Bits Bucket And Craigslist Finds For July 3, 2006
Please post off-topic ideas, links and Craigslist finds here!
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
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The top of the Housing Bubble was last June, when Time Magazine had a cover story asking if there was a Bubble.
My prediction is that the bottom of the market will hit when Time has a cover story titled; “Is the Housing Boom Over?”
The bottom will hit when Time Magazine has a cover entitled; “Real Estate - The Worst Possible Investment Ever”
No, that will be the time to invest in real estate.
If you read the next article you’ll see why the media always lags behind.
The bottom will be when this sentence, which I overheard again last night,:
“… I’m not going to give it away.”
becomes:
“…I just want to give it away.”
Sandwiched between the morning news segment was an ad from ‘flatraterealty.com’. The ad starts with people sitting around waxing nostalgically about the good ole days prefaced by ‘Do you remember when ________ ?’ and ends with ‘Do you remember when the cost of selling a home was 6% commission?’ This should start sending a big ripple through the RE world, because it piggybacks to suits alleging price fixing by the RE industry.
Our $99/mo* flat fee includes:
• A listing on the Realtors’ MLS
• A Realtor.com listing
• A free listing on 4SaleByOwnerUSA.com - a $99 value!
• A yard sign
• Extensive exposure on the internet
• A photo on your MLS listing and
Realtor.com listing**
• All necessary disclosure forms to sell your home
• You can cancel at any time***
• If you sell your home without a Realtor you will
owe no commissions!
In addition to your “For Sale By Owner” listing on the MLS, your property will also be listed on Realtor.com.
Salinas;….Its not here quite yet but its comming like a freight train….Big time pressure on commish’es…
Wish there were more like you around here in Dogpatch Indiana
do local MLS have to run FSBO’s ?
I thought many states chalenged that.
only an economic girlieman would use a realtor
EPA looking to tighten lead based paint standards:
“EPA to Crack Down on Remodelers’ Lead Dust”, LAtimes 6/26/06
“the Environmental Protection Agency is on the verge of adopting a hotly contested rule that tackles one of the last major dangers still posed by lead: the poisonous dust stirred up by remodeling.”… “The cost of home renovations would rise by an estimated $500 million per year — most of which would be passed on to property owners.”….”About 38 million homes — 40% of the nation’s housing — contain lead-based paint, and most of them are in middle-class and even affluent neighborhoods.”…”In Los Angeles County, about 80% of homes — including mansions in Beverly Hills, bungalows in Pasadena and World War II-era apartments in Lynwood — were built when paint contained lead”…”"Every day there are hundreds, maybe thousands, of people disturbing lead-based paint in apartments and houses in San Francisco,” rental property owner Tim Carrico said at an EPA hearing in April. “A few are contractors professional enough to be able to deal with the certification, record keeping and all of this stuff.”
More on the lead paint issue:
“State action against the lead paint industry
The state of Rhode Island filed suit in 1999 to get the companies that used to sell lead-based paint to clean up the lead paint still contaminating many houses and apartments in Rhode Island. After one trial that ended in a hung jury, the state refilled the case.
In February 2006 the jury decided in favor of the state and said that Sherwin-Williams, NL Industries and Millennium Holdings would have to pay for a clean up of lead-paint in the state.
Earlier this year an appeals court in California reinstated a public nuisance lawsuit. A public nuisance lawsuit filed by the city of Milwaukee is scheduled to go to trial in 2007. There is a case now before the Supreme Court of New Jersey to determine if the case can go forward under the public-nuisance laws there. The case was originally filed in 2001 by twenty-six (26) public entities including the cities of Camden and Newark.”
(en.wikipedia.org/wiki/Lead_paint)
I worked on a case involving lead paint last fall for someone regarding a multifamily project on the east coast. Nasty stuff. Kids especially get really sick. Did a lot of research on that Sherwin Williams case too. This is an environmental and public health issue, the first of probably many that will come out of this massive greedfest, along with all the shoddy construction claims that are surely also on the way.
