The Math Just Can’t Add Up In California
The LA Daily News reports from California. “The home sales market in the Santa Clarita Valley is returning to normal, real estate experts said. ‘It’s not going to be like it was the last two or three years, where we were seeing huge numbers of sales and huge price increases,’ said Larry Gasinski, president of the Santa Clarita Valley division of the Southland Regional Association of Realtors Inc.”
“In January, the median price of a single-family home in the valley went down to $587,900, compared to $620,000 a year ago, a 5.2 percent decrease, according to the association. The median price of a condominium was $360,000 in January. In January 2006, it was 9.3 percent higher, at $397,000.”
“There is more than a seven-month inventory of homes on the market. Home sales dropped by nearly one-third from 2005. Realtors sold 2,531 single-family homes last year compared with the 2005 tally of of 3,726. Condo sales fell from 1,771 in 2005 to 1,246.”
“The good news was the median price of a house held at $590,000, just $10,000 lower that the previous year. The median price of a condo was $360,000 in 2006, compared with $389,000 in 2005 and $124,158 in 1998.”
The Daily Bulletin. “California was hit hard by rising foreclosure numbers in March. RealtyTrac’s report showed six California metropolitan areas, including San Bernardino-Riverside, among the 10 highest in the country. Overall, one of every 775 U.S. households had a foreclosure filing during March. California’s rate of one for every 389 was almost twice that.”
“‘This is probably starting to be a real problem,’ said regional economist John Husing. ‘It’s what we have all been expecting.’”
“Husing said two types of buyers seemed to be most at risk. ‘First is investors, who haven’t seen the type of capital gains they expected,’ he said. ‘I have spoken with developers who said that with some of the homes they sold to investors, the investors have just walked away from the property without making any payments.’”
“‘Second are the families who bought homes with some of this crazy financing,’ Husing said.”
The County Sun. “A look at the six California metro areas hardest hit shows that many of them are ones with a high amount of recent new-home construction.”
“San Bernardino-Riverside ranked seventh nationally, fifth in California. Stockton was No. 1 in the nation, Vallejo-Fairfield was No. 3, Modesto No. 5, Sacramento No. 6 and Bakersfield No. 10.”
“‘Developers will make their price adjustments by increasing giveaways,’ Husing said. ‘That makes it look like they’re holding the price level. As for homeowners trying to sell, I think you’ll just see them say the heck with it unless they really need to sell.’”
“A veteran of the Inland Empire lending scene, C.J. aMcKenna agrees. ‘We are not in a price bubble in the Inland Empire,’” she said. ‘I have watched this market for 20 years, and we were way below where we should have been. Now we’re not.’”
The North County Times. “Foreclosure filings in San Diego County doubled during the first three months of this year over the same period last year and increased sixfold over 2005, according to a survey.”
“For the month of March, county properties in some stage of foreclosure climbed by 49 percent from February to 2,551, the highest one-month level since the real estate market began to cool in 2005, according to RealtyTrac. That figure represents one in every 408 households.”
“David Michael, director of counseling for an accredited credit counseling service with three offices in San Diego County, said that in the first quarter of this year, its Oceanside office counseled five times as many clients with housing problems as it did during the same period last year.”
“Many clients have mortgages whose rates have adjusted sharply, increasing mortgage payments by as much as $800 per month. ‘Things just look bleak for them,’ Michael said.”
“Michael said that because the monthly payments can ratchet up so quickly, traditional credit counseling won’t begin to help. Some clients would like to sell, but can’t recover what they owe now that prices have flattened in a slow market. Others are maxed out on their home equity and can’t qualify to refinance their mortgages.”
“In a noteworthy change over previous years, more than half the clients seeking help at the Oceanside office come in while they are still current on their mortgage, because they can see big trouble ahead, according to Michael.”
“‘In a lot of cases there are going to be dramatic increases,’ he said. ‘The math just can’t add up.’”
“Gary London, of the London Group Realty Advisers in San Diego, said he had concerns that proposed regulatory reforms of lending standards could be too little, too late, and could make it more difficult for borrowers in trouble to get out.”
“For now, he said, foreclosures are a small part of the market. If they continue to increase, he said, they could drag down the overall county market, which has maintained level prices although sales are down.”
From Reuters. “General Electric Co.’s WMC Mortgage subprime lending unit plans to lay off 771 workers, about half of its staff, a spokeswoman said Thursday. The layoffs will include the closing of facilities in Costa Mesa and San Ramon, California.”
“The Burbank, California-based lender in March disclosed layoffs of more than 460 people. At that time, WMC also stopped writing new loans to people who do not make any downpayment.”
“‘We have realigned our resources to meet customer needs,’ spokeswoman Brandie Young said. ‘It certainly is in response to the changes across the industry and to align us to the current operating environment.’”
The Sacramento Bee. “Legislation aimed at slowing a growing trend of home foreclosures in California by tightening mortgage lending standards cleared a first hurdle Wednesday.”
“Senate Bill 385 by Sen. Mike Machado, would expand state regulatory authority over many of the state’s lenders and real estate brokers who make home loans. If passed by the full Legislature and signed by Gov. Arnold Schwarzenegger, it would make state- licensed lending firms follow new federal ‘guidance’ in their loan practices.”
“The guidance suggests lenders stop relying so heavily on credit scores and do more to verify people’s incomes and ability to repay loans. The guidance also suggests that lenders base decisions on a borrower’s ability to pay the maximum monthly payment of an adjustable-rate loan, not just the initial low introductory rate.”
‘For the week ending April 7, 46 states and territories had an increase in jobless claims while seven had a decrease. The state with the largest increase was California, an increase of 8,644 which was attributed to increased layoffs in service industries.’
California’s economy will shrink, but, as I stated earlier today, I get the feeling that hundreds of thousands of laidoff people will go back to where they came from, just as they did when the dotcom thing went bust in 2001.
The real question is what are we going to do with the hundreds of thousands of illegals who will be out of work and won’t go back home? Are we going to give them welfare? Are we going to tolerate the explosion in crime? Or are we going to deport them and prevent a bad situation from getting worst?
I speculate for the last three questions: Y; Y; N.
Implosion,
I *really* wish I could tell you that your answers are incorrect. However, you scored 100% on this pop quiz.
Got popcorn?
Neil
Funny, in all the political yammering and Federal Reserve Board requests to “help out” the poor FBs (http://tinyurl.com/2ha95y), I have yet to see anything about not bailing out those who committed wire fraud by overstating their income or falsifying their intentions with the property (or worse). Nothing about unfair forgiveness for those greedy FBs with four investment properties.
My question is this: companies like BKUNA have already booked all that deferred interest as income. Will they have to take a loss if they switch it to a fixed rate? Or if they include all of that unpaid interest in the fixed rate loan balance, will they be required to adjust the LTV? I know the answer, no and no. All gains are booked up front, all losses are never booked anywhere. The booking of deferred income as quarterly profit, then using FSB 159 to hide losses as retained earnings, is exactly that. All good is reported quarterly, anything bad is swept under the carpet. Tap the debt markets for equity since you have a negative cash flow. There’s a billion dollar business model for a company that *WILL NEVER* turn a sustained profit.
clearview:
1-Yes
2-yes
3 no- they will go home where COLA is low
I wanted to comment on this article with following!
This probably starting to be a real problem, so says J. Husing, a regional economist speaking on the recentforeclosures
“This is what we all have been expecting”
Really John, I never saw that quote last year!
Only2 type of buyers are at {for foreclosure?}
Really John ! Well I think nearly 100% of the sub primes and any 2nd home buyer, land & residential speculators, and any investor that counted on “price appreciation’ is @ risk of Foreclosure!…This mind boggling number of people, of course, will ultimately drag all “r.e. comps down that another 20% of home owners will be at riskof foreclosure.
Speculators were 23% of the bubbble sales market
2nd home buyers another 20%
high risk borrowers were 25% ofall loans last year
Nearly 80% of Amewrica owned homes at the end of the bust. The rest are non buyers and govt assisted….with NO ONE left to buy they only want to sell. Can you say,
“Timber?”—John.
clearview,
Please don’t use the term “illegals”. It offends sensitive liberal ears. If you must refer to them at all, use the more politically palatable “documentation-challenged, pre-unionized guest workers”.
In Florida they will soon be called “sales tax payers”
Sales taxes are the most fair form of tax. Everyone has to pay them. Problems arise when the money is given back to the tax payers. Even worse is when sales taxes are used to pay bond debt.
This is my first post but I am sick of this tax being called “fair”. It is a tax on the poor if you really think it through. The richer you are, the more money you save. If you make a mil in a year how much are you really going to spend in America? Probably less than half your income which is a lot, but half your earnings are tax free. If you make 30 k almost all of your income will be taxed on food, clothes, etc. because it’s hard to save any when you only make enough to cover the basics. And you might argue that food won’t be taxed but clothes, energy, toilet paper, shampoo and such will be. True, these costs do rise with increased wealth as the richer you are, the better products you buy, but it is by no means a 1 to 1 ratio. So tell me how is this tax fair? If you want something fair, just tax everyone 20 percent of earnings, no write offs or tax credits, regardless of circumstances. That would be fair.
Sorry, it should be worse, not worst.
Or are we going to deport them and prevent a bad situation from getting worst?
DEPORT THEM?!? Far far too late to try anything like that now. It’d make the Rodney King riots look like war over the Fauklands.
It’s better to do it now than wait. Far less bloodshed, less disruption of the economy.
If we do not act, we will loose California to Mexico. That is their goal, make no mistake about it.
