The Good Ol’ Days Include The Recession Years In California
The Orange County Register reports from California. “As the sub-prime mortgage crisis reverberates across Orange County, the Pufpafs and other Ladera residents are adjusting to a new housing reality: falling prices. Ladera Ranch resident and Realtor Sherrie LeVan represents Dyer as well as interior designer Toni Blackman, a resident in nearby Coto de Caza, who’s been flipping her homes every two to three years since the ’70s.”
“‘This is the worst I’ve seen it [the housing market],’ Blackman said.”
“Blackman bought a 3,100-square-foot home in Dove Canyon in September 2005, at the height of the housing bubble, for $1.45 million. ‘I knew I bought high,’ Blackman said.”
“When she put the house on the market in July 2007, it sat for six months until Blackman decided to lease it for $4,000 per month, $100 more than Blackman’s monthly mortgage payment. The $4,000 rent doesn’t cover the Mello-Roos taxes, homeowner’s association fees, pool maintenance and gardening fees that cost Blackman about $1,500 a month.”
“Blackman said she is hopeful that she’ll be able to recoup her losses by hanging onto the home for two more years. In the meantime, she is looking for full-time employment in sales or marketing and trying to keep a perspective on her situation.”
“‘I have my sanity. I have my kids and my health. And I have a lot of faith,’ Blackman said.”
From Bloomberg. “Angel Gutierrez, based in San Diego, buys bad mortgages a dozen at a time for a fraction of their face value from lenders overwhelmed by the highest number of defaults in 23 years. When he goes door to door to negotiate lower payments for homeowners or pay them to move so he can sell the house, he’s speeding up the recovery by establishing a price for the homes and flushing out the least reliable borrowers.”
“‘You buy the mortgage for pennies on the dollar, carry the big stick, tell the homeowner how it’s going to be, then double your money very easily,’ Gutierrez said.”
“In San Diego’s Encanto neighborhood, where median home prices slid 38 percent in March from a year earlier, according to DataQuick, Gutierrez pulled up in front of an L-shaped, one-story stucco house. The grass was tall enough to hide a broken child’s swing in the front yard.”
“The homeowner was $365,000 under water after buying the house with no money down in June 2005. If Gutierrez bought the note for 20 cents on the dollar, or $73,000, he could probably get the owner to leave by giving her $5,000 for moving expenses, then sell the home for about $150,000, well below even the neighborhood’s declining market value, he said. That would leave him a profit of about $70,000.”
“‘I like the fast nickel,’ he said. ‘You buy them cheap, you sell them fast and you get paid. I’m considered a bottom feeder.’”
“On a sunny day last month, Gutierrez knocked on doors in Imperial Beach, an arid, hilly town just south of San Diego. In Imperial Beach, 15 homeowners lost their properties to foreclosure in the first three months of 2008, compared with four in the same period last year, according to DataQuick.”
“At a one-story, L-shaped stucco house in Imperial Beach with four-foot-tall rose bushes and an American flag hanging from the garage, 62-year-old Armida Leos answered the door. Her 73-year-old husband, Gilberto had to quit retirement and get a job as a security guard when their monthly mortgage payments jumped to $3,200 from $2,400, she said.”
“Gutierrez’s spreadsheet said the Leos family owed $455,000 on their mortgage. Leos said she and her husband spent $50,000 fixing up the house when they moved in three years ago. They had just received notice from San Diego County that their property tax was being reduced because the house had been assessed for $193,000.”
“Back in his pickup truck, Gutierrez said he was prepared to offer Leos and her husband $5,000 to move out. He made note of the town’s falling home prices and how the house didn’t seem to be that big.”
“‘I feel really bad for my husband because he worked his heart out to get us into this house and now we’re losing it,’ Leos said.”
The New York Times. “The pain in the condo market, mostly in urban areas, may not only be deeper than in the rest of the housing market during this downturn but more prolonged.”
“Bargain hunters say they are reluctant to buy into a building even when the upfront cost seems low because they might have to pay unexpected fees as distressed neighbors default on their mortgages or just stop paying the association fees.”
“Condo owners across the country are trying to ride out the slowdown. Since 2004, when Mark Mills bought his two-bedroom apartment for $622,000 in the 210-unit GasLamp City Square condo in downtown San Diego, 10 of his neighbors have succumbed to foreclosure. The building now has a $115,000 shortfall in its budget because residents failed to pay their condo dues.”
“He resents neighbors who have rented units they cannot sell to 20-somethings, who leave beer bottles in the lobby and hold late-night parties. He is tired of the constant beeping of a smoke alarm in a vacant unit, indicating a battery needs to be replaced. Still, Mr. Mills is staying because he expects he could get only about $550,000 for his home.”
“‘We couldn’t sell it for what we bought it for,’ he said. ‘I’m in it for the long haul.’”
The Merced Sun Star. “Nearly 20 years after they were proposed, plans for the largest housing development in Merced County’s history hit another delay Wednesday. Dubbed the Villages of Laguna San Luis, the 16,000-home development could eventually bring 45,000 people — or more than half the population of the city of Merced — to the county’s Westside.”
“It’s one of four massive housing developments in the works on the county’s Westside, though only one has broken ground. ”
“The Planning Commission was slated to vote Wednesday on whether to recommend Laguna San Luis for approval. Instead, the commission delayed its vote to allow the county more time to consider new input from the U.S. Fish and Wildlife Service.”
