A Dubious Distinction In Nevada
The Las Vegas Sun reports from Nevada. “The upscale San Niccolo neighborhood, in one of the Las Vegas Valley’s newest master-planned communities, would seem a homeowner’s dream, its quiet streets lined with expansive homes starting at a half-million dollars. But anyone who drives past the broken entry gate will find a neighborhood pocked with ‘for sale’ signs.”
“They signify homes lost to, or threatened by, foreclosures. The remaining homeowners and renters say they feel isolated and vulnerable, worried not just about their own investments but for their very safety.”
“Of the 300 homes in San Niccolo, 60 are for sale and a third of those are in some state of foreclosure, according to the MLS. An additional 30 properties were sold in the past year, and many other homes are vacant.”
“Two summers ago the owner of a 3,100-square-foot home on Rock Cove Way wanted $690,000 for it. Three months later the house sold for $635,000. It’s now empty and owned by a bank, which will take $468,000 for it.”
“The real estate upheaval has opened the door for renters such as Katina Haynes, who pays $1,350 a month to rent a 2,600-square-foot home. She says the price is great but the neighborhood is strangely lonely.”
“‘I feel like when I moved in here I entered the Twilight Zone,’ Haynes says. ‘I keep thinking, ‘I know people live in these houses,’ but I never see anybody.’”
“Crime is a concern. Melyssa Cabrera has posted a notice on a bank of mailboxes warning that her purse was stolen from inside her garage and that someone had broken into her husband’s car in the driveway.”
“Cabrera says she and her husband bought their home two years ago for $435,000 and have added $70,000 in upgrades. Now, a job transfer is leading them away. They’re asking $420,000 for their half-million-dollar home.”
“Karen Lewis and her husband bought a home on Arcata Point Avenue a year ago. She says they paid too much, considering what’s happened to the area. Lewis, who moved from Oceanside, Calif., is particularly bothered that investors haven’t found buyers. As a result, she says, young adults who presumably can’t afford to own a home here…are moving in as renters.”
“They invite over friends who force their cars through the gate, which now is repeatedly broken.”
“Among its various dubious distinctions, Nevada’s ironclad hold as the foreclosure capital of the nation seems secure.”
“In June the state had one foreclosure filing for every 175 households, to lead the nation for the sixth consecutive month, according to RealtyTrac. That’s almost triple the foreclosure rate in June 2006 and well ahead of second-place California, which had one filing for every 315 households.”
“Michael Krein, president of Nevada Real Estate Services, which works with banks in foreclosure proceedings, said he is handling 700 foreclosed properties and expects that number to increase when loan payments are adjusted upward later this year or in early 2008.”
“Homeowners who bought their homes with an adjustable rate mortgage have seen their payments increase 50 percent in some cases and others have seen their payments more than double, Krein said.”
“About 75 percent of the homes Krein has dealt with were purchased by speculators who hoped to benefit by reselling homes in an appreciating marketplace but timed it late and have walked away from their equity.”
“‘A lot of people bit off more than they could chew,’ said Devin Reiss, president of the Greater Las Vegas Association of Realtors.”
“Local housing analyst Steve Bottfeld said he’s seen one example in which one investor is responsible for 40 foreclosures.”
“Local housing analyst Larry Murphy said 11 percent of the 25,000 homes listed on the MLS are short sales.”
“Scott Bice, commissioner of the Nevada Mortgage Lending Division…said not everyone can be helped. ‘If you have a $3,000 mortgage payment and you can only afford $1,500, there is not much help that can be provided to that person,’ Bice said.”
The Record Courier from Nevada. “Three vacant properties will be auctioned for back taxes on Aug. 6, something that almost never happens in Douglas County, said Clerk-Treasurer Barbara Griffin.”
“‘This is very unusual,’ she said. ‘In the last 13-15 years, we’ve had only one other property auctioned.’”
“Two other homes would have been auctioned, but the taxes were paid on the last day, Griffin said. She didn’t know the reasons people failed to pay their taxes on these properties, but feels the economic slump may have played a role.”
“When compared to last year’s figures, existing home sales have dropped 33 percent in Douglas County for the period ending in June. The $400,000 median sales price is down 7 percent and the sales-dollar volume is down 44 percent, according the most recent report from Sierra Nevada Realtors Association.”
“According to RealtyTrac, Gardnerville has 55 single-family home foreclosures and Topaz Ranch Estates has one.”
“Michelle Godde, spokeswoman for Syncon Homes, said everyone is taking a hit in this market and new home sales have suffered. Despite the slump, Syncon is moving forward with plans for a large-scale project in north Douglas County’s Clear Creek area, Godde said.”
“‘There are so many variables, like weather and engineering issues,’ she said. ‘The safest thing I could say is, it’s a work in progress.’”