Man, it should be lose, not loose.
Should be lost.
Let’s just annex Baja Mexico.
Get them before they get you.
The film industry would have appoplexi if you did that.
clearview-
moronic post.
Unless you are a native amercian….you have no business making such a foolish, unpatriotic statement.
People come here to work. To become Americans. Mexican families that come to America love thier culture, but want to BE American like you and me.
Take your racist, xenophobic dribble somewhere else.
Ben does a good job weeding out trolls like you. It’s time for you to be smacked down.
Here, here kThomas. Ignorance and racism have no business in this blog.
what part of Maine you live in , Kthomas?
You tell them. Newly arrived foreigners and Mexicans do more of the back-breaking work and toil that most don’t want to do or do cheaply. That’s how you get cheap prices and fast-food, etc. If they got paid union wages, nobody would be able to afford to breathe air.
“People come here to work. To become Americans. Mexican families that come to America love thier culture, but want to BE American like you and me. ”
U know I sort of agree with you even when they march screaming “Viva la rassa” for political pressure. Especially waving Mexican flags and demanding rights. That truly does say I want to be integrated.
To Kthomas,
I am a Native American. So therefore I have every right, according to your own rules, to say what I say.
I’m no moron. We either take care of this illegal problem now with a minimum of trouble or wait until it requires a full scale war to resolve the issue.
Where this country is now is where it was in the early 1850’s with Southern secession. We either act decisively with the threat now or allow the problem to fester into a bloodbath.
LOL! That’s a bit of a stretch that every person that comes to America wants to be an American.
The Amish have been here for centuries and they don’t seem all that American.
The Hmong don’t seem all that keen on integrating.
Should I go on?
What makes America great? We have no damn singular culture. Heck, we build theme parks that pretty much mock the cultures of other countries to show immigrants how silly they used to look in their homelands.
If you want culture, go on vacation to a foreign land like Canada. If you want to be an American, leave the silly hats behind and just add ketchup to your homeland’s cuisine.
Funny you should mention Maine as a place for people who are afraid of Mexicans. The reality is, some Calif equity locusts who came to Maine in the rehab/flipper mode were shocked to learn that building trades in Maine are practiced by people who expect to make $20-$25 an hour, in contrast to the low wages that can buy hourly work from undocumented Mexicans.
Clearview,
great post.
Clearview, excellent. We recently had two of these illegal devil spawn gangs take over Bradenton Beach in Florida on Easter day, for their annual holiday mucho-macho shootout. The police stood down, while hundreds of familes trying to enjoy a nice weekend day scattered as they were caught in the cross-fire.
“If we do not act, we will loose(sic) California to Mexico.”
Paging Mr. Clearview… Mr. Clearview, to the 21st century please.
What’s amusing is how anytime someone makes any sort of criticism against anyone not lily-white, they are immediately accused of being racist. Earlier this week, someone called me a racist for basically posing the same question that Clearview posed. What the person accusing me didn’t know (because they were new to the blog) is that I am mostly black, part Irish and part Native American. So how I am racist I am not quite sure.
But I agree with Clearview in that at some point int he near future, people who dont have jobs are going to start going at each other, and as the animosity grows there will be bad feelings all around, which may end up turning into civil unrest. It would be better to start shipping out people now before the following happens:
1. some Caucasian somewhere gets pissed about the illegal who took his construction job
2. he assaults/shoots some illegal(s) after drinking
3. he gets arrested
4. a bunch of sheet-wearing Caucasians come to his rescue, whether invited or not
5. they clash with the local police and someone shoots a cop, or a cop shoots the resisters/patriots
6. then more people become enraged at the thought of Americans (from their point of view) being pushed aside in favor of the rights of invaders
7. then the civil unrest starts…
Of course this is just IMHO, probably not worth much…
I’ve said it before and I’ll say it again…if we STOPPED giving them JOBS they wouldn’t come. Is it really “low wages/low costs/low prices” when we all heve to pay for so many other things associated with illegal immigrants. From health care to housing to education and on and on. We are paying union wages, a little here and a little there… it all adds up. There ain’t no free lunch.
Chris,
If you haven’t seen it, rent the move Crash. It was released last year and it’s stunning in how it examines race issues. Being from LA it really hit home.
“Crash” was some kind of turkey.
Perhaps the most overrated flick of last year.
Examines race issues? That flick wallowed in exactly the kind of race-bait drivel it purported to ‘examine.’ Plus the musical score was just god-awful.
…Next you’ll be saying “Million Dollar Baby” was good cinema, too…
P.S. Gwynster, you should see the Mace Ranch beige stucco monstrosity I just signed a lease on…for HALF what it would cost me to buy! I’ll need that extra money for my PG&E bill, I’m sure…
Funny, I didn’t know that “illegal” was a race. That’s what clearview was talking about, not “Mexican” (BTW, that’s a nationality, NOT a race).
Race-baiters just LOVE to jump all over anyone who uses the term “illegal alien” like its the N— word or something. Simpletons.
Anyone who gives thousands of dollars to a smuggler so they can KNOWINGLY SKIRT THE LAWS OF THE U.S. does not have the right to scream about discrimination after the fact. You want protection of the law after mooning it?!?
The same people here who scream over the idea of a bailout should know better than to jump to the aid of people who knowingly place themselves at odds with the law. It’s not like they didn’t know what they were doing, either with that NegAm-ARM or with jumping that big ole fence…
I’m a believer in taking in “your tired, huddled masses” but let’s have come control of the process, please.
I loved Crash and hated Million Dollar Baby. For me Crash explained everything I hate about LA.
Good score on the Mace ranch rental.
Not sure why clearview is singled-out as a “racist”.
If you can’t understand why native Americans (lowercase “n” — those who were born here) are opposed to illegal immigration, then you are the one guilty of ignorance.
Many of us have watched as once safe, well-kept neighborhoods have deteriorated into crime-infested slums. We’ve watched skilled tradesmen/women who were paid $20/hr+ in the 80s become displaced by illegals who perform substandard work for half the pay, twenty years later.
We’ve watched as our schools have deteriorated because over half the student population doesn’t speak English, and a majority of those students are provided “free” breakfast and lunch, along with “free” school supplies — because teachers are no longer permitte to ask students/parents to bring their own supplies in low-income schools.
We’ve watched our hospitals and emergency rooms close down because the illegals have flooded the ERs because they don’t have health insurance and can’t afford preventative medicine. They also have babies for “free” — to the tune of $5,000-$15,000 per child — paid for by the taxpayers.
We’ve watched our roads fall into disrepair because of increased traffic, much of it due to the large numbers of illegal immigrants. It takes us three times as long to get from one place to another because of the increase in traffic.
The streets and local wildlife areas are dirty because many of the illegal immigrants live in the hills and valleys around the suburbs, and have no way to dispose of their trash.
IMO, the “savings” we get in goods and services provided by these illegals do not in any way offset the cost of having them here.
Let’s cut the name-calling and address the FACTS. Flying the Mexican flag, **demanding** things from US citizens and chanting about “La Raza” will not gain any favors here. Address the problems and we might actually be able to move forward with some PRODUCTIVE dialogue.
kthomas:
Should felones be jailed?
” a murderer who kills your wife or husband be punished?
” a rapist that rapes your daughter or son be set free?
” a child petaphile that molests your son do time?
” drug dealers be allowed to sell drugs to your children in school ?
” someone steal your identity or social security # and file a taxreturn with your name &numbers go unpunished?
” should mortgage fraud be permitted?
” a driver run a red light and kills 3 of your family be
prosecuted?
” Should speeders be fined?
If a thief breaks into your home or business and destroys your livlihood, should you be able to sue?
Should a black marketeer be permitted to undercut your wages or prices because you must compete with a thief?
Should Piracy of any intellectual property be ignored? On your patent?
Should tresspassers be allowerd to vandelize {destroy} your ranch & kill ^ eat your cattle?
Should the rightful land owner be allowed to sue! prosecute?
Should drunk driving be a non admitted issue in amanslaughter case?
If a hundred people came in back yard and urinated & left fecal droppings for you to clean would that be racism?
Kthomas what laws should be considered breakable?
Driving without a license, or insurance?
Which ones? What felony above makes me a racist?
The illegal issue is not RACISM !
This is about the rule of law…we either have laws & property rights in this a counrty or we do not.
Please do not play the rascism card, its weak!
If you cannot post honestly why everyone should not be able to tresspass on to your property, eat your chickens, or shoot your dogs, horses, or cattle before raping your daughter on their way to fruit picken job, as they assemble and plan the return of the southwest to Mexico, by force if necessary.
Then you don’t know what the hell you are talking about.
Racism? uh?
Its never too late, if it detroys the system to do so then its time has already come. I’m with Clearview but take a different tack- get rid of the give aways, and then see how attractive that labor is to employers of illegals. No free schools, no free meds, no free anything, pay as you go, lower taxes. And for the guy that gave the old line about work that Americans don’t want- you can make any job into one that is undesireable if you make the pay and conditions bad enough. Those jobs used to be done by locals, high school kids, and blue collar Joes.
Do you mean the Malvinas?
Uhm,
I think the illegals will find work or work for less. They represent competition for labor jobs but I don’t think they are going to sit around and suck on welfare. I just don’t think that is in their nature.
I am not a fan of deportation. They are just people.
Aout the protests….
I don’t like the elements of racism that I get from a lot of the Mexican community. However i am not going to respond to the situation by making it worse and feeding a sense of isolation or seperation because of your background/skin color/wealth.
That just feeds the problem and makes it worse.