“At Wednesday’s meeting, a handful of people spoke against Laguna San Luis. Most cited concerns about wildlife, water and the excess housing that already exists in Merced County. ‘We have a surplus on the market right now that will take us 15 years to get out of,’ said Maureen McCorry of the Valley Land Alliance.”
The Modesto Bee. “More than 6,000 properties received at least one foreclosure-related filing last month in Stanislaus, San Joaquin and Merced counties, according to RealtyTrac.” “Merced had the highest foreclosure rate in the nation in April, followed by San Joaquin at No. 2 and Stanislaus in third place.”
“Lenders repossessed 2,228 properties in April in Stanislaus, San Joaquin and Merced counties. California posted the second-highest state foreclosure rate in April, behind Nevada — with…a total of 64,683.”
“‘Unfortunately, there is a lot of bad news in most areas of California,’ said Daren Blomquist, the company’s marketing and communications manager. ‘The good news is that this isn’t something that will go on forever. It’s just hard to predict where that end is going to be.’”
“The trend is pretty clear here in the valley: When the economy booms, people flock to the sexier, more lucrative private sector jobs while public agencies struggle to get qualified applicants.”
“When the economy tanks and the private sector quits hiring, the stability of government work suddenly becomes pretty doggone appealing. Want evidence? During the recession of the 1990s, government in general continued to hire.”
“In 1996, 585 people applied to work for the Modesto police. But as we climbed out of the recession on the back of the dot-com economy, those numbers declined: to 463 applicants in 1997, 166 in 1998 and only 98 in 1999.”
“By 2000, government agencies — the cities, the county, some school districts — had trouble filling jobs. They couldn’t compete with the private sector in pay and benefits.”
“Now, some experts say, we’re in or are heading into another recession. If the valley’s housing market isn’t totally in the gutter, it’s right on the edge of the sidewalk next to your Gilton’s bin on pickup day.”
“Owners of homes built in the last five or so years are having their property values reassessed because their home values have declined so dramatically. Thus, the property tax revenue is declining as well. School enrollments are down.”
“Needing to cut up to $20 billion, the state again will balance its budget by gutting funding to local governments and schools.”
“So job seekers are again turning to the public sector. But it’s different this time around. Local governments aren’t hiring, either — certainly not as much as they did in the 1990s. In fact, they, too, are freezing jobs or sending out layoff notices.”
“That hasn’t discouraged people from applying for government jobs, said Jody Hayes, Stanislaus County’s deputy executive officer for human resources.”
“‘We’re seeing large numbers of applicants from the real estate industry — people who are in career changes,’ Hayes said. They include applicants with master’s degrees, who are highly overqualified for the few available entry-level clerk jobs that start at $14 an hour.”
“‘In the last couple of years, we had to start a continuous recruitment process to fill positions of entry-level clerk,’ Hayes said. ‘We had to stop that. We have over 500 applicants on an eligibility waiting list for an interview that may never happen.’”
“It’s enough to make your average job hunter yearn for the good ol’ days. But who’d have thought the good ol’ days would include the recession years of the 1990s?”
The Novato Advance. “For all the talk of avoiding a recession, Robert Eyler, Ph. D., Sonoma State Economics Department, said the current economic slump practically qualified, and wasn’t over yet.”
“‘If you define recession as two negative quarters back-to-back, it’s possible we’ll avoid (a recession),’ said Eyler. ‘(But) we also have to recognized that having two quarters in a row of negative growth is worse than anemic … it’s going to feel like a recession to a lot of people.’”
“‘When you hear the government is talking about purchasing a large amount of foreclosed homes to salvage the housing market, that’s a signal we’re not through this problem,’ said Eyler. ‘(However) in Novato, if you’re a homeowner, or looking to buy a house, there is unlikely to be a bad time. The worst is behind the local real estate markets.’”
“Russ Ketron of Ketron Financial in Novato (said) the credit crunch has a few more painful rounds of foreclosures and business closures left in it.”
“‘I still think we have one more leg down,’ he said. ‘I think that the credit markets haven’t worked out all of their pain yet. The marketplace hasn’t totally come to grips with unwinding debts. This was a major, major correction—biggest in our entire lifetime.’”
Palo Alto Online. “Homeowners unable to afford their mortgage payments can sometimes negotiate an agreement with lending institutions to sell their home for less than their mortgage debt.”
“Lanny Danenberg of Keller Williams, Palo Alto, said though she has not yet seen short sales in Palo Alto, she does receive calls ‘on a regular basis from people on the Peninsula, from all over — from San Mateo to Sunnyvale.’”
“‘I find that they are scared. They have no idea what their options are, for the most part. They are sitting on their hands waiting because they have no idea where to start,’ she said.”
“‘I have my sanity. I have my kids and my health. And I have a lot of faith,’ Blackman said.”
I don’t have any of those things, besides my health, and probably not that for very much longer considering the way I like to conduct myself, with the driving really fast, drinking like a fish, a thirsty fish, climbing in tall trees, general carousing and assorted other vices. (I don’t have time for an alphabetical list just now.)
I ALSO don’t have a house I agreed to pay One. And. Almost. A Half. Million. Bucks. For.
That’s a lot of money! In comparison, if I was prone to comparison, I would have to believe I am actually coming out ahead here.
Health, kids, and faith are ‘loser’ virtues anyway. People only claim them when they’ve lost all the good stuff.
