July 9, 2007

Steam Being Let Out Of The Kettle

The Cape Cod Times reports from Massachusetts. “The entire auction process took less than 15 minutes. An attorney read a legal notice and the auctioneer opened the bidding. Moments later the property sold for $493,000, the defaulted-upon mortgage had been for $580,000. In June alone, according to Barnstable County Registry of Deeds records, 30 foreclosure deeds were filed.”

“These transactions bring the year’s total number of foreclosures to 66, nearly four times the level reached in the first half of 2006 and the highest six-month count in more than a decade.”

“Pam Parker, the mortgage foreclosure prevention counselor in Hyannis, estimated that she is working with between 75 and 100 homeowners who are at risk of losing their property because of an inability to keep up with their mortgage payments. ‘It has just mushroomed,’ Parker said.”

“Loans…which were very popular and easily available during the housing boom of the early 2000s, often include interest rates that increase over time, eventually leaving many buyers with monthly payments they can’t afford. ‘The adjustable-rate loans hit people the hardest,’ Parker said.”

The Daily News from Massachusetts. “The housing market is in a slump across the state, but according to statistics released by the Warren Group, the effects of the softening market are particularly strong in some local communities.”

“In Salisbury, the median sales price for a one-family home in the first five months of this year dropped by 22 percent from the same period last year to $251,000. In West Newbury, the drop was 32 percent, to $448,500.”

“Home sale prices have dropped off in Newburyport but only by 12.8 percent, significantly less than in some surrounding towns.”

“‘Newburyport tends to be more sheltered from this sort of variation…just because it’s so attractive,’ said Jerry Lischke, a broker in Newburyport. ‘There’s also the fact that the city is built out to a point where supply is basically fixed. You have the opposite situation in Salisbury, where they build and build and build. Salisbury real estate is like Florida now, with so much supply the market is whipsawing.’”

“‘One reason some of the towns in northern Essex County are getting hit harder is that they’re higher-end communities,’ said Terry Egan, the editor in chief at the Warren Group. ‘Where the run-up in prices has been steepest is where we’re now seeing steam being let out of the kettle.’”

The Enterprise from Massachusetts. “The bulk of foreclosed properties on the market are in the cities, but suburbia may be catching up. Take East Bridgewater, a middle-class town where the median house price is $335,000.”

“This suburb of Brockton had the biggest increase of foreclosure filings, a whopping 233 percent hike, between May 2006 and May of this year among communities in Massachusetts that had 50 or more filings in that period.”

“Walpole, a suburban town with some upscale neighborhoods, saw its foreclosure filings rise by 152 percent during the same period.”

“May statistics indicate that foreclosure activity will continue to rise in Massachusetts, according to Timothy Warren Jr., CEO of the Boston-based Warren Group. ‘There are fewer options available to people,’ Warren said. ‘In the past, maybe they had enough equity in their house to refinance.’”

“‘There’s more bank-owned property for sale,’ said (realtor) Sherry Palmer in West Bridgewater. ‘The percentage is becoming greater and greater.’”

The Citizen from New Hampshire. “The number of mortgage foreclosures in Belknap County during the past six months has almost quadrupled over the same period of time a year ago.”

“Not surprisingly, Laconia runs far ahead of Belknap County’s 11 other communities, about a third of the total. The rise in numbers for the first half of this year has seen Laconia with 19 foreclosures, and the only community in double digits.”

“Belknap County is hardly unique among the counties of New Hampshire in the rise of foreclosures. State Banking Commissioner Peter Hildreth is reported as saying 132 foreclosures were recorded in New Hampshire in April and another 139 in May. Contrast the two-month total of 271 with 130 for the same period a year ago.”

“Buyers are attracted by what seem to be the low initial rates of interest in adjustable rate mortgages. What they don’t consider or prepare themselves for is a sharp increase later. Hildreth says, from the numbers he’s seen, the crisis hasn’t peaked yet.”

The Record from New Jersey. “Mortgage lender First Financial Equities of Teaneck made three refinance loans totaling $613,800 in 1999 to a customer who put up three housing units in Spring Valley, N.Y., as collateral.”