I am also not happy when they go flying Mexican flags on our territory. When they had protests about immigration reform they asked for that kind of thing to stop and for the most part that hostile act stopped.
Anyhow, deportation would be a vile a dispicable thing to do to people on the lowest economic tier. If we are to do anything than close the border and slow the rate at which people cross. We can deal with the people that are here already.
This country has enough backbone to work through the tough times ahead, make sacrifices and not take the easy and sad way out.
you are in a dream world, james.
Guess what Mexico’s policy is for illegal aliens — deportation.
Two words.
Soylent Green.
I’m so sick of hearing people scream “racist” when someone opposes people being in this country ILLEGALLY. What part of the word “illegal” don’t people understand? Perhaps they need a Webster’s dictionary for their next birthday?
Funny letter someone in Iowa wrote to his illegal-loving senator. Man said he wanted to apply to give up his citizenship and become an illegal immigrant. He said he’d get back all his income tax payments, not have to pay health insurance for his family since he would use the emergency room as the primary health care provider (for all those runny noses), and he could give up paying car insurance as well.
Those who scream and call others “racists” are the biggest hypocrites around. I don’t care who ends up living in this country, be they whatever race, color or creed. Just so long as we’re treated equally. As it stands now, there’s nothing equal about it.
The question that jumps out in my mind is why are there still territories? Become a state or fend for yourself, already.
anyone following the housing bubble in Saipan?
No, Im too caught up in Vietnam and Laos bubbles.
I am, but I can’t make head or tails of anything
… all the reports are in some funny-looking writing.
No, but I hear Santa Ana is stirring up some housing trouble in the Territory of Texas. Better call out the Rangers.
You want Saipan Real Estate?
Call Roy Alexander, or at least check out his website:
http://www.realtysaipan.com/index.cfm?pageID=1
Nice guy from Tennessee. Has lived in Saipan for the past 20 years, so he really knows the market.
Regarding Vietnam real estate, there look to be some real bargains in the Saigon market. Not as up to date on the Hanoi market. The Danang / China Beach market is already pretty expensive, with some high-end beach properties going for around US$250-300 psf.
http://www.iht.com/articles/2007/01/24/news/reviet.php
Interested in buying there or Thailand? Check with Nick Anthony at Indigo Real Estate. Nice Australian guy who used to live in Hong Kong for a decade before moving to Phuket.
http://www.indigore.com/
Not up to date on the Laotian market, sorry.
I love it when the legislate common sense. The California is guaranteeing a death spiral for years to come.
Vietnam real estate looks to still be reasonably priced in Saigon. At least for middle market residential. Danang / China Beach area beachfront property is already becoming pricey at US$250-300 psf.
If interested, check with Nick Anthony at Indigo Real Estate. Nice Australian bloke who has been in the business for 8-10 years. He lived in HK for a decade before then.
http://www.indigore.com/
Sorry, can’t help regarding Laotian real estate. I’m not up to date on that market.
“The home sales market in the Santa Clarita Valley is returning to normal…”
2012? 2015? 2018?
When will it be normal again?
Normal market? 2010
Oh, you meant when will they be priced above today’s prices… 2018 (or later).
All depends on one’s definition of “normal.”
Got popcorn?
Neil
Normal sales if they’re lucky. Normal inventory? I don’t think so!
“Husing said two types of buyers seemed to be most at risk. ‘First is investors, who haven’t seen the type of capital gains they expected,’ he said. ‘I have spoken with developers who said that with some of the homes they sold to investors, the investors have just walked away from the property without making any payments.’”
“‘Second are the families who bought homes with some of this crazy financing,’ Husing said.”
And the percentage of people in the State who did this is what? And don’t forget the refis. That brings up the total to what? 30% of ALL houses?
BTW, I spoke to a realtor relative, and she said that the only people who are buying now are…INVESTORS!!!
I almost fell over when I heard that. This just keeps getting worse.
What is he, some sort of Husing expert?
Can you short a house?
rent.
REITs?
SRPIX inverse commercial real estate
You can short ABX indices (these are indexes based on a weighted combination of CDOs based on mortgage loans). Awfully complicated, though. And when CDOs tank, it will be time to make way for the exits (it might take the housing market failing and Freddie Mac, etc., failing):
http://www.markit.com/information/affiliations/abx.html
OR, you could try shorting the cme (commodity) housing price indices:
http://www.cme.com/trading/prd/overview_HNG18558.html
Damn! I’d hate to be an investor who bought with some kind of crazy financing!
As long as it’s OPM (other people’s money), he will be fine.
Of course! They’re buying to sell SHORT!
“BTW, I spoke to a realtor relative, and she said that the only people who are buying now are…INVESTORS!!!”
I am not at all surprised, as Risk Lovers think there is never a bad time to buy California real estate. The bailout plan appears to be targeted at hinting that the punch bowl will be respiked in order to pull investors back into the market. Unfortunately, continued excess construction of unneeded, unaffordable McMansions to satisfy investment demand for rapidly inflating assets will only serve to worsen California’s economic imbalances, as the number of vacant McMansions is already large and growing faster than end-user demand, even at current recessionary rates of construction.
I am not surprised. If you look at the Wall Street “genius” they have been buying mortgage companies and banks last 2 weeks. They think the worse is behind us.
Too bad they don’t know how to read foreclosure charts as well as stock charts.
It’s gonna be one those Humpty Dumpty weekends, I get the feeling~
Math is hard.
C.J. McKenna agrees. ‘We are not in a price bubble in the Inland Empire,’
It seems the IQ bubble has certainly popped in the Inland Empire.
The average i.q. in the i.e. is around the same as forest gump, just no charm whatsoever to make up for a mid 90’s mentality…
The Inland Empires use of ‘Mexi-math’ will soon cause them to lead Ca in forclosures. The illegal’s are unemployed with this correction and there is no way to cover it up now.
Nah, just a “foreclosure bubble”. The IE is toast. My buddy lives in La Quinta and says everything is for sale. His mortgage borker neighbor has been spending like a drunken’ fool the last 3 yrs - lots of toys like jet skis, a hummer, etc. He just informed my buddy he is putting his house up for sale - looking for a smaller home that is less expensive. The guy filed BK 5 yrs ago. I give the bank 6 mos before they own his house.
Those idiots are a dime a dozen. The HELOC well hasn’t run dry yet, but when it does, watch out.
BanteringBear,
You are so correct. MEW is still easy. Not the crazy easy of 2006, but still easy. Wait until it is a challenge to pull money out of a home. Then you will see people walk.
Just bid low on e-bay for the toys.
Got popcorn?
Neil
Agreed, about the low-balling for toys. Trying to convince my wife to let me buy a Carerra or Boxter. I told her I could get a good deal shortly when they are a dime a dozen on Ebay. She thinks if I get it, it will be hers…
I am also looking at the Chrysler Sebring Convertible. Does anyone have any experience with this car? Thanks.
This is getting pretty far off the mark for a bubble blog, but you should really read what Consumer Reports says about the Sebring before buying one. The big yearly car review issue just came out
Chris, do not buy any of the above. If you really need some bling stick to something reliable with a good resale like BMW, Lexus, or Acura. And if you don’t mind slumming it, the Toyota Avalon is a very nice ride.
I’ve read many of your posts, you seem like a good guy. So from one former OOMC employee to another, do yourself a favor and avoid Porsche, Chrysler and Ford (unless purchasing a truck).
A guy filing for BK advising clients on loans? No wonder a lot of people got bad advice and bad loans the last few years.
A lot of the recent mortgage broker/loan officer business entrants were just used-car salesguys in $30 Payless shoes and $89 JCPenney suits, who figured out that they could make a lot more money in loans. But most are a far cry from r.e. professionals. They tended to be the biggest koolaid drinkers there were.
People like Rich who says things like “lick my balls” to his fellow bloggers…well you get the idea.
OMG Chris, that was my big “oh shit” moment today. The CW guy was looking over my credit report and going on about how nice and low my car payment was on my old car. Turns out he used to be a car salesman. I turned blue trying not to laugh out loud.
There was NEVER an IQ bubble in the inland empire!
The only bubble is the one this McKenna chic is living in. Prices were way too low and are now where they are supposed to be??? Yeah, OK, everyone can afford a 900k cookie-cutter house in Rancho Cucamonga. We’re right on target with that affordability.
From today’s Real Estate for Sale ad by Sand Key Realty in the Clearwater Beach Gazette:
“Dream Condo on Island Estates”
Brand new construction - Residences of Windward Passage
End unit w/large windows & water views! 3BR/3BA, 2 Balconies
Must see to appreicate.
$997,350
Property also available for lease at $2500/mo (which includes water, cable, monthly condo fee, and all amenities)
Don’t Miss the Boat - Call Patricia Nolan Now!
I think the potential renter’s math adds-up perfectly!
I’m seriously considering selling my current home and renting something larger but I’m not making much progress finding anything reasonable. The number of properties in the 3500 to 4500 square foot range seem to be very limited and the few that are listed are listed at monthly rental rates that seem to be very unreasonable.
I’m using http://www.realtor.com to search and I’m looking in the Northridge, California area. Are there other sources of rental listings I should be using and is there a general rule of thumb for what is reasonable for monthly rent either on a per square foot basis or based on the current resale value of the house?
Thanks in advance for any help or guidance you might be able to provide.
You want some guidance? Look for a smaller house to rent.
It’s currently me, my wife, three young children, my mother in-law and occassionally my 18 year old daughter in a 2200 sq. ft. house and we really need more room. Regardless of what happens with prices, it’s not worth the trouble to rent something in the same size range and I can’t bring myself to buy when it’s likely that prices will go down 20% in the next few years.