Having a big house, a big SUV, a big RV are virtues? People only remember what is important after they’ve lost it all–materialism is hardly a virtue.
errr…?
RE: assorted other vices. (I don’t have time for an alphabetical list just now.)
We HBB bloggers do know the B-column has “bum wiggling” in it!
S’right! (Hiccup)
Hey Olypmiagal I think we are from the same mold. I grew up in the South and felt that it was my duty as a wayward catholic to sin as much as possible so the poor baptist preachers had a good example to use in there Sunday sermons and could keep their jobs.
Since I’ve left the south their is a position open for senior sinner if your interested. I’ll even let you in on a secret the more righteous a place is on the outside the more it really parties behind closed doors. I even went on a mission to to help the jack mormon community in Utah. Wow are they party animals.
But Michael, I don’t think I want to be a senior sinner, as that sounds like too much work and planning. In fact, I always want to be a good girl, only events conspire against me. I was only just complaining about it to Sweet Baby Jeebus, and He told me ‘It really is not your fault, it’s like a dreadful confluence of events that is verily beyond your feeble human girly ken to grasp’. Then He told me to be quiet and get Him another beer, because He was simply parched.
See, my life is like that.
Hey, Oly, just got back from the dino-bone land and I saw God himself wandering around, admiring His (Her?) handiwork, saying stuff like, Man, I sure outdid myself on that Sego lily there, and wouldja look at that beautiful banded cliff over there, and wow, nice clouds…
I went over there after He (She?) left, looking for tracks…didn’t find any…
That’s odd. You’d think those big floppy sandals would leave a mark.
ROFL!!
“I have my sanity. I have my kids and my health. And I have a lot of faith,’ Blackman said.”
What she doesn’t have… is a strawberry or garlic picker & New Century Lending!
“”I have my sanity. I have my kids and my health. And I have a lot of faith,” Blackman said.”
Faith my a$$, she’s counting on AFDC as her backstop!
>>Blackman decided to lease it for $4,000 per month, $100 more than Blackman’s monthly mortgage payment.
–
But you missed out on $1500 a month other payments on top of the mortgage payemnts. So, she is bleeding money. Poor woman should sell at the market price and relieve herself of the ongoing pain.
Jas
math, the other thinking thing
Is this a wishing price, or is someone actually ponying up the $4000/mth - it’s not clear from the article.
In order for it to be $4,000 a month on a $1.5M house, she either put a sh*tload of money for the downpayment, or it’s a toxic loan.
the price shown in the article is a misprint. she didn’t pay $1,450,000, she actually paid $1,045,000 per public records and put down over $600,000. she then refinanced in 2007 for around $700K.
‘ … I’m considered a bottom feeder …. ”
AHhahahahh I LOVE this guy !!
I’m going to try that line of work.
“Bottom Feeter”
He doesn’t have any legs between his bottom and his feet.
The bottom feeders haven’t yet begun to surface.
That is either mystical and percipient, or else creepy. I haven’t fully decided which it is yet.
Oh, you know what, last month I made a bet with a lobbyist that ‘percipient’ is really a word. I won a bottle of wine.
Ive been posting on garden web all day…..having fun..no one is answering though…..
just posted:
———————————————-
Email from Chase Wholesale channel-
“As we continue to analyze and manage our product set, Chase has made the decision to discontinue offering our Subprime and Home Equity products through our Wholesale channel.
New Wholesale Subprime and Home Equity registrations will not be accepted after Friday, May 16, 2008.”
‘Ive been posting on garden web all day…..having fun..no one is answering though…..’
What?! You’ve been CHEATING on us? And with a gardening channel, too! You flower-toy. Hey, everyone, NYCdj is a flower-toy!
I think I’m just gonna go cry somewhere quietly.
Here, you can use my virtual shoulder.
Thank you. I’ll try not to get your virtual shoulder all soggy.
Were you looking for free JT sapplings on the plant exchange?
My post got eaten… Blackman monthly mortgage is only $4000?!! The figure does not make sense. My calculation tells me that interest payment alone is almost $6000 (at 6% APR, 10% down, 30 yrs). With a teaser rate of 1%, principle+int is over $4000. Also, her monthly maintenance & tax expense is just $1500. That is way too low as well. You tell me….
Probably had a downpayment if she’s been flipping houses since the 70’s. It is a shame she’s gonna lose all of that $ on her final deal. I wonder how much $ she paid in realtwhore fees over 30 years!
“It’s a shame she’s gonna lose all of that $ on her final deal.”
Isn’t that the way it always is?
Her final deal is final because that’s the one that wipes her out.
Since she has been playing the trade up game for decades, I’m guessing she brought a lot of equity into this purchase. So the mortgage payments don’t account for lost opportunity cost.
Basically this woman kept winning and kept betting down and at about the time she should be retiring, put the whole pile of chips on the wrong number.
And isn’t it just fun to watch this ignorant b*tch get bled of all that equity through plain ‘ol stubborn, greedy stupidity. Ah yes, nothin’ better than seeing a South OC girl getting plowed by the JT. SWEEEEEEEEET!!
You know, I bet that only 1 used house salesman in 500 understands that lost opportunity cost of money down counts just as much in cash flow. And not 1 reporter in 100,000.
