A Year Of Bitter Medicine In California
The Daily Democrat reports from California. “Widespread foreclosures have created a buyer’s market, but many who have snapped up reduced cost homes in the region are finding unexpectedly high property tax bills in their mailboxes. In Yolo County, the Assessor and Tax Collector offices have been inundated with phone calls from bewildered new property owners ever since annual bills were sent out last Wednesday. Even the most careful homebuyers can easily overlook and fail to budget for the initial property tax amount, said Linda Styczynski, a senior accountant at the county’s Tax Collector Office.”
“‘We feel really bad for them,’ Styczynski said. ‘They might have bought a $700,000 home for $300,000.’”
The Sacramento Business Journal. “The median price of a home selling in Greater Sacramento last month was $195,900, down 11.3 percent from August and 39.8 percent lower than a year ago. Sales, meanwhile, were up 8 percent over August and 186 percent higher than a year ago.”
“California home sales soared 96.7 percent in a year-to-year comparison while the median price of an existing home fell 40.9 percent, the California Association of Realtors reported.”
“‘Statewide sales in September edged past the 500,000 threshold for the first time in more than two years, rising 2.3 percent compared with August and 96.7 percent compared with a year ago,’ said CAR president William E. Brown. “This dramatic increase in sales owes as much to market weakness a year ago in the early stages of the credit crunch, as it does to the growth of sales in September this year.’”
The Union. “The land owned by developers North Star/ Grass Valley LLC has gone into default and is set to be auctioned off to the highest bidder on the county courthouse steps Nov. 14, The Union has learned.”
“A handful of local developers have run into financial trouble as a result of the real estate slump, though on a much smaller scale than in urban areas such as Sacramento and the Bay Area, Citizens Bank Executive Vice President Tim Peterson said. Citizens Bank does not place blame on the developers of North Star for their inability to keep their loan current.”
“‘The loan was good when it was made. The people were wanting to do all the right things. Sometimes things don’t work out,’ Peterson said.”
The Contra Costa Times. “Residents of Lamorinda have seen their homes hold their values, propped up by excellent schools and proximity to San Francisco. But now even in the three cities, where most families earn well upward of $100,000 per year, the housing market is stressed.”
“And some are sitting for months on end, said Bill Finnegan, a broker for Alain Pinel Realtors. That isn’t good news for sellers. A broker since 1972, Finnegan said he has been through four downturns. But with the combination of the credit crunch, price declines and job losses, he is now in uncharted territory. ‘This one is different,’ Finnegan said.”
The Los Gatos Weekly Times. “California Association of Realtors president William Brown was in the area recently and addressed officials of the Silicon Valley Association of Realtors. Brown acknowledged the shakiness of the housing market, and discussed the impact of market conditions on the state trade association and the industry. ‘The reality is half our members have never seen a down market,’ he said.”
“Brown urged agents to continue being active and involved in the political arena. ‘The bottom line is things still need to be addressed. Indications are this problem is going to be with us for a while. We need to maintain as strong political presence in the political process as we can, because it is during times like these that we are weakest.’”
The Mercury News. “The strain of the nation’s economic crisis is trickling down to college-bound teenagers who are already stressing about their applications. The bursting housing bubble and tighter lending requirements makes it harder for parents to rely on home equity to foot tuition bills.”
“‘A lot of upper-income families, particularly in the Bay Area, used to rely on vehicles like home-equity loans or lines of credit,’ said Karen Cooper, director of financial aid at Stanford University. ‘We’re seeing a lot more families apply for financial aid, and more parents are taking out private loans.”’
“Noah Johnson, a senior at Gunn High School in Palo Alto, is applying to several private schools. But money is a huge issue, in part because Noah’s father is retiring in May. ‘I hear them talking about how they might have to move or sell the house. I’d rather put myself in debt then have them sell our house,’ said Noah.”