I used to live in an old (80+ year old) apartment building in NYC. How the hell is any one paint company responsible for multiple layers of paint applied over decades?
Answer: they’re not, but the state doesn’t want to bear the cost of the problem either.
Just what is a public nuisance?
“”…that a public nuisance is a nuisance which is so widespread in its range or so indiscriminate in its effect that it would not be reasonable to expect one person to take proceedings on his own responsibility to put a stop to it, but that it should be taken on the responsibility of the community at large.”
Salinas;….We went through this with Asbestos;…At first it was terribly expensive…Now it is manageable but still costly…Lead based paint removal in a process that is safe under EPA standards is very, very expensive and more widespread than asbestos…Every pre 1980 built home would likely have a problem…No question it would effect the value of those homes if the EPA demanded contained removal in any alteration……
Can’t ya just hire a bunch of day-laborers at the 7-Eleven?
Nooooooo ric;…..Both asbestos and lead based paint must be removed Licensed abatement contractor in a “Contained” enviorement and must be deposed in a class 2 landfill…I don’t want to ramble about the process but it is very expensive….
So just close the windows.
Don’t forget about hiring an environmental consultant to handle the DTSC or whatever other government agency decides to jump on the bandwagon. It can be very difficult to get closure when agencies are trying to justify their existence, especially in a downturn. They’ve got HELOCs too…
watch your own kids - fck class action parasites
2004-2005 buyers in the POS st port lucie, florida are already under water..see below.
http://miami.craigslist.org/rfs/177794874.html
Waitress, a round of ass-pounders for the flippers from Port St Lucie please!
That’s one fugly house. I like the huge pointless malnourished lawn too.
Building slump hits hard
By Lon Medd
Daily Press & Argus (Livingston, Michigan)
Whether it’s the nationally known homebuilder or the local light fixture retailer, the decline of new home construction in Livingston County has hit many businesses hard.
“In Howell, we’ve been hanging on by a thread for three years,” said Ed Hutch, general manager of Country Squire. “I used to deal with 30 builders on a regular basis. Now I deal with six.”
The number of new homes being built is less than half of what it was last year. The number of building permits in Livingston County from January to May was 257 for single-family homes. By this time last year, there had been 530.
The nationwide slowdown prompted Bloomfield Hills-based Pulte Homes to lower its full-year earnings outlook for 2006. Orders for new Pulte homes for April and May were 29 percent below the comparable two-month period of 2005.
Pulte made a considerable investment in Oceola Township’s Latson Road corridor in the last few years. The company made a huge splash with Hidden Creek, a development of 268 single-family homes; and the Villas of Oceola, a condominium development with 250 units.
After a great start a couple of years ago, the market cooled off and those housing units are not being sold as fast as they once were. Because of the market drop, Pulte abandoned another Latson Road project, Forest Ridge, which has since been taken over by Centex Homes and is under construction. That development includes 377 single-family homes on a 200-acre site.
The slowdown in construction on Latson Road got the rumor mill turning about Pulte pulling out of Livingston County and even leaving poured foundations unfinished.
Oceola Township Supervisor Bill Bamber has heard the same rumors, but said they don’t wash.
“The engineers and so on tell me they can’t just pull out and abandon a project,” Bamber said. “They pulled a land-use permit for a house this week, so I know they are still doing something.”
“I know their sales are drastically below their expectations, but they have a major investment in these projects,” Bamber said.
http://www.livingstondaily.com/apps/pbcs.dll/article?AID=2006607020316
“I know their [Pulte's] sales are drastically below their expectations, but they have a major investment in these projects…”
Ahhh… so this means they are unfamiliar with, or disbelieve, the time-honored wisdom to “cut your losses.”
Cut and Run.
Short Centex?
Young buyers find real estate to call their own
Baby boomers’ kids face new pressure to purchase early
By Nicole Tsong
The Seattle Times
Besides their college graduation, their first “real” job and their first new car, we can add another common milestone to the list for young single adults: buying a home.
