Is It Better To Just Step Away In California?
The Union Tribune reports from California. “San Diego County housing prices last month tumbled 13.1 percent from those in December 2006, the biggest drop in 20 years of record keeping, DataQuick reported Monday. The overall median price for all homes stood at $430,000 in December, $10,000 less than the price in November and $65,000 less than it was in December 2006. The latest price represented a 16.9 percent drop from the county’s all-time peak of $517,500 in November 2005 and the lowest since March 2004.”
“‘We can’t say home values have declined 13.1 percent,’ said DataQuick analyst John Karevoll. ‘The numbers are probably more reflective of the types of homes that are selling and the types of loans available for those buying. There’s an awful lot of people buying homes who need jumbo financing and are waiting it out.’”
The Daily Breeze. “As California and much of the nation see home prices drop, the South Bay Association of Realtors today will release local statistics that appear to buck that trend.”
“The South Bay’s median price for a single-family home in December was $741,500, or 14.3 percent more than a year earlier, according to the group. The statistics include new and resold homes.”
“The median price increase came despite a 48 percent annual drop in home sales in December. ‘There are areas in the South Bay that aren’t so strong where we’re seeing definite price decreases,’ said Carol Olney, president of the South Bay Realtors group.”
“The South Bay’s lower-income areas were more vulnerable to the economy’s decline and problems with subprime loans. As a result, fewer homes were sold in those areas, Olney said. That allowed home sales in pricier parts to push up the median price. ‘That skews the picture a little,’ she conceded.”
“The South Bay Realtors group did not release sales or price figures for individual cities.”
“‘If somebody is in a good, stable income situation with great credit, there are some great deals you can find because you’re not competing with 19 other people,’ Olney said. ‘In some ways, for buyers, it’s very positive.’”
“Realtor Adolph James said that the South Bay’s positive housing numbers likely are caused by a relatively large number of newly built homes on the market. Those homes tend to sell for more than resold properties. ‘I think the properties that are selling are a lot of new stuff you typically don’t see in the market,’ said James in Manhattan Beach.”
“‘One of the things that happened in the market is everyone became a builder, speculator and flipper. And in our cities, there’s a lot of new property just sitting down. The last few years, building has been crazy,’ he said.”
“James said he has seen South Bay home prices drop across the board. ‘In my market, I see houses are softer,’ James said. ‘I see less buyers and prices are softening.’”
The Daily Bulletin. “Construction of four major condominium developments in the city has been delayed because of concerns over the uncertain housing market.”
“Construction of 126 condos at the Old School House on Foothill Boulevard was set to begin in six to eight months, but that work schedule is now in question, said Harry Wu, owner of Claremont L.P., the developer.”
“‘We haven’t decided exactly what we should do,’ Wu said. ‘The market is certainly slow, financing is extremely difficult. It’s typically not a good starting time.’”
“Brian Desatnik, city housing and redevelopment manager, said that in Claremont, prices for condos on the market have not fallen as much as in the region as a whole. The problem developers are having, he said, is that units are selling slowly.”
“‘I’ve heard they’re only moving an average of two or three units a month,’ Desatnik said. ‘You’re building units and not being able to sell them quick enough.’”
“Desatnik said he ‘can’t venture to guess’ when the projects would move forward. In total, the four developments include about 300 units. ‘It depends what happens in the market,’ Desatnik said. ‘They’re all evaluating the market. I just know that they’re all on hold right now.’”
The Reporter. “City officials in Vacaville’s Housing Counseling Program, which is a part of the Department of Housing and Redevelopment, have been providing one-on-one counseling to homeowners. In 2007, the city assisted 110 homeowners on exploring pre-foreclosure options. Unfortunately, they weren’t able to help everyone keep their home, said Ann Putney, program administrator.”
“‘A lot of times a mortgage company won’t work with you until you miss a payment,’ Putney said. ‘Unfortunately, a lot of people area coming to us after the foreclosure has been filed, and it’s already too late.’”
“After the workshop, participants will be invited to schedule one-on-one advice sessions with counselors at both agencies. That is the most important part, said Lark Ferrell, Housing Project Manager, Community Development, Fairfield.”
“‘They also recommend looking at your budget to say, is it really the right decision to keep the house, or is it better to just step away?’ Ferrell said.”
“Their last workshop drew 150 participants. ‘In a way, it was good news, because we know that we got the word out,’ Ferrell said. ‘But really, it’s bad news, because it means that more people are dealing with those issues.’”
The Recordnet. “This winter Laura Acosta’s finances have gone cold. Acosta’s work hours have been reduced at the tortilla factory, while her employer adjusts to reduced product demand. Also, her husband - a truck unloader - is working fewer days. In addition, their adjustable rate mortgage is scheduled to rise this year.”
“‘Years before, we were able to pay our mortgage. Today, you can’t make it,’ 37-year-old Acosta, who speaks limited English, said in Spanish. ‘We’re constantly worried about how we’re going to pay our pending bills. There’s no way to save money.’”
“Countywide, nearly 3,000 default notices were issued during the third quarter of 2007, a 230 percent increase from 898 notices in the third quarter of 2006, according to DataQuick.”
“Acosta is hoping to not join the default group. She was advised by a Golden 1 Credit Union representative to refinance with a fixed-rate loan. ‘The only thing I could do is refinance. The advice was very helpful,’ Acosta said.”
“Can’t make your auto payment? Light your car on fire, and tell the insurance company you were a victim of theft.”
“That’s what a local prosecutor says he’s seeing more of these days. A symptom of the overall economy - a troubled housing market and high gas prices - auto arsons in San Joaquin County have doubled in the past three years, according to the state Department of Insurance.”
“State figures show the numbers rose by a third in California, while in San Joaquin County, they more than doubled from 10 in 2005 to 23 in 2007.”
“These days, people in financial straits who torch their cars are often caught in the subprime home loan debacle, and on top of that, they have to pay $3 for a gallon of gas, said Daniel Bale, national director for special investigations at Mercury Insurance Group.”
“‘It’s not unusual for investigators to find the owner of the vehicle with burn marks on his arms,’ Bale said. ‘The dumbest criminal is the easiest to catch.’”
The Voice of San Diego. “The red neon letters spell EL CORTEZ when they’re all working, launching a beacon from the stately white building atop its namesake hill on the edge of downtown San Diego. But when the letters are on the fritz, as they are now, they flash and blink, muddling the sign’s message and portending another: all is not right with the landmark.”
“The building, now spliced into 85 residential condos, some commercial and office space, and the restored Don Room for entertaining, is now facing a mutiny from within and the external pressures of the slumping housing market.”
“The building is mired in litigation. And of the five units in the building currently for sale, four are being sold for about half of their original selling price by lenders who repossessed them. The other is listed for less than is owed on the mortgage.”
“Take unit 405, a two-bedroom, two-bath condo that sold in November 2005 for $625,000. It’s been repossessed by the lender and is now listed for sale with an asking price of $290,000 — a 54 percent price reduction.”