“The Johnsons’ Palo Alto condominium has lost equity. Noah does have a college fund set up by his grandfather, but those banking stocks, which were worth over $20,000 a few years ago, are now valued under $9,000. ‘We’re going to try to send Noah where he wants to go, even if we have to beg, borrow and steal,’ said Sheri Johnson, Noah’s mom. ‘But we may have to move out of the Bay Area, and we’re prepared to sell our house.”’
From KCBS. “Crown Chevrolet has long been a landmark in Dublin, but now the dealership is going out of business after being taken over by a competitor. The California New Car Dealers Association says that 96 dealerships have gone out of business across the state this year. That includes a Dodge outlet in Brentwood, and a Hyundai dealership in Pittsburg. Association President Peter Welch says that the housing market is hurting dealerships everywhere.”
“‘In prior years, probably about 30 percent of people who bought cars did it on home equity lines, but most of those have been wiped out with the falling prices of houses,’ said Welch.”
The New York Times. “An eternity ago, people in this city in northern San Joaquin County braved four-hour round-trip commutes to the San Francisco Bay Area for a toehold on the dream. Today, Manteca’s lawns and driveways are storefronts of the new garage-sale economy — the telltale yellow signs plastered in the rear windows of parked cars Friday through Sunday directing traffic to yet another sale, yet another family.”
“‘This is the perfect storm for garage sales,’ said Gregg Kettles, a visiting professor at Loyola Law School in Los Angeles who studies outdoor commerce. ‘We’re coming off a 20-year boom in which consumers filled ever-bigger houses. Now people need cash because of the bust.’”
“Since losing his construction job, Constantino Gonzalez has been economizing. The inflatable bounce house is the children’s favorite toy, but the family’s $1,800 mortgage payment is coming. So it sits propped up in its bright blue case, awaiting customers. ‘We need to eat,’ Mr. Gonzalez tells his children about selling off their toys. ‘I can’t cover the sun with my finger. So why lie?’”
The Fresno Bee. “In Fresno County, the scene was the same. There were 2,202 foreclosures in the third quarter compared with 2,821 in the second quarter, according to MDA DataQuick. However, year over year, the July-August-September numbers were up 21.9%. Tulare County saw default notices surge 48.4% year over year to 883. The greatest percentage increase was 119.3% in Imperial County. Only Santa Barbara showed a decline — a 0.8% dip from 598 default notices to 593.”
“Jeff Schrager, president of the No Homeowner Left Behind Foundation in Fresno, said he is optimistic the situation will get better. ‘2008 was a year of bitter medicine,’ he said. ‘2009 is going to be a transition year to more opportunity and prosperity.’”
The Ventura County Star. “Above the piles of crisp beige résumé paper and matching envelopes that sit on the shelf at the Job & Career Center in Ventura, there’s a small celebratory bell that’s rung every time a job seeker finds employment. These days, the bell is gathering dust. ‘The bell isn’t ringing as much as it was,’ said Susan Hartwick-Sauer, an employment specialist at the center.”
“Eleanor Shook of Simi Valley, had a (hard) time keeping her spirits up when she was laid off a year ago from the foreclosure department at Countrywide. ‘I had a lot of anger,’ she said. ‘I became very frustrated.’”
“Every few weeks, she’d get together with some of her fellow laid-off friends and talk about what happened. Some went back to school. Some took unemployment. After a year of looking, Shook recently got a job working in customer service, and she’s smiling again.”
“It was the same old song for the housing market Friday when the California Association of Realtors released its September sales data: sales are up and prices are down from a year ago. In Ventura County, the median sales price last month was $431,770, down 9.7 percent from August and 36.7 percent from a year earlier. In dollar value, the median has plunged $250,050 from $681,820 in September 2007.”
“More sales make sense as more low-priced, ‘fire sale’ home inventory comes on the market, said David M. Smith, professor of economics at Pepperdine University. ‘Until we see prices stabilize, I don’t think we can say it’s a positive sign that sales are up,’ he said.”