“Mick Cavnor of Beverly Realty in Gardnerville said the real estate market is caught between buyers waiting for the price to come down and owners who think their home is still worth what it was a couple of years ago.”
“‘There’s a stalemate,’ he said. ‘But buyers need to realize prices could start up and if they wait, they could miss the boat.’”
“There are about 88 homes for sale in the Gardnerville Ranchos for under $300,000, but two years ago realtors would be lucky to find seven homes in that range. Buyers had to make their decision before the property was sold to someone else, Cavnar said.”
“‘About every three weeks we hear something in the media about the sagging market, but the sub-prime market has blown the statistics out of proportion. Interest rates are still good,’ he said. ‘It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.’”
“One developer Cavnar knows said he expects the slump to last another six to eight months, while another thinks it will last three to four years, he said.”
“The cost of renting is between $300 -$400 under the cost to purchase a home, but as the demand for rentals grows and prices increase more people will consider buying, he said.”
“‘I think this winter will be slow, but if buyers are educated the housing market will pick up,’ he said.”
‘“‘About every three weeks we hear something in the media about the sagging market, but the sub-prime market has blown the statistics out of proportion. Interest rates are still good,’ he said. ‘It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.’”
This guy is full of Horse Sh!t! Since my daughter used to ride Hunter Hack and own several horses, I know Horse Crap when I see or read it.
A man’s gotta make at least one bet a day, else he could be walking around lucky and never know it.
Jim Jones
aka the King of Kool-Aid
You have no idea how right on spot you are. This dude almost has his a$$ kicked recently by yours truly. Of course the Record Courier chooses Mick the Dick for a little rah-rah. This dude has never seen a down cycle in his life. I recently had a little talk with one of our most respected realtors (believe it or not they exist) and he’s calling the bottom 5 to 7 years ago, along with a serious local recession. Of course, the RC will avoid quoting him.
“‘There’s a stalemate,’ he said. ‘But buyers need to realize prices could start up and if they wait, they could miss the boat.’”
“One developer Cavnar knows said he expects the slump to last another six to eight months, while another thinks it will last three to four years, he said.”
And those that miss this boat will feel a lot like the folks who couldn’t get a last minute ticket on the Titanic.
or the Edmund Fitzgerald.
Good one!
When I read “six to eight” above I almost saw “years” afterward.
But then I remembered I was reading something from the MSM.
“reading something from the MSM”
Re: the MSM
Speaking of “boats” - or more correctly, “completely missing the boat”…
I drove through Gardnerville a year ago and some of the newer developments in an area just east of 88 and west of 395 looked like a disaster-in-waiting. Acreage ready for hundreds of new houses with prices at $500K plus.
What is the median household income in Gardnerville?
My in laws built there about 5 years ago. Huge spec homes on 5 acre lots behind them. Like 6-8 of them, and i mean HUGE!!! One of them has to be at least 30,000sqft not to mention the huge shop and 14 car garage!!! My in laws know everything up there and all of these huge homes were the last roll of the dice from the local builders. They all planned to shoot the big white buffelo and now have moved into these palaces. I don’t give a shit who you are the taxes, upkeep, insurance and power bills on such large homes must be crushing!!! I figure that ignoring any mortgage these huge places would suck up at least $8,000/mo!!! Now throw in a million dollar mort and it really gets interesting! Not to mention that these palatial uberhomes are located in the dessert in the middle of nowhere. I mean who the hell wants to spend that much to live there, my guess is nobody.
I really wonder what those huge places will be selling for in 5 years? The only thing I can see is people ignoring the zoning and turning them into apartments and/or group home commune type shit.
I have been in more than 10,000 homes and these are by far the largest (other than hearst). I have seen some this big, but not so many in such a small area.
Prices could start up any minute! Quick! Buy! You might ‘miss the boat’!
I needed a good laugh…that was great!
can’t believe how stupid the realtors are. why do they talk like they are talking to children? it’s so ridiculous it’s hard to even laugh, but that’s all you can do.
fear and self doubt sell lots of things..
What is worse is people believe them. I have a coworker who listens to what his realtor ™ neighbor advises. However, what I hear is a story about a neighbor about to go bankrupt. The number of suckers is amazing…
The Fat lady is at stage left awaiting her cue. This will end the first act.
Got popcorn?
Neil
Most people are no longer listening to realtwhores and even those who want to buy find they can not qualify for financing under the thoughter guidelines. So they are forced to rent and lucky them to dodge a bullet!
Sellers could ‘miss the boat’ too if they don’t price to sell ASAP.
Mick Cavnor a.k.a. Vlad the Impaler says he is looking forward to the spring buying season. Which year Vlad, I mean Mick? How’s about 2010 or 2011 ? These guys have even me doubting ,they’re so slick.