O.K., Dove Canyon…Cota De Casa… Ladera Ranch that covers a 5 mile radius…my guess is that this is were she finds her “Faith”:
http://saddleback.com/flash/story.asp
Meanwhile back at the “Ranch” …I mean Irvine “Land Reserve”…Donald Bren’s company let’s x5 south of the border strawberry pickers live in 1 bedroom company owned apartments to the tune of $1250.00 per month…but hey, the OCTA let’s them get to work on the bus “All Day” for $3.00… Also, within the said 5 mile radius
“Faith” + taxpayer “public” transportation + A Billionaire’s Dream = “The O.C.” … Now where is Chrissy Cox from?
It works out to about a 500k mortgage and I suspect she may be fibbing just a tad. I figure by the time the house sells it will go for about 700k So she has manged to turn about 1million dollars into about 200k.
From what I can tell almost every single person in California that used bubble gains to buy a larger home in a bubble market don’t understand leverage. A 50% loss on a 2 million dollar home wipes out all of their equity. They get nada zero zip. Assuming they sale before they are underwater.
Most of them basically did this.
Bought house in 1980-1990 less than 200k
Sold in 2004/2005 for 700k profit 500k.
Put 200k down on 2 million dollar house or 20% but often used exotic loan.
In any case remaining 300k used to make housepayment buy furniture and take well deserved vacations. Many at this point HELOC’d out the 200k.
Now close to underwater and not sure where the 300k went.
But they plan to hold out till the market turns around.
Even if the rolled more equity in they will follow the market all the way down attempting to get the value they think the house is worth.
In any case most of the prime 20% loans in California are not backed by incomes that can make the payments over the long haul.
The only winners are people that sold and moved to a cheaper area or rented or remained renters or of course simply did nothing just set tight no HELOC’s and kept the prop 13 tax rate.
So in short the number of “real” prime loans made over the last few years in CA is probably vanishingly small.
Warren Buffet:
“Finding 10 of these opportunities in your lifetime will make you so rich. But you can’t be wrong. You can’t have any zeroes. A list of big numbers multiplied by zero will equal zero. You can’t go back to “Go”.”
Let’s be generous and assume she put down 20% for a loan balance of $1.16 million. She would need to have a 1.5% rate over 30 years to have a monthly mortgage payment of $4000.
Annual property tax of 1% (very conservative) costs $1208 per month. Mello-Roos, HOA, pool maintenance and gardening fees should be more than $300 a month.
I CALL BS ON THIS STORY! She is probably bleeding close to $2000 a month - minimum.
Oh Joshua tree, oh Joshua tree
How lovely are thy branches
Not only green when summers here
But just as lovely wedged in a rear
Oh Joshua tree, oh Joshua tree
How lovely are thy branches
Nice. =) I’ve always been curious though. From a pure pain perspective, Joshua Trees aren’t really that prickly. Wouldn’t say, a Saguaro Cactus be more painful in place of a JT for our purposes? I have to imagine it would be…
I’ll agree, the Saguaro would be nice, especially with those little arms that jut out. You could take out a scrotum or two as a bonus with them babies.
Ah, but let’s debate the coverage….
Joshua Trees are an awkward shape, and have fairly large and long leaves.
Lots of spreaddage.
Saguaro cactii are, for the most part, long and thin.
By the time you get to the interesting bits (with the little scrotum-damaging ‘arms’), most of the fight will be reamed, quite literally, out of the recipient.
At least with a Joshua Tree, all the pain is upfront, in the initial instertion.
Of course, we could always settle it with a Celebrity Death Match…
http://en.wikipedia.org/wiki/Joshua_tree
‘… Blackman monthly mortgage is only $4000?!! The figure does not make sense’
Chill out - it’s all right, We used ‘Meximath’ for our loan payments here in SoCal.
I think you need Meximeth for those numbers to come out. The mortgage is probably still in the teaser/neg am zone.
1) OC county recorder web site sucks. You can see that things were files, but you can’t see an exact record of the document like here in PHX.
2) Go here and look her up. For Jan 2008.
http://cr.ocgov.com/grantorgrantee/searchPersonsName.asp
Little thing I like to call, NOTICE OF DEFAULT!
MAN, is it SOOOOOO much to ask for reporters to do their job?
And I wrote a beautiful post on this above and the dude is just a typical Cali liar. I suspect he did not even do 20% down.
I live in Bethesda, MD - been waiting patiently for some house price depreciation - sales are strong, prices are steady - i guess it is different here - bumming!@#$%
But Kevin, inventory is climbing throughout Montgomery Co. And though price reductions have been on the minor side so far — MD is about a year behind CA. There is yet hope …
I need some advice, my fellow bubbleheads. Wife and I have been eying a 3/2 house on the West side of L.A. It has been on sale for about 18 months at around $750-$800K. The owner is a realtor/flipper who bought in 2006, did some nice upgrades, but it has been in pre-foreclosure for a few months and is now being auctioned on Monday. Technically, I think it’s a Notice of Trustee’s Sale. I think this means that if no one bids at the auction to the amount of what is owed, it goes to the bank/lender (the final part of the foreclosure process), who tries to then get rid of it. It looks like, according to RealtyTrac, that about $500K is owed on this, which we’d probably be comfortable paying. I know some people might say this is catching a falling knife but our friends just sold two months ago a house down the street for $800K, which IMHO was nowhere near as nice.
So has anyone here bid at auction for something like this? Any experiences you can share would be great. Having rented since 1990 I (we) are ready for a place with a garden and cats and I’m not sure that waiting until 2012, like some here have advocated, is an option.