The Daily Breeze. “The South Bay’s median price for all homes sold in September was $500,000, compared with $693,500 in September 2007, according to the report by Los Angeles-based California Association of Realtors. The local price drop was less than the countywide decrease of 32.1 percent to a median of $360,000.”
“Of the South Bay communities cited in the report, San Pedro saw the most severe drop in median price, by 33.5 percent, to $412,000. ‘I think what’s really happening is with the waves of foreclosures and bank-owned properties, the ripples are finally hitting this area,’ said Kim Howard, a Realtor who works mostly in San Pedro. ‘It started in Riverside and Diamond Bar, and then it hit Carson and it finally hit us.’”
The San Gabriel Valley Tribune. “Marty Rodriguez, owner of Century 21 Marty Rodriguez in Glendora, said 30 percent of the transactions her office handles are either home foreclosures or short sales. ‘That’s the highest it’s been for us, but I don’t think we’re through,’ she said. ‘I think that could probably get up to 40 percent … and maybe even 50 percent.’”
“Rodriguez said foreclosures and short sales account for nearly all of her office’s transactions in La Puente.”
LA Downtown News. “L.A. Live’s second phase, to include restaurants and clubs, will begin to open next month, culminating with the opening of the Grammy Museum the first week of December. By 2010, the completed project is expected to include a 14-screen movie theater and a 1,001-room, 54-story high rise housing 1,001 JW Marriott and Ritz-Carlton hotel rooms, topped with 224 condominiums dubbed the Ritz-Carlton Residences.”
“Much of Thursday’s discussion focused on the current economic climate. ‘Everyone is impacted by this economy,’ said Tim Leiweke, president of L.A. Live developer Anschutz Entertainment Group. (He) admitted that his firm recently lost about 20 prospective buyers who had reserved Ritz-Carlton Residences, which mostly range from $1 million to $3 million.”
“‘If not for the downturn, quite frankly, we would’ve been sold out of condos already, I’m fairly certain,’ he said. ‘I believe we will sell the condos out before we open, but it’s going to take a little bit more time.’”
The Union Tribune. “So far, commercial real estate has avoided the massive mortgage defaults that have hit homeowners, even though San Diego County offices, shopping centers and hotels saw similar surges in prices over the past few years. But experts are beginning to talk about possible tough times ahead for commercial landlords, particularly as building owners try to refinance maturing debt.”
“One example of this early stress in San Diego is Cosmopolitan Square, a 39-story hotel-condo project proposed near Petco Park. Despite having a trendy Mondrian hotel in its plans, Cosmopolitan Square developers lost the full-block site downtown to foreclosure last week when they failed to find a lender willing to provide a bridge loan to get the project off the ground.”
“‘California has been relatively quiet,’ said David Iannarone, managing director of CW Capital in Washington, D.C.. ‘I’m not sure that’s going to last.’”
“‘We’re just seeing the beginning of it,’ said Thomas Deane, head of structured transactions and special assets for Wachovia Securities. ‘I think retail is the next to go. Then office is not too far behind.’”
The North County Times. “Economists are nearly unanimous that California is in a recession and concerned that the nation as a whole could soon go the same way, if it hasn’t already. But the economic picture varies sharply from one sector to the next. Mortgage companies and others in the financial sector account for about 60 percent of the 7,500 jobs that private employers in San Diego County have cut in the last year. Meanwhile, lodging and other tourism-related industries continue to hire.”
“The recession has even boosted some local businesses, including several that help client companies to cut costs.”
“Economist Stephen Levy said California’s recession, while serious, isn’t likely to lead to long-term changes in the structure of its economy, as opposed to the slowdown that followed cutbacks in the defense industry in the early 1990s. The current recession has been concentrated in retail and housing-related industries, both of which are notoriously cyclical, said Levy.”
‘Lower prices have cut deep into consumer spending but they also are a relief to homebuyers and to employers struggling to lure new workers to a relatively high-cost state, he said.”
“‘In some perverse sense, the collapse of housing prices is going to be a benefit for the economy of San Diego County’ in the long run, Levy said.”