“Another bank-owned unit that once sold for $405,000 is now listed at $199,000. Another one, No. 304, sold in February 2006 for $699,250. Now it’s listed as a bank-owned sale for $294,500 — a 58 percent difference.”
“With a loan from the city of San Diego’s redevelopment arm in 1999, developers Peter Janopaul and Anthony Block fixed up the old building for rent as luxury apartments. After a few years, they paid back the loan and converted the apartments for sale as condominiums.”
“The units came on the market right at the peak of an unprecedented, lengthy boom in San Diego County’s housing market. The deals closed in late 2004 and early 2005, as investors bought pieces of the distinctive downtown building.”
“But the market in San Diego turned, and condo owners trying to sell units in the El Cortez have not found immunity from slumping sales and prices. And falling prices have left some who used unconventional financing in foreclosure.”
“The homeowners say the litigation is necessary to make the building what they believed it would be when they bought it. They believe the values will come back.”
“Homeowners’ association VP Joe Roth, whose bathroom sink fell off his wall once due to the construction problems, said he, too, has a happy ending in sight. ‘I’m optimistic,’ he said. ‘When you’re on the side of right, all you need is a big flashlight.’”
‘Acosta is hoping to not join the default group. She was advised by a Golden 1 Credit Union representative to refinance with a fixed-rate loan.’
The article didn’t go into the details of the loan, but since it is resetting, I bet they bought in the recent past or refied. Given that, and their employment situation, IMO the credit union people are doing this lady a disservice. Step away!
No kidding. I’d love to know the purchase price as well. Knowing what I know about Golden One, I doubt they are holding the paper on the house.
Along those lines, this kind of stuff has really got to me over the last 12 months..
“‘A lot of times a mortgage company won’t work with you until you miss a payment,’ Putney said. ‘Unfortunately, a lot of people area coming to us after the foreclosure has been filed, and it’s already too late.’”
Ummm, listen carefully….IT’S NOT THE LENDERS JOB OR RESPONSIBILTY TO “WORK WITH YOU”!!! IT’S YOUR JOB AND RESPONSIBILTY TO CARRY OUT THE TERMS OF THE CONTRACT YOU LEGALLY AGREED TO!!!
Hey, the lending institution was surely a part of why this mess got out of control. But this whole “make them seem like the bad guy” ’cause they won’t modify loans is f’ed up! Sheeeez!……I’ve said it before and I’ll say it again, PEOPLE SUCK!
No, you mean “PEOPLE ARE SMART”, don’t you?
You’re right - how many didn’t even read their docs on the way up - now on the way down they think they can rewrite them? The sanctity of the contract is getting trashed - let’s see how helpful that will be in loosening up credit in the long run.
Golden 1 credit. Sounds like the Chinese restaurant I ate lunch at today! Golden 1 Chinese.
“Step away!” reminds me –
I had an old friend show up at my house unexpectedly a few nights ago, tears streaming down her face. Their family’s financial situation has finally reached a breaking point. They refi’d twice in the last two years and are now paying interest-only on a 600K mortgage when the house is worth 400K (maybe). They’re maxed out on credit cards and can’t pay those, either. This month they will miss their first CC payment. I am almost sure that will get them into dire straits with default rates.
He has an MBA and supports the family on ~100K gross a year. I found myself pleading with her to try a short sale, but heard today that he’s determined to stick it out. I’m not sure to what end. Her greatest desire is to get away from the debt and start over but he’s very prideful about it, and in denial. They’re both 40 years old. (If you’re reading this and in your 20’s you need to seriously plan not to end up 40 and broke. Get out of debt asap.)
I’m not currently in the position of being underwater on a mortgage (thanks to Ben), so I don’t know what it must be like to keep paying the mortgage on a property worth 30% less than the mortgage. Would I keep it up? I would be 99% tempted to bail.
This is what I don’t get. Our gross is just under 100k (or 60% of a HaHa) and we’d never consider a 600k mortgage. We have a pretty good down saved and we’re nervous about even looking at anything over 260k. Did no one think they’d have to pay it off?
“he’s determined to stick it out. I’m not sure to what end. ”
Oh, there’s something “sticking out”, alright…
And we know from what end…
Irrational exuberance + greed = JOSHUA TREE ENEMA
DOC
Just back from the Giants game, saw a 6 pointer.
What I love is the way that the realtoRs love to report the median price when it’s going up, but when it’s going down, they jump all over it and waste no time explaining that it’s a useless number. Do people actually fall for this stuff?
They sure don’t fall for it on this blog!
Yes they do! Each and every day!
‘We can’t say home values have declined 13.1 percent,’ said DataQuick analyst John Karevoll.
One guy says median is not a good indicator. The other one says it indicates that housing market is strong.
As California and much of the nation see home prices drop, the South Bay Association of Realtors today will release local statistics that appear to buck that trend.
The South Bay’s median price for a single-family home in December was $741,500, or 14.3 percent more than a year earlier, according to the group.
Nice. So we should consider median as a good indicator only when it goes up ? Don’t you love REIC ?
Fact is, median is not a very good indicator in either direction.
100% agree. That is why we wait for the Case-Shiller numbers every month. Perfect? Far from it. But its some of the best long term data out there.
I still have coworkers excited to buy. Two just announced plans to buy. Thankfully both are ’sell-rent for a bit-then upgrade’ types. Whew! Although one might do a contingent bid on a home.
Sigh…
Got popcorn?
Neil
Yesterday at work a nurse anesthetist told me that she had made an offer the day before on a house in Sacramento that she had seen for the first time at an open house. Supposedly there are two other offers. Asking price: $397K, 1200 sq ft, 2 bedroom, 1 bath! She made a full offer and only asked that the seller pay closing costs. She only has 5% to put down. I tactfully told her that she will be grateful next year if another offer is accepted, but that she’ll probably be stuck with the house.
One of my residents is shopping with her husband for a house in Sacramento. They are aware of a huge number of houses on the market in their target area, and intend to offer 20% below asking (probably about $200K.) They can easily afford this because he sold a house in New Mexico before he moved here at a profit. I told them that they should just continue to rent in the neighborhood, because prices will continue to fall for at least another year, after which they will stagnate for years. They just can’t believe it. Oh well.
“Yesterday at work a nurse anesthetist told me that she had made an offer the day before on a house in Sacramento that she had seen for the first time at an open house.”
Please tell me she’s using her craft on herself to make such a stupid move. If she’s not, she’ll want to when her house price continues to drop like a rock.
DOC
My sister tells me today that she wants me and my wife out of our cool little guest house soon so her mother-in-law can visit once in a while and use the guest house. I offer to double the rent from $700 to $1400 as we wait out the housing situation, but no go, the money’s not an issue. She says, “the market’s not going to drop forever you know. At some point, investors are going to come in and buy up everything.” To this I reply “the market doubled in 5 years and has dropped about 10 percent, and you don’t think it’s going to drop a lot more?” They bought a place in OC around 1988, when I warned them that the market was going to crash back then. They ended up renting it out for 10 years before they sold it for about what they bought it for (not adjusted for inflation). You think some people would learn! Ahh, what’s the use? Sigh.