In 1995, people 25 and younger bought 172,000 homes nationally, said Walter Molony, spokesman for the National Association of Realtors. In 2005, that number jumped to 501,000.
“The children of the baby boom generation - approximately
75 million (nationally) born between 1982 and 1995 - that generation is just entering the years in which people buy a first home,” Molony said. “That’s a strong fundamental factor for the next decade.”
Couple that with low mortgage-interest rates, a healthy economy and rising employment, and the rate at which young people buy real estate will continue to grow, he said.
But there also is fear among young adults - and their parents - that they won’t be able to afford real estate in the future.
“There seems to be a lot more peer pressure, more parental pressure to buy at a younger age,” said Warren Ballard, vice president of Williams Marketing, which sells new condos and conversions. “The attitude really has changed.”
But just because more young adults are buying doesn’t mean the purchase is easy.
Young buyers are making major compromises and using creative financing to buy their first homes - including recruiting roommates or siblings, borrowing from parents, sacrificing space and living in less-desirable neighborhoods.
When she signed the final papers, she was so happy, she cried. She said she felt empowered by the purchase.
“It’s fun to know I’ll have bought when I was single and could do it myself,” she said. “I’m of the ‘Independent woman’ philosophy.”
But the 475-square-foot condo, priced in the low $200s, will be tough financially. The mortgage is $700 more per month than the one-bedroom apartment she’s currently renting until her condo is finished this fall.
Until she bought her condo, Wiggin, a program manager, had extra spending money to travel and meet up with friends for happy hour. She also treated herself to a big vacation every year and took lots of weekend trips.
But the mortgage will require her to cut back. She’s considering a cash-only system to avoid spending too much; limiting shopping to one big item a month, like a pair of jeans or a dress; and figuring out a low-maintenance hairstyle. She also plans to limit weekend trips and will throw dinner parties at home instead of going out with friends.
“It’s going to be a challenge,” Wiggin acknowledged. “I’ll be paying a lot more, but it’ll be fine. It’ll be a great investment.”
She still has several months for it to all sink in. And, she reasons, she would never save the extra $700 a month that will go to the mortgage, anyway.
“I’m just pretending I’m saving it,” she said.
Thirty-one-year-old April Schiffman’s two younger sisters already own condos, and her parents felt it was time for her to do the same. They provided the financial push, offering her a down payment as long as she paid her own mortgage.
But the purchase has made April Schiffman, a Web designer, a bit anxious. But she admits it will be hard to manage a mortgage alone.
“There’s no one to turn to and say, ‘Hey, somebody help,’ ” she said.
Her anxiety has subsided a bit since she signed the final paperwork. She plans to live in the 700-square-foot condo for at least two years, maybe more.
And she knows once she is settled into her place, the budgeting will be worth it.
“At that point, it’ll be such a habit, I’ll feel better (knowing) I have something and am building equity.”
http://www.theolympian.com/apps/pbcs.dll/article?AID=/20060702/BUSINESS/607020301/1003
Amazing that the industry immediately interprets the number of very young first time buyers as a “strong fundamental” instead of what it really is, which is a screaming sign of the top of the market. When the most naive, least qualified buyers are in, who’s left?
That is truly sad. But in a culture that pushes credit cards on kids in high school, not suprising.
“living in less-desirable neighborhoods.”
it’s going to suck when you realize mom and dad pushed you into a shitty neighborhood because “buy now or you’re priced out forever” or you need to “build equity.” it’ll suck living in a dangerous place and you can’t sell cuz you’re underwater.
they probably saw their parents were rich and rushed in.
childhood has been lost to television and fear of predators, now young adulthood; freedom to experiment with different lifestyles and move around at will is being lost to debt slavery and the house trap.
and mom and dad aren’t going to visit the new house in their BMW for fear of it getting stolen!