“Englewood lawyer William Dimin, an attorney for First Financial, said the loans went bad and the borrower, Hershy Walter, turned out to be ‘a fictitious person or the alter ego’ of another individual living in one of the units.”

“‘Clearly, mortgage fraud was involved here,’ said Dimin.”

“Incidents of mortgage fraud in New Jersey more than doubled in the first quarter of 2006 compared with the same period of the previous year, according to the most recent statewide comparisons in the report.”

“‘Suspicious Activity Reports’ related to mortgage fraud that were filed by federally regulated lenders rose to more than 28,000 in fiscal year 2006 from 3,515 in 2000. That’s only ‘the tip of the iceberg,’ Mortgage Bankers Association President Jonathan L. Kempner said in a recent note to the trade group’s members.”

“New Jersey was not among the 10 worst states for mortgage fraud in 2006, but the state’s 250 percent increase in the first quarter last year was highlighted as being ‘rather large,’ along with Arizona’s 213 percent increase. The states with the highest level of fraud in the early part of 2006 were Florida, California and Michigan.”

“The report said the most common types of fraud involved lying about employment history and about income, and the lying was done mostly on loan applications.”

The Pocono Record from Pennsylvania. “Monroe County is on pace this year to shatter the previous record for home mortgage foreclosure filings, according to the county Prothonotary’s Office. There have been 635 foreclosure cases in 2007, through Thursday, more than for all of 2005 or 2004. If the present pace continues, it will result in 1,246 filings for the year.”

“The local rate of default on home loans is a longtime problem many have linked to abusive sales practices. Allegations include inflating price appraisals to value and sell homes for more than they are worth on the local market, falsification of sales documents, undisclosed second mortgages hidden from both buyers and the primary lenders, and abusive loan terms.”

“The Pennsylvania Banking Department (commissioned) a study of local foreclosures. That 2004 report documented a pattern of high foreclosure filings among newcomers from New York and New Jersey who bought homes in private gated communities.”

“The Reinvestment Fund determined the rate of home foreclosures in Monroe County was higher than for seven other Pennsylvania regions it examined, including the state’s two largest urban areas. The study said Monroe County foreclosures grew at an even faster rate than that for new home construction, despite thousands of new homes spawned by the fastest population growth of any region in the state.”

“The study said Monroe County foreclosures tended to be on homes concentrated in a few gated communities, that the homes frequently had inflated sales prices, that most were financed by lenders that make sub-prime loans, and the homes typically went into foreclosure in less than three years.”

The Providence Business News from Rhode Island. “Through June, single-family home sales ‘have moderated as expected,’ Cecile Cohen, president of the Rhode Island Association of Realtors, said today in an RIAR report that discounts ’seemingly inconsistent trends’ in the local housing market.”

“‘There are more homes on the market, but those that are priced right are still selling in a matter of months,’ Cohen said. ‘We feel that as long as the economy remains stable and interest rates remain low, the market will continue to correct itself.’”

“The state’s inventory of unsold single-family homes increased sharply, rising 38 percent to 6,735 in the last week of June from 4,865 at the same time last year. And projected closings fell 9.1 percent, to 1,174 in May 2007 from 1,291 in May 2006.”

“Meanwhile, the average time on the market increased 12.3 percent for houses sold in March through May, as their median price fell only 1.4 percent to $275,000.”

“In analyzing trends in median prices, the Realtors said, it is important to understand that median sales price reflects the mix of properties on the market at the time and does not indicate value fluctuations in comparable properties year to year.”

“‘It’s important that people realize that real estate is extremely local,’ Cohen added.”

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Comment by Ben Jones
2007-07-09 07:17:04

‘According to recently released statistics from the National Association of Realtors, the money for Massachusetts agents isn’t that good, and with the housing downturn, it’s not likely to get better any time soon.’

‘The 2006 median gross income for a real estate agent in Massachusetts was a paltry $31,700, according to the NAR. The most successful agents, meanwhile, make just over $70,000. In 2003, the median salary was $45,400 in Massachusetts.’

