govt intervention

[eavesdropper]

[quote=CA renter][quote=eavesdropper]
Nicely done on the sale, eavesdropper. 🙂

Thanks for filling us in on what’s going on in your market. From everything I’m hearing and reading, it sounds like your area is doing exceptionally well. Of course, like here, there are areas that have held up better than others.

The market’s still crazy here, if that’s any kind of forward-indicator for you. We’ll see if this changes over the next year or two.[/quote]

Thanks, CA renter. We were extremely fortunate. Within a less than a year, sale prices of the houses in our development had dropped by $100K (but, damn, I miss the closet space!)

Sale prices in our new development have actually gone up a bit. Not enough to be statistically significant, but, oh, so much better than dropping. But I’m convinced we’ve got a way to go before things bottom out here.

Northern VA seems to be having a much tougher time of it than we on the MD side of DC. But their growth during the aughts was much less controlled than ours, mostly in the exurbs. Individuals buying new construction for $250,000 were seeing their appraisals go up to $325K before building was complete, and “values” were at $500K+ before the wake-up call. I think that they were double-whammied by the high commuting costs in 2008 in addition to changing market conditions.

But even though I believe that our market is far from bottoming out, we do have a certain stability in the employment sector lent by the presence of the Federal government. As I mentioned in an earlier post, I don’t think that makes us recession-proof, but it’s a helluva lot more than most areas have these days.

But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?

[UCGal]

[quote=eavesdropper]But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

There seems to be a lot of denial around. I follow listings and sales in my neighborhood pretty closely. Here’s an example..
http://www.sdlookup.com/MLS-090062493-2615_Curie_Pl_San_Diego_CA_92122

Seller is asking $942k and has been listed for 70 days. It’s a nice house with a nice view of San Clemente Canyon (and presumably Mt. Soledad). But with that view of San Clemente Canyon – you get noise from freeway 52. I know, I have a canyon view that is a bit further up the hill from the freeway… We hear the freeway. That will dissuade some buyers.

1 block away was a house that sold for $555k. Just 2 months ago.
http://www.sdlookup.com/MLS-090037845-2839_Curie_San_Diego_CA_92122

It was beat and in pretty harsh condition (per comments on SDLookup) – but the $400k price difference can buy you a lot of fixing up.

I’ve seen a few finally go off the market, without lowering the price, because they couldn’t get their price. One I was watching closely a few months ago – asking $939k with no nibbles.
http://www.sdlookup.com/MLS-090026415-4321_Bromfield_San_Diego_CA_92122

Recently the same model, same block, but in crap condition, went pending for $690k in less than a month. I’m guessing it will go for around $650k. Again, I’d say $300k will buy a lot of fixing up.

Denial lives large.

To quote Jim the Realtor – there’s nothing price won’t fix.

[UCGal]

[quote=eavesdropper]But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

There seems to be a lot of denial around. I follow listings and sales in my neighborhood pretty closely. Here’s an example..
http://www.sdlookup.com/MLS-090062493-2615_Curie_Pl_San_Diego_CA_92122

Seller is asking $942k and has been listed for 70 days. It’s a nice house with a nice view of San Clemente Canyon (and presumably Mt. Soledad). But with that view of San Clemente Canyon – you get noise from freeway 52. I know, I have a canyon view that is a bit further up the hill from the freeway… We hear the freeway. That will dissuade some buyers.

1 block away was a house that sold for $555k. Just 2 months ago.
http://www.sdlookup.com/MLS-090037845-2839_Curie_San_Diego_CA_92122

It was beat and in pretty harsh condition (per comments on SDLookup) – but the $400k price difference can buy you a lot of fixing up.

I’ve seen a few finally go off the market, without lowering the price, because they couldn’t get their price. One I was watching closely a few months ago – asking $939k with no nibbles.
http://www.sdlookup.com/MLS-090026415-4321_Bromfield_San_Diego_CA_92122

Recently the same model, same block, but in crap condition, went pending for $690k in less than a month. I’m guessing it will go for around $650k. Again, I’d say $300k will buy a lot of fixing up.

Denial lives large.

To quote Jim the Realtor – there’s nothing price won’t fix.

[UCGal]

[quote=eavesdropper]But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

There seems to be a lot of denial around. I follow listings and sales in my neighborhood pretty closely. Here’s an example..
http://www.sdlookup.com/MLS-090062493-2615_Curie_Pl_San_Diego_CA_92122

Seller is asking $942k and has been listed for 70 days. It’s a nice house with a nice view of San Clemente Canyon (and presumably Mt. Soledad). But with that view of San Clemente Canyon – you get noise from freeway 52. I know, I have a canyon view that is a bit further up the hill from the freeway… We hear the freeway. That will dissuade some buyers.