If the bank is owed 500K, I guess I’d show up and bid 501K. That assumes there are no other bidders.
Something smells fishy. If they “really” only owe $500K, then they would lower the price and sell before letting it go back. I’m guesing it is likely there is additional debt on the lien.
It’s possible that the $500K is a first mortgage, and that there’s a second lien piggybacked behind it. That would explain the homeowner’s inability to lower the price.
The lender in first position typically bids the full amount of its own debt. Foreclosure extinguishes the junior liens.
you best know what you’re doing before buying a pre-foreclosure.. it’s much safer to wait ’till the bank owns it, and then buy it from them.
Hey Central Valley Guy:
I rent a house with a garden and I have cats. You can do it too (and should). Just wait a while and use that $500k to buy a much, much, much nicer house. If you’re not comfortable waiting until 2012, then just wait until 2009 and reassess at that point. Do not buy now.
I agree with Big V CVG.
Alt-A’s have YET to reset which they will be doing later this year!
Thanks all, I talked to a couple other people “in the business” and they advocated waiting for true foreclosure as well, for the same reason as exactly what a number of you said. Much obliged!
How in hades would any bank or investor be willing to put money behind a 16,000 house development west of Merced? Are there still people who dream of Merced becoming the next Davis?
hey.. it’s Merced .. Fantasizing is one of the few available entertainment options.. and it helps ease the pain of being stuck there.
I looked on zillow and saw a home (six years old)in my former Merced neighborhood sold in April 2008 for $86,000.
yeah .. things are starting to happen and the time to piss or get off the pot is coming. I just don’t know if the valley (or even Calif) is where i want to invest. It’s hot, but not in the sense of making money with property.
“‘When you hear the government is talking about purchasing a large amount of foreclosed homes to salvage the housing market, that’s a signal we’re not through this problem,’ said Eyler. ‘(However) in Novato, if you’re a homeowner, or looking to buy a house, there is unlikely to be a bad time. The worst is behind the local real estate markets.’”
Where the Hell does the media FIND all these PhD IDIOTS ?
I KNOW that they aren’t smart enough to clone them
I was at an open house in Novato last week. Asking price is $1,170,000, but the place is kinda dumpy. I’d value it at $160K, seriously. The Realtor gave a speech, “This place is like a resort; it’s the quietest neighborhood.” Right as she said that, a neighbor drill starts up.
Also, a few streets over, there were amazing new houses that were priced closer to $700K (still ridiculous, but better in every way than the $1.17M crapfest).
Just because Novato hasn’t been hit hard yet doesn’t mean it couldn’t happen. I haven’t studied the demographics enough in Marin County to determine what will happen.
I believe it comes under the “educated beyond their intelligence” clause.
Pufpafs? There are real people with that name?
sounds like a cereal.
The Pufpafs live next door to the Oompa Loompas ……..
“‘I like the fast nickel,’ he said. ‘You buy them cheap, you sell them fast and you get paid. I’m considered a bottom feeder.’”
Ha ha ha! I like this guy. Buy this fellah a beer.
You buy them cheap, you sell them fast and you get paid.
What about when the guy who answers the door sticks a gun in your face and says “I don’t give a fcuk if you own the mortgage.. never come back here, punk.” …and sell them fast becomes quite impractical..
Maybe this line of work ain’t as easy as it seems..
Exactly the question I have asked myself as “a friend” tells me the “company” she is going to work for does this same type of dealing and she will make $3000/wk. I just smile and say, “that’s nice”. My gut feeling is not good. To whom do you sell them in this market?
That’s what the sheriff is for, although there’s no way to prevent them from coming back and getting revenge on you later.
The sheriff is not the friend of the bottom feeder who is trying to bribe and/or kick people out of their property.. nor are the courts or politicians.
Assuming the troubled owner defaults, and once you manage to officially foreclose, which could take a year or so, and cross the T’s and dot the i’s, go ahead and call the sheriff. He’ll put your problem on the bottom of his list of things to do. When the time finally comes you have the right to evict them and claim your thoroughly trashed property. Congratulations..
But in the meantime, you’re just tresspassing.
“Those who fear a downturn remember that Manhattan co-op prices suffered so much during the housing downturn of 1989 to 1993 that buildings had a hard time luring buyers. This financial instability hurt New Yorkers at all economic levels. Some recall neighbors handing over their Fifth Avenue apartments for $1 because they could not afford the maintenance fees.”
But the decline in condo and co-op prices in Manhattan was nothing compared with the collapse of newly converted buildings in peripheral areas like the outer boroughs, Jersey City, and the suburbs. Total collapse.
This time, at least the demographics are in favor of smaller units, with the baby boom in the empty nester phase and the baby boom echo heading out on its own (those twenty-somethings). Last time, those at the back end of the baby boom were having kids and trying to sell and buy homes. But they were trapped.
And now they are trapped again in McMansions. Or in condos in Florida.
“He resents neighbors who have rented units they cannot sell to 20-somethings, who leave beer bottles in the lobby and hold late-night parties. He is tired of the constant beeping of a smoke alarm in a vacant unit, indicating a battery needs to be replaced. Still, Mr. Mills is staying because he expects he could get only about $550,000 for his home.