‘Lately, real estate commissions have hovered around 3 percent, Wetzel said. After splitting that 3 percent with the other agent involved in the deal, an agent takes what’s left back to his or her broker’s office, where it’s split again with the broker/owner.’

‘And on top of that, there are fees. Business fees, desk usage fees; when you whittle it all away, you can see why there’s not much left,’ Wetzel said.’

Comment by flatffplan
2007-07-09 07:23:30

since the internet was developed why would you need a realwhore ?
too shy
CAPE COD ,first in the tank, going down since fall 04

Comment by exeter
2007-07-09 07:36:49

Many parts of New England were late to the escalating prices. Cape Cod was still escalating in 05.

Comment by palmetto
2007-07-09 09:26:44

As I recall, Massachusetts, or more specifically, Boston, led the country in escalating prices.

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Comment by exeter
2007-07-09 10:58:49

Maybe so Palmetto but my observation was a slow steady increase in prices beginning in 1999 but they didn’t skyrocket everywhere until mid 2005. Just my observation.

Comment by CharlesM
2007-07-09 11:27:45

I moved to the Boston area in the mid-nineties, not long after the recession had bottomed out, and the real estate frenzy was already starting even then. Then in the late nineties it caught fire with all the silly dot-com funny money sloshing around (Boston is a fairly significant center for high-tech). As early as 1997 we had the “Bring your checkbook to the open house” syndrome going on. It was ridiculous.

Boston, though perhaps not Massachusetts as a whole, was very much one of the leaders of the pack in the real estate bubble derby.

Interestingly, in the Boston area, prices seem to have risen a lot LESS than the rest of the country in the last five years or so - probably because they shot up so high before everyone else got started. I’m already seeing some prices back down to 2002 levels (when adjusted for inflation).

Comment by exeter
2007-07-09 11:49:59

Then I stand corrected. I do know the “tiny bubbles” began forming in the late 90’s. Many of the old mill towns in New England didn’t see any price action until 04-05 and I don’t quite understand it. These places are in decline and the prices were flat to falling until 03 or so then doubled since then.

Comment by CharlesM
2007-07-09 12:01:02

I think it’s because the GFs saw those old mill towns as “undervalued” - places they could buy “cheap” and flip.

Flip to whom, one might ask. I have no idea.

It sure doesn’t look like that plan worked out very well for the flippers.

Comment by Larry
2007-07-09 11:08:59

I moved to New Hampshire (Exeter) in 1988 from Washington State with the idea of staying, stayed one year and returned to Washington. 1988 was similar to early 2006 in regards to the ending of a real estate bubble and the difficulty of digging out the information (no internet). It was a real estate bubble mentality, ie,”real estate always goes up” and “it’s based on the local economy which is good”. The RE market crashed in New England in 1990, a study of the strength of the economy found out the boom was based on real estate itself. Does history repeat itself? No, but like Twain said “it does rhyme”.

Comment by kerk93
2007-07-09 11:55:44

The Big Dig was a lot of government “free” money that poured into the area. Money goes somewhere. I have no stats on how much money went into the Big Dig, but it certainly didn’t detract from home prices going up. It is an expansion of the money supply in Boston. Where did it go (after being spent on the obvious “Big Dig”)?

Comment by sohonyc
2007-07-09 08:13:58

Awwww… I guess it’s hard to get paid for doing nothing.

Comment by gascap
2007-07-09 11:33:43

Is realtor commission in MA really only 3%?? I think this is a feeble attempt by the NAR to empathise with the realtors. In the bubble years of 2003, the meadian realtor salary was $45K?? Give me a break.

Comment by GetStucco
2007-07-09 07:28:43

“‘It’s important that people realize that real estate is extremely local,’ Cohen added.”

I wonder where Cohen came up with that brilliant insight?
All Real Estate Is Local: What You Need to Know to Profit in Real Estate - in a Buyer’s and a Seller’s Market
By David Lereah.

Countless books offer advice on how to buy and sell a home. But All Real Estate is Local is the first book to explain how knowing the ins and outs of the local market you are targeting is essential to deciding when, where, and what to buy.