I know there was a somewhat heated exchange on this blog recently regarding the generations, but I have to say. I’m from Phoenix, on the gen X/Y border, and my baby-boomer parents, my parents’ friends, and my friends’ parents ALL spew the crap about buy, buy now, don’t throw your money away, great investment, never goes down. They have brainwashed their children into believing this, which they do because they were EIGHT YEARS OLD during the last downturn in RE. Not really an age that pays attention the the real estate market. Our parents were 35 during the last downturn, but they still don’t remember it. They have been hypnotised by the amount of money they have “made” in the past few years, and have completely blocked out the previous decade. I only recently found out there was a bust here in the valley in the early nineties, and it bewildered me because all these 40 and 50 somethings have been mouthing off for years about “always buy, never rent”, and they are old enough to remember the last bust! At least these young people have an excuse for their ignorance on RE, they’ve never seen any different.
You mentioned the last RE downturn in AZ. The last real estate rock bottom in Arizona was in the early 90s, like around 1992. You mentioned your parents were 35 during the last downturn but don’t remember it. I doubt if they forgot it. I think they denied the burst, but by no means are alone. I’m 47 and there are several reasons besides being once bitten that I stayed out of this bubble. But I sold 3 houses at losses. I also got into investing in the early 90s and devoured investment periodicals and books like crazy. I educated myself on the term “market cycles.” Personally I want to keep my net worth growing and smooth the peaks and valleys in my upward curve of net worth. Whenever it was appropriate, I have been advising 20 - somethings to invest in stock mutual funds, 401ks, IRAs, and keep at least 6 months of living expenses in cash. After maxing out the 401k and IRAs, then the young people should consider buying the house. If they cannot afford it, then buy savings bonds in addition to tax deferred investing and save! I have confidence that America and still a high degree of free market in this mixed economy will still be around 30 years from now, so in the long run, I think large company stocks will deliver that 10% return annually. You cannot dollar cost average into a house, and a good neighborhood today can turn into a slum in 6 years (especially with illegal aliens encroaching). Also note that since you are young (20s or 30s), your investing mistakes can be corrected and you can learn from them. When you are in your late 40s or older, you ought to have a huge chunk of change in net worth and not have all your eggs in one basket (or McMansion). I’ve tried to evangelize my older sisters to save in stock mutual funds for years. It’s all like advanced (math major) calculus to them. And it’s heartbreaking to see them all with no control of their own destiny. They just like to spend, spend, spend! BTW: I was part of that generational exchange on that thread you alluded to. I congratulate you for having an independent active mind and to not take what older people (my generation) are saying as gospel, and I suppose that includes this very post!
Private auctions seem to be on the increase, like this one in Woodbridge: http://washingtondc.craigslist.org/nva/rfs/177954180.html I think the winner this week is here, however: http://washingtondc.craigslist.org/nva/rfs/177635744.html
To get the full effect, you need to read the Craigslist text, which makes the house sound quite special, then hit the link to the virtual tour. I burst out laughing on the opening shot and hope you at least get a grin from it.
For half a mil. you’d think at the least they would put a new roof on it, sheesh! That house is ugly!
But, but, but . . . it has NEW PERGO FLOORS! I’ve always longed for Pergo floors!
Interesting new TV show - “Property Ladder” on TLC. Tends to show flips gone bad…
This show has been around for a while, but hasn’t been aired in months. It looks like there are new episodes. I watched one yesterday where a clueless woman in probably early 20’s hired cheap contractors, who screwed many things up (including throwing away all of her kitchen and bathroom cabinets). In the end, she’s bailed out by the bubble and makes ~$60K after fees. She’s ready to do it again and make even more.
The show is slightly better now since they seem to subtract selling costs from the profits. Last season, one person had a profit of like ~$10K split with their friend before fees (they were both housewives with nothing to do). They probably came out with about $2K after 4-6 months of heavy-duty work and daily struggle with contractors. They could have made more money with less work and no risk to the family finances by working at a store or restaurant for minimum wage.
Ha! I expected to see the Tah Mahal; and it’s a crappy suburban with the garage converted to living space. A half million? I don’t think so.