Spring buying? This is not college spring semester class picking.
“‘A lot of people bit off more than they could chew,’ said Devin Reiss, president of the Greater Las Vegas Association of Realtors.”
Ya think? Oh, my God this would be funny if it wasn’t so terrible. So basically 75% of the houses sold were by investors that wanted a “quick flip” but timed it all wrong. And about 20% were people that bit off more than they could chew? Nevada . . . canary in the coal mine for the West?
Again “Pyramid”!! Things are great as long as you find buyers at the bottom. Once you run out of family and friends then it’s game over.
Nonsense! These people didn’t bite off anything! They got no-doc, no-down, 120% IO/ARMs — they got a free meal pass, and now they can just walk away without ever taking a bite. This market can collapse very easily if the massive no-down IO-investor crowd just walks away — every payment they make is a loss. Just walk, baby!
This market can collapse very easily if the massive no-down IO-investor crowd just walks away
Perhaps you haven’t heard… Numerous MSM stories have already reported things along the lines “…now that investors have left the market”
(heh)
“‘A lot of people bit off more than they could chew,’ said Devin Reiss, president of the Greater Las Vegas Association of Realtors.”
Would by funny if not so sad. Soooo late with this statement.
All I can say is good luck. I am trying to get by on a salary which hasn’t changed considerably in 8 years. In Carson CIty there are virtually no “high tech” jobs. My profession, web programming/graphic design, is still listed as an unskilled trade along with hair stylists and porters. The only high tech Carson CIty has attracted is casinos. I do think that soon there will be a need for professional grafitti abatement. We have four rival, mostly mexican, gangs - each a member of the Crips - each sworn enemies (go figure). And then there is the local meth problem (oficially declared a problem this year) I can tell you from experience that if you asked 30 incarcerated young people four years ago, how many have tried meth - 26 hands would go up. Asking the same 30 kids how many have smoked pot, and 26 hands stayed down. Meth is easier here for kids to get than pot, booze, and even cigarettes. (Maybe I should go to dental school). And did I mention the shifting demographics… Retirees are pretty much the only people that can afford to buy a home here. What will happen when the overpriced markets of California collapse is anyones guess. I am at a loss for optimism. I did buy at a good time - so I guess I can’t gripe much, but believe me, if I could sell my home today, I could rent the equivalent house just down the street and save 3-500 dollars a month. I’m dug in and waiting it out.
Please pass the popcorn Neil.
Didn’t know Carson City had a gang problem. Thought it was mostly a white population. Is this the same in Reno?
I lived off the 395 (steamboat springs) in 1990. Nevada has this problem of people trying to get to CA but they make the mistake of stopping in NV “to win big” and loose everything. Once they get stuck there, they start looking for a new industry. The area has always had a drug problem and the gangs have moved in smelling opportunity.
Not looking down my nose at NV, trust me. I live in Sacramento and we have the same issues with meth and gangs.
…loose everything.
Loose everything? Oh Gwynster… I’m so disappointed. :p
LOL everyone needs a flaugh
As I have mentioned before, there are going to be gang problems everywhere as our country continues it third world makeover (a defined by a wealthy few at the top and the masses with little or no money). That’s why when people argue that this area or that area wont go down, I beg to differ. I don’t think we have had a similar economic downturn as the one that we may end up having. Even during the Great Depression, I believe that the average person still had some morals and would work before stealing, but today I believe that the opposite is true. Which is why before I buy a home, I will have to get a very good deal…and make sure it has gun mounts and a turret…just joking, but you get the idea.
Chrisusc ….I really agree with your take on the how the current problems will play out different than prior downturns like the Great Depression .
I am really concerned about how much more crime will come about during a recession or depression in the United States during these times .
If you think that about the Great Depression, you really, really should read up on the Great Depression. There were food riots, and killings, and de facto marial law in some places.
And this time, it’s going to be worse.
At my friend’s house last summer there was a retaliation drive by last summer. It was in Sparks, but the western edge. It used to be a very nice safe neighborhood, that is before they neighbors flipped the house to someone with a son in a gang.
Mick Cavnor surely deserves his own thread here:
or perhaps sellers need to realize prices could continue dropping and if they wait, they could miss the boat.
or, the cost of renting is between $300 - $400 under the cost to purchase a home (not including negative amortization, PMI, property tax, maintenance and HOA), but as the demand for homes reduces and prices drop more people will consider buying.
or, I think this winter will be slow, but if sellers are educated the housing market will pick up (in terms of sales, ie, my commission)
His own thread! Hell, he deserves his own blog. He’s very entertaining.
Imagine standing in a ghost development with for sale signs lining the street and coming up with a ‘miss the boat’ statment like that! He should be doing stand-up.
Lesser Fool, I couldn’t agree with you more.