Comment by GetStucco
2007-07-09 07:33:10

NAR pricing:

All Real Estate is Local
Item # 141-95
Product Image

Member Price: $21.95
NonMember Price: $21.95

Amazon.com pricing:

All Real Estate Is Local: What You Need to Know to Profit in Real Estate - in a Buyer’s and a Seller’s Market by David Lereah (Hardcover - April 3, 2007)
Buy new: $21.95 $14.93
50 Used & new from $8.00

Get it by Tuesday, Jul 10, if you order in the next 7 hours and 59 minutes.
Eligible for FREE Super Saver Shipping.


Comment by polly
2007-07-09 08:50:09

What do the customer reviews say?

Comment by Not Mssing It
2007-07-09 09:32:46

What do the customer reviews say?

Leslie Y. from California
“This is a great time to buy this book”

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Comment by House Inspector Clouseau
2007-07-09 10:01:57


Comment by HARM
2007-07-09 15:18:57

How about “this is a great time to buy OR SELL this book”?

Comment by exeter
2007-07-09 07:34:48

The locality issue brings up a good point as it relates to equity bandits. As older boomers and retirees ran from established middle class locales with their pots of gold, how will that effect those areas they left and the areas they went to?

Comment by Pen
2007-07-09 07:40:04

They went from the frying pan into the fire as the burned the bridge behind them as the singed their wings by flying too close to the sun. In other words, they spent their equity chasing a “cheaper” cost of living, which turned out to be not so cheap, menawhile, they can’t return home, because their equity is either gone or locked up.

Comment by Bill in Carolina
2007-07-09 07:48:07

Not always the case. We took our “pot of gold” to the perfect (for us) low-cost retirement spot. No mortgage, cheap utilities, low taxes, tolerable winters, low crime, lots to do, great neighbors. We’ve never looked back.

BTW, my wife’s siblings and their spouses also bought here after just one visit.

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Comment by House Inspector Clouseau
2007-07-09 09:13:28

I also cashed out of overheated market and moved to lower COL market. (albeit I didn’t get a pot of gold… maybe a few bags of silver!)

That said, I went from looking at a lifetime of wage slavery to pay my mortgage-yoke… to having a home with a low mortgage payment and a mortgage that is less than my saving’s account balance.

that for me is FREEDOM, and it smells so sweet… yes, even in the freezing middle of winter. I hate snow… but I hate indentured servitude more.

Comment by Not Mssing It
2007-07-09 09:28:42

perfect (for us) low-cost retirement spot. No mortgage, cheap utilities, low taxes, tolerable winters, low crime, lots to do, great neighbors. We’ve never looked back.

I thought space flights weren’t going to be available until 2009?

Comment by exeter
2007-07-09 07:52:13

I couldn’t care less about the equity bandits. But what about the effect FB’s had on their former neighborhoods and more importantly, many equity bandits flock to common areas. How will those local markets be impacted over the next 5 years?

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Comment by BanteringBear
2007-07-09 11:39:53

In a nutshell, one only needs to compare pre-bubble prices to peak bubble prices for each locale to determine what the possible damage might be. Most areas will give up much of their bubble gains. Long term, the markets with the most jobs will fair better. No market is immune from fundamentals. Even vacation areas need to offer affordable housing for workers, or they lose their workforce. This “new paradigm” sh!t is temporary.

Comment by aladinsane
2007-07-09 07:46:53

It’s quite simple really…

They places we left will suffer the loss of solid people, like us.

The places we went to are lucky to have solid people, like us.

Comment by hd74man
2007-07-09 09:22:38

The Mazzholeland equity bandits drove up the price for virtually everything of quality in northern New England (above Nashua NH), leavin’ the dregs for the underemployed locals.

But these johnny-come lately locusts will never have any friends or repect because the natives who work and toil to pay the taxes to support the infrastructure despise and detest them.

It’s a quiet and insidious attitude but it’s there.

Nothin’ in this world worse than some big pensioned, early retired cop from south of the border, mouthin’ off at the local waterin’ hole.

The purchasing idiots won’t see it in the beginning, but time will tell, and they will be fleeing in 5 years because of the underlying hostility.