You are wise. And very correct about the 20%.
WTF do you need 3500 to 4500 square feet for?!? Are you Dick van Patten or something?
Good Lord, American avarice p*sses me off! I am really looking forward to the Great Financial Awakening that is heading down the tracks at breakneck speed.
cmon Toasty,
Its the good ole US of A here…. California style, yk2+7…. kids dont share rooms, thats so 1800’s farm homestead, and gotta have garages for the 4 cars dontcha know…and high speed internet in ALL the rooms including the bathroom with the gold plated bidet…
the_voz,
You forgot about that room to show off the 60″ plasma. If you don’t have that… not to mention a kitchen with at least three appliances you don’t know how to use.
Neil
and YES dammit, I’ve got popcorn.
60″ plasma? Psssht, that’s nothing. My mortgage broker friend has some fancy 92″ TV built into the wall of his subterannean movie room w/a full bar and a spiral staircase up to the pool level of his 4 level house. E-class Benzo and Hummer to accentuate the 4 car garage.
Oh, did I mention he’s upside down on his McMansion and his income has been cut in half the last year or so. The wall’s gonna look pretty funny with a gaping hole once he sells that 92″er.
92″ TV?
I’m stunned. I know my company bought a 100″ TV, but that was for lobby marketing (and at least a tax deduction).
You’re right though about the size… I’m just too practical to consider THAT big in a house.
Got popcorn?
Neil
Dick Van Patten, that’s pretty funny.
3500 to 4000 sq ft in metropolitan CA is a big house and will be hard to find, especially in some place as developed as Northridge.
Put the house on the market, and see how much it will bring and how long it will take to sell.
Look at craigslist……realtor.com sucks for rentals……look at realtor sites for companies who sell in the area……sign up wiht a rental service. Costs you little or nothing, but you get to see a lot of houses……..Are there any new developments nearby? maybe there are som investolators who are looking for a renter (until the market improves).
The market is wacky right now. You will see houses proced all over the board. About 50% to 60% of the mortgage payment for the house would be a pretty reasonable deal.
Sheesh, what’s wrong with renting a big house if you can afford it and you need the space? Just because there’s a bubble on doesn’t mean everyone needs to live in the tiniest house possible.
My first suggestion would be to avoid realtor.com. They want to SELL houses, not rent them. The Conejo Valley area (Simi, TO, Moorpark) has The Kitty Letter (thekittyletter.com), which tends to have good listings. I’ve found 2 good rentals there in the last few years. You might want to call them and ask them about SF Valley listings. Craigslist is usually a good bet as well, although you’ll need to check out all the LA-area local ones, since people never seem to know where to post.
Also, you might want to consider looking a bit farther out than Northridge, and consider looking in newer developments. There are some huge new houses out here in Simi in the Big Sky development. My landlord has a nice place out there, and since it’s all a new development, I suspect you’ll find some investors desperate to get any possible cash flow out of their property.
Simi,
Thanks for the advice, I didn’t expect to get so much grief from the other posters just for asking about renting a larger house. And yes, I can afford the rent for a larger house. I could also afford to pay cash for the larger house but I’d much rather have the money invested in stocks, bonds, mutual funds, etc. than in a depreciating asset with associate property tax and maintenance costs.
Confused - Northridge may not be the place to find big properties, but if you look further south in Tarzana, Woodland Hills, Calabasas and parts of Encino I’ve seen a lot of new construction 3000+ sq ft listings for sale. I’m sure that a few of them could also be for rent…
…and ignore the rabble - with 7 people to accommodate, you’re one of the very few people here that actually needs a big house.
Try WestSideRentals.com, too.
You will do well looking for a house in Northridge using Craigslist.com. For what you’re looking for I see many in the 2500-3500 price range listed within the past 3 days. Good Luck!
You might find some mega-McMansion rental in Santa Clarita, from those who can’t sell but are willing to rent it out. But as for me, I’d stay put. If your house is a home your kids enjoy - keep it that way. And not having so much space is okay. I grew up in a family of 8 in a house about 800 sq. ft. in inner city L.A. I learn to treasure small spaces, like the space between the bunk bed and the wall, where you can hide toys you want to keep away from your siblings. Now, I share a space also about 800 sq. ft. with my wife and I realize that most of the space is used to store junk - like my second bedroom, which is half office/half junk room.
“Dream Condo on Island Estates”
Brand new construction - Residences of Windward Passage
End unit w/large windows & water views! 3BR/3BA, 2 Balconies
Must see to appreicate.
$997,350
addendum:
balcony 1 sutiable for head-first dive to concrete.
balcony 2 requires running start to clear fence
What’s the last thing that goes through a flipper’s mind?
The sidewalk!
Har!
Almost exactly the same numbers I posted about a Florida community this a.m. — asking prices in the $900K+ range and rents $2500/mo. I guess Fla is a little ahead of Calif, in that the asking prices for these houses in FL are further under a mil.
$30,000 a year to rent. $71,000+ a year to own in P&I. Yep, no bubble here - just move along folks. (Thank goodness in Florida property taxes, insurance, and repair costs are very, very low or this might be a bad deal.)
“General Electric Co.’s WMC Mortgage subprime lending unit plans to lay off 771 workers, about half of its staff, a spokeswoman said Thursday. The layoffs will include the closing of facilities in Costa Mesa and San Ramon, California.”
_____________
I’m sure these workers could easily find another subprime job in orange county to buy that $700,000 sh*tbox with 100% I/O loan.
For those waiting for the OC to take a much larger fall, watch April/May. The no money down financing spigot cutoff is causing tons of deals to fall through.
GE ? no spreading eh
When my investment advisor starting screeching “housing bubble” a couple of years ago, the only short he recommended was G.E. Needless to say, he was way early, but it’s interesting that he thought GE was more vulnerable to credit implosion than any other company he could think of at that time. (I guess I’m saying, the GE troubles are not necessarily a sign of “spreading”)
“more vulnerable to credit implosion than any other company”
GM(AC) included?
I’m not saying my friend was right, only that “GE” was his proxy for a credit meltdown.
By summer the unrealistic sellers should be sweating. by fall they will be sh*tting their pants. its going to be a stinky winter.
Too funny and sooo true.
I spoke with Countrywide today to get a prequal letter. I can get 100% IF I document income, have a very high fico score, have some savings for seasoning, and a debt to income ratio of 35% with the loan. A lot of people are going to have a hard time with the D-I portion. Until homes come down in value, nothing will pencil out unless you are a googlaire or are paying a 2/1 condo in the slums.
I tried to grill him on stated income loans and was told that they could refer me but that don’t do them anymore.
I spoke with Countrywide today to get a prequal letter. I can get 100% IF I document income, have a very high fico score, have some savings for seasoning, and a debt to income ratio of 35% with the loan. A lot of people are going to have a hard time with the D-I portion. Until homes come down in value, nothing will pencil out unless you are a googlaire or are paying a 2/1 condo in the slums.
It sounds like countrywide has returned to the type of loan a 100% financing should be.
For someone who has income coming in but is willing to pay a high interest penalty to get at that money today.
Oh… credit will keep tightening. But I’m breaking out the 18 year scotch tonight. For if countrywide is doing it, everyone else will soon. Thus, sanity is returning!
:) 
I tried to grill him on stated income loans and was told that they could refer me but that don’t do them anymore.
BwaaaHaaaHAAAA! Oops, that came out loud didn’t it.
Yes, definately the 18 year scotch tonight.
Got popcorn?
Neil
Neil, Before you get too tanked, the rate on it if I were put down as little as 6K on 300k house was in the low 6s. They did offer to roll the closing costs into the loan though. I’m sure Stucco will love that.
As I mentioned before, the best part was that the loan officer used to be a car salesman. No sh!t - I can’t make stuff up this good.
got income and 6K?
Har!
Oh…
Not time to get tanked.
But I’m still enjoying the 18year scotch.
All that is music to my ears…
I was fearing worse. Perhaps the liquidity cesspool is draining more quickly than I had thought.
It’s draining faster than Casey Serin’s pool, that’s for sure.
I was flat out told that a lot of the “creative” products are already gone but that is CW. There may still be some sleazeball outfits out there still doing them but I haven’t been looking very hard.
“A veteran of the Inland Empire lending scene, C.J. aMcKenna agrees. ‘We are not in a price bubble in the Inland Empire,’” she said. ‘I have watched this market for 20 years, and we were way below where we should have been. Now we’re not.’”
You gotta be F’n kidding me right ? Maybe that’s why the dump two doors down from me is still on the market after 2 years with a for sale sign stuck in the front yard for $340,000 bucks ? Yup the price is spot on for the market. Keep Dreaming , PLEASE BEER ME !!
so, 20 years ago, was the Ku Klux Klan still headquartered in Fontana? And Tom Metzger was in Fallbrook - is that considered Inland Empire?
Fontana, yes. Fallbrook, no, it is more considered San Diego - I believe.
Fallbrook is in North San Diego county….a good hour and half southof Fontucky
…and we were way below where we should have been.
Don’t you just *love* the “we were always undervalued” argument? Just goes to show she was delusional waaayyyyyy before the bubble came along.
“‘We have realigned our resources to meet customer needs,’ spokeswoman Brandie Young said. ‘It certainly is in response to the changes across the industry and to align us to the current operating environment.’”
If I understand the business model correctly “customers” is referring to Mortgage Buyers NOT Home Buyers who require financing.