‘Lower prices have cut deep into consumer spending but they also are a relief to homebuyers and to employers struggling to lure new workers to a relatively high-cost state, he said. ‘In some perverse sense, the collapse of housing prices is going to be a benefit for the economy of San Diego County’ in the long run, Levy said.’
I would add that lower housing prices and the resulting correction is the only thing that can fix the economy after a housing bubble.
Here’s some evidence of how high prices continue to add to the overbuilding:
‘Permits for new home construction in the city of Bakersfield jumped in September, bucking state and national trends, recent reports show. In the city of Bakersfield, builders pulled 98 permits for single-family homes last month, the city’s Planning Division reported. A year earlier, just 56 permits were pulled.’
‘Almost 40 of September’s batch were pulled by Bakersfield homebuilder Burlington Homes for its southwest Fairway Oaks South tract, the city report shows. National builders Lennar and D.R. Horton pulled more than 10 apiece. The monthly tally also beat August’s count of 73 permits.’
‘For the year so far, however, 837 permits have been pulled compared to 1,564 for the first nine months of 2007.’
‘Sales of new single-family homes in California declined 41 percent in August compared to a year earlier. But in Kern, the report found, sales increased more than 14 percent that month, with 127 houses sold.’
‘The median price for new homes statewide declined 17.8 percent year-over-year to $342,590, the report found, while Kern’s median price sank almost 15 percent to $253,590.’
At $250k, these guys are still moving ahead, likely by undercutting their former customers. Does Kern really need 800 more new houses on the market?
Let ‘em build into the glut, that’ll drive prices down even further.
Wouldn’t it be cool, if the government seriously thinks it can create a bottom for housing prices, to not just put a moratorium on foreclosures but to also put in a moratorium on homebuilding?
(and let the homebuilders spend a few months working on public works projects instead, like paving potholes and fixing bridges)
I’d rather have the financial wizards who brought the crisis on paving potholes and fixing bridges while wearing stripes and the old ball-and-chain.
A reversion to (and beyond) the mean of sales prices could be a plus for the economy because it translates into more disposable income or savings at the consumer level. Five years ago any gains in disposable would have shown up in consumer spending. Today I am not so sure. I think that there has been a sea change in the psyche of the US consumer that may translate into saving more money. With retirement accounts ravaged I would hope that a renewal of savings as a budget line item would return to favor. If we can save will we do so in the mattress or at the bank? If it gets to the bank then that may help stabilize banking by increasing deposits. This could lead to an easing of the “credit crunch” to some degree. I’d rather see US money going into US savings than into Walmart’s tills to pay for unneeded plastic gizmos from the Asian manufacturing theater.
On the flip side, pun intended, artificially propped up prices could put more money into the banks as interest, fees, etc., but if no one can buy at these artificial levels that revenue stream goes dry. Insofar as government property tax revenues I firmly believe that government should have seen the bubble for what it was and used the increased revenue to pay down debt, reduce recurrent costs and reduce overall liabilities rather than treating it as an permanent revenue stream increase. Easy to say in hindsight, but the HBB called the bubble and gov should have seen it too. Their failure to do so is an indicator of a profound reliance on or allegiance to the REIC. An alliance that failed to provide facts. An alliance that needs to be terminated.
As far as the investment community the sheer greed and massive denial evident in their leveraging of toxic loans are nothing less than an impeachment of credibility of the investment and oversight sector. Propping up housing artificially is mean to minimize mistakes by these two groups and is a sham. Let them eat cake, yellow cake.
“The median price of a home selling in Greater Sacramento last month was $195,900, down 11.3 percent from August and 39.8 percent lower than a year ago. Sales, meanwhile, were up 8 percent over August and 186 percent higher than a year ago.”
For comparison with the year-on-year rate of price decline, the annualized monthly rate of Sacramento price decline from August to September was (((100-11.3)/100)^12-1)*100 = -76.2, i.e., prices were falling at quite a bit faster rate from August through September than the average rate of decline over the previous year.