—————————
This guy thinks a room in a frat house is worth over a half-mil?
it might be worth that much if he raises his property to it’s highest and best use.. sell dope to the kiddies.
The guy’s a dud. Why doesn’t he just call the super to have the smoke alarm turned off, and sue the landlords of the bad kids for not making them shut up? No, he’d rather just complain. “My condo is ONLY worth over 0.5 MILLION!”
its a condo. there is no super. there is no central office with all the keys.
Craziness in my hood.
“Ex-real estate agent accused of holdup during open house, other robberies”
http://www.sanluisobispo.com/news/local/story/360634.html
And he WOULD have to be from Arizona.
Who do I see to buy mortgages for $.20 on the $1?????
You go door to door, offer five grand and pick up a fixer.
–
Look at This House Décor In Campbell, CA
http://www.burbed.com/
Jas
The overly staged bedrooms just scream insomnia. They also tempt a vigorous game of jumping up and down on the beds. Just like the kids.
According to my source, the population in San Francisco has either declined or remained stagnant since 2007, 11% of housing inventory is vacant, and sales activity is dropping off a cliff. This source shows median prices basically flat since 2006, with a lot of volatility.
http://www4.onboardnavigator.com/webcontent/OBWC_report.aspx?&AID=108&CD_SID=CO001&RTID=2&RID=5062|6063|18397|27817|15281|26762|25699|13198|13199|33142|13204|26769|9061|24667|13205|20459|8045|22587|26772|6997|6998|26773|12192|27825|14252|7002|14253|&Frame=0&Height=600&Width=600&AgentEmail=&AgentID=&SearchID=1&LSID=6&STEXT=SAN%20FRANCISCO&STYPE=1&STEXTOPT=&STYPEOPT=-1&STEXTOPT2=&STYPEOPT2=-1&ITID=-1&SITID=-1&PassBackValues=&NHood=&Market=&TaxID=&County5=&PropertyType=-1&TransactionType=-1
I meant to say “since 2000″, not “since 2007″.
8 years and no increase in population. I guess it’s maxed out.
Same sex marraige will revive population growth!
Also, the median price in Campbell (the city where his featured house lives) is down 18.6% y-o-y.
So Glad that there will be no recession. Thank God the Fed started accepting used toilet paper complete with skid marks in exchange for real money. Who wants to party?
LOL!!!
“‘I like the fast nickel,’ he said. ‘You buy them cheap, you sell them fast and you get paid. I’m considered a bottom feeder.’”
Paulson to txchic: I know who you are.
It all spends the same.
Before or after …taxes?
“On a sunny day last month, Gutierrez knocked on doors in Imperial Beach, an arid, hilly town just south of San Diego.”
I’m sorry, this is not the way to describe Imperial Beach:
You start with the “truth”: Welcome to Imperial Beach! “Bienvenidos!” the most South West City in America…100 yards from: Tijuana Mexico
I’ve been to IB. It’s not really that Mexican compared to many places in SoCal, especially as you get toward the beach - after all, you have road access to Coronado. There are a couple of biker bars down next to the beach. Pretty low-brow, kind of middle-America depressive-hip. Looks kind of like the crowd you see hanging out south of here, down in Flagler or Volusia Counties.
Well, all I know is that they have a Home Depot & 99.7% (apprx) of the “associates” … can speak fluent English.
IB is nasty. Full of white trash and tweekers, kind of like El Cajon only at the beach.
I wouldn’t swim there. I used to ride horses at Border Field State park. The entire beach was covered in plastic tampon inserters from mexican sewage.
Oh, hell, I wouldn’t swim there either - cold AND filthy. I once went in the water at La Jolla around Labor Day - it was warm out and the water temp was around its peak - maybe 70.
I just wanted to say publicly, on this board, that for the first time in years I’m proud to be a Californian, and proud to be an American.
Being a straight guy, I’ve become accustomed to having things easy. No one gives me a hassles.
But life hasn’t been so easy on my gay brothers, and gay sisters out there. My American brothers and sisters.
See, up until today, it was considered a crime for them to get married.
Congratulations to all the gay people in America, and in the world, on a hard-fought and hard deserved victory. I wish all of you lifetimes of Love with whomever you choose. It’s not a crime to Love, and be married anymore… at least not in California.
I know this has nothing to do with real estate… but in a way… it really does. Think about how many gay people are going to get married now.
There’s your ‘economic recovery’, right there.
Can you even imagine how booked up the local hotels are going to be? And think of what this might do for housing sales!
Ah, but I digress.
Yes, I know many of you on this board may have anxiety when it comes to this subject. I’ve seen the polls. It’s running about 50/50.
All I can tell you is this: It never hurts you to let someone else fall in Love. You aren’t losing anything. And there’s two less people on the planet who have to spend their lives hiding things, or being ashamed. All you’re doing, by allowing them to marry… is letting them Love each other. That’s it. For real.
It’s truly a historic, momentous day here in California.
This is the first good news- truly good good news- I’ve heard in a long long time.
Big hug to all my gay friends and an even bigger high-five.
You freaking earned this.
yeah.. activist judges are great when they rule in your favor..
“activist judges”
Hmmmm me thinks someone has their radio stuck in the AM band.
..this aint the first time the California courts have claimed themselves our superiors, overruled our laws and simply ignored the will of the legislature and the people..
Merriam-Webster’s Dictionary of Law defines judicial activism as “the practice in the judiciary of protecting or expanding individual rights through decisions that depart from established precedent or are independent of or in opposition to supposed constitutional or legislative intent.”
if the shoe fits, wear it.