“Garage Mahal”
Californians will find this eerily familiar - but to imagine it taking place in Calgary just boggles the mind…
Calgarians cash out while prices high
Home equity buys good life in cheaper areas
Suzanne Wilton, Calgary Herald
Published: Monday, July 03, 2006
For Tim and Erin Lukie, two teachers with a baby under the age of one, a hefty house loan meant settling for fewer future children, cheaper vacations, full-time work for both parents and a lifetime of monthly payments to the bank.
The Lukies, both in their early 30s, are among a growing number of longtime Calgarians seizing the opportunity to sell high and buy low — somewhere other than this booming metropolis where property values keep shooting skyward.
“We feel lucky. We’ve been told by so many people they wish they could go, too,” says Erin Lukie, 30.
The experts are reluctant to admit there’s an emerging trend; that people are increasingly catching the bus out of boom town.
The Calgary Economic Development Authority, an agency that tries to attract business and people to the city, “didn’t want to go there,” and declined to provide any further comment.
The Calgary Real Estate Board, too, was reluctant to point out a flaw in the rosy picture called Cowtown.
Wilson bought his Glendale home for $19,000 in 1958 and recently sold it in a day for $480,000, $80,000 more than its listed price.
“At that price, I thought somebody had rocks in their head,” said Wilson, still reeling from the windfall he doesn’t even need and plans to give away to his kids.
The Lukies, on the other hand, plan to use their two years of gains to buy outright their dream house in New Brunswick, a historical waterfront mansion on a one-acre lot with a brook running through it.
One community near Calgary, however, has seen its prices escalate because of the emerging trend of out-migration.
Many people are taking their housing dollars to Didsbury, a 40-minute drive from the city’s northern edge that has its own hospital and schools.
With the demand for housing outstripping the supply, like in Calgary, homes that last year were selling for $125,000 are now going for double that amount.
http://www.canada.com/calgaryherald/news/story.html?id=d055dba9-b624-4006-bbff-f863baa647d0&k=48497&p=2
Calgary is a real hellhole. I’d bail too in their situation.
$80K for a garage? (BTW, Fishtown is a real dumpy part of Philly.) http://philadelphia.craigslist.org/rfs/177896443.html
Anyone need a house or condo to rent:
http://westpalmbeach.craigslist.org/apa/
The number of listings is astounding - but understandable!
Is the construction recession already underway?
http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nN03414832&imageid=&cap=
Yesterday while riding around on the dual sport between Boca Raton and WPB, I drove past my favorite bubble landmark, Canyon Lakes http://www.homesinpbc.com/REwebAPP_01/SubdivisionInfoDisplayForm.aspx?subID=1869
At the entrance of the subdivision there were two attactive young ladies performing as sandwich advertisement pieces. I thought wow, maybe they will lure me in to look at those boxy McMansions that have about 10 yards between each one. Then another wow, these places only cost $500K to $1.2 million, chump change. I figured that I would have to pass on the enticement and rode on to the rear of the subdivision. It appeared that Phase I of the subdivision is complete. Phase II is partially complete with houses being constructed. Phase III, yes Phase III - another huge swath of land is being cleared and made ready for more boxy McMansions. After finally passing the entire subdivision, I thought
maybe I’ll purchase one, I make a good living. Then reality hit, I only qualify for a mortgage of $270K, using the 3X rule. Damn, looks like I’ll have to wait until the bubble burst.
Gotta love Canyon Lakes. The nearest canyon is probably in North Carolina. The nearest “real” lake is 30 miles away (if you don’t count the retention ponds. I used to do valuations for equity lines and used to laugh at this subdivision, along with Olympia in Wellington and Bellagio in Lake Worth. Overpriced on zero lot lines, and these clowns think they have $100K in equity the day they move in because the builder raised his price or they have all of these “upgrades”.
Another interesting observation is the amount of pesticides and fertilizer run off in the area. A very short distance away from this subdivision are signs in the nursery warning that pesticides are frequently applied. While fishing around the area I noticed the smell and the sparse amount of aquatic life. I wonder if these people know what their home was built on? In California, these places would be under the microscope.