But my guess is the next episode in the housing bust will prove most interesting of all, as we find out how many foreclosure speculators remain confident and liquid after the devastating collapse of Wall Street. You ain’t seen nothing yet…
I’m licking my chops waiting for all the great lowball deals coming down the pike in the next few years. For those that kept their powder dry it will be a like shooting fish in a barrel.
Roll out the barrel, we’re having a barrel of fun…
True. We have not seen the effect of the stock market crash yet and the rate of layoffs is growing exponentially. Also note that the recent rate of decline is based on an ever lower starting point.
the recent rate of decline is based on an ever lower starting point Right. Pick the high point of the housing bubble, and quote all declines from there, rather than year-over-year.
The point of my comparison was to look at the recent rate of decline (from Aug 2008 - Sept 2008) compared to the average decline for the full year period (Sept 2007 - Sept 2008). The conclusion is that the (geometric) average rate of decline over the year preceding Sept 2008 was quite a bit slower than the rate of decline in the most recent month-to-month period, and that this rate may even get steeper in the wake of the Wall Street meltdown. A comment by Ken Rosen yesterday on a MarketWatch.com interview suggested that the housing market has basically come to a halt in the wake of the Wall Street selloff — i.e., there are virtually no bids at sellers’ current asking prices.
I dont think he was referring to you, just that if the stories also included peak to current it would be very helpful since not everyone peaked at the same time. Is there any good chart of peak to current that includes lots of cities? I too would be interested in seeing it.
“‘In prior years, probably about 30 percent of people who bought cars did it on home equity lines, but most of those have been wiped out with the falling prices of houses,’ said Welch.”
====================================================
To put things in proper perspective about just how often Californians HELOC’d on their homes, in order to buy new cars, the nationwide average is closer to 10%
So, would it be safe to say that we HELOC’d 3x as much on everything we bought?
It also says that it’s much riskier to make a car loan than a HELOC. In a crap post-housing bubble economy, it’s probably now the other way around…
A couple weeks ago there was an article quoting someone from CA Assoc of Auto Dealers saying more like 4 of 10 new cars were bought using HELOCs.
‘…but most of those have been wiped out with the falling prices of houses,’
No wonder we had such a hassle-free day at the dealer’s earlier this year when we paid cash for a new car
P.S. I expect the housing market will offer qualified buyers a similar experience in a couple of years, but Joe the Plumber-homeowner is quite a bit more clueless about economic reality that your typical auto dealer, so the adjustment process will be very slow.
“The Johnsons’ Palo Alto condominium has lost equity.”
“We’re going to try to send Noah where he wants to go, even if we have to beg, borrow and steal,” said Sheri Johnson, Noah’s mom. “But we may have to move out of the Bay Area, and we’re prepared to sell our house.”
Better do it ASAP as the market price is decreasing rapidly daily. Funny to watch these Cali-idiots all running towards the exit at the same time. As the song says, “You can check out any time you want, but you can never leave.” And the Johnsons will find out why buying a condo is foolish…prices went up on condos in lockstep with SFR (similar to how value stocks are plunging in lockstep with growth stocks, but I think value will come back first), but condos will crash harder and they will be the last to increase in the eventual recovery (via inflation of the money supply) during 2013-2018+? Gotta get stocked up on some more popcorn, I think this one’s goin’ into extra innings.
PortlandHomedebtor
I don’t know exactly where Noah wants to go to college, but maybe it’s time for Mommy and Daddy to sit Noah down and have one of those Big Talks about Facts. The scenario coud be something like this:
Noah: ” Hey Mom and Dad, I bought a really cool carpet and some new electronics for my single room up at Sky-High U, on that nice credit card with the high limit you signed me up for a couple of years ago - you know - so I wouldn’t feel left out when I went to Suburban Acres Mall with my friends. And you know, I contacted those great guyz at Havva Lotta Monee fraternity, and I’m gonna be bunking there.”