At least the activist judges were GOPs.
Well, activist judges are the reason “We the People” now defines more than just white men. In the case of same-sex marriage, it’s hardly any more of a stretch. There needs to be room for interpretation, as society does change.
If there is a huge kerfluffle however, it should be taken up as an ammendment, as even the constitution is subject to the will of the people. Even if those people are so petty they feel the need to worry about where someone is sticking their weener.
I’ve said this for years: I’m freakin tired of the gay lobby getting a free ride on the marriage-tax penalty. Now they can get reamed like the rest of us.
since this thing came out of nowhere, it might be a setup.. One of the Presidential candidates may have let it be known that it would sure be nice if some controversial, vigorously contested Left v. Right issue arose in California before November..
they didn’t factor in $4/gal gas, so they blew it, as in who friggin’ cares. cold cash trumps “family” values every time.
“…Yes, I know many of you on this board may have anxiety when it comes to this subject. I’ve seen the polls. It’s running about 50/50.”
Most American’s in “Red” States & “Blue” States are Christian’s:
The real question is: What would Jesus do? From my simple understanding of the belief: “He walks amongst us… even today”
But does he still wear those damn Jesus sandals? We might be able to recognize him if he does.
“…We might be able to recognize him if he does.”
Do not worry about what is on “his” feet… A greater concern might be: what is on the soul of you’re feat?
“it was considered a crime for them to get married”
No, but up until as recently as 5-10 years ago, the whole idea of people of the same sex getting married was considered oxymoronic - i.e., not contained in the meaning of marriage. Saying it was a crime is like saying it’s a crime for women to be priests. That’s not what a crime is.
Hey, party on. And I don’t deny the genetic basis of homosexuality. But don’t dismiss out of hand the argument that mankind is a huge experiment of nature, and that homosexuality does not acquit itself particularly well in advancing the species, and that there are good reasons to limit marriage to opposite sexes.
Yes, its so natural and right. Love is love. I have a friend who’s uncle loves his horse. Its love - its not a crime. I can’t wait for the day when he, I mean they, no longer has to live in shame for their love. All you’re doing, by allowing them to marry is Love one another. For real. Why can’t a horse and a man marry? What’s the harm?
Does the horse have a say? If not, it’s probably a crime against horses, IMHO. A cute horse would most likely prefer a cow.
lol.
Mr. Ed: “Will you marry me, Wilbur?”
Wilbur: “I’d love to marry you, Ed, but I don’t think we’re allowed to.”
Mr. Ed: “Well, shit! In that case, throw me another bail of hay, so I can eat my troubles away!”
That Wilbur. What a hussy.
THE JOBS THE JOBS THINK OF THE JOBS That are going to be created in the Wedding business, you KNOW they are not going to be cheap about this event.
Gay peoples money is just as good as yours Auction….Maybe NYC next!
Honestly, the hotels will probably see a gigantic revenue stream from this. No kidding.
If I was running a hotel right now, especially on the coast, I’d be doing backflips. I’d also be placing giant ads in all the gay media, saying ‘Congratulations!’.
This could mean big, big money.
There’s a sweet motel on the South Side of Chicago that noticably reminds people that Illinois was the the first state to repeal the sodomy laws back in the day.
Gay people are some of the greediest SOBs on the planet when it comes to house wishing prices. Remember Nina in Palm Springs? And around here? Forget it. They want a huge profit or nothing at all.
But you forget TXchic i’ve known hundreds of dj’s and i can count on 1 hand how many mobile dj’s are gay….guess they don’t want to haul speakers or drive a station wagon and let people see them sweat…
But 1/2 or more of the club dj are gay and most of the female dj’s who aren’t singers….so i see a window of opportunity if it happens here before i give up being a dj maybe when i finally get a real great job again. Remember their parents, other family members, are not gay, so you have to play music for them too, and club dj’s would not have a clue.
They will move in together now. Less demand for housing. WoooOOOOOoooo HOOOOoooooo.
Gay partners can now file married at tax time. Two people married vs filing single typically save $1600 total. So say 15% of population is gay (text books say 10%, but that is low) $800 X 15% of total CA taxpayer population calculates to what? Plus as V says, they move in together and only buy one house, one set of furnishing, applicances .
I believe federal law doesn’t acknowledge gay marriages, just state law. I don’t believe they can file a joint federal return.
I don’t care if people have a gay lifestyle. I care about the content of their character.
“I don’t care if people have a gay lifestyle. I care about the content of their character.”
I may have to borrow that. Well said.
Assuming there are some advantages, legally, monetarilly and otherwise, to being a same-sex married couple, just how does a couple prove they are gay?
Shouldn’t they have to prove it? Or, can any two men/women simply claim they are ‘gay’ and collect the benefits?
I might like to claim i’m a senior citizen and claim those bennies, but there’s a test i’d have to pass first.
Not to be a real downer here, but living in state that did this a while ago, it really doesn’t mean tons until the Feds recognize it.
A california marriage between two men tain’t going to be recognized in Louisiana and they still won’t be filing their Federal taxes as married. Within the state of California, there will be rights (inherence, medical issues) but those rights aren’t portable until they reach national recognition.
And since VT was one of the first states to deal with this issue, and was consumed by it for 2 years, I lay honest claim to complete “gay” fatigue.