And homes are $300-400 less to rent than to own? I call BS on that one. I live in Las Vegas and in many areas it costs 50% less to rent the same home than it does to own it (and that is before adding things like taxes, insurance, HOA, and home maintence). Its getting to the point that there are so many investor homes up for rent that it in my area of Vegas it costs less to rent a home than it does to rent from an apartment unit on the same street. In the past, it used to cost more to rent a home in Vegas than it did an apartment.
Why should I become a homeowner again at this point in time when I can rent homes from neighborhoods of my choice for 50% off?
See, when I lived in the south bay (one mile east of Redondo Beach King Harbor) I paid $1000 per month rent for a studio. I could have rented a 2 bedroom unit for $1600. Meanwhile some condos and homes in the same neighborhood were (maybe still are) up for sale for at least $600,000 shortly before I moved to Phoenix. I think if I got the 2 bedroom unit for $1600 per month, it would be well under half the monthly costs of PITI for a 2 bedroom condo nearby. 50% lower cost by renting versus buying is beyond belief. The Kool-aid analogy is the proper one for buyers of those places. This bubble has been quite a show. I want to see more!
In a normal market, I am against renting because buying costs about the same and once you own “free and clear” you pay much less than rent. But with those inflated prices, even property taxes will be very high. So rent away and wait till 2010 or later.
Austin is still a pretty normal market (around $200K average price) and I have friends with their mortgage paid off and they still pay over $1200 a month in taxes and insurance. It’ll be interesting to see how it goes with all the west coasters continuing to move here and buying up McMansions with no concern for the taxes.
I live in Las Vegas and in many areas it costs 50% less to rent the same home…
Amen!
I’ve noted that lots of Vegas homes are available as vacation rentals at nightly rates below those of hotel rooms.
“‘I think this winter will be slow, but if buyers are educated the housing market will pick up,’ he said.”
I think this winter will be slow, but if Realtors are educated, the housing market will pick up,’ he said. Better.
“Among its various dubious distinctions, Nevada’s ironclad hold as the foreclosure capital of the nation seems secure.”
Judging from news emanating from various formerly-frothy local housing markets around the nation, Nevada has lots of competition for that dubious distinction.
I think California will win if you count where the “owners” live, not where their “investment” homes are located. What percentage of NV, AZ and FL foreclosures are on California absentee owners? Add all the CA properties — you win California!
I’m counting on California money lost in NV, AZ, FL, costa rica, and who knows where to reduce my competition.
Got popcorn?
Neil
“They’re asking $420,000 for their half-million-dollar home.”
No, they are asking $420K for their [maybe worth it] $420K home.
They’re asking $420,000 for a property they have $500,000 invested in. I hope they don’t have a 100% loan.
Bought at top, 70K upgrades worth perhaps 25K, subtract 25% from total - $350K max.
Too bad they won’t get more than $350k unless they find a real fool high on kool aid. Looks like they either need to decline the job transfer or walk away from the house they overpaid and go rent in the new location.
I think they are asking $420K for the $250K house they paid half a million for… I doubt the upgrads will sway many buyers, and the price they are asking is near peak. Probably will not sell in the current market unless it is prices in the lowest 10% for it’s size, location and quality.
GH, you’re close — five years back it would’ve been a $250K house, but five years forward it’ll be a $150K house (if that).
“Local housing analyst Steve Bottfeld said he’s seen one example in which one investor is responsible for 40 foreclosures.”
Nice, 40 homes per investor with stated incomes sounds about right to me
He should up the stakes next time by bidding on the 61 condos that the developer is building in lieu of the 20,000 square foot homes idea he scrapped
:)
Lets see . . . assuming the “investor” got minimum of $25k cash back on each deal, that’s a cool mil . . . that would last quite a while in Barbados!
All of them owner occupied, of course.
investor? try fraudster.
And thanks to scum like that, house prices got ridiculous and will reverberate into social and economic setbacks. Thanks real men of genius and the women who love them.
“Cabrera says she and her husband bought their home two years ago for $435,000 and have added $70,000 in upgrades. Now, a job transfer is leading them away. They’re asking $420,000 for their half-million-dollar home.”
This is one thing that I will never understand: Why anyone would buy a house if they walk away from a job every 1-3 years. What type of jobs are people employed in that they are that unstable? They aren’t at a job long enough to build a retirement and any money vested is probably taken and spent upon a job change. I didn’t realize that we had such a nomadic undercurrent.
If your 15% is “in the bag” every year, why not buy??