Mom and Dad: ” No, Ah, Noah, we can’t afford to send you to Expensive U anymore because:
A. We were stupid and didn’t get your college fund into bonds or a money market a couple of years before you were set to go Sky-High U, and,
B. Our expensive lifestyle and investments and the declining value of the expensive condo we bought at the height of the real estate craze here in beautiful Palo Alto are have caused us to have less money than we thought we’d have to send you to Sky-High U, especially since Life-Style Provider Dad is retiring. So, son, you have to pitch in for your tuition, live at home, go to good ole Boring State U, and get a job delivering pizzas on Friday and Saturday nights to pay for your gas money and books. You might even have to take out a couple of government subsidized loans to pay the tab. ”
Sonny will lay on the floor for awhile and hold his tummy and cry, but having to grow up and fend for himself somewhat will help make a man of him. He might have to give up the leased BMW, though….but, I’m sure his mom and dad will continue to subsidize Expensive Son’s lifestyle and sacrifice what equity and retirment savings they have so that Sonny can go to Sky High U. Honestly, in California too, with one of the best state college systems in the country. What a shame.
Noah, I hope your dream is to attend San Jose State.
Or Foothill Junior College.
Or the University of Peris Island.
Parris Island.
There ya go. Now THAT’s a school that provides you with some experience to get through life. Wow. Daughter went out with a Marine for about a year. He had some stories.
SJ State is actually decent a school from what I’ve heard….but zero prestige
‘Lower prices have cut deep into consumer spending but they also are a relief to homebuyers and to employers struggling to lure new workers to a relatively high-cost state, he said.”
“‘In some perverse sense, the collapse of housing prices is going to be a benefit for the economy of San Diego County’ in the long run, Levy said.”
======================================================
Tijuana-adjacent seemingly has the market cornered on delusional eCONomists, why’s that?
This Levy clown thinks jobs are coming back…
Am I reading this right?
Even the most careful homebuyers can easily overlook and fail to budget for the initial property tax amount, said Linda Styczynski, a senior accountant at the county’s Tax Collector Office.”
“‘We feel really bad for them,’ Styczynski said. ‘They might have bought a $700,000 home for $300,000.’”
So the intention here is to charge a higher assesment on a price that is no longer correct? Is this even legal? Things like this will keep even more people out of the market and drag this thing out. I don’t understand how you go through the purchase process and don’t get the tax assesment information. Even still, shouldn’t it be adjusted for the market price? Very strange. Also arrogance of the person from the tax assesors office comes across. Or perhaps its denial.
She sounds like an idiot. Apparently, property values can only go up, not down. She’s suffering from “Affluenza”…nothing that a nice lawsuit or a recall election couldn’t cure.
I really don’t see much of an issue here. The property tax year runs April to April and the bills sent out are based on the assessed value as of the prior Jan 1st. If the property sells subsequent to that date then either a supplemental bill is sent out (if the sale was for more than the assessed value the bills were based on) or a refund is issued.
Never seen a refund in my life. Dreaming.
remember that county government budget and by extension government workers see your house as an eternal source of revenue
Cinch
It makes you think about what do we really own in this country?
We are already socialists.
Your house…. oh, you are renting from the government. Property taxes.
Your car…. oh, your paying registration and license fees and they can take that away from you.
health insurance… oh, half the people on here are begging for the government to handle that.
Your kids… well, its not technically ownership unless health and human services decides to help
Education… well they control what education you get
Currently own a couple firearms but I hear lots of people tell me thats bad too.
My computer, TV and couch are mine free and clear though!
You own the internet free and clear? YOU ARE AL GORE????!!!!
IAT
I read the article in full - the house price assessment is done on Jan 1, so if you buy after that date then you are expected to pay that assessment amount, until the house purchase is taken into account and adjusted for at the end of the year and after you have coughed up the money - you will then be entitled to a rebate, but only after you have “overpaid” in full.