Exactly my thoughts as I read this.
wonder who’s paying for this action ?
David Michael, director of counseling for an accredited credit counseling service with three offices in San Diego County, said that in the first quarter of this year
I contacted two RE agents who work the south central LA area today. Freaking depressing. I have never been met with such total arrogance. Minimum price, I’m told, is 400K and no, prices have not been going down. Tons of demand at the low end for these ghetto starter homes. I was actually calling about a burnt-out tear down (literally red-tagged by the city due to fire) around 300K on a tiny lot (4000 SF), and I was told someone already bought it, all cash. Freaking depressing. If there is a subprime meltdown, it obviously hasn’t affected LA, yet.
Yep, it’s nuts but when and there is no if, this thing hits the fan there will be giant cow pies hitting the wall!
A family friend hauls cows in a large cattle trailer. You want to talk about ****? He uses a firehouse to clean it out immediately after each trip. It’s a river of ****.
I was actually calling about a burnt-out tear down (literally red-tagged by the city due to fire) around 300K on a tiny lot (4000 SF), and I was told someone already bought it, all cash.
All cash for South Central? Please… These ‘agents of change’ are just jerking your chain. Anything to sustain the illusion of prepetual bidding wars and rising prices. Come to think of it, does anyone pay all cash for anything in SoCal these days, with $0-down NINJA free money?
She said the probate overbid court date was coming up (where you can bid I think it’s 5% above the contract price, because it’s a probate property), you can’t fake that.
It’s 10% FYI. And no you can’t fake it buying at probate. You have to have the cash. It takes 10% just to get a deal accepted.
The deal was already accepted by the agent, it was going to court for overbidding.
Yea, I’m looking at one now similliar situation in the hood probate 8 units boarded up 600k. The drawback is that it’s in the R.E.A.P. program and has been condemned. I’m also a little nervous about the neighborhood
Sounds like we have the same bottomfeeding kind of investing style, LOL. Have you seen Nordine lately, his residential inventory is way up, last year it was down to only 8 or so houses with an apology at the top for the slim pickings.
Only drug dealers might pay all cash for a house in south central LA.
Oh, right. I forgot about “that” type of buyer. I guess it’s plausible.
Or the growers from Diamond Bar. It is 420 tomorrow.
Not true, probably a contractor who can fix it up and sell it quickly. All cash financing made sense only because no lender would provide normal financing on a burnt out house like that, I was just surprised at the price combined with the all cash purchase. It’s not just this house though that’s making me wonder about the bubble, I see a lot of houses selling for high prices, in ghetto areas, urban areas, high end areas, just about all over LA. Surrounding counties (Ventura, Orange) are even more expensive. The only drops I can see are in the IE and SD. It’s enough to make me wonder if prices aren’t just going to stay where they are.
I think I read a post like this from you about every two weeks. Have some patience or go look at other markets.
My gosh, only fools do not understand this is a multi-year event.
Just go back and look at the 1990 to 1996 time frame in LA - are you going to tell me that prices didn’t go down?
And I’m sure it was “very slow” at the time…
I remember reading this blog years ago and seeing things like “auction heaven in 2007″.
Anyone buying in central LA is sort of getting what they deserve don’t you think?
Central LA is a LOT better than it used to be, and there are millions of working class Spanish speaking families that would love to own a house there…and they are buying them up like hotcakes, still.
I know I know, it’s my personal bias. I grew up in OC and then did grad school (g ‘93) in LA but I just can’t stand the place. I’d rather have a root canal with no anestetic then go below SLO.
I can totally understand that, although I’d put the cut off at SB. That’s one of the reasons I don’t leave LA much, it looks kind of ratty when I get back. I love it though.
“auction heaven in 07″ could still come true. Consider the Credit Suisse chart.
Didn’t Auction change his name to ‘08?
Anyway, although quite a few posters were chomping at the bit, there were a number here who said this would take many, many years. Sometime between now and then, we may well see a recession/depression which will push things back even further, IMHO.
I think the bottom will be around 2012, if there’s a bottom at all in our lifetimes. We ought to at least entertain the possibility that after many decades of inflation, we may well see a protracted period of deflation (or hyperinflation). Just a thought…
“Only drug dealers might pay all cash for a house in south central LA.”
You’d be wrong on that assumption.
“…south central LA” …”someone already bought it, all cash’
These are not you’re Sunday night “Disney” family buying…
Where think ye that “cash” came from?
Don’t sweat it, LA. If this house really sold as is for all cash, then my theory that people have no clue about home values is true. It is amazing what people will pay for literal trash. However, that person would never pay 3X real value for a new car. Case in point, if you knew that Saturns were say, 20K, you wouldn’t all of a sudden offer 60K and in cash, too boot. You would walk away, esp. if the car was smaller than you thought and burned down. Geez, either this realwhore is lying or people have lost all financial sense.
OCDan,
See “captain jack’s” theory (above) as to what kind of buyer pays cash in S.C.
overpaying on housing is the the “money launder?”
What would happen if lainvestorgirl, or someone like her, were to offer a bonus of, say, $5,000, to the agent who brought her a house for the price she wants?
She’d get it, I know of a big investor here in L.A. who used to offer $3,000.00 and plus you kept your fee. He would get some amazing deals.
That’s not much money, I can try that.
I can’t understand why prices are not down yet.
When are they going to go down?
Waiting, waiting, waiting for prices to drop.
How long is this going to take?
Prices should be lower by now.
This is getting rediculous, prices still not dropping.
It is soooo irritating when you don’t get the price you want.
Thanks Brad. You have summed up my feelings and questions exactly. By spring 2007, which is now, prices were supposed to be way down. Really it was supposed to be after superbowl. They aren’t down. What gives?
They you have not come to Sacramento, ’cause the prices here are going down, down, down.
Sold my house for $245K in late 2004. Same house went for about $350K at the top. Can find similar now for $250-280K. And we are just getting started.
Plus, listing price means NOTHING. I want to know SELLING price. That’s how I figured we had reached the top.
I’m looking in Yolo county and it’s the same thing. I had friends who bought in Davis in 2004 and they are already underwater. The people who are trying to get out now are the ones who bought for their kids in 02 and 03.
So yes prices are coming down which is why I just sort of now maybe getting interested. I won’t be really interested until next Aug or Sept.
Brad, I do not expect the collapse to go any faster than what you are seeing. This is the beginning of the burst - we are years away from the bottom. A bubble of this magnitude will be sticky all the way down.
Remember the Titanic’s bottom was ripped open, whole sections were ripped off and it still took 2hrs and 40 mn to sink.
The housing market has been gutted, give it time to sink.
what gives? lender gives free money (till recently-getting tighter by the day), now as I said above:
By summer the unrealistic sellers should be sweating. by fall they will be sh*tting their pants. its going to be a stinky winter.
captain jack,
Nice answer, but I think Brad was actually trying to make fun of me, which is fine, some people think it is unreasonable to expect to find actual real life evidence of a decline while at the same time doing the victory dance and laughing over all the screwed FBs.
lainvestorgirl: I would be impatient too if I were you. This blog is just the place to air frustrations; the support you find will help you wait longer. It’s interesting that this time, Los Angeles lags the rest of the state. I think that last time LA led the pack, especially the SF Valley. Of course, the earthquake helped things along. But all the evidence points to a statewide bubble burst. Hang in there.
Interesting headlines from June 1995 during the last downturn;
“California Homes Being Sold at a Loss by Real Estate Analyst John Karevoll
June, 1995
La Jolla, CA.— Fewer California homes are being sold for less than they were bought for, indicating that many potential sellers have decided to stay where they are, a real estate information service reported.
In 30.7 percent of all May home sales, sellers ended up getting less for the home than what they had purchased it for. That loss percentage was down from 32.4 in April and down from 35.4 in May last year, DataQuick Information Systems reported.
Loss sales accounted for a steadily increasing portion of the market from early 1991 until a peak of 42.7 percent was reached in September 1993.
Large newly-built homes that were bought during the 1989 to 1991 sales surge have been particularly exposed, but the problem has spread into other categories as well, said Donald L. Cohn, DataQuick CEO.”
REHobbyist: I think you just got me through another month, LOL. Seriously though, I don’t like having my $$ just sitting around, earning practically no interest, and I’m not going to wait forever for LA prices to come back down to earth. If something doesn’t happen within this next year, even 5-10%, I’m going shopping in San Diego.
lainvestorgirl, I don’t get it. You would rather have your money sitting around in a residential RE investment earning, in effect, negative interest? I have been pretty happy with my 9% loans (trailer park clientele) and also with my 5.8% AUD bonds that also appreciated 11% in 6 months due to currency fluctuation. Of course, USD could strengthen any time, putting me at a disadvantage. Whatever happens, it can’t be as bad as what would happen if I had my money in a House.
LA__Renter -
That is great info. They tracked the percent of sellers bringing $$ to the closing during the last downturn in LA!
By any perspective, I would think those are big numbers.
LAIG - are you seeing this? It took until nearly 3 years into the blowoff before it “peaked” at the maximum number that were selling for a loss.
It may even be stretched further out this time.
Great stuff…
I know several people buying in the south bay at work. It is hard to tell them that the legs from this market have been cut off at the knees because of what is happening in the Central Valley. It just make the head fall a little further in the long run.
You can thank the likes of Senators Dodd, Clinton and Obama for investors lining up to buy homes in subprime zones. Only gamblers would buy at this stage, as falling prices tend to discourage long term end users who think of a home as a place to live in and build savings, rather than a gambling opportunity. Unfortunately, if the investors flock back into the market, the malinvestment problem of overbuilding unneeded, overpriced McMansion tract homes will only worsen, and create a more severe long-term drag on the U.S. economy.