You can lead a horse to water…
You can lead a horse to water, but you gotta suck real hard on his ass hole to make him drink !!
As Dorothy Parker said (when asked to use the word “horticulture” in a sentence), you can lead a horticulture, but you can’t make her think.
This is a reprint of a posting i did on LA times ‘LA Land Blog’ . IF U are interested in the ‘REAL’ LA and what lies beneath the cover U will enjoy this:
The most notable visble institution in that decayed slumville is the Huge Cinderblock -like Lynwood sheriffs station off 105 near alameda ave. It may be the most depressed hellish site for a sheriff station in Scal, which is why they transffered Paris Hilton there for a few days, which would be the most gruesome punishment for a rich spoiled bitch to have to endure.
Just 1/2 mile to the west is the world -famous now defunk MLK Hospital,
which actually doubled as a morgue.
The areas around these world famous must -see LA tourist sites may be some of most trashed -out, gang-infested, gutted, Crime ridden,decayed slums in LA. Mr Lee must have pulled all the equity out of his $700,000 Scentral LA gold-plated mansion. If he is now underwater an d cannot sell at his rediculous price he can simply walk out or do a short sale with all the crap ,cars, vacation memories, paid- up CC and hospitial bills all on the Heloc. U see It is now all forgiven debt according to Uncle Sam.
Man that sucks. You must have pissed one of them of by accident.
Offer to put up your mother in law up in a nice hotel nearby whenever she visits.
I wonder if your sis is planning on living the guest house and renting out the main house?
My friend made the same offer to his landlord, he is rich with cash and didn’t mind paying 50% more. They turned him down too, he was amazed, the would turn down an extra $1000 a month. There is something she isn’t telling you. No one is stupid enough to kick out paying renters who will pay 100% more for a visiting mother a few times a year. They could put her up in a nice resort hotel for that. I bet they put the place on the market after they get rid of you, I bet someone got their hand caught in the cookie jar.
Price per square foot is all I go buy and so far everything is still way to high. Median prices are way to subjective and easily manipulated. I’m so glad I started reading this blog back in the beginning of the year. Im totaly addicted now and have to read it every day.
John Karevoll, Sep ‘06:
Despite recent declines in Southern California home sales and appreciation values, there is little statistical evidence supporting recent gloomy reports that the housing markets are in for a serious downturn, Karevoll said.
“We’re not seeing ominous signs; no where to the degree that there were ominous things happening back in the late 1980s and early 1990s,” Karevoll said. Notices of default – the first step in the foreclosure process – remain low in the region, and there has been little activity where sellers carry back second mortgages to help buyers, he said.
——
This guy just earned himself a spot in the Hall of Shame. Burn in hell you S.O.B.
Bold off…
…sorry, didn’t close the bold text from above. Hopefully this does it.
“Notices of default – the first step in the foreclosure process – remain low in the region”
This is not true. In San Diego County, NOD’s are far exceeding those at the peak of the early 90’s downturn.
http://www.voiceofsandiego.com/toscano/
Scroll down to “October Foreclosure Activity” and “September Foreclosures”
If you can’t spin it through manipulating statistics, then just lie and lie big.
“The South Bay’s median price for a single-family home in December was $741,500, or 14.3 percent more than a year earlier, according to the group. The statistics include new and resold homes.”
Went to that website http://www.sbaoronline.com and cannot get any hard numbers or charts, just their glossy realtor webpage. Until they post up some exact data and charts i will call BS on their assertions . Maybe YOY went up for Single family homes, but that would be on only a relatively tiny number of super high-end homes in PV and the Beach cities. Locally -based Realtor associations are to be extremely distrusted with skewing data, and i smell a stinker here. I wonder if they left out certain butt -end communities inland away from PV or Beach cities.
No, we can’t say prices have declined 13.1 percent. Odds are it’s more.
Let me fix that statement for you, Mr. Karevoll, to make some clarifications:
“‘There’s an awful lot of people [not] buying homes who [cannot afford them and therefore] need jumbo financing [which they cannot obtain] and are [either wisely or fortuitously] waiting it out.’”
There, that’s more like it.
“There’s an awful lot of people buying homes (who need jumbo financing) and are waiting it out.”
So which is it, Mr. Karevoll? Are they buying or not?
Sounds like NOT.
And with prices dropping as they are, very soon jumbo financing will no longer be needed. What idiot karevoll fails to realize is that prices will break before lenders will loosen guidelines.
“And with prices dropping as they are, very soon jumbo financing will no longer be needed. What idiot karevoll fails to realize is that prices will break before lenders will loosen guidelines.”
Exactly right!
“‘We can’t say home values have declined 13.1 percent,’ said DataQuick analyst John Karevoll.
BULLSHIT!!
Crispy,
Don’t you realize that the median price is only a reliable statistic when the median is RISING? It doesn’t apply in a more “balanced” market like we have now. That result is well known in Realto-metrics as the Yun Corollary to Lereah’s Theorem.
Evil Karevoll
As one more eloquent than I posted here before, “Lick balls, Mr. Karevoll. Lick. Balls.”
Tales From the Hood:
Yesterday, I went to visit a cat in my neighborhood, and I noticed that the house next door to his was for sale. While my hubbie hung back with the cat, I went in to see what they had in there that they thought was worth $989,000. Of course, I couldn’t help but to engage in a lively game of Bait the unrealtoR.
Of course, I went over the whole spiel about the lending and the incomes and the population loss and the new building, but the funniest part was when my husband finally came over and I started to describe the shower to him. Intead of having a tub underneath the shower, there was simply an inlayed floor with a drain underneath the faucet. The shower floor was about 3/4 of an inch lower than the rest of the floor, and there was no door (just a pole from which a curtain might hang). If the drain were to clog, it would take about 3 minutes to flood the entire bathroom floor.
Interjecting, the unrealtoR responded that “that would be ideal for a handicapped person or a person with small children”. Can you believe it? Mr. and I gaffed at eachother and, while walking away, I quipped “Good luck finding a handicapped person with children who has $1 million to spend on a 3/2!” She was not amused.
That’s why we despise these losers.
I know a wheelchair-using man who has that kind of money. But, given his druthers, he’d rather spend it on his airplane.
Why were you spending your afternoons visiting neighborhood cats??
I like him. He’s actually quite famous in our hood. Some of our other neighboors say they visit him too.
Must be one heck of a cat.
I’m proud to say I’m a man who digs cats. Dogs are too damn needy. Who needs it.
A dog’s viewpoint: Humans feed me, house me, pet me, care for me in so many ways.
They must be gods.
A cat’s viewpoint: Humans feed me, house me, pet me, care for me in so many ways.
I must be a god.
We have 2 paid off calicos
I have 3 chihuahua grandpuppies (not the high strung type) with my one daughter and now have a new grandpuppy with my other daughter - a mini pincher. Never been around dogs before - always had cats until I lost my baby after 13 years nearly 2 years ago. I’ve gotten used to the dogs, but I still prefer cats - they’re so above it all.