Works the other way too - if the house sells later in the year for more than it’s assessed value as of Jan 1, then you have to cough up extra money at the end of the year when they realize you didn’t pay enough. I guess you didn’t hear people complain about it then.
And another reason why not to buy from FB’s if your budget is tight.
All the better to mass protest by not paying tax bills until they are adjusted down accordingly.
Just remember that the government is always right, especially in matters of confiscation, oops, I mean taxes.
I’m so glad that I was drafted at the age of 19, so I found out early in life that there was a “this does not apply to you a**hole” clause enumerated in the penumbra of the bill of rights. It can be invoked at any time.
Is this a great country or what?
Don’t people carefully assess all of the baseline costs of living (property, sales & income taxes, HOA fees, home/auto insurance rates, typical utility bills/sq ft of space, water, sewer, etc), before deciding to buy/move into a particular area?
This is a rhetorical question of course.
“Economist Stephen Levy said California’s recession, while serious, isn’t likely to lead to long-term changes in the structure of its economy, as opposed to the slowdown that followed cutbacks in the defense industry in the early 1990s….”
This is the same line of BS that the “economists” used to suggest that San Diego wouldn’t have a housing crash. You know, “It’s different” this time.
Ya right!
I thought 50% of the jobs created in California since 2000 were real estate related.
I have friends in the escrow , title and lending business who are starving. While not counted as unemployed they might as well be.
nice Haircut!
No on 8
HELOC University
“‘A lot of upper-income families, particularly in the Bay Area, used to rely on vehicles like home-equity loans or lines of credit,’ said Karen Cooper, director of financial aid at Stanford University.
‘We’re going to try to send Noah where he wants to go, even if we have to beg, borrow and steal,’ said Sheri Johnson, Noah’s mom. ‘But we may have to move out of the Bay Area, and we’re prepared to sell our house.”’
Can someone explain what the big deal is about sending your kids straight to a 4 year university after high school??? I spent 3 years at a community college after high school. Community College was a great experience for me. Helped me figure out my interests. I completed the majority of my lower division requirements –and I think it cost about $6 a unit at the time. And they were good classes.
I expect we’ll have enough money to send our kids to college. But unless they are really exceptional and some university wants to give them a full scholarship, I expect they’ll do most of their
lower division at a community college.
People are finally starting to see an advantage of community colleges over 4-year schools. I thought I had retired as a community college instructor two years ago, but I’m back teaching, because enrollment has increased so much at our local cc that they had to open more sections of some of the classes, so I got called back. Love it that I’m back in front of the blackboard. Retirement is for the old geezers!
Congratulations on being called back!
My dad was a CC teacher, and my whole family did the CC-to-state college/university thing.
Never did understand the rationale behind a private or out-of-state university right after HS either.
“‘A lot of upper-income families, particularly in the Bay Area, used to rely on vehicles like home-equity loans or lines of credit,’”
Hmm…if they’re so wealthy, why do they need to borrow? The joke will be on them in a few years when the sheriff escorts them out and awards the keys to a deserving family that saved. Soon we’re going to find out how “affluent” these deadbeats really are.
I’d guess most upper-middle class Bay Aryans are merely real estate rich, and partook lives of the rich and famous vicariously on borrowed equity, just like the rest of the country, only more so.
They need to borrow because “upper-income” and “wealthy” are not the same thing.
“‘A lot of upper-income families, particularly in the Bay Area, used to rely on vehicles like home-equity loans or lines of credit’
Your ‘vehicle’ is now broken down on the side of the road, with oily smoke belching from the engine compartment and four flat tires. Good luck hitch-hiking to your destination.
Your ‘vehicle’ is now broken down on the side of the road, with oily smoke belching from the engine compartment and four flat tires. Good luck hitch-hiking to your destination.
Sounds like the “Straight Talk Express.”
My advice to Gonzalez is to hang onto that inflatable bounce house. It might come in handy in the next few months. Sure beats living in a cardboard box!
lol!