That area (south of Hypoluxo Road, west of the Turnpike down to the Boca line) was part of the agricultural reserve voted by residents many years ago to preserve the area for agricultural uses. If I remember correctly, the density allowed was one dwelling unit per acre. Then the big builders like GL and Lennar and Shoma convinced the county commissioners and planners that if they were allowed to build in that area, they would buy land somewhere else in the county and donate 2 acres to the county for every acre they were allowed to develop. That brought in Mizner Country Club (south of Atlantic on Lyons), Canyon Lakes and all the development north of Boynton Beach on Lyons Road. Wait until all of those major intersections are developed for commercial uses and Lyons becomes four lanes from Boca all the way up to Southern Blvd. Watch your taxes go crazy as the county tries to find the money for police, fire and educational services. This type of development is another reason I’m glad I left South Florida to move back to Pennsylvania this year.
Rich Man, Poor Man (with parallels to our easy money society):
http://www.washingtonpost.com/wp-dyn/articles/A36338-2005Jan25.html
“The day would come when many West Virginians recalled the story of Jack’s Powerball Christmas with a shudder at the magnitude of ruination: families asunder, precious lambs six feet under, folks undone by the lure of all that easy money.”
A must-read, well-written article that should give us all pause for thought.
So is it unethical to specifically not tell your landlord the value of his house because you’re afraid he’d sell it and you’ lose a great deal on rent? =P
That’s my situation, and I’m not planning to tell him. He’d stand to gain $175k, but honestly I don’t think he’d put in the amount of work needed to sell (it’s currently converted to duplex). He doesn’t seem to be following the housing market at all, but he works in the financial industry so you’d think he’d know. Zillow shows a gain from $225k to $400k since he bought it in 2002. The mortgage is a 30yr fixed, so no ARM reset.
Forgot to mention, the original lease has expired and is now month-to-month.
Not your problem. If he’s got and family/friends, they can tell him, but no reason for you do so. Heck, even if he knows the value, he could be reluctant to sell for various (IMHO foolish) reasons.
My mother-in-law has three rental properties that have appreciated a lot since they bought them in 1960 or so, and they are charging way too little rent for these things. In fact ,the houses are so old and poorly maintained that every year is another expensive problem, wither a/c unit dead, or roof caved in, or termites.
Yet instead of cashing out 120k or so on each of these boxes, she charges $600/month rent — instead of $900 avg that everyone else is chargin — and getting. “What else could I do with the money?”, she asks! Well, you could put it in the bank now and get nearly that much in interest — and no midnight phone calls, and unlke deadbeat renters absconding in the night, banks do tend to pay interest every month.
And then there’s the taxes. “Oh, but I’d have to pay tax on the profits.” Yes, you would. Isn’t it nice to have profits to pay tax on? And c’mon, long term cap gain rates at 15%? Actually, some of gains might be taxed lowerbecause she’s got very little income. Good time to cash out, though last year when anyone (even her renters!) sould get financing would have been better.
And yet she wants that “free money” feeling from rent coming in (almost) every month. OK, 10 months out of 12. Perhaps your landlord is like that, and so why complicate his life? Just be a good renter and smile as you pay on time every month (because you know you’re getting a deal, and he thinks he is, too), and everybody’s happy.
Thanks for the response. What I think will work in my favor is my landlords propensity for laziness. He’s cheap, so I know he wants that money (assuming he knows about the price), but it would take a lot of work to get this house ready for market, ad I think his lazy do-nothing side will win over hard work and potenital profits. In the meantime he’s giving me a very good rent ($1000/mo all bills) for the 2bd/1ba top story of a duplex with a garage, low enough that I can easly save 20% for a down payment for when I want to buy — when the market shifts, of course. Sad thing is, he’s a financial advisor. =)
“Sad thing is, he’s a financial advisor.”
Gonna show my bias once again. Most financial advisors are sales people who push the high commisioned products the company tells them to.
$500k price reduction on northern Virginia McMansion…
http://www.onlyfour.com/index.asp?grg_pid=339582
“****500K PRICE REDUCTION****INCREDIBLE ESTATE HOME WITH 7100 SQ FT.”