Oops
US West (now Quest) moved a bunch of people to Denver from Minneapolis, then promptly laid them off. Sometimes you think you’re moving for a “better opportunity” only to be put to pasture. Typically it’s the mid to higher paying jobs that get those “deals”.
climber, this is precisely why I’m a contracting software engineer. I expect I have to relocate within a year of any gig or contract renewal. Circumstances change fast in my line of work and I could be out of a job tomorrow. It would behoove everyone to plan for the possibility they will lose a job. That means to save enough money to buy a house entirely. It’s extreme, but in this age of outsourcing, it’s more reassuring. If everyone followed this idea, home ownership would probably be 5% instead of 69%. But I don’t think that would really be a problem.
I also wonder why someone would buy a home if they were moving every 1-3 years, but a “job transfer” doesn’t sound like walking away from a job. It sounds more like they are staying with their employer but moving to a new location.
I bet they thought house prices would go up. They bought at the peak and now are stuck with a depreciating asset(liability)
Take the loss or walk away. Your choice, greedy fools.
You obviously don’t work in I.T.
Yes, at a time when maintaining one’s professional relevance requires one to be highly mobile - so many are willingly shouldering the yoke of houseownership. It just doesn’t make sense.
…so many are willingly shouldering the yoke of houseownership. It just doesn’t make sense.
I have to heartily agree. My financial situation (IT worker) didn’t improve (2001-2004) until I started working out-of-town. I sold my house and made the decision to rent in order to remain “mobile”.
I can understand buying the house, but why the he?? spend another $70K on it? You can’t tell me that the $435K house wasn’t in pretty nice condition when they moved in. Gads, I am freaked out about having to spend $7K for a new roof, or $4K for a furnace, for my own house (esp. since these items are simply maintenance and don’t increase the perceived value of the house).
“Local housing analyst Steve Bottfeld said he’s seen one example in which one investor is responsible for 40 foreclosures.”
Casey???
I went to a real estate seminar with my friend where you walked in on Friday morning filling out a credit application. By Sunday night they told you HOW MANY HOUSES you could buy in Las Vegas based on your score. They had maps and everything where you picked your lots and kitchen counters. My friend bought two. I watched these seminar people sell out a whole development in one weekend - 100’s houses. If everything went right on each house you only made about 10k with (20% appreciation expected) bought in April of 2005. I wonder what percentage of these no doc real estate speculators bought at these real estate seminars? Casey did…
I watched these seminar people sell out a whole development in one weekend - 100’s houses.
Wow. That’s all I can say. Commoditized fraud… boggling
“‘I feel like when I moved in here I entered the Twilight Zone,’ Haynes says. ‘I keep thinking, ‘I know people live in these houses,’ but I never see anybody.’”
I don’t know how close together the houses are but I think it’s time for an exterior fire alarm since your house is closed up with an AC on and you might not be forewarned during the night if someone lites it up.
I have thought about this idea for my own house, a rambler with cedar siding (AKA ‘kindling’). Mounting heat (not smoke) sensors underneath the eaves every 6-8 feet would certainly provide early warning of an exterior fire. My uncle burnt 1/2 his house down when sparks from a burn barrel started the outside of the garage on fire–his daughter came downstairs and commented that it was foggy outside–they were at the top of a hill with a narrow driveway–by the time the fire trucks got there, and connected up the pumper truck to boost the water pressure, they lost half the house.
“About 75 percent of the homes Krein has dealt with were purchased by speculators who hoped to benefit by reselling homes in an appreciating marketplace but timed it late and have walked away from their equity.”
——————————————————————————
Look’s like these might be members of the same group that would keep pressing their bets on the crap table!
Equity… interesting word. Maybe “Equity Deficiency” is closer to the truth. Foreclosures.com lists NV’s right of redemption as:
5. The lender has three months following the sale date to sue for any deficiency balance. The owner in default has no right of redemption in non-judicial foreclosure.
I wonder… if some of these investors have a bunch of other assets and huge deficiency judgements against them, the equity they’re walking away from may be larger than they expected.
“About 75 percent of the homes Krein has dealt with were purchased by speculators who hoped to benefit by reselling homes in an appreciating marketplace but timed it late and have walked away from their equity.”
No, they don’t got no stinkin’ equity.
The equity they thought they would have if properties had kept going up… Just more real estate speak.
Yeah, that’s a pretty retarded thing to say. Walked away from equity, yeah, negative equity if you can call it that.
In fact, if the bank finds out there was much equity at the auction, some of that will come back to the specuvestor. The vast majority of times, though, the specuvestor will get jack squat, except for maybe a 1099 and/or the evil eye from the lender.
“is particularly bothered that investors haven’t found buyers. As a result, she says, young adults who presumably can’t afford to own a home here - and inject pride of ownership into the neighborhood - are moving in as renters. ”
Renters are stinky, they don’t have any money, and you shouldn’t invite them to dinner parties. In fact, don’t even make eye contact with them. You might get cooties.
Not only that, they don’t take showers everyday.