Man I do not see how those numbers pencile out. You build a 3 on a lot on a 4000 sqft lot, for, what, $450,000? If you can keep all 3 units rented for $1400 each (pretty high for that hood), you are looking at a 6.7% ROI BEFORE expenses. You’d do better than that buying Munis.
Here’s your headline:
“Housing Price Trends: $400,000 is the new $500,000″(tm)
In retail price point matters. My sense is that the price point grew to half a mil in the NY suburbs. More than that bought you something nice; less, something cheap; if you wanted something ‘middle class’ in 04-05 this is what you would have to spend. That price point will slide. Those with vested interests will like to keep it to $450,000, but I believe that round numbers have a powerful psychic effect on people. Between the overhang of inventory, tightening of credit, including marginally higher rates and full-doc borrower qualification based upon fully amortizing payments, I expect 20% nominal drops. Hence, the style page headline about the housnig market: $400k is the new $500k.(tm)
(c) 2007. All Rights Reserved
“Legislation aimed at slowing a growing trend of home foreclosures in California by tightening mortgage lending standards cleared a first hurdle Wednesday.”
Wow… I can tell this writer is an Econ expert.
No kidding, you’d think that even a numbskull reporter would realize that tightening mortgage lending standards might help prevent another RE bubble in the future but will have little or no effect on the current bubble. If anything it will increase foreclosures by reducing options for people in trouble. Sure would be nice if somebody other than bloggers called the legislators on this.
Hey, don’t correct them! If enough FBs read this and start believing that tighterlending standards will save them, they’ll be screaming for those instead of a bailout.
The Daily Bulletin. “California was hit hard by rising foreclosure numbers in March. RealtyTrac’s report showed six California metropolitan areas
…and then mama bear awoke from a slumber just in time to catch the hunter placing the bear cub in his pack.
“Husing said two types of buyers seemed to be most at risk. ‘First is investors, who haven’t seen the type of capital gains they expected,’ he said. ‘I have spoken with developers who said that with some of the homes they sold to investors, the investors have just walked away from the property without making any payments.’”
“‘Second are the families who bought homes with some of this crazy financing,’ Husing said.”
Yeah, that first buyer sounds like he’s at risk. No down and made no payments - lot of buyer risk there.
“General Electric Co.’s WMC Mortgage subprime lending unit plans to lay off 771…The Burbank, California-based lender in March disclosed layoffs of more than 460 people. At that time, WMC also stopped writing new loans to people who do not make any downpayment.”
771 sucking parasites bite the dust. We can only hope they fail to find new employment.
“771 sucking parasites bite the dust.”
Your eloquence astounds me. Perhaps “we” hope you get medication for your anger or perhaps “we” can all pitch in to buy you a hooker to ease your sexual frustration.
I suggest you keep “we” out of this.
Everyday these people went to work they knew that they entrap some dumbass into a nightmare there was no escpae from.
How would you like if they become cops handing out tickets?
Rentor, It’s impressive that you know all these people and have personal knowledge of their state of mind. You must be a very dynamic social person. I don’t have that personal knowledge. Luckily, you are here and are such an asset to the blog. Also, I don’t know them, so I cannot say whether or not they would be good cops.
I can honestly say I’ve never screwed anyone in any line of work, and in fact I’ve foregone fees for declining to do something sleazy.
So, yeah, I say “F**K’um.
OK, saint chilidogg.
Frankly, I hope they burn. I have no sympathy for anyone who feed snakeoil to the masses.
That’s pretty harsh. Not everyone who works for a lender is parasitical, although I’m sure some are.
It is a true statement;
EVERYONE who works for the lending business IS indeed parasitical. It’s a parasitical industry per se.
What’s the problem with calling things by their names, huh?
az_lender agrees with dan. I have no difficulty in admitting I’m a parasite. What makes my life pleasant is that none of my clients regards me as a parasite. For the most part they think I have done them a favor. Some of them send me Christmas cards. The difference between me and some other parasites is, I’m not a very destructive parasite.
Opteum done!!!
http://bakersfieldbubble.blogspot.com
“I’ll be in touch with you about when and where I may reappear”
Arlene Gardella
Wholesale Account Executive
Opteum Financial Services, LLC
Is she good looking and are there any strip joints in Bakersfried?
good catch crispy!!
“In January, the median price of a single-family home in the valley went down to $587,900, compared to $620,000 a year ago”
The numbers just DO NOT work here. 500k @ 7% = $3500/mo. Add prop tax, utilities, melroos or assoc etc… and you are north of 5k/mo. This is assuming a 100k downpayment (thats not even 20% down).
The numbers still do not work at all.
Arioch, you are absolutely right! That is why the number of forclosures in the next 3-5 years is staggering. The chart, many of us have seen showing the reset pattern is scary. However, what is scary is that there will still be resets after the timeframe on that chart and the number of overleveraged HELOCs that are in trouble.
So true. The numbers do not work at all. When only the top 5% of wage-earners can afford to by the median price house it means that 95% percent can’t afford to buy it. This simple fact does not seem to register with most people.
So, you can either let the 95% buy anyway using some form of trickery or by pushing a financial con game. Or prices can fall by a whole lot. We tried the trickery and con game route and it seems to be unravelling. But the main stream meda, big business and government all seem unwilling to let the second option happen. Right now we are watching a massive effort by the power players to prop up the unsustainable.
Binko, the power players, even if they prop this thing up, won’t be able to hold it in the long run.
TOO MUCH DEBT. Repeat after me, BB. TOO MUCH DEBT. UNSUSTAINABLE WITHOUT drastic wage increases.
I just don’t see how almost all of us here see it, but the powers that be don’t. I realize their greed, but at some point common sense kicks in and you realize you cannot get the proverbial water from a rock (although Moses did twice). Once they realize this I think at that point the bottom will be reached. All that will be left is for the foreclosure tsunami to wipe out the remaining FBs.
“…but the powers that be don’t.”
I think they get it, and will ‘accidently’ create inflation in order to whittle it down to size by taxing creditors.
It won’t work. All money is debt. Money does not exist until it borrowed into existence.
How do you inflate out of debt with more debt?
‘They’ know what’s coming. The only goal now is to put off the inevitable as long as possible.
When putting it off becomes impossible, a scapegoat event will be deployed. ‘Everything was fine until that nuke went off.’
All Hail the Chart! Learn it, love it, live it. This should be posted once a day for any casual visitors to indulge.
http://www.smugmug.com/photos/136440158-O.png
“THE CHART”
doesnt matter how many times I see that one,
it scares me to think of the tsunami of pain just over the horizon.
And we’re only in month 3. Just think of the chatter when we hit month 12. Oh, the horror.
Really? My interpretation was that April 2007 was month 4. Does someone know for sure whether Jan 07 was the first month of the chart or the month before the first month?
Hey chilidoggg, I agree with you this thing should be posted daily and shown to everyone who does not believe in the coming ARMageddon.
az,
You could be correct, I read “Data as of January 2007″ to mean that month one was February.
But, does it really matter? That thing is ghastly.
oops, meant to say “Data as of January 2007″ combined with “Months to Reset”, meaning in one month (February), the first of the resets starts.
Again….as if it matters much.
U R right, doesn’t matter much, except I was wondering if the first month of steep runup in reset rate is may or is it june
I am going to make a smaller, wallet sized, laminated version and carry it with me - just to see the kool aid stained tongues as those jaws drop.
That is way awesome! 12 months until the first reset wave hits its crest, and 48 months until the secondary wave hits its crest. Barring extraordinarily blatant government bailout efforts, the housing bubble denouement will not truly begin until 2011.
This is “The New Chart” to me. Previously the famous Shiller graph was The Chart.
Although the ARMageddon chart comes from Credit Suisse, I believe it was first brought to our attention by implode-o-meter 3/19/2007. Is that correct? Just trying to give credit where credit is due, for historical purposes.
“The good news was the median price of a house held at $590,000, just $10,000 lower that the previous year. ”
Reporting like this always drives me crazy, because I always feel like it should be edited to read, “The good news was the median price of a house held at $590,000, and the bad news is that prices like these are completely unsustainable without the continued reliance on suicide financing.”
Not to mention inflation. Or the falling dollar for that matter. If you sold the house now, converted the proceeds into Sterling, you would find that you lost about 15% purchasing power in one year. Ouch!
Sorry if it has already been posted…Dataquick/LA Times Year over Year numbers for SoCal Counties and cities:
http://www.dqnews.com/ZIPLAT.shtm
I find it interesting that in nearly all of the cities in the western San Gabriel Valley, prices are lower. Are we living in interesting times?
Very interesting. The only places holding up are on the Westside (rich people and lots of dual incomes no kids). The SFV (where I am) looks toast. I wonder how the Realtors’ will spin this.
Anecdotally, have found that people still bid ridiculous prices, however it’s the lending (stupid) that has changed! Alan Greenspan and his cronies have a lot to answer for.
There are some eyepopping negative YOY changes in used SFR median for some desirable SD zip codes. Of course, one can never know for sure whether the changes in median are due to quality differences in what sold in the two periods or declines in comparable prices. Easy come, easy go.
Rancho Bernardo West (92127) -18.2%
Coronado (92118) -33.2%
La Jolla (92037) -15.8%
Del Mar (92014) -33.2%
http://www.dqnews.com/ZIPSDUT.shtm
“The guidance suggests lenders stop relying so heavily on credit scores and do more to verify people’s incomes and ability to repay loans. The guidance also suggests that lenders base decisions on a borrower’s ability to pay the maximum monthly payment of an adjustable-rate loan, not just the initial low introductory rate.”