Totally amazin’ how completly dysfunctional the New England has become due to this real estate lottery.

Comment by exeter
2007-07-09 10:43:06

Nice diatribe HDman. And it’s not the first time I’ve heard that. My former boss is a North Carolina native and the contempt he and his family and friends have for outsiders is beyond description. Preach on brother….

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Comment by Sold at peak
2007-07-09 17:14:16

Don’t worry, New Hampshireite. Even with all the new blood in town, no one will force you to marry outside your family if you don’t want to.

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Comment by exeter
2007-07-09 17:58:32

If I’m not mistaken, HD74man is from Maine.

Comment by HonestAppraiser
2007-07-10 06:18:16

Yea, I went to Arizona to see the Sox and the ballpark.. They were not prepared for Red Sox Nation.. what a bunch of load mouth assholes. No wonder why people hate us.. Geez. Also check out the mother road (Rt 66) what a blast.
BTW..killin loans left and right cause people cashout to limit so there is no room.

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Comment by flatffplan
2007-07-09 07:29:59

hey BYE FL
try the pocanos in PA get a lot for 1500- lower taxes than the bombed out erie,pitts
people moving in mostly w/o kids

Comment by need 2 leave ca
2007-07-09 07:43:54

Pam Parker, the mortgage foreclosure prevention counselor in Hyannis, estimated that she is working with between 75 and 100 homeowners who are at risk of losing their property because of an inability to keep up with their mortgage payments. ‘It has just mushroomed,’ Parker said.”

“Loans…which were very popular and easily available during the housing boom of the early 2000s, often include interest rates that increase over time, eventually leaving many buyers with monthly payments they can’t afford. ‘The adjustable-rate loans hit people the hardest,’ Parker said.”

And this is a surprise in what way? I knew it from the first moment I saw, Low Initital payment - payment goes up real high a few years down the road”. What part of such explanation did the folks you are now trying to counsel not understand? Or what ever little was left of their poor judgment clouded by the mantral “Real Estate only goes up”, so when my payment goes up I will sell and bank a boat load of money? Well, tell em’ they missed that boat. And no sympathy from those of us watching on the sides.

Comment by House Inspector Clouseau
2007-07-09 09:19:44

They were told (and believed) that when the interest rate adjusted they would be able to refinance into another low ARM.

I’m not absolving the guilt of the ignorant/incompetent homedebtors… however, there was a lot of LYING going on in the mortgage industry that I witnessed first hand from 2002-current, that in my opinion was DESPICABLE.

And it doesn’t help that Mortgage employees and Realtors are heralded as “experts”… people trusted them (naive, I know, but I was once naive myself, and only escaped harm from them by luck my first home purchase, and by skill my second)

Comment by Renterfornow
2007-07-09 07:49:54

Welcome to losses homedebtors.

You overpaid now you must face the consequences.

A Happy Renter

Comment by NeilT
2007-07-09 07:50:31

MA housing market is in the dumps. Forget Open Houses, even auctions can’t draw serious buyers these days. I know a couple of RE agents who are looking for real jobs now.

Comment by hd74man
2007-07-09 12:06:07

I know a couple of RE agents who are looking for real jobs now.

Since real estate has always been like 90% female dominated, all those previously empowered “I don’t need no stinkin’ husband” divorcees will be squabbling over new suckers on Match.com

However, it’s amazing how many literally show their hand by listing MONEY as their major “Turn-On” in the comment section.

Comment by novasold
2007-07-09 12:53:05

As a female, this is something I’ll never understand: why would a guy go for a girl that had that listed in their bio?

Seems like a death wish to me.

Comment by Mikey(2)
2007-07-09 07:51:02

The Land of Doublespeak:
We feel that as long as the economy remains stable and interest rates remain low, the market will continue to correct itself.

So, if the economy becomes unstable and interest rates go up, the market will….stabilize? I don’t get these people. Here’s another quote from the same woman:

There are more homes on the market, but those that are priced right are still selling in a matter of months

So houses that are “priced right” are selling in a matter of MONTHS, and that is a good thing? I just don’t get what this chick is saying.