People think cats aren’t affectionate, but they’re wrong. Dogs are pack animals and social parasites—they show affection because it’s to their advantage to do so, not necessarily because they’re fond of their humans. Cats may not show affection toward humans as readily as dogs, but when they do, it’s absolutely genuine. Of course, if I needed to be defended or rescued, I’d rather have the dog…
Dogs have masters.
Cats have staff.
Great scene from “Meet the Parents” when Deniro tells Stiller that “dogs are sell-outs, cat’s make you work for their affection”
Some cats are cool, but a while ago, I lived next to a lady that fed all the strays in the ‘hood, so I had to trap them and turn them in to city animal control, who, as I understand it, “set them loose on a 100 acre farm where they were free to roam all day.” Anyway, I ended up catching about 20 of the buggers, and each time I did, I ended up spray-painting a stencil of a cat’s face on the side of the addition on my house, like a flying ace would paint enemy flags on the side of his plane.
Social parasites? The relationship between humans and dogs is one of the oldest, closest and most productive throughout history. The relationship you can have with a horse is similar, and in both cases it is totally genuine.
Keep making remarks like that and you’ll likely meet TxChick’s trout.
Dog’s viewpoint: “I’m gonna bite that guy if he attacks my fellow packmates (family) or tries to steal the plumbing. Nobody’s gonna f$%k with my pack!”
Cat’s viewpoint: “I’m outta here! Oh, and you guys can take the sofa since I’ve already shredded it to bits!”
I dunno, I’ve owned horses and I’ve never really had a ‘relationship’ with any of them. They come over when I feed them because they are hungry, and they come over and check things out if I’m working around them because what do they have to do that’s more interesting. My mother keeps 2 horses as pets now that she doesn’t ride, but a horse you don’t ride is worse than worthless in my mind.
Maybe OK for people with less severe mobility issues, but about as much use as a chocolate teapot for those in wheelchairs - try getting the wheels over a 3″ lip - not so easy.
As for ‘ideal’ for small children ….. how?
Surely she meant ‘immanent drowning hazard for small children’….
Oh, and nice quip!
I only wish I could be pithy immediately - I normally come up with a real zinger of a comeback - about 45 minutes after it would do any good.
Big V. I also went on the prowl to a couple of open houses in my hood yesterday. I am kind of low profile, so I don’t actually engage realtors in conversation, but I was witness to something that to me seemed completely rehearsed, as if to drag me into a situation where I would have to listen to a spiel on how good a moment this is to buy. This is what happened.
I sauntered into an open house in the 90064 zip code, located in the sort of marginal side of Cheviot Hills but still nice. Just to give you an idea, it was a 2200 sqft home, asking price 1,795M (no typo), last purchase according to Zillow gives a date in 4/07 for 1,655M. The very anxious looking realtor followed me around showing me all the features of the house which was, to be fair, in pristine condition. She went on and on about how neat the owners were and what not, and then all of a sudden another realtor comes in and greets “my” realtor with a very artificial sounding thing like “Are you having a beautiful day? Don’t things look awful busy?”
My realtor replied something to the effect of “Yes, things are busy, and to think it’s like this with all the awful information people are getting from the papers”. Then she raised her hands and said: “It’s all MISinformation, but what can you do”. Needless to say, I scurried out unnoticed but I couldn’t help feeling they were trying to bait me. Unfortunately for this lady, it’s watch and wait time, and all I have to do is keep looking stupid until the time comes…
Weird !!!
Wonderful! I wish I had your nerve. I went to two open houses yesterday, both of which turned out to be nice old houses that were ruined by investors. Black granite looks stupid in an old house, as does travertine tile, stainless steel appliances, and the whole beige tile bathroom thing. I just looked and said “good luck” while exiting.
I think kids prefer rubber duckies in the bathtub.
“Realtor Adolph James said that the South Bay’s positive housing numbers likely ….blah blah.
- This is my hood and James advertises on the local tv cable. He looks like a small thin Adolph Hitler. And he has his wife in the gig as well.
I am stunned by the price drops in the El Cortez. A few years ago, it was THE place to buy and live in downtown SD. My sister almost bought there but couldn’t sell her house at the price she wanted. What a lucky break.
Dont, be! Its shoddy constructions, funky layouts, and old windows….poor quality
Yeah, I guess that’s become clear. It’s just that, if you grew up in this city like I did…that building has special meaning. For decades it was the tallest building in San Diego. I vaguely remember going there all dressed up for lunch. I clearly remember going there in college (still eons ago) when it was Election Central for the whole county on election nights. On those nights, it was crackling with excitement. There was something of a scandal a few years ago because the building was flying the gay rainbow flag. I am SOOO glad I did not buy anything downtown. What a glut.
My high school prom was at the “El Cortez Hotel”.
I remember that it had a nice ball-room… but I’m sure, that at that time, it was crumbling from the inside-out.
“That skews the picture a little,’ she conceded.” HUH???? Skewing the picture a little…hasn’t that been the plan all along…talk people into transactions they can’t afford on the promise the future will pay for itself. Geez…what next…Real Estate by Viewmaster? Every picture is perfect and in 3D at that!
I guess since even the “Low Income” areas of the South Bay are populated with people making a gazillion dollars a year in the high tech industry, even the janitorial staff make a half a gazillion a year, everyone can afford that $751,000 median price.
There was an interesting article in the Valley Times over the weekend which talked about how the damage caused by a 6.9 quake on the Hayward fault would make Katrina look like a Sunday trip to the Dollar Store. The Bay Area is an econmic time bomb waiting to blow the US economy into a recession…With all the imaginary wealth tied up here an earthquake along either the Hayward or San Andres fault of 6 or stronger will cause a financial ripple through the entire country..
Umm, The Daily Breeze is the paper published out of the South Bay area of Los Angeles (Manhattan Beach, Redondo Beach, etc) NOT the South Bay area of the San Francisco Bay Area.
“The South Bay’s median price for a single-family home in December was $741,500, or 14.3 percent more than a year earlier, according to the group. The statistics include new and resold homes.”
This is completely shocking. Is the South Bay full of movie stars?
No…it’s just the hub of all high tech in the world….you’ve heard of the Garden of Eden……it’s the Silicon Valley…a place where everybody makes a gazillion dollars a year making everyones life better with new technology
It’s the awesome spot where irreplaceable things like “MySpace” and “FaceBook” herald a New Age for all of humankind.
This story is about South Bay Los Angeles.
Oh…
I didn’t know there was a South Bay in Los Angeles…shouldn’t it be South Harbor? I didn’t know there was a bay near Los Angeles..unless they’re baywindows or something like that…
South Bay is generally south of LAX airport and includes Manhattan Beach, Hermosa Beach, Redondo Beach, part of Torrance. The Santa Monica Bay generally stretches from Pacific Palisades to the Redondo Beach area. It is quite a large bay.