I don’t really care 2 or more consenting adults of any gender do in their bedrooms. There’s no grounds for beating gay people up, or praying to get rid of them, etc. but on the other hand, it’s not like there’s some sort badge that marks people as homosexual.
I personally don’t feel the need to discuss my sexual preferences with strangers. What’s with the “out and proud” thing anyway?? Don’t people want some privacy??
On the whole, I’m not against gay marriage - I don’t see how it impacts my marriage and I could see how it could create a more orderly society. It’s one of those, “eh, let’s just grant it and move onto a real problem” issue.
I do have some of the same minor reservations as Paul in jax has - marriage for the masses seems to be a social construct meant to create stable environments to raise children. It may not be the best idea to extend that to people who will not be having them and might also be, well, somewhat pointless.
Anyway, if gay and lesiban couples really want marriage (or they have children) I can’t see stopping them. It’s just an odd issue in general.
You might find this surprising, but there have been many high profile studies done on the impact of having gay parents. Contrary to popular belief, kids with gay parents are not any more influenced to becoming gay than kids with straight parents. Same numbers- both ways. FYI.
YEAH..just look at Sonny and Cher…..and gay Chastity
Not to mention our VP dickyboy
No, but they have alot of issues in school/life when they have to “explain” their situation to their friends.
Contrary to popular belief, kids with gay parents are not any more influenced to becoming gay than kids with straight parents.
I know, I know, I know. It’s all we talked about in VT for 2 years. You may not consider my opinion enlightened (which is okay) but trust me, we went over (and over and over) every single gay factoid out there. I can feel it now - fatigue setting in…must stop typing…
“It’s truly a historic, momentous day here in California.”
Historic no, momentous yeah! Good thing is that they don’t have kids so they can spend heavily to help out the economy. They’ll keep the divorce attorneys busy, they’ll split the property 50-50 like the rest of us and even have to pay ‘palimony’.
Romantic, sexual love between same sex partners never was, is not, and never will be natural. When did this become a gay advocate blog? I thought it was about the housing bubble? Ben?
The hate in the country disguised as “religion” is disgusting. Shame on you!
Love is love is love.
You can’t change nature - you can try. You can insult, demean, even attack, but you can’t change nature.
“This was a major, major correction—biggest in our entire lifetime.”
Ben has a squire…from Marin County, CA. …the Wealthiest County in California! & ads from Equifax & Dubai apartment Rentals…GO Ben, GO Ben, GO Ben!
“…He made note of the town’s falling home prices and how the house didn’t seem to be that big.”
What he really meant: is that compared to the Euro the US dollar is toast this close to Mexico & given the listed square footage he was hoping to rent it out at a higher “Occupancy” fulfillment lease.
I agree hwy, my g-friend bought a condo there for her son.
He moved way far away, so she rents it out along with three other So Cal properties.
She wanted me to rent it out but she told me I could not hang my paintings up on her precious walls. Who wants to live at the border?
““We couldn’t sell it for what we bought it for,” he said. “I’m in it for the long haul.”
With all the condos still being built in SD thats going to be a “real long time”
“‘We’re seeing large numbers of applicants from the real estate industry — people who are in career changes,’
So, the remedial educated UHS get to scr#w the “Public” twice…maybe they can get a job in County Assessor’s Office! :- /
“‘I find that they are scared. They have no idea what their options are, for the most part. They are sitting on their hands waiting because they have no idea where to start,’ she said.”
This reminds me of a story written by Robert Fulghum:
A young girl traveling alone overseas…I think it was in Asia…calls home on with a worried voice on her cell phone… saying she’s stuck at the airport and has lost her plane ticket…she just frozen with fright…she’s in near panic mode…well to make a long story short…it turns out she was sitting on her tickets the whole time!
http://www.robertfulghum.com/
My sister did this very thing while on a family trip to the Big Island, causing us to miss our plane. My brother wore earplugs during the entire trip. My dad refused to ditch his cowboy hat and boots and couldn’t understand why everyone was looking at him all the time. My mom kept trying to speak Hawaiian to the locals, proving herself the ultimate Haole. I swore never again, but they conned me into going to Great Britain later (another story)…
It was pretty scary.
I’d be Lost in Utah, too, if that’s what my relatives did.
My mom tried to speak Gaelic the whole time we were in Scotland (her parents are Scots, but the language isn’t genetic). My brother did the earplug thing again. My sister got stuck (driving) in a HUGE roundabout in a city in Wales, we all just kept going round and round. And have you ever seen a real cowboy on a London subway? Yup, I’m Lost in Utah while they’re Lost in Colorado.
Lost I’ve been to London many times and can confirm you can find ANYTHING on their subway (underground). Whatever your pleasure, its there.
My sis is probably lost on the subway over there right now, she’s been traveling…
“‘I like the fast nickel,’ he said. ‘You buy them cheap, you sell them fast and you get paid. I’m considered a bottom feeder.’”
It’s not a buyer’s market — it’s a bottom feeder’s market.
“Blackman said she is hopeful that she’ll be able to recoup her losses by hanging onto the home for two more years.”
For those of us who have been reading HBB for a number of years, this statement reminds me of all the sellers we kept reading about who couldn’t sell their home in the fall and winter months and kept talking about putting it back on the market when things get better in the spring.
I guess two years from now is the new spring…
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My feelings exactly, firefox user…