I heard they eat their young
Sounds like houses in that neighborhood really bring in the rent - “The real estate upheaval has opened the door for renters such as Katina Haynes, who pays $1,350 a month to rent a 2,600-square-foot home.”
Someone’s getting a “pride of ownership” injection.
Man, what a condescending quote. Who says renters don’t “inject pride” into the neighborhood? I’ve always taken good care of the places I’ve lived in. After all, if the landlord comes by and sees a big mess in the yard, he might evict me or tell me to clean it up. Owners are untouchable, especially if there’s no HOA.
How much pride do 0 down owners bring? They’ve got less into the property than a renter who puts up first month, last month and security deposit.
Sweet cash-back! They could actually be “ahead” if they cashed out 30-50K and have only made $20K in payments! What a sweeet country this is, dude!
The Corleone family was in on this cash back thing too, they kept
selling houses to each other.
The California families cultivated in these empty houses.
to be fair, the way i read this comment, “young adults” is the subject.
It’s all relative.
being a high quality renter myself, i’d be the last person to belittle renters.
but it cannot be denied that a neighborhood of owner-occupants has, with good reason, far more pride and is much preferable in all respects to one that’s full of young adult renters.
I was dissed at a neighborhood party last Saturday for not being a homeowner. I wanted to run home and grab my copy of the Harry Bliss cartoon showing the beggar holding up the sign reading “Homeowner Please Help” and ask the f-tard if she got the joke, but I restrained myself.
(Go to “Bliss Collection” number 40 if you haven’t seen this housing bubble classic:
http://www.harrybliss.com/main_content.html )
Wow, each time I finished a paragraph in that post I thought it was the dumbest thing I’ve ever read, but the next paragraph proved me wrong. My favorite though is:
‘I think this winter will be slow, but if buyers are educated the housing market will pick up,’ he said.”
Methinks the realtor is the one needing some education.
Wow, each time I finished a paragraph in that post I thought it was the dumbest thing I’ve ever read, but the next paragraph proved me wrong. My favorite though is:
‘I think this winter will be slow, but if buyers are educated the housing market will pick up,’ he said.”
Methinks the realtor is the one needing some education.
More homes coming to the area north of LV…..
Don’t they know Mercury Nevada is 60 minute north from the LV airport????
Don’t see it on the map?????
Thats because its in THE NEVADA TEST SITE. The place the army tested hundreds of atomic bombs during the 50s, 60s, and 70s, plus Yucca Mountain, our planned nuke waste storage facility, is 30 minutes from Mercury.
The Gambling types claim that LV got its start from the casinos, but it started as the highway turnoff for the test site.
Folks, the whole valley is contaminated with atomic bomb fallout, and yes each rainfall washes more into the Colorado River,LV’s water source.
As a Govt worker at the test site, I was always scared by the warning signs on the road that said “Don’t pickup metal from the ground”.
Ask yor LV realtor for full disclosure.
actually mining (and most likely a whole lot of gambling) preceeded the founding of the test site by about 101 years.
http://en.wikipedia.org/wiki/Nevada
“Two summers ago the owner of a 3,100-square-foot home on Rock Cove Way wanted $690,000 for it. Three months later the house sold for $635,000. It’s now empty and owned by a bank, which will take $468,000 for it.”
Serves those greedy guys right. Now no one wants to buy in this declining neighboorhood with high crime. You can rent for ~1500 a month, why would anyone pay $450k+ LOL…
Foreclosure data provider addresses criticism over numbers…………
Responding to critics who say its reports overstate the magnitude of the housing downturn, RealtyTrac next week plans to begin providing quarterly, state-by-state breakouts of the number of unique households that are in some stage of the foreclosure process, while continuing to provide its monthly reports on total foreclosure filings.
http://www.inman.com:80/inmannews.aspx?ID=63960
OECD economist warns of global financial bubble…………….
http://www.abc.net.au:80/news/stories/2007/07/24/1986238.htm
Did the Chinese Central Bankers get free lessons from the Fed about how to blow bubbles?
‘Manipulating the currency has allowed China to sell goods cheaply overseas and accumulate huge foreign currency reserves, which in turn have flowed back into the world’s bond markets, driving down the cost of borrowing for business.
But Dr Blundell-Wignall says it is unsustainable.
“The Chinese currency is a really good example. I mean, those reserves now are over $1.3-$1.4 trillion,” he said.’
Hi everyone, 1st post here Thank you Ben for all your hard research & work. I have been reading this blog for some time now and it has confirmed everything that I have felt coming for a few years now.
We are now debt free and renting well with in our means. Now my wife doesn’t think I am nuts any more.
Thanks for everything
Chewy
Mick Cavnor of Beverly Realty in Gardnerville said the real estate market is caught between buyers waiting for the price to come down and owners who think their home is still worth what it was a couple of years ago.”