Totally untrue….the South Bay has nothing to do with high-tech (this is the LA South Bay, not the Bay Area).
Manhattan Beach is mostly families inland. If they bought 5 years ago, they are slightly better than average. Later than that, and yes, they make over $350K a year and have a Rover in the drive next to a BMW. By the beach, it’s a mixed bag of millionaires and renters.
Hermosa is a lot of elderly mixed with young families and renters.
Redondo is not even close to being elite. Before the boom of 2000, it was mostly working class in N. Redondo. Even now, I still wouldn’t live in most streets there, but I’m a snob. It’s mostly families and renters in S. Redondo. The traffic is horrendous.
El Segundo is very family-oriented and quaint suburb sandwiched between a sewege treatment center, LAX, and an oil refinery. The Garden of Eden it is not.
Hawthorne and Lawndale are no better than Inglewood and prices there will drop twice as fast as they went up.
Most people that bought in the past few years did so with creative financing as up-leg properties. And as such it’s becoming less family oriented and more DINKs.
But, the schools in RB, MB, HB and ES are decent by LA standards and that alone saves you $30K per kiddo in private school tuition.
Last I heard LA schools had no standards, what on earth are you talking about?
The South Bay is not part of the city of Los Angeles, and is one of the handful of places in the county you could consider using public schools.
What about Wilmington ? A special place.
$30K per kid? I never paid nearly that much. My kid went to Lycee and I think the most I paid was $14K in 2002.
“Totally untrue….the South Bay has nothing to do with high-tech (this is the LA South Bay, not the Bay Area).”
South bay(LA) is close to the lax/El Segundo areospace industral complex, which has such companies as Raytheon, Boeing,and other hi-tech military -space industries. There is in fact a large variety of industries such as pharmacuticals, testing labs, oil refineries, warehousing, logistics, mostly concentrated in Torrance and Carson. Boeing has a large no of separate facilities all over SB. Honeywell has two or three large facilities there. Alcoa is in Lomita. Wilmington and San pedro have the port operations.
That said SB is like any large subregion in LA with a mix of hi=end in PV and the beach cities, middle lower class in Carson. gardena, east Torrance, as well as its derelect areas such as Harbor city, Hawthorne, lawndale, and Wilmington.
The SB is jobs rich but otherwise overrated as a region. There are gang-ridden parts of the SB away from the tiny rich coastal enclaves . Much of SB is dull plain housing tracts or packed condo /apt complexes, with to much traffic everywhere and not much open green space except in PV. Torrance is simply plain dull though there are decent quiet neighborhoods there.
I actually like El Segundo though it is a tiny village sqeezed between Chevron refinery and LAX. It has a small town feel to it and the beach is a short bike ride away.
The best thing about the Beach cities is the bike path which U can ride all way up to Venice, Santa Monica, marina del rey, and get almost to Malibu.
His insinuation was that tech people lived there and drove up all of the prices.
With the exception of RB before 2000, most of the tech people could not afford to live west of the 405 unless they were senior management.
Well, there are a lot of sound stages and studios nearby or within commuting distance. A lot of retired aerospace people live there. And the beaches are pretty cool. But the commute to the rest of LA is killer, because the freeways are in total overload. And the nice parts are bordered by slums, an oil refinery that periodically catches fire, a power plant, LA’s sewage treatment plant, LAX, etc. On the south, Palos Verdes is nice, but an even worse commute.
Also, much of the housing stock in the South Bay is either older, run-down SFRs, or unspeakable condo monstrosities. There has been some mansionization that has restored a few of the oder neighborhoods, but then you have McMansions with zero lot lines next to 1940s clapboards.
But PV is nice, most of the houses there have large lots and were built well. Many have great views as well. Most of the ones that were going to slide into the ocean have already done so. I would live in PV if I never needed to drive into the rest of the city.
“Also, much of the housing stock in the South Bay is either older, run-down SFRs, or unspeakable condo monstrosities. There has been some mansionization that has restored a few of the oder neighborhoods, but then you have McMansions with zero lot lines next to 1940s clapboards.”
—–
This is exactly my in-laws’ situation. Turned an old tiny Redondo Beach house into a zero-lot-line McMansion. I like it that they live there, though. When I have to fly out of LAX (instead of San Diego), they’re always up for taking me the short drive to the airport.
Commuting is insane there. I used to go from MB to UCLA and it took 45 mins on a good day. We tried every route, every back road route and it was just bumper to bumper at rush hour. I can remember the long backups on Sepulveda south of the airport.
After getting waxed yesterday afternoon for a few hours in pretty rediculously dumb, walled out 8 foot plus beachbreak at Hammerland (north of Manhattan Beach LA / South Bay), on my way for a much deserved post beating beer (or 4), burger and football game - I saw about 12 ‘home for sale’ signs just in North MB and about 4-5 open houses. That’s a lot more than I remember seeing lately, and certainly many more than I’d expect a week into the new year. Wasn’t selling season supposed to start in March?
In the meantime I don’t get those stats either showing a rising median, except that is what seems to happen in each market (lower sales volumes, increasing prices) until the reality hits and the lack of buyers brings things down. Sort of a plane stalling out. Guess everybody’s heads down here are still on the beach and not paying attention. Should be interesting come March when the real 2008 inventory hits in the South Bay.
Post beating?
Good surf. I really miss it some days (I’m from Santa Cruz and I’ve lived in Portland, OR the past dozen years - bit of a drive from the coast (and I work too much).
I think it depends on what part of south bay and how close to the beach. Stepson bought at some condo monstrosity (I begged him not to) earlier this year and paid nearly $500K for a small 2 bd 2 bath (Fusion). He put 20% down and has now watched it wither away. New duplicate units are selling for nearly $100K less. We lived in Manhattan Beach in the early 00’s, but really, if you don’t live close to the beach, you could be anywhere - you barely even smell the ocean.
New word: condostrosity.
Or maybe: condomisrium
Fusion is Hawthorne… not Manhattan. Close but in the bad school district.
Sorry for your kid. Lots o coworkers bought the short walk to work places. Still units for sale.
“Fusion is Hawthorne… not Manhattan. Close but in the bad school district”.
Fusion a Darwinian award Nominee for HB turkey housing complex. Remember it going up back in 2005 along with several massive mixed use/shopping projects near that area, I think it is on Aviation blvd next to huge Beoing El Segondo aero-industrial campus. Yes it is close to the El Segundo/redondo beach industrial complexes but a really unpleasant site for condo living(to much commuter traffic).
There are some massive huge mixed used commercial/ residential’shopping projects going up in this general area of El segundo/LAX/redondo beach. Don’t know how far they will proceed- haven’t been out there recently -but the mega-developers seem pretty bullish on future of SB/LAX region
Is the South Bay full of movie stars?
Hah! Maybe wannabes. Sure, there’s lots of moneyed types over there, but most people have just owned their homes since they were relatively cheap. Prop. 13 makes a lot of people stay put, and then all it takes is a few paying insane prices to drive’em all up.