Comment by exeter
2007-07-09 08:09:43

Mike, the problem with REtards who speak unquantitatively is that they “FEEL” everything as they are unable to THINK before saying something stupid.

Comment by JungleJim
2007-07-09 09:02:44

I just sent Ms. Cohen “nice” email commending her on her brilliance.


Comment by JimAtLaw
2007-07-09 08:15:42

Ah, apparently you recognize Realtywhore™ doublespeak but have not learned the language completely. Allow me to translate.

We feel that as long as the economy remains stable and interest rates remain low, the market will continue to correct itself.

Please, in the name of all that is holy, don’t raise interest rates any more, another quarter point may break the camel’s back here, and you’d better not let out any other non-overwhelmingly-positive news either (e.g., that the dollar continues to fall), or I’ll have to find something else to do!

There are more homes on the market, but those that are priced right are still selling in a matter of months

Sellers, adjust those expectations, what used to be unthinkable is now reality (So real estate really does fall, imagine!), the party is over, but I don’t want to panic even more sellers into the market, so I’ll speak about sales prospects only in positive, reassuring tones even when telling you the camel is already dead.

Comment by Mikey(2)
2007-07-09 11:01:54

Thanks for the translation, Jim. Makes a lot of sense. And I just thought they were stupid remarks.

Comment by JimAtLaw
2007-07-09 11:03:11


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Comment by JimAtLaw
2007-07-09 12:51:02

Now that I think about it, there should be a wiki… start with a dictionary and then go on to subtitling Realtor™ videos and other ads…

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Comment by Bye FL
2007-07-09 12:51:02

I get it. A $300k house priced right at $150k probably will sell quick ;)

Comment by hobo in mass
2007-07-09 07:55:31

I think things are just warming up around Massachusetts.
I’ve looked up the orders of notice in South Middlesex County for the last two years. An order of notice is a document filed as a step in the foreclosure process. In 06, there were 417 orders of notice….so far this year there have been 994. A month by month comparison is even more fun.


Jan (0)-(119) Feb (0)-(174) Mar (1)-(202) Apr (0)-(183) May (1)-(157) June (2)-(125) July (47)-(34 thru the 6th) Aug (57) Sep (60) Oct (78) Nov (78) Dec (93)

Comment by Pen
2007-07-09 09:12:47

“I think things are just warming up around Massachusetts.”

Do you meant the crash is jsut warming up or the market is warming up?

I think you mean the former, but just want to make sure I am getting your point right?

Comment by hobo in mass
2007-07-09 09:26:56

The crash. I’ve got the foreclosures coming on line to start to drive prices downward. There is still plenty of inventory around. Now I need a tight money supply and higher interest rates and then maybe I can get into a house.

Comment by Pen
2007-07-09 10:19:40


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Comment by KayLaw
2007-07-09 08:12:05

Hershy Walter? Not a real person? Come on.

Comment by safe_as_apartments
2007-07-09 08:14:22

Went to four open houses in MA this weekend just for kicks. We were the only ones at all four. Each real estate agent also claimed that the house was for sale because the previous owners had to “relocate” after having owned the property for one year. Right.

Shoddy work on the flips, too. Awful paint jobs, poor molding work, and mismatched appliances. Only one property looked nice, but it was priced about $500,000 too high. The houses were in Wellesley, Watertown, and Weston.

Stay away from MA. It’s looking bad.

Comment by Pen
2007-07-09 09:14:18

The sellers watched too many episodes of Flip This House.

Comment by hd74man
2007-07-09 09:36:59

RE: Stay away from MA. It’s looking bad.

It’s been the call here on Ben Blog’s for a year and half, save for the big pensioned public employee crowd-aka the public educators, cops, and firemen.

$40.00 per hour for cops to do minimum wage flagman’s work at
roadwork sites due to their union muscle.

One brave legislator who wanted the law changed, was harrassed
so much by cop goons he was forced to drop the bill.

Firemen want their share of the shake-down action with a new law which will require nightly postings “for public safety” in places like movie theaters, big restaurants, and nightclubs.