Wow! What a concept……loan people money based on their ability to repay instead of their ability to prove they have a pulse and that they are stupid enough to sign a financial suicide document.
The run-up in prices in California was based on a pyramid scheme….those in first make the money followed by those who end up holding the debt. When there’s nobody left to buy in at the bottom the pyramid collapses.
LOOK OUT BELOW!
“The guidance suggests lenders stop relying so heavily on credit scores and do more to verify people’s incomes and ability to repay loans. The guidance also suggests that lenders base decisions on a borrower’s ability to pay the maximum monthly payment of an adjustable-rate loan, not just the initial low introductory rate.”
Wow! What a concept….loan money to people based on their ability to repay it not on whether they have a pulse and are gulible enough to sign financial suicide papers.
The run-up in prices in California was based on a pyramid scheme. Those in first make the money from those buying in at the bottom. When there isn’t anybody left to buy in at the bottom the pyramid collapses.
LOOK OUT BELOW!
I was thinking the same thing when I first read it, but then isn’t it scary how this mania turned reasonably sensible people (high FICO scores are supposed to mirror that) into gamblers?
I have a FICO in the high 700’s and when the broker I was working with told me that I could just refinance at the end of the 5 year interest only loan I was going to need to buy I looked at him and asked what happens if I can’t refinance it. He sat there and stared at me for a moment and said well then you sell and make your money.
I felt this urge to run for the door at that point….buy what you can’t afford based on speculation you can cash out when the loan converts. I’m glad now I didn’t do it. The house I was looking at was a money pit.
This is the part I find most difficult to understand …
You would think that the lending industry would have a vested self-interest in ensuring that the default risk is manageable. I understand the arguments that a pumped-up money supply will drive up prices (essentially just inflation), but I don’t understand why it led to increased willingness to take risks.
I would think that the lending industry would only pursue increased risk if there was commensurate payoff – but payoff would be linked more to the difference between the Fed borrowing rate and the lending rate charged to the home buyer, not to the absolute interest rate itself. I don’t think that this difference in interest rates became much larger when the Fed decreased rates.
Maybe I’m thinking about this too hard. After all, market forces don’t guarantee that no business ever makes bad decisions, just that over time, businesses which make bad decisions tend to die off. Maybe that’s what we’re witnessing now …
The lenders eye-balls were just as bulged out as the specuvestors, everyone including the lenders were caught up in the “Real Estate Only Goes Up”……..so, during the boom, there was essentially zero risk.
Now; however, everyone in the game at the 11th hour is about to get their @ss handed to them. So, the back-peddling begins with “Im a victim” and moves to “Government Intervention” finally to cumlinate in “Everybody is SOOOOO screwed.”
“I would think that the lending industry would only pursue increased risk if there was commensurate payoff”
The payoff came by simply keeping the whole scheme in a continuous Ponzi-style vicious cycle mode. FORTUNES have been made by many thanks to it. Now that the wheel is screeching to a halt, comes the pain.
I say let it hurt.
Exactly Dan. As long as points, fees, and commissions were being made to the tune of 10-100K’s a month, these lenders didn’t give a rat’s rear pimple, esp. since they bundled this crapola and sold it on the open market. Sad to think that this is what the banking industry became.
However, it just mirrors society in general. Most want the easy buck quick so they can retire at 40 and live in the Caymen’s with a home in Aspen.
Many of these lenders were lending OPM (through their warehouse credit lines from the Wall St. folks), then packaging up the loans and selling them back to Wall St., which then sold them off as MBS, CDO, etc. These “lenders” had absolutely no incentive to minimize risk, only to increase profit by increasing volume. Other traditional lenders felt compelled to offer the same types of loans on the same terms (even if they were keeping some or all of the loans in their portfolio) in order to compete and keep their profits and share prices up. Basically, it became a race to the bottom. Not smart from a long-term perspective, but it helped them get nice salaries and bonuses and stock options until the music stopped. Plus, some were smart enough to get out at the top (e.g., Golden West).
Or, some traditional lenders (moi) just kept their blinders on and their LTV’s high, but financed low-end properties the Big Boys are not interested in. By not lending OPM i was also not tempted to charge much in the way of fees, just get some Schedule B interest that exceeds what is available in widely-traded bonds. I am fond of posting “no clients in default” and that’s still true; guess I will have to admit it if/when a problem occurs.
“You would think that the lending industry would have a vested self-interest in ensuring that the default risk is manageable.”
Senators Dodd, Clinton and Obama are working hard to make sure that all Americans are devoid of financial common sense, and trust their government to offer bailout proposals when financial stupidity gets them into trouble. Of course, it is primarily the lending industry and the Wall Street kingpins who feed it investor funds which will benefit from whatever form of bailout is eventually slipped under the table.
OT
Cramer says Countrywide is the “logical takeout for Merrill”. Wasn’t there a CFC pump involving BAC the last time they reported?
http://tinyurl.com/yvmt2n
I was thinking the “logical takeout for Merrill” was that kick ass Chinese place down the street or perhaps the “Curbside to Go” at Chilis.
http://buildingfrenzy.smugmug.com/gallery/2729167#P-2-15
i was way out of my league in rancho santa fe. there is no place to park to photograph but i found a new mc mansion site.
i also visited a photographed encinitas. please open page 2.
1.8 FREAKIN MILLION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
WHO THE HE DOUBLE HOCKEY STICK IS LEFT TO BUY AT THESE INSANE PRICES?
No question, the apocalypse is near. I thought the Credit Card that offered a reward toward your mortgage was the end, but this is insane. If I want a Nantucket style home, then I’ll move to the real thing, esp. at that price.
What a joke!
No, they START at 1.8 million! A ‘good’ house will cost more. And I thought the end was near when I saw houses advertised ‘from the low $1millions’ a couple of years ago.
Yeah, ha ha. Who wants to be a millionaire? Nobody, it’s chicken feed.
SD Ziprealty inventory for Rancho Santa Fe is currently 198 homes, with a median list price of $3,697,500. That comes out to over $723 m in inventory for one SD zip code (92067), if only they could sell those homes for their list prices.
I highly suggest you check out the Santaluz area (92127 zip code) and also Carmel Valley (92130 zip code). Your eyes (and camera lense) may pop out when you see how many new, unoccupied McMansions dot the landscape, and also how many vast tracts of prime land are already graded for new SFR tract home construction, despite frequent reports in the SD Union Tribune that there is no more buildable land in San Diego.
http://www.santaluz.com/
http://www.cv-home.com/Nav.aspx/Page=%2fPageManager%2fDefault.aspx%2fPageID%3d381704
im in shock GS. so many developments to investigate. can i catch those places on the 5 or 805?
Take I-15 down to Camino del Norte and head west. Soon you will find yourself on Camino del Sur (continuation of Camino del Norte with a more snobbish sounding name). This is where you will find endless tract home developments containing many homes which look as though they may have never been occupied (I am reasonably sure many have not).
Alternatively, take I-5 to SR 56, and head east. Exit on Camino del Sur and head north. Soon you will enter the wannabe Rancho Santa Fe McMansionland known as Santaluz.
I hiked up Black Mountain and had a good view of 4S ranch. Plenty of buildable land already cleared, some graded. I wanted to check out one of the Santa Luz neighborhoods but there was a gate and a guard — turnoff. Huge lots out there though.
i better dress like a blond re agent and rent a land rover to sneak in these areas. i actually need a driver there is so much to shoot.
i could of told you catapillar was going up. duh they are everywhere in sd.
Tucson home firm files for Chapter 11.
The slowing real estate market has claimed its first victim among local home builders.
The filings list as creditors numerous contractors owed as much as $238,000 for their work, as well as individuals who have paid deposits of up to $351,000 for homes under construction.
http://www.azstarnet.com/allheadlines/178917
as well as individuals who have paid deposits of up to $351,000 for homes under construction.
A deposit of $351k?………………..
Like the lenders, we need an Implode-o-Meter for builders. I suppose this is the first in a very long list.
Is this a typo “Mexi-math”? If not what does it mean?
It means 1 + 1 equals 13 because 11 snuck in illegally and now want to stay and be counted too!.
It’s math whereby in evaluating the costs/benefits of illegal immigration, we don’t factor in the costs of social services in the form of education, health care, etc. for the children of illegal immigrants because, in fact, those children are American citizens.
The children of illegals are Americans only if they are born in this country, not just because their parents broke the law and dragged their children with them. Illegals use anchor babies to scam for welfare, food stamps, section 8 housing, etc. Exploiting taxpaying citizens for maximum gain.
Many years ago, I would have thought the illegal-bashing was highly inappropriate.
In college, I had the opportunity to work for Social Security and couldn’t believe how many illegals were having babies and using their Supplemental Security Income (SSI, the federal welfare program) to finance their drugs, booze, and cupcakes. It was sickening. How about 10 different kids, with 10 different last names, with each baby receiving $800/month. Not bad for someone unwilling to speak English and showing complete loyalty to Mexico.
Anthony,
You just answered a question that I have had for a few months. I recently signed up for social security at the Tucson office. It was just opening time and there were three other “cotton tops” besides myself ecoming eligible for the “dole” and one fellow who definitely needed SSI. The majority of other folks there were either young latino women with multiple young children in tow or young men in their 20’s or maybe early 30’s who from the investment in their tummies were either supersizing at McD’s or possibly trying to rid the world of hops. They certainly did not appear disabled.