“‘There’s a stalemate,’ he said. ‘But buyers need to realize prices could start up and if they wait, they could miss the boat.’”
Hey mick, your scare tactic ain’t working. I’ll wait and buy it 25% less…loser.
“‘There’s a stalemate,’ he said. ‘But buyers need to realize prices could start up and if they wait, they could miss the boat.’”
Since the ‘boat’ seems to be the Titanic, it might be a good idea to miss it…
“…were purchased by speculators who hoped to benefit by reselling homes in an appreciating marketplace but timed it late and have walked away from their equity.”
From their NEGATIVE equity…
‘It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.
‘I think this winter will be slow, but if buyers are educated the housing market will pick up’
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
What are implications of owing more than the house is wort, can people still just mail the keys to the bank?
Not in Nevada.
What are implications of owing more than the house is worth, can people still just mail the keys to the bank?
Depends on the state. If the state allows deficiency judgements, the bank can sue for the amount they lose when the property is sold at public auction.
See:
http://www.foreclosures.com/www/pages/state_laws.asp?ChangeStatePref=true
for the individual states.
‘It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.
‘I think this winter will be slow, but if buyers are educated the housing market will pick up’
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
Maybe a little OT, but I thought this one was good:
http://www.youtube.com/watch?v=-rLYph0J7vc&NR=1
“It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.
“I think this winter will be slow, but if buyers are educated the housing market will pick up”
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.
“I think this winter will be slow, but if buyers are educated the housing market will pick up”
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
I am really beginning to hate this blog engine…
I am really beginning to hate this blog engine…
It’s still a buyers’ market and it’s to a buyers’ advantage to jump on it.
“I think this winter will be slow, but if buyers are educated the housing market will pick up”
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
There’s something broken in something I’m trying to post, but the engine is too stupid to tell me what it is - and I’m too stupid to figure it out - I hate software more ignorant than myself…
Its still a buyers market and its to a buyers advantage to jump on it.
“I think this winter will be slow, but if buyers are educated the housing market will pick up”
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
italics begone!
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
ItalicsOFF!
lavi d,
If your post doesn’t show immediately, *please* just wait an hour or so before trying again.
Well, the thing is, I made four posts after that one that showed up immediately.
Something in the blog engine swallowed the closing italics tag. I’m a web developer, and I’m not that bad at it.
I sort of wanted to try and figure out what combination of characters was causing the problem, but I guess I’ll just get over it.
Sometimes comments never show up - it’s an occupational idiosyncrasy - I just had to try and figure it out… I want to fix it.
I sincerely apologize for the mess - I won’t try anymore troubleshooting.
Since there is a lot of discussion about Nevada, can someone tell me what Susanville is like now? I lived there in the 70’s and 80’s. Started there when there was one traffic signal, and the big emploeyrs were BLM, CDF, USFS, the hospital, and the schools. By the time I left the Herlong was ground central and the CCC was one of the largest prisons in the world. My neighborhood lost rangers and teachers and gained prison guards. Still, it was a lovely place, great views, nice weather. What’s happening there now?
You know what would be interesting? A graph of median or YOY housing prices along with these types of quotes posted to the time points.
4/12/07, Median Price - $235k - “The market has plateaued” - Real T. Whore
6/12/07, Median Price - $215k - “Now’s a great time to buy” - Spec U. Vestor
7/12/07, Median Price - $195k - “Buyer’s need to be educated” - May Dia Shill
I can’t believe no one has mentioned the lady with the Glock.
It is pretty funny. In fact, that whole Las Vegas Sun article felt like comic relief. That corner of Vegas oesn’t sound like a place I’d want to live, and especially not a place I’d want to buy.
No disrespect to Ms. Whatsername, but it sounds like she is adjusting very well to her new neighborhood!
That kind of surprised me too! It’s by far and away the most important and impactful portion of the article yet it wasn’t even mentioned until this far down. Then again everyone has their own perceptions and priorities so who knows?
Not to take a “victory lap” but some of us predicited this well over a year ago as the “upscale” communites degrade into low rent districts. If it were MY daughter I’d be making arrangements to get her moved elsewhere! The speed of that demise is breath taking! At what point do the police refuse to answer calls and complaints? I was only half kidding when I suggested this form of free fall would take place and frankly as bearish as “I” am I never thought it would get this bad, this quick?
I can’t believe no one has mentioned the lady with the Glock.
.
Blast from the past:
Comment by LVLandlord
2006-05-23 07:14:56
“All this bubble hysteria is starting to remnd me of the Y2K crisis. Remembe that one? We all talked about it for years, like it was the end of the world or something. And then.. nothing happened. It sure was fun for a while, though. Do you think maybe… nothing will happen again?”
http://thehousingbubbleblog.com/?p=732
Only a little over a year ago…
“Only a little over a year ago…”
…around the time we were playing the “When will Phoenix inventory hit 50K” game.