“These days, people in financial straits who torch their cars are often caught in the subprime home loan debacle, and on top of that, they have to pay $3 for a gallon of gas, said Daniel Bale, …”
So how can they afford the gas to accelerate the fire? Car’s don’t burn that easily, unless you drench the interior with six gallons of gas. Maybe they plan ahead and put the last “fill-up” on their credit card?
Naaaahh…
“‘It’s not unusual for investigators to find the owner of the vehicle with burn marks on his arms,’ Bale said. ‘The dumbest criminal is the easiest to catch.’”
People are smart.
Not.
lol
Ok, you’re talking about a prime sheeple here.
1. Most likely a subprime mortgage in an ex-urb (long commute)
2. Almost certainly a pricey vehicle
3. What’s $40 of gasoline compared to the car payment?
Did everyone read the LAtimes article on how people are rolling over previous car debt into the new loan? Very long term loans. So let’s take a scenario.
1. Expensive car (SUV or BMW, your call. Say a purchase price of $40k)
2. Roll over debt of $7k
3. Long term loan.
4. Insurance including ‘gap insurance.’
So this sheep is underwater on the gas guzzler and underwater on the home. Burning $47k of debt with $40 of gas? Sounds reasonable actually… Then you can go out and buy a new civic for under $20k or even go used for ~$10k while the FB still has ok credit.
Its only if they’re dumb enough to light the match with gasoline soaked sleeves… then the medical bill outweights the potential gain.
So this is how we’ll get rid of the surplus SUV, truck, and luxury car build up. Scary, but when you realize these people owe more than the car’s MSRP… fiscally sensible. Morally… another topic.
Got popcorn?
Neil
That is so dumb. Burning a car could actually be very dangerous.
Where I grew up there was an isolated mountain area called Insurance Bluff. Just push your car over the edge, problem solved. Put in a claim for stolen vehicle.
I’m sure though these days some would try driving off the bluff w/o thinking.
lol
Ok, I wasn’t serioulsy arguing burn a car. But from a pure financial perspective…
From a safety perspective… silly. Not to mention the risk of prison time and being stuck with the liability to pay off the car if caught.
Got popcorn?
Neil
> So this is how we’ll get rid of the surplus SUV, truck, and luxury car build up.
Or we’ll just ship them to France where cars get torched nightly.
“City officials in Vacaville’s Housing Counseling Program, which is a part of the Department of Housing and Redevelopment, have been providing one-on-one counseling to homeowners.
Ben, I believe you should contact these city officials and submit a bid to make the HBB a participant in Vacaville’s Housing Counseling Program. You could offer services like “a virtual trout-slapping” or the certified TxChick Tough Love Tirade, where FBs are paired, via Skype, with their own HBB regular. Kind of a twist on the “Scared Straight” program, if you will. Trust me, the wisdom on this site would be a godsend to some of these FBs.
“These days, people in financial straits who torch their cars are often caught in the subprime home loan debacle, and on top of that, they have to pay $3 for a gallon of gas, said Daniel Bale.
Wow, a double whammy for the fb, first the subprime loan debacle, and now it will run you $3 a gallon to douse your car with gas and torch it, ouch.
“Homeowners’ association VP Joe Roth, whose bathroom sink fell off his wall once due to the construction problems, said he, too, has a happy ending in sight.”
When sinks start falling off of walls, a “happy ending” is not what I would be thinking.
This place was built in 1927 and the developers just put some lipstick on this pig and people fell for it. Did anyone get an inspection before buying?
The only happy endings Joe Roth is going to get is at a shady massage parlor. 50% Drop and its all going to come back, uh huh..
It’s looks like the local ethnic media is slowly opening their eyes to the reality. Interestingly, today on a local Korean-American newspaper, I came across an article titled, “Housing Prices Are Expected To Drop Further, If You Need To Sell Act Fast.”
The article ended with a quotation from Thornberg, where he
advised serious sellers to quickly liquidate their houses with steep discounts before it becomes too late.
It was refreshing to see Thornberg get quoted on an ethnic newspaper. Hopefully, many of the potential sellers will listen to his advice.
“Housing Prices Are Expected To Drop Further, If You Need To Sell Act Fast.”
oh my. That sounds just like a panic headline.
Wow… that headline is too early. I agree, it sounds like a panic headline. It must be an unusually perceptive editor.
We’re still in fear. Oh… we have a long way to go.
Got popcorn?
Neil
“The homeowners say the litigation is necessary to make the building what they believed it would be when they bought it. They believe the values will come back.”
Yeah - as soon as this generation dies off and another generation of worthless dumba$$es comes along who believe the lies that ‘real estate only goes up’ ‘they aren’t making anymore land’ ‘renting is throwing your money away’ - then your condo ‘values’ will come back. In say, oh, 25 years.
Can anyone comment on this? House I nearly bought last year is for sale again after it was “bought” in July for 70K over the price the seller and I agreed on. The sale was not recorded on the MLS and the current lienholder appears to be one of those hard money lenders. Okay, the place is for sale now at the inflated price plus another 10% but is in “preforeclosure” and I know that the dude who bought it never moved in.
So if the hard money lender has noticed their intent to foreclose, what happens then. Do these guys hold these properties or do they let them go back to their lender too? I want to make a short sale offer on this one of around 175K (it is listed at 335K, a completely ludicrous price since I had it under contract at 229k and the tax value is 220k). I don’t know how to go about this.
I guess you might have to repost this tomorrow morning.
I was hoping Mrincomestream or Housing Wizard were around.
Who cares? Just make the offer to whomever is listed on the sign.
The person on the sign was a dumbass. The point is, whoever lent the 70K extra isn’t going to take my offer but the house likely won’t sell for much more than that. I was basically wondering what these hard money lenders do when they have to take a property back and can’t sell it themselves for what they have in it.
“I was basically wondering what these hard money lenders do when they have to take a property back and can’t sell it themselves for what they have in it. ”
Tx chick- They relist it for sale. What in the world are they going to do with it?
I am a hard money lender and broker and the HM lender made a mistake by not getting a low enough LTV on the property in the first place.
Tex, a lender in a junior position(2nd trust Deed say) has a financial decision to make. If the first TD has filed an NOD, and a foreclosure sale is scheduled, the holder of the 2nd can make the pmts on the 1st, and file for their own sale. A buyer at the sale would then take over the first, and their money bid would go to the junior loan that had the sale. So they better have a buyer or equity (As a realtor with REO experience, I would be asked by 2nd TD lenders to value a home, so they could decide whether to bring the 1st current) If no one buys the home, the junior now has an REO to sell. As to a short sale, the more loans on a home, the more complicated this is to do. And you can choose a differant realtor than the lister, but the lister is most likely the facillitator in getting the lenders to agree to the shortpay. And if a dummy, well Good luck.
You need a preliminary title report and/or a property profile. Brokers or appraisers should be able to help. Is there more than one note? Who owns whic part of the debt? You need to know.
If the hard money lender forecloses, he’ll want to sell it, more than likely quickly.