I was in a Kroger grocery store today in Westerville, Ohio.
I heard someone come on the intercom and say that First Merit Bank, which had an outlet in Kroger, was offering home equity line of credits at really low rates and for the people to stop on by and sign up.
This is is a f*cking grocery store!
I was at the west LA branch of Citibank today, and went to one of the workers at a desk to order a new ATM card (old one was all to’ up), she had a big stack of home equity line of credit applications sitting in front of her that she was in the middle of reading through.
I went to my local New Century branch the other day and got me a Big Mac with fries and a large coke.
Ah yes. The banks got a whiff of “The banks are too big to fail so we in Congress have to save them no matter what”.
Woo hoo! Time to give out free money!
How do folks see the california meltdown affecting the echo bubble areas like Idaho, Colorado, Utah and Texas? Here in Texas people are still dancing (I don’t hear any music though).
Changed Listings
View All Matching Listings
356 Paseo De Arena, Torrance, 90505
Status: ACT MLS#: S942111 $1,475,000*
List Dt: 02/23/2007 PType: SFR-D Orig Price: $1,675,000
Down 200K.
needs to go down another 200k except it will probably sell at current listed price. dolts who want to live in torrance, ca at 1.4
OT This editorial was from February 2005
http://www.washingtonpost.com/wp-dyn/articles/A54743-2005Feb25.html
NYSE short interest rises to record high in April
NEW YORK, April 19 (Reuters) - Short interest on the New York Stock Exchange rose to a record high in April, the exchange said on Thursday, signaling a rise in bearish sentiment even as the stock market rebounded.
As of April 13, the number of short-selling positions rose to about 10.99 billion shares, up from 10.51 billion shares in the previous month.
Short interest on April 13 was equal to 2.9 percent of the total shares outstanding on the NYSE
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070419:MTFH30670_2007-04-19_20-52-04_N193966&type=comktNews&rpc=44
2 type of short sellers:
1) Retail dummy
2) Specialist
follow 2 even though they are sometimes ahead of the curve.
1 is “hoping & praying” Like me.
at the bottom there’s a chart showing equity as a percentage of real estate values declining from 80%+ in 1950s to below 55% 2006.
http://mwhodges.home.att.net/family_a.htm
“The home sales market in the Santa Clarita Valley is returning to normal, real estate experts said. ‘It’s not going to be like it was the last two or three years, where we were seeing huge numbers of sales and huge price increases,’ said Larry Gasinski, president of the Santa Clarita Valley division of the Southland Regional Association of Realtors Inc.”
My family and I tolerated a mediocre dinner at Marie Calendar’s in Santa Clarita last night. Two things are in evidence there:
1) One look at the topography suggests the area is geologically unstable and a major earthquake waiting to happen.
2) There is a massive amount of overbuilding of ugly, overpriced tract homes. Some of these homes are built in rows along ridges of what appears to be loose soil, which will doubtless undergo a massive shift the next time a magnitude 7+ temblor hits along the San Andreas fault, a mere fifteen miles to the north. The 1857 earthquake shifted the ground by an estimated 30 feet.
Other than these drawbacks, plus the evident fact that home prices are falling rapidly there, I can see no reason not to buy investment property in Santa Clarita.
http://www.scvresources.com/geology/
Some of these homes are built in rows along ridges of what appears to be loose soil, which will doubtless undergo a massive shift the next time a magnitude 7+ temblor hits
Get Stucco, forgive my dark conspiracy mood, but I would say that they knew those houses are toast before they built them and they just didn’t care.
Getstucco,
Of all the places to eat in Santa Clarita, you guys chose Marie Callendar’s. There’s Denny’s, Macaroni Grill, Red Lobster, Applebee’s, IHOP, and Burger King. That explains the $700K tract homes in the city.
Marie Callendars was the least intolerable of the junk food and franchise restaurants we saw.
GS, Next time in Santa Clarita, drive up the Old Road-North- about a mile from Marie C’s and eat at Jimmy Deans. Also, I was in SC during the Northridge Quake, shook like Hell but not that much damage up here.
“‘This is probably starting to be a real problem,’ said regional economist John Husing. ‘It’s what we have all been expecting.’”
They have all been expecting this problem, but they have also kept the news thereof a closely-guarded secret.
“Legislation aimed at slowing a growing trend of home foreclosures in California by tightening mortgage lending standards cleared a first hurdle Wednesday.”
“Senate Bill 385 by Sen. Mike Machado, would expand state regulatory authority over many of the state’s lenders and real estate brokers who make home loans. If passed by the full Legislature and signed by Gov. Arnold Schwarzenegger, it would make state- licensed lending firms follow new federal ‘guidance’ in their loan practices.”
“The guidance suggests lenders stop relying so heavily on credit scores and do more to verify people’s incomes and ability to repay loans. The guidance also suggests that lenders base decisions on a borrower’s ability to pay the maximum monthly payment of an adjustable-rate loan, not just the initial low introductory rate.”
I think it is great that California is contemplating a move to tighten lending standards. Long term, the state’s economy and housing market will benefit greatly by discouraging unqualified buyers from purchasing homes they cannot afford. This is the best hope for restoring affordability that I have heard of to date.
From guess who’s letter of 3/22:
“The summit should consider best practice loan marketing, underwriting, and origination practices consistent with the recent (and overdue) regulators’ Proposed Statement on Subprime Mortgage Lending. The summit participants should also evaluate options for independent loan counseling, voluntary loan restructuring, limited forbearance, and other possible workout strategies. I would also urge you to facilitate a serious conversation about the following:
* What standards investors should require of lenders, particularly with regard to verification of income and assets and the underwriting of borrowers based on fully indexed and fully amortized rates.
Answer: Senator Obama.
http://obama.senate.gov/press/070322-obama_urges_bernanke_paulson_to_fight_foreclosures_hold_homeownership_summit/index.html
When you look at this housing situation, while builders are trying desperately to work off their excess inventory, the lenders are now getting serious about building theirs up with foreclosures. hahaha. If the situation wasn’t so serious I’d burst out laughing…….Bwhahahahaha
“The good news was the median price of a house held at $590,000, just $10,000 lower that the previous year”
W . . . T . . .F ?
“the good news is that price of West Texas Intermediate held at $65/bbl.”
“the good news is that rents held at $2/sqft.”
bias here?
I wrote this to Sen. Machado about SB 385, and also on sacramento bee article comments
—
This is a very timely (actually a few years overdue) piece of legislation, and Sen. Machado is to be commended for pushing this through. This should help bring back some sanity to the out-of-control and irresponsible credit machine that has distorted the housing market immensely. Making unaffordable loans to unqualified borrowers has put the borrowers’ families in jeopardy and has also inflated home prices and made housing unaffordable for responsible buyers who don’t want to get caught up in the mania.
It is commonsense : the only loans that should be made are those that can be paid back by the borrower.
Care should also be taken not to waste taxpayer money to fix problems caused by irresponsible lending. “Bailout” proposals that misuse taxpayer funds and channel them to lenders only encourage more irresponsible behavior in the credit markets.
The most important protection against bad loans is prudently underwritten loans, which this measure should promote.
More stringent and commonsense underwriting standards should not just be “Guidance” but a legal requirement for all lenders in California.
Need a point of view. Have been looking for a house for the last couple of months. Found a house listed $389K. Offered $330 plus $10K from seller for closing. Seller counters with $369K.
Now get this, I tell my agent that I want to make a counter and he goes off and tells me that 1) the seller originally offered the house at $420K and that the seller had come down to $369K 2) I was wasting the sellers time and the agent’s time. BTW the house has been sitting on the market for 5 months.
Now this is my agent! I’m thinking of terminating the contract. I should, right?
If you are indeed wasting the seller’s time, make them tell you so by saying “no” to your counteroffer. It’s not up to your agent. Your agent is obligated to present your offer. If your agent won’t, tell him you plan to go around him. I’d also report the agent to his principal broker (manager at his branch).
That’s the problem with buyer’s agents. It’s in their best financial interest to have the house sell for the highest price. The one time I used one, she didn’t negotiate for me for sh!t.
The funny thing is, you save $39K and they only give up $585. Tell him you’ll pay him that amount if he gets you the $330K price.
Not investment advice.
clarification: my contract with my agent - fire my agent
Oh, the next step in mortgages. “50 year ARM! Interest only for the first 10 years! You don’t pay a dime for the first year! Step right up! See the two headed woman! See the snake boy! oh damn, wrong century….
an article posted a few weeks ago on this blog contained the following quote:
“Realtors are working harder to earn their commissions. They’re having to pick up the phone for ‘cold calls,’ knock on doors and spend more money on marketing. Some are finding new careers or taking second jobs.”
The quote would be more accurate if it had said:
“To earn their commissions, realtors are working harder, having to lie more frequently, and making increasingly bizarre claims about following a code of (rarely enforced) “ethics”
They’re having to pick up the phone for ‘cold calls,’ spend more time harassing For Sale By Owner sellers all day long, and actually getting off their fat butts to knock on doors and spend more money on marketing hoping to find credit worthy buyers idiot enough not to have heard of any real estate bubble, but smart enough to have some actual cash to put down on some overpriced property.
Some brokers are now finding honest work more suitable to their level of skill that might add some value to society, including such occupations as street sweeper, car wash scrubber, or degreaser at McDonalds.”
90% of real estate broker jobs could easily be eliminated and actually improve the world a bit
anyone who buys now will regret it in a year
and will regret it even more in 2 years