phosphate road stall rd before it got developed, our old block house is still there on google maps

Comment by oxide
2018-08-10 08:24:45

The ad says “Title status: Clean”

Does that mean it’s paid off?

Comment by Carl Morris
2018-08-10 09:26:37

Maybe. I also interpret it to mean that it’s not a salvage title.

Comment by John Shannon
2018-08-09 21:47:54

We haven’t even seen the effects of Trump’s tax reform in CA which limits the deductibility of state and local taxes. In effect CA has had a tax increase. Do we have to wait until next April before folks figure it out?

Comment by Professor 🐻
2018-08-10 06:36:59

We are seeing it already. Did you miss the news that the bottom just fell out of the market?

Comment by Mortgage Watch
2018-08-10 03:58:54

Clackamas, OR Housing Prices Crater 9% YOY As Negative Equity Crushes Portland Area

Comment by azdude
2018-08-10 05:41:59

is the depression right around the corner?

Comment by Professor 🐻
2018-08-10 06:42:02

Don’t be so pessimistic. The Fed’s financial firemen are waiting in the wings ready to administer bailouts and QE4 at the first sign of a significant downturn.

Comment by Mike
2018-08-10 07:45:36

note the law of diminishing returns applies here.
How many more people will refi their mortgages (most have already done so)?
How many corps will float more bonds when their debt loads are already at historic levels?
How many more shale companies will be created (borrowing billions)?
If the Fed buys more treasuries, the money might just round robin right back into treasuries, as there will be few worthwhile alternatives. The net effect will be lower rates but many fewer borrowers

Comment by OneAgainstMany
2018-08-10 20:54:17

Did you mean to say “shell” companies? Either way, I would agree with you; we don’t need any more shell companies or shale companies.

(Comments wont nest below this level)
Comment by rms
2018-08-10 06:51:46

Is Arizona 401 friendly?

Comment by Professor 🐻
2018-08-10 05:53:16

Is Chattanooga, TN a new bubble market?

Housing costs rise twice as much as inflation
Chattanooga home prices still 30 percent below U.S. average
August 8th, 2018 by Dave Flessner in Business Around the Region
Read Time: 3 mins.

Chattanooga home prices rose by twice the overall rate of inflation in the past year but remained nearly 30 percent cheaper than the U.S. average and below most other metropolitan cities in the Mid-South, according to a new report by the National Association of Realtors.

The median sales price of the single-family homes sold through the Greater Chattanooga Realtors multiple listing service this spring rose 5.8 percent from a year ago to $188,600. The increase was more than double the average 2.9 percent increase in income, according to the U.S. Bureau of Labor Statistics.

Comment by taxpayers
2018-08-10 07:04:48

RE taxes going up almost 4x incomes in my hood
since 2000

Comment by Professor 🐻
2018-08-10 06:34:16

What happened to all the funny money that drove up property prices in cities worldwide?

The Economist
Housing correction
Our cities house-price index suggests the property market is slowing
After years of strong growth, property prices are on the turn
Print edition | Finance and economics
Aug 11th 2018

Comment by Boo Randy
2018-08-10 07:50:48

Emerging markets getting monkey-hammered this morning. Meanwhile, margin debt is at record highs.

Comment by Boo Randy
2018-08-10 08:13:17

With gamblers, it’s always someone else’s fault when they get their fool heads handed to them.

Name (required)
E-mail (required - never shown publicly)
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post