“Realtor Adolph James said that the South Bay’s positive housing numbers likely are caused by a relatively large number of newly built homes on the market…”One of the things that happened in the market is everyone became a builder, speculator and flipper. And in our cities, there’s a lot of new property just sitting down. The last few years, building has been crazy.” ”
Wait, wait, wait…I was told a year or so ago that house prices could never go down in the Los Angeles basin, and the beach cities in particular, because housing stock was limited, and there was no where left to build.
So how can there be “a lot of new property just sitting down”.
Hmmmmm…
There are tons of ‘new property’ sitting in the south bay.
Drive around North Redondo, South Redondo, and to a smaller extent south Torrance. The quantity is amazing. What happened is that during 2004 through 2006 the flippers aritifically ‘removed’ a lot of the supply while they remodeled. Many of them lived in the house for two years (you know, for the tax exemption on the capital gains) and them remodeled.
Now there are a ton of freshley remodeled homes around most properous areas sitting empty. The 2006 FB’s are just now coming to the end of their two years and will ad to the inventory. (agin, trying to milk out that tax gain).
We’re still in fear… so the sheeple aren’t acting. But I think we’re about a month away from national desperation.
Why do I say national? I travel a bit. Now Florida is advancing at its own pace. But so is everywhere else. Some lag (e.g., Seatle), some lead (San Diego is the poster child). But we’re all on the depreciation train.
I think some nice areas have three months of vacant inventory just sitting there. Oh… some areas have multiples of that… but with the continuing credit crunch… areas that should never be at their current multiples… we forfit their silly premiums.
Hmmmmm…. is right.
Oh, I *know* jobs are getting ready to move out of the South Bay part of LA and to a lesser extent DC. Wait for a March anouncement… It will be purely voluntary.
Sadly, I know I’ll lose a few staff when they’re given the option. Some people are done waiting. I wonder if I am too… not yet.
Oh well… as someone here noted, it is a waiter’s market.
Got popcorn?
Neil
San Diego…America’s Finest Poster Child?
Those short sale prices are dropping quickly. Seeing hundreds of thousands of dollars lost on short sales, REOs, and lost downpayments. No one is immune from this pandemic.
I’m looking in San Pedro…yes there are nice areas of Pedro…and there are ALL kinds of houses sitting around doing nothing. One of them has had a “HUGE price reduction!” sign on it for about four months now (last time I looked it was listed at 449k 1329sqft 3/2), and just a couple of weeks I saw the family packin’ their stuff into a moving van….
OT I know………but 66.6% off in Ohio!!!!
Ohio: Foreclosed Homes Hurting Values
CLEVELAND (AP) — Banks have been selling foreclosed homes in Cleveland at less than one-third of their previous value, harming property values in an area that has been an epicenter for the nation’s mortgage crisis, a new study said Monday.
http://biz.yahoo.com/ap/080114/oh_cleveland_foreclosures.html?.v=1
“harming” property values?
In the 60s we had gas wars, in the 80s (as aladinsane knows) were the coin price wars, and now we have the House Wars.
From 1/1/2008 to 1/8/2008, there were 1 homes sold in ZIP code 90274 for an average price of $585,000.
1) $585,000 on Cresta Verde Dr
Only one home sold in area Daily Breeze covers in 90274. 90274 being that hill you see, you all should know by now, from pilot side of plane as you are about to land at LAX.
That’s about the same comp as a place in Compton…
Any details?!? That’s huge. I agree with aladinsane, that’s a Compton level comp.
Take a step back and think about it… That’s a $417k loan with a $168k down payment. We could be seeing the start of 90274/90275 properties trying to get down to the conforming loan limit! Are we seeing the great squish down getting momentum?
This could be an important find… unless its a townhouse.
(There are enough in 90274…) But then again, even a wreck of a home in 90274 should have gone for more… Oh… that comp is going to sting. 
If there is any more information, please post it.
Happy wife, happy life!
My wife would be very happy if we could buy in 90274 (getting a relocation would be zero issue).
Got popcorn?
Neil
Comps are your best friend on the way up, and a mortal enemy on the way down.
This could be an important find… unless its a townhouse
It is just off busy hawthorne blvd an d may be close to some shopping plazas almost on top of the hill. My guess is it is a condo.
Parts of PV off busy hawthorne and Crenshaw blvds near top of hill not all that appealing,with lots of condo and apts complexes tho they would be all luxury gated types with pools tennis cts ect.
Tan man and others on their way to Congress.
http://www.reuters.com/article/ousiv/idUSN1442936020080114
I’ll say one thing about the tan man. He somehow got BoA to pay $4b for what was left of his POS company. For that, he actually deserves what he’s getting, slimeball tho he is.
Would you want to be Le Tan Orange, at this point in time?
He’s obviously going to be the poster child for much that went wrong…
Poster child? Yes.
Rich poster child laughing on his private jet? Yes.
Nothing like pulling off the scam of the century.
Got popcorn?
Neil
Neil, you are mistaken. Apparently, TanMan does not own a private jet. Supposedly, his hundreds of millions just cannot support one. Therefore, he managed to negotiate free rides on the CFC/BOA jet well into his retirement. Poor thing.
Yeah, in some weird ways we have to give this guy some crazy props.
Let’s see, first the 2bil, now this. Who is running BofA, Barney Fife? Come on, if you can’t see that the return on this investment will never occur, then I have a bridge to sell you in Brooklyn along with some beachfront property in Kansas.
I mean, really, we saw the writing on the wall for this company AT LEAST 2 -3 years ago. Does BA really think that they will sell off the remainder of this debt piecemeal for a profit?
Good grief. And don’t tell me they are too big to fall. Look at Citi. There goes another 24bil. Heck, a bil here and bil there, pretty soon we are talking real money. At this point, we have to be near 100bil in writedowns. This is going to be real scary.
Got (no) debt?
Then why did they do it? Because it’s a skewed trade for BofA. If it works, great. If it doesn’t work, the eventual tax writeoffs are a large percentage of the purchase price.
Eliminate the IRS and you could perhaps evaluate it.
“If it doesn’t work, the eventual tax writeoffs are a large percentage of the purchase price.”
What about monster losses in the 10’s of billions? Or more? The purchase price isn’t the concern, the potential liabilities BofA might have to absorb are the bigger deal.
These are businesses, trying to navigate the minefields of risk and reward. BofA may well be making a mistake - I brought up the point the other day that there is a dangerous tendency to throw good money after bad in trying to double down on a bad investment - but in business you either evolve or die. You don’t just throw up your hands and give up.
After this quarters writedowns and stated losses, we should be over $200B with only $???B to go.
It is important to realize that most of these reported losses date from loan defaults that occurred prior to August/September.
IMHO BofA is not going to follow through on its proposed purchase of Countrywide. It is not scheduled to close until the third Q and there are probably a slew of “maintainance of business conditions” that will allow BofA to bail. No facts to back this up, just conjecture. I do not believe Mr. Lewis’ ego is that great to jeopardize the company.