1 block away was a house that sold for $555k. Just 2 months ago.
http://www.sdlookup.com/MLS-090037845-2839_Curie_San_Diego_CA_92122

It was beat and in pretty harsh condition (per comments on SDLookup) – but the $400k price difference can buy you a lot of fixing up.

I’ve seen a few finally go off the market, without lowering the price, because they couldn’t get their price. One I was watching closely a few months ago – asking $939k with no nibbles.
http://www.sdlookup.com/MLS-090026415-4321_Bromfield_San_Diego_CA_92122

Recently the same model, same block, but in crap condition, went pending for $690k in less than a month. I’m guessing it will go for around $650k. Again, I’d say $300k will buy a lot of fixing up.

Denial lives large.

To quote Jim the Realtor – there’s nothing price won’t fix.

[UCGal]

[quote=eavesdropper]But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

There seems to be a lot of denial around. I follow listings and sales in my neighborhood pretty closely. Here’s an example..
http://www.sdlookup.com/MLS-090062493-2615_Curie_Pl_San_Diego_CA_92122

Seller is asking $942k and has been listed for 70 days. It’s a nice house with a nice view of San Clemente Canyon (and presumably Mt. Soledad). But with that view of San Clemente Canyon – you get noise from freeway 52. I know, I have a canyon view that is a bit further up the hill from the freeway… We hear the freeway. That will dissuade some buyers.

1 block away was a house that sold for $555k. Just 2 months ago.
http://www.sdlookup.com/MLS-090037845-2839_Curie_San_Diego_CA_92122

It was beat and in pretty harsh condition (per comments on SDLookup) – but the $400k price difference can buy you a lot of fixing up.

I’ve seen a few finally go off the market, without lowering the price, because they couldn’t get their price. One I was watching closely a few months ago – asking $939k with no nibbles.
http://www.sdlookup.com/MLS-090026415-4321_Bromfield_San_Diego_CA_92122

Recently the same model, same block, but in crap condition, went pending for $690k in less than a month. I’m guessing it will go for around $650k. Again, I’d say $300k will buy a lot of fixing up.

Denial lives large.

To quote Jim the Realtor – there’s nothing price won’t fix.

[UCGal]

[quote=eavesdropper]But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

There seems to be a lot of denial around. I follow listings and sales in my neighborhood pretty closely. Here’s an example..
http://www.sdlookup.com/MLS-090062493-2615_Curie_Pl_San_Diego_CA_92122

Seller is asking $942k and has been listed for 70 days. It’s a nice house with a nice view of San Clemente Canyon (and presumably Mt. Soledad). But with that view of San Clemente Canyon – you get noise from freeway 52. I know, I have a canyon view that is a bit further up the hill from the freeway… We hear the freeway. That will dissuade some buyers.

1 block away was a house that sold for $555k. Just 2 months ago.
http://www.sdlookup.com/MLS-090037845-2839_Curie_San_Diego_CA_92122

It was beat and in pretty harsh condition (per comments on SDLookup) – but the $400k price difference can buy you a lot of fixing up.

I’ve seen a few finally go off the market, without lowering the price, because they couldn’t get their price. One I was watching closely a few months ago – asking $939k with no nibbles.
http://www.sdlookup.com/MLS-090026415-4321_Bromfield_San_Diego_CA_92122

Recently the same model, same block, but in crap condition, went pending for $690k in less than a month. I’m guessing it will go for around $650k. Again, I’d say $300k will buy a lot of fixing up.

Denial lives large.

To quote Jim the Realtor – there’s nothing price won’t fix.

[Anonymous]

[quote=SK in CV]Certainly there are lifestyle advantages to homeowners, but that’s significantly different than true economic benefit. If a homeowner is $100,000 underwater and their loan is permanently modified to zero equity, they still got nothing.[/quote]

There’s another way to look at this:

Assume the homeowner put zero down. (Not uncommon, and explains why they are so underwater.)

The homeowner has a neighbor (in an identical house) that put $100K down when they purchased, so they are at zero equity also.

Ten years from now, RE eventually recovers and the homes appreciate by $50K. Both homeowners sell.

The person who put money down loses 50% of his initial investment — the one who got a principal reduction goes on a $50K spending spree with the “nothing” that they received.