And this choice gem:
http://thehousingbubbleblog.com/?p=440
Comment by jeffinaz
2006-04-07 07:46:05
“LVlandlord — ever heard of a “dead-cat bounce”?”
Comment by LVLandlord
2006-04-07 10:19:38
“Sure I have. But I’m looking at the fundamentals. Constant inflow of population, and diminishing land.
Have you been to Las Vegas lately? Have you driven around the city? Where there were miles of empty land a few year ago, there are now only pockets of land left. And on those pockets, they are building with the smallest footprint possible. Three story homes with no yards or sidewalks. We used to have plenty of space. All of a sudden, we are running out of land.
Look around at night. The little twinkly lights go up the sides of the hills on all sides of the city. There are no more blank spots. The land is used up. There’s no room to build.
Regardless of what happens in the rest of the country, Las Vegas has suddenly run out of land.
I’m predicting a second wave of hyper-appreciation, not starting right away, but in 1 to 3 years. And only in Las Vegas.”
‘Cause it’s different there, they are going to become America’s ‘next great city’…
LOL. Good old LVLandlord . Didn’t someone post that LV was the most dangerous City in America ?
I remember that idiot.
Those quotes are so classic.
Speaking of classic (but good not bad) whatever happened to AuctionHeaven and RobertCote?
Robert Cote went completely open loop. His blog is all Casey Serin, all the time. Google exurban nation and have a look if you’re morbidly curious. It’s a damn shame, because he used to post some great stuff, even if I didn’t always agree with it.
I thought that Bobby started his own blog, and Auction Heaven changed his/her login name and still posts.
“In June the state had one foreclosure filing for every 175 households, to lead the nation for the sixth consecutive month, according to RealtyTrac. That’s almost triple the foreclosure rate in June 2006 and well ahead of second-place California, which had one filing for every 315 households.”
Assuming those rates hold steady every month, that means that nearly 7% of Nevada homeowners will be foreclosed this year - and nearly 4% of California homeowners. But the rates aren’t holding steady every month - they’re actually increasing, so the annual figures will be even larger. Pretty freaking amazing.
I guess that 69.9 % home ownership in America should of stayed at around 65% RE ownership .
There’s some irony here worth noting. Specifically, many of the “foreclosures” in LV are actually Clownifornians getting foreclosed on. So Clownifornia is second-place, behind another state in which many Clownifornians are getting foreclosed on.
So, Clownifornia may be Number One after all! (Is this a record for number of times Clownifornia is stated in one post? Clownifornia!) LOL
Can you tell me if those “clownifornians” have been “snapping” up houses in Wyoming, Idaho, Montana and a couple other states too? Those prices make no sense! $150k doesn’t even get you very much house(about 1500-2000 sf) No way im paying those prices, can get for 1/3 the price in NW Pennsylvania!
Ok, I give up. I’m ready to move to NW Pennsylvania.
The Vegas/San Niccolo article really has some great lines. I had to print that one out.
“. . . sold for $635,000. It’s now empty and owned by a bank, which will take $468,000 for it.”
“. . . now in the hands of a California bank, are littered with three sets of phone books, delivered at six-month intervals starting in July 2006.”
“I’m at the end of the cul-de-sac, so no one would hear my screams.”
“And since the burglaries this month, she feels unsafe.”
“. . . fraternity house atmosphere on weekends.”
“She said she kicked the dog, bashed it on the nose with a water bottle and barely scrambled in the front door unscathed.”
“She’s ready now for that pit bull. She keeps two bottles of pepper spray by the front door - and has ordered a Glock .40 -caliber handgun because of its stopping power.”
Wow, buying a house for a half-million bucks or so in the Vegas burbs and living like a crazy person.
“Cabrera says she and her husband bought their home two years ago for $435,000 and have added $70,000 in upgrades - pool, spa and putting green among them. Now, a job transfer is leading them away. They’re asking $420,000 for their half-million-dollar home.”
LOL! They’re asking $420,000 for their half-million dollar home? This is the psychology that will be forced to change in the next couple years. People will soon learn, many the hard way, that real estate is only “worth” what someone else is willing to pay for it.
Reno sucks…. I have seen people on the market since 1 year.. No buyers… The real estate agents keep telling everyone that its a great time to buy… Yeah right.. its going to be a great time to buy for a very long time and the longer you wait the better its gonna be…
Some of the home sellers are saying next year its going to rebound and they stongly believe it….How stupid…. I am glad that I am a happy renter…I will never buy until I get it for the pre-boom price..
Why are people talking about rebounding….there will be no rebound…it will just get back to REALITY…
I don’t think they are going to get that much. More like $375,000. Tragic that had so much invested.