“‘We’re just seeing the beginning of it,’ said Thomas Deane, head of structured transactions and special assets for Wachovia Securities. ‘I think retail is the next to go. Then office is not too far behind.’”
Bubble Check List:
1. Homes
2. Condos
3. Retail stores
4. Office buildings
5. Structured transactions
Well. I still see office construction down here in La La land. Don’t know who the heck will be needing it.
Just waiting to see if new car companies form or new banks… Was thinking we could build a big car plant in the IE and ship the cars to Asia.
Bet we could build some high end cycles too and take advantage of proximity to our friends sitting on the trillions of dollars over there.
#6 Christmas stores
http://www.nelsons-christmas.com/
1. Homes
2. Condos
3. Retail stores
4. Office buildings
5. Structured transactions
Peter Schiff says the US government bonds will be the next bubble to burst. If the Chinese economy is crashing because of our slow-down in consumption…who is going to finance the interest on our recent bail-out debt?
I sure hope he is wrong! But he seems to have been right about everything else…
“The 762-acre North Star property is one of four special development areas proposed in recent years for the outskirts of Grass Valley.”
Citizens Bank is in good financial standing and can weather a $2.2 million foreclosure, Peterson said.
Looks like the US$fiat moneyusers will be on the hook for 762 acres @ $2,887 per acre (via stealth inflation from money supply increase). Wonder how much an acre the dirt would have sold for in the 1990s, $100 per acre? Multiply this all over the globe = huge increase in the fiat money supply down the road divided by relatively fixed quantity of goods and services = skyrocketing prices for things people need in the future, one of which won’t be needed for a long long time - undeveloped land.
“We are working on replacing the existing financing, and I am confident that we will be able to replace it,” Sanderson, of Bend, Ore.-based Sanderson Communities Inc., said by telephone. “The foreclosure will not occur.”
I hope that management of any financial institution that didn’t get their corporate borrower’s shareholders to sign personal guarantees on the loan is terminated immediately upon takeover by FDIC. Not that these a**holes have many unfinanced real assets to go after, but at least they could attach anything found in the home, collectible cars and any equity in the home before escorting these dummies and their families out to their new home on the street.
PortlandHomedebtor
The new California dataquick numbers for September are out:
http://www.dqnews.com/Charts/Monthly-Charts/CA-City-Charts/ZIPCAR.aspx
Some of the YoY percentage and selling price numbers are stunning. 50% and $250K drops are not uncommon.
WTF?
SAN JUAN CAPISTRANO 54 $326,000 $1,100,000 -70.36%
70% drop!
And they had 54 sales, so it’s not like a single unusually-priced property could skew the median by a lot.
Most likely the mix has changed. A halt in sales at the upper end coupled with foreclosure sales at the lower end can skew the mix.
I’d say the sales were all at the lower end.
This will bring the Median down.
It does sound like the lower end is selling and the higher end isn’t. It’ll get a whole lot worse in a few months when the raise in conforming loan limits is reduced. Remember they raised it from 417,000 to 725,000 (or somewhere around there). That is set to expire on 12-31-08. So sales above 417,000 will really fall off of a cliff. That is unless they extend that increase. With a decent down payment and good credit, some banks are still giving 6% rates up to the higher limit of 725,000.
Not in Humboldt county. Prices here have stayed stubbornly at the $300,000 level. It costs as much to live in Eureka as San Diego. Unbelievable. And people here are still buying–
Those ex-hippies in Humboldt must grow (and smoke) some pretty strong stuff.
Sadly there are still a lot of positive numbers in there. Palo Alto up 13%!
Berkeley up, too! The market is not so chipper 10 miles to the north, in Richmond — down by over 50 pct…
“No matter what hurdles are placed in our way ─ somehow we always find a way, even in the darkest hour, to make things worse. It’s a miracle, really. You read about the events of one year and you think, ‘There is no possible way that human beings can get any stupider than that.’ Then you read what we did the next year, and darned if we didn’t pull it off!”
Dave Barry