You can be the chicken-little big SUV driving soccer mom’s will be out in force to support this POS initiative.

Then there’s the educcator’s goin’ on strike because strapped town’s are askin’ them to pick up more of the 90% paid cost of their health insurance.

Mazzholeland at it’s best.

Comment by Pen
2007-07-09 10:18:33

Hey HD,

I agree with all of Mazzholeland comments. I just wonder if it is really that much different anywhere else.

Especially along the coasts, which seem to all mirror one-and-other.

Comment by CarrieAnn
2007-07-09 10:44:52

“I just wonder if it is really that much different anywhere else.”

Well, in a recent local education discussion teachers reported they were only being asked to contribute 40-50% toward their health insurance so that’s a big difference. Course that’s why I pay 3X the amount of taxes here than I did in MA even though my MA home was worth $50k more. (02 values)

As for firemen, ours are all volunteer. They don’t even get tax breaks yet but some are working on that. So no, they’re sacrificing for our good in my book.

Cops….well, lots of stories on the blogosphere. God only knows how true things are. I can tell you one thing. It’s like the wild west out here compared to MA. I’d be happier w/a little more of that police protection instead of the bizarre wacky stuff that goes on unchecked out here. But when your town only has 2 cops….

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Comment by BanteringBear
2007-07-09 12:04:17

Where are you CarrieAnn?

Comment by CarrieAnn
2007-07-09 13:57:54

South of Syracuse, on another lake down the road from Skaneateles

Comment by hd74man
2007-07-09 12:21:11


MAZZ is the only state in the country which has the cops for construction flagman duties @ $43.00 per hour racket.

When the small north shore town’s post their list of the 25 highest paid employees, the top 10 will always be cops because of their “paid” duty detail pay.

Let’s face it…when some beat cop in a small town which has a murder once every decade, is makin’ more than the school superintendant, town manager or even the Governor of Maine, something’s not right.

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Comment by Isaac Newton
2007-07-09 08:36:07

Just anecdotal as I have been too busy with work to track real numbers… but I have been seeing a lot of sale pending and sold signs in Newton, MA. I think a lot of it has to do with these idiots thinking they are getting a steal now that prices are 10% below last year. Like the idiot down the street from me who just paid full asking price of 798K for a 3 BR 1940’s colonial. And get this… He has 2 mortgages totally almost 760K. When will people ever get it?

Comment by James
2007-07-09 08:42:45

When they meet the sherif and have to vacate in a couple of years.

Comment by flatffplan
2007-07-09 08:44:06

nice hood- I went to Babson

Comment by CharlesM
2007-07-09 11:41:00

I rent a house in Arlington. Right up the street from me a house was just sold. Small - just two bedrooms.

$500K. WTF?!?!

I rent my house - just a hundred yards away - for 30% LESS than what these buyer idiots must be paying for that half-mil two-bedroom cottage. And my house is FOUR bedrooms and just as nice on the inside and out!

Let’s review, kids, your choices are:
1. Buy a two bedroom house, or
2. Rent a FOUR bedroom house for 30% less (same quality and neighborhood)

So yeah… there are definitely some idiot buyers still out there. I think their numbers are thinning though. Sales pace keeps dropping every month… like a patient’s blood pressure just before they slip into cardiac arrest.

Comment by Bye FL
2007-07-09 13:05:10

Wow is MA as bad as CA? Why would people pay California prices?????????

Comment by ghostwriter
2007-07-09 13:57:28

They’re thinning because buyers don’t qualify for these massive loans anymore.

Comment by Tray
2007-07-09 11:49:25

Had cousins that lived in Newton… remember causing havok in Cold Spring Park as kids… Great Area.

Comment by legal_immigrant
2007-07-09 12:32:32

We have been renting in Newton for 6 years now… I am getting desperate - the prices are NOT going down, and houses are still being sold… It is not moving…

Comment by Bye FL
2007-07-09 13:06:14

If you insist on home ownership, relocate to a cheaper state

Comment by legal_immigrant
2007-07-09 14:46:13

Does this mean that you think prices in Newton won’t be going down in the foreseeable future? I think they will be, so I’ll wait and rent rather than move to another state. Buying does not seem a sensible step in any state right now anyway; I would just have a warmer feeling about waiting this out if those Newton prices were going down, if even a little.