[Anonymous]

[quote=SK in CV]Certainly there are lifestyle advantages to homeowners, but that’s significantly different than true economic benefit. If a homeowner is $100,000 underwater and their loan is permanently modified to zero equity, they still got nothing.[/quote]

There’s another way to look at this:

Assume the homeowner put zero down. (Not uncommon, and explains why they are so underwater.)

The homeowner has a neighbor (in an identical house) that put $100K down when they purchased, so they are at zero equity also.

Ten years from now, RE eventually recovers and the homes appreciate by $50K. Both homeowners sell.

The person who put money down loses 50% of his initial investment — the one who got a principal reduction goes on a $50K spending spree with the “nothing” that they received.

[Anonymous]

[quote=SK in CV]Certainly there are lifestyle advantages to homeowners, but that’s significantly different than true economic benefit. If a homeowner is $100,000 underwater and their loan is permanently modified to zero equity, they still got nothing.[/quote]

There’s another way to look at this:

Assume the homeowner put zero down. (Not uncommon, and explains why they are so underwater.)

The homeowner has a neighbor (in an identical house) that put $100K down when they purchased, so they are at zero equity also.

Ten years from now, RE eventually recovers and the homes appreciate by $50K. Both homeowners sell.

The person who put money down loses 50% of his initial investment — the one who got a principal reduction goes on a $50K spending spree with the “nothing” that they received.

[Anonymous]

[quote=SK in CV]Certainly there are lifestyle advantages to homeowners, but that’s significantly different than true economic benefit. If a homeowner is $100,000 underwater and their loan is permanently modified to zero equity, they still got nothing.[/quote]

There’s another way to look at this:

Assume the homeowner put zero down. (Not uncommon, and explains why they are so underwater.)

The homeowner has a neighbor (in an identical house) that put $100K down when they purchased, so they are at zero equity also.

Ten years from now, RE eventually recovers and the homes appreciate by $50K. Both homeowners sell.

The person who put money down loses 50% of his initial investment — the one who got a principal reduction goes on a $50K spending spree with the “nothing” that they received.

[Anonymous]

[quote=SK in CV]Certainly there are lifestyle advantages to homeowners, but that’s significantly different than true economic benefit. If a homeowner is $100,000 underwater and their loan is permanently modified to zero equity, they still got nothing.[/quote]

There’s another way to look at this:

Assume the homeowner put zero down. (Not uncommon, and explains why they are so underwater.)

The homeowner has a neighbor (in an identical house) that put $100K down when they purchased, so they are at zero equity also.

Ten years from now, RE eventually recovers and the homes appreciate by $50K. Both homeowners sell.

The person who put money down loses 50% of his initial investment — the one who got a principal reduction goes on a $50K spending spree with the “nothing” that they received.

[CA renter]

[quote=eavesdropper]
But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

Like UCGal pointed out, the denial is thick around here.

That “Real Estate Intervention” show is great, BTW. It’s funny to get a glimpse into the minds of delusional sellers. There was the one couple who thought a fireplace in a comp should lower the value, because people with kids wouldn’t want a fireplace. Seriously, what is wrong with these people?

[CA renter]

[quote=eavesdropper]
But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

Like UCGal pointed out, the denial is thick around here.

That “Real Estate Intervention” show is great, BTW. It’s funny to get a glimpse into the minds of delusional sellers. There was the one couple who thought a fireplace in a comp should lower the value, because people with kids wouldn’t want a fireplace. Seriously, what is wrong with these people?

[CA renter]

[quote=eavesdropper]
But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

Like UCGal pointed out, the denial is thick around here.

That “Real Estate Intervention” show is great, BTW. It’s funny to get a glimpse into the minds of delusional sellers. There was the one couple who thought a fireplace in a comp should lower the value, because people with kids wouldn’t want a fireplace. Seriously, what is wrong with these people?

[CA renter]

[quote=eavesdropper]
But I am curious about one thing that’s been discussed in this thread: Denial. Is it as strong in your neck of the woods as it is here (documented for posterity on “Real Estate Intervention”)? Time and time again, I meet people who readily acknowledge the severity of the real estate crisis, but, somehow, feel that their home is different, and that they’ll have no problem charging, and getting, significantly more money for it. Is denial still as prevalent in SoCal as it is here, or are most sellers finally getting the message (before the “message” comes from their mortgage lender)?[/quote]

Like UCGal pointed out, the denial is thick around here.

That “Real Estate Intervention” show is great, BTW. It’s funny to get a glimpse into the minds of delusional sellers. There was the one couple who thought a fireplace in a comp should lower the value, because people with kids wouldn’t want a fireplace. Seriously, what is wrong with these people?

[Author]

Posts