Still not a great buy, but its getting closer. Another $400k off and I might think about buying it. Can you imagine the utility costs on 7,100 sq.ft.? Yikes!!
I wonder what this will do to comps? How about their neighbors who paid $500k too much last year? Thats gotta hurt.
At first I thought some of those photos were for some other structure, then I realized this is one of those brick front jobs. It seems really strange to be orienting a building like that toward the very high end, and what is with the two kitchens? Perhaps they realized McMansions would be forced to subdivide and planned ahead?
From my local paper (Newport Beach & Costa Mesa, CA):
“IRVINE Must sell new 7th flr Marquee condo. 2br 2ba unit w/city lights view. Reduced over $200K”
Probably only reduced from someone’s high expectations………
Wow, Just think, Port St. Lucie with strained services, overfilled roads and NO JOBS. Checked the county appraiser site for this address, just purchased 5/8 for $239,500, trying to make $30,000 in 2 months. Owners live in Coral Springs (Ft Lauderdale), probably contracted the house last Fall. It may be worth $225 right now
What do you mean NO JOBS? I was thinking of leaving Orlando and I am looking there, Stuart, Palm City. YIKES.
The problem with Martin and St. Lucie is that all of the job creation the last few years has been low pay. A QVC call center and a Wal Mart distribution center are the 2 biggest new employers. People from Palm Beach County move to St. Lucie County (they skip Martin County, as expensive as Palm Beach) then commute 50 miles one way to work. St. Lucie was cheap a few years ago (you could buy a lot and build a nice house for $125 or so) but the prices have doubled in the past few years. The county is way behind the curve on roads, community services and schools after the building boom of the past 5 years.
Thanks for the info.
Heh, look at this listing in my old neighborhood. They’re trying an ebay style–“Minimum opening bid $370,000 or BUY-IT-NOW at $385,000.”
I bet the “minimum bid” drops next time this is listed.
I’ve been monitoring the bottom end of this market, and it’s been stagnant for months–a couple properties go into escrow only to fall out again (repeatedly–must be damaged goods). Lately the inventory of “cheap” houses has been increasing significantly with new properties entering (or falling into) the lower price range daily. Starting to see y-o-y price declines in pockets (one city I noticed has had 4 months of negative y-o-y); growing more widespread every month.
There’s a little thing about bankruptcy on MSN today. Here’s a nice gem: If you’re planning to buy a house or a car, you might want to do that before you file. Those loans will be tough to get, and the higher interest rate on such a large purchase would make a significant impact on your payments. So now we know why sales have been propped up for awhile. Broke people buying houses before they file for bankruptcy! What a responsible nation we live in!
12 bankruptcy myths
Check out Business Week.com’s real estate blog. I found the latest entry by Peter Coy interesting. He talks about his colleague James C. Cooper’s outlook on the housing market.
http://www.businessweek.com/the_thread/hotproperty
had to share this one:
Price Reduced
whoops - here it is again:
Price Reduced
Here’s an interersting craiglist. I guess it’s a joke (?) http://orangecounty.craigslist.org/rfs/178047188.html
Orange county market going down????????????
Most people think this is the top of the market.
The bubble is bursting.. Is it?
Yes, home values are adjusting downward, but is it from current inventory or is it really the end.
Example;
Mission viejo
1002 homes for sale today
99 homes sold in June
10 months of inventory if not another home come on the market
Last year this time
Mission Viejo
453 homes for sale
203 sold in June
2 months of inventory
Is it supply and demand?
In early 2004, prices were racing up with multiply offers due to very very low inventory levels.
In 2006, prices are adjusting slightly down, due to a very high level of inventory.
IT’S Finally A BUYERS MARKEY NOW!!!!
You make the decision.
1. Buy now and get a great deal.
2. Buy later, when inventory is low and you’ll be bidding overprice.
In the history of Real Estate, home prices have always gone up. Right?
Look at the attitude on this jerk. House is grossly overpriced and he wants out.
http://phoenix.craigslist.org/rfs/178230459.html