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Comment by txchick57
2007-07-09 08:54:22

No Good Deed Goes Unpunished

The San Jose Mercury News says more lenders are assuming ownership of foreclosed houses in the San Francisco Bay area as fewer bidders are showing up at foreclosure auctions.

A growing category in the housing market is in so-called Lender-Owned Homes, known as REOs - “Real Estate Owned.”
Once rare, especially in Silicon Valley, these REOs are threatening to further pressure prices in the area, the San Jose Mercury News says.
“One of the reasons so many foreclosure properties fail to find buyers is because the bidding typically starts at the amount of the unpaid balance on the first mortgage, and in a soft market, some homes are no longer worth that much.”
In May, $2.8 billion worth of California real estate went up for sale in foreclosure auctions, according to ForeclosureRadar.com. (See Number Two for $2.8 Billion).
Of that amount, about $2.6 billion worth failed to find buyers, and so became bank-owned.
Moreover, according to the article, that figure is up significantly this year from January’s $1.49 billion.

Comment by WT Economist
2007-07-09 09:29:28

“One of the reasons so many foreclosure properties fail to find buyers is because the bidding typically starts at the amount of the unpaid balance on the first mortgage, and in a soft market, some homes are no longer worth that much.”

When will they start taking the hit to earnings? Want to know another bubble? The Finance sector’s share of total stock market valuation.

Comment by flatffplan
2007-07-09 09:57:38

10-4 hard to buy the average mutual fund and avoid the financial sector

Comment by Lesser Fool
2007-07-09 11:37:26

Better still, buy SKF. A short play ETF on the financial sector. In for 10k, looking to buy more on dips. I think it’ll be a nice companion for my SRS.

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Comment by Darrell_in _PHX
2007-07-09 10:03:45

What is the good deed that is going unpunished?

Lending way to much money to people that couldn’t afford to pay it back, using overpriced “assets” as colatteral?

How is that a good deed?

Comment by need 2 leave ca
2007-07-09 09:59:39

sent another letter to the Rhode Island Realwhore Pres

Such brilliant insight noting that RI real estate, like many other places, is soaring in numbers of homes available. But sales falling down. Just for your comfort, some friends of mine (I am in Albuquerque) just moved from here to where he accepted a job somewhere in the Providence area. I had some long talks with both husband and wife. They are planning to remain renters for quite a while back there because the market is so overpriced. And they do have money, and have owned property back in ABQ. They would be what you would consider qualified buyers. They are going to wait until it falls back down to reasonable before they become a knife catcher and lose their hard earned money just so your folks can earn a commission.

Good luck
Not to be your knife catcher.

Comment by Aqius
2007-07-09 10:13:07

… and the middlemen bankers can’t try for a quick sale of REO’s at a lower price than foreclosure because they will have to endure an azz-chewing from their supervisors about ” WHY THE HELL DID YOU SELL IT SO CHEAP ” !??!
Everyone knows it’s time to cut the price but it’s sad when yer stuck waiting for egotistical decision makers, who usually wont be affected either way, to finally come around to reality.

They have the ” Nothing happens until I SAY IT DOES ” ego turf war that 99% of the pop. has to endure.
Hell, come to think of it, that pretty sums up most large organizations. Any progress has to endure petty turf battles and/or decisions made by people who hold a college degree but no common sense.

Ahhhh, Capitalism. It works but boy the path gets rocky sometimes.

Comment by sleepless_near_seattle
2007-07-09 10:32:20

“‘It’s important that people realize that real estate is extremely local,’ Cohen added.”

Anybody notice the new qualifier he snuck in there? It used to be that real estate was local. Now it’s EXTREMELY local.

The only thing I see is extreme denial as this thing is not only not local, it’s worldwide.

Comment by Paul in Jax
2007-07-09 11:20:58

It’s so extremely local that only the house I’m selling you, and not the one you or anybody else is selling, is justified in not having a price drop.

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