Rumors that Bank of America’s soon-to-be acquired mortgage lender is on the verge of bankruptcy are unfounded, says CEO Ken Lewis.
“I think the bankruptcy was a malicious rumor,” said Lewis, denying that government pressure to keep the nation’s largest mortgage lender out of bankruptcy played any role in his company’s decision to acquire Countrywide for $4.1 billion in stock, rescuing the country’s biggest mortgage lender and expanding the financial services empire of the nation’s largest consumer bank.
In acquiring Countrywide, Bank of America is keeping the industry and regulators from the messy task of figuring out who would take on the responsibility of collecting payments for the 9 million U.S. home loans serviced by the Calabasas, Calif.-based lender.
Lewis acknowledged the potential problems, saying Bank of America conducted twice as much due diligence as it ordinarily might have, “with twice as many people.”
Asked about potential job cuts resulting from the transaction, Lewis noted that Countrywide (CFC, Fortune 500) will operate separately after the deal closes in the third quarter and it would not be integrated before 2009.
“At some point we will address the issue of jobs, but we haven’t done that at this point,” he said.
http://money.cnn.com/2008/01/14/news/companies/bank_of_america.ap/index.htm?postversion=2008011419
“I think the bankruptcy was a malicious rumor,” said Lewis, denying that government pressure to keep the nation’s largest mortgage lender out of bankruptcy played any role in his company’s decision…”
Ah, these types of statements always make me think of the old gem, “Never believe anything until it is officially denied.”
He deserves to rot in hell. Nothing more. Nothing less.
“The lawmaker said Mozilo should plan to explain how his pay aligns with shareholders’ interests and “whether this level of compensation is justified in light of your company’s recent performance and its role in the national mortgage crisis.”"
Oh, this is going to be priceless. They should ask ex-nnvmtgbrkr to make a personal appearance to administer the JT treatment, live on C-SPAN.
600k for a condo conversion? Gotta be out of your damn mind.
“After the workshop, participants will be invited to schedule one-on-one advice sessions with counselors at both agencies. That is the most important part, said Lark Ferrell, Housing Project Manager, Community Development, Fairfield.”
One-on-one advise sessions !!!! AH HA HA HA HA, yea buddy I looked at your numbers and you’re completely screwed NEXT !!
did anyone see this?
Investor’s Business Daily
Economy - Monday
Monday January 14, 6:28 pm ET
Investor’s Business Daily
Libor rates fall below fed funds
The 3-month dollar Libor rate, for the first time since June ‘03, traded below the fed funds target rate, currently at 4.25%. Libor rates in dollars, euros and sterling had soared well above central bank rates amid liquidity fears. Many adjustable-rate mortgages are tied to Libor rates, so the decline could help ease concerns about rate resets. The rate is falling in part because traders expect the Fed to cut its key rate to 3.75% on Jan. 30. Other market rates, including commercial paper yields, also have fallen sharply.
http://biz.yahoo.com/ibd/080114/econbrief.html?.v=1
that’s why the market is going to rally for awhile
I wonder if I’ll get a chance to refi again at a rate that will offset the fact I’m seeing my money market interest income plunge thanks to Uncle Ben and his Fed Gnomes.
“Can’t make your auto payment? Light your car on fire, and tell the insurance company you were a victim of theft.”
Why would that work? Even if they don’t suspect fraud, your insurer will only pay what the car is worth, which is generally much less than it cost new. The loan still has to be paid off, and now you don’t have a car anymore.
Shhhh! Don’t talk sense!
It’s the same as those who have set fire to their houses, thinking they would get out from the mortgage payments.
The insurance company will repair the house - the mortgage still stands.
I truly have a nice wish for the Tan Man. May he be resigned to being roomies with Mr. Bernie Ebbers. They deserve each other. Hasta la viva el prison e’.
first the 2bil, now this. Who is running BofA, Barney Fife?
I believe Barney Fife was much more intelligent than the clowns running BofA.
“The overall median price for all homes stood at $430,000 in December, $10,000 less than the price in November and $65,000 less than it was in December 2006.”
That is right in line with what I would have guessed. There are over 200 homes on SD county ziprealty.com’s inventory listed between $449,900 to $500,000, and the median list price has dropped below this range by 336 in the rank order (there are 8913 below the median in the rank order).
The median list price seems to be following the overall median down.
← Fed Funds : 3.50% Here We Come | Vice Fund Beats “Faith-Based” Investing → Fat Finger : Globex Edition
Perils of electronic trading…
Between 7:01 and 7:05 GMT
….we understand that there was a mass order error by another financial firm which resulted in a large imbalance in the GLOBEX order book, and the subsequent spike in the market. GLOBEX cancelled (busted) trades which occurred outside of the no-bust range in their equity index futures and future options.
It is important to note that all other trades will stand. This includes trades which have been executed because of the large market move, including stop and conditional orders that may have been triggered by the price move. It shall also include orders that were triggered by an execution price of a trade that was subsequently cancelled by GLOBEX. Clients should manage their current positions.
We understand that clients may be adversely affected by the ruling made by GLOBEX, and have made a formal complaint to the exchange.
————————-
this is confusion, a limit does exist to the electronic communication.
I believe the 401k plug money is stumbling forward, as confusion is set to ravage global markets.
this also indicated buyer interest in must have, perfect long positions.
My all in on the S&P made me 60 bucks….aint nothin to be proud of.35k margin account.
Looks like John Karrevol is a real dumbshit. He seems to imply that the median fall of 13.1 percent overstates the fall in value of houses based on a ridiculous theory of reflecting lower priced housing purchases. In reality typical houses have fallen more than 13 % because only the most attractive homes are selling - these homes sell because people upgraded with capital improvements (falsely moving the median higher) or are particularly desirable for other reasons.
If you look at new homes in particular it is quite clear the drop in San Diego is well in excess of 20% from the peak.
Karrevol is clueless.
jbd.
My parents are also in denial that prices will fall more than another 10% then go back up “soon”
They argue that south Florida is “different” and “desirable” and has the warmest winter weather(true but irrevelent) I just shook my head and gave up arguing. I am not staying in Florida so it’s a moot point. I am not spending one dime on a house in Florida because those prices are a major ripoff.
My dad thinks Oil City/Franklin is a “hole in the ground” so I mentioned Pittsburgh and mom and dad say it’s cold.
I told them $200k will get you a 1200 square feet dump in the ghetto in south Florida or an upper class 3000+ square feet historic brick house on a big lot in a Pittsburgh suburb(or somewhere in Dallas/Houston) Who in their right mind would choose the dump?
TXchick, one important rule is never get emotionally attracted to a house. I think I said $125k would be fair price. I doubt they will short sell for $175k and besides that would still be overpriced, more so than many other houses I see for sale.
I would wait another year and im sure you can find your dream house for $125k by then.
It seems strange that a small percentage of houses in Texas are a ripoff but most of them are only slightly overpriced. Here in south Florida, every house is a ripoff!