Odd Markets

[socrattt]

I am just curious if anyone is starting to notice some very odd things happening around town. First off being involved in the real estate market I am flabbergasted that some homes are fetching more money than the top of the market. I’ve seen at least 3 or 4 homes closing in the last few weeks that achieved a higher sales price than a 2006 purchase prices. I haven’t really been searching, so I am assuming there are plenty more. These are homes in Coastal North County (but all the ones I saw were east of the 5).

I know inventory is being controlled, but it’s starting to really take its toll on the emotions of buyers and sellers. The fact that banks are playing games with short sales is unreal. I ran some numbers on 60 and 90 mortgage lates and it’s astonishing how many people are behind on their mortgage. And what do we have to show for it? How about another real estate bubble in the making. The problem is it may take 2-3 years for this next bubble to pop as they continue to control the distressed inventory.

Another very interesting thing I noticed is the car market. My wife and I recently added another child to our collection so we have been car shopping. I sold a 2007 Chevrolet Tahoe 18 months ago to downsize to a 4 cylinder car to save money on gas only to notice that I could now sell that same car for $3-$5k more. Granted that was when gas was $4/gallon, but I’m just noticing some crazy things.

The financing market in respect to used cars has changed in terms of private party transactions. I am actually contemplating on selling my car to a friend and carrying back a note as I can’t find a buyer for my car at $2K under the wholesale price, yet big SUV’s are selling over KBB. I can get a loan from a dealership, but my bank won’t led me much even with good credit. It’s just an odd market if you ask me.

Anyone else notice changes out there or am I just delusional?

[moneymaker]

Yes I think it is odd that wine milk and eggs are so cheap. Does the government want me to get drunk? Do they want me to have a heart attack? Dinner out is expensive but the raw materials to make that dinner is relatively cheap. I think if one takes advantage of what is cheap then one can do without the expensive stuff. I really think it is weird when I can refi a used car for less than I’m paying on my already rediculously low mortgage.

[moneymaker]

Yes I think it is odd that wine milk and eggs are so cheap. Does the government want me to get drunk? Do they want me to have a heart attack? Dinner out is expensive but the raw materials to make that dinner is relatively cheap. I think if one takes advantage of what is cheap then one can do without the expensive stuff. I really think it is weird when I can refi a used car for less than I’m paying on my already rediculously low mortgage.

[moneymaker]

Yes I think it is odd that wine milk and eggs are so cheap. Does the government want me to get drunk? Do they want me to have a heart attack? Dinner out is expensive but the raw materials to make that dinner is relatively cheap. I think if one takes advantage of what is cheap then one can do without the expensive stuff. I really think it is weird when I can refi a used car for less than I’m paying on my already rediculously low mortgage.

[moneymaker]

Yes I think it is odd that wine milk and eggs are so cheap. Does the government want me to get drunk? Do they want me to have a heart attack? Dinner out is expensive but the raw materials to make that dinner is relatively cheap. I think if one takes advantage of what is cheap then one can do without the expensive stuff. I really think it is weird when I can refi a used car for less than I’m paying on my already rediculously low mortgage.

[moneymaker]

Yes I think it is odd that wine milk and eggs are so cheap. Does the government want me to get drunk? Do they want me to have a heart attack? Dinner out is expensive but the raw materials to make that dinner is relatively cheap. I think if one takes advantage of what is cheap then one can do without the expensive stuff. I really think it is weird when I can refi a used car for less than I’m paying on my already rediculously low mortgage.

[CA renter]

socrattt,

We’re seeing the same things you are. Could this be the “inflation” so many have been anticipating? Is it the result of the Fed/govt flooding the market with trillions of dollars that were meant specifically to prop up asset prices? Don’t forget about the “cash for clunkers” which was meant to reduce the number of used cars in the market so that new cars (and the remaining used ones) could be priced higher.

It is all a game of asset price inflation. Wish they could figure out a way to inflate wages! Who knows how long they can continue this charade…

[CA renter]

socrattt,

We’re seeing the same things you are. Could this be the “inflation” so many have been anticipating? Is it the result of the Fed/govt flooding the market with trillions of dollars that were meant specifically to prop up asset prices? Don’t forget about the “cash for clunkers” which was meant to reduce the number of used cars in the market so that new cars (and the remaining used ones) could be priced higher.

It is all a game of asset price inflation. Wish they could figure out a way to inflate wages! Who knows how long they can continue this charade…

[CA renter]

socrattt,

We’re seeing the same things you are. Could this be the “inflation” so many have been anticipating? Is it the result of the Fed/govt flooding the market with trillions of dollars that were meant specifically to prop up asset prices? Don’t forget about the “cash for clunkers” which was meant to reduce the number of used cars in the market so that new cars (and the remaining used ones) could be priced higher.

It is all a game of asset price inflation. Wish they could figure out a way to inflate wages! Who knows how long they can continue this charade…

[CA renter]

socrattt,

We’re seeing the same things you are. Could this be the “inflation” so many have been anticipating? Is it the result of the Fed/govt flooding the market with trillions of dollars that were meant specifically to prop up asset prices? Don’t forget about the “cash for clunkers” which was meant to reduce the number of used cars in the market so that new cars (and the remaining used ones) could be priced higher.

It is all a game of asset price inflation. Wish they could figure out a way to inflate wages! Who knows how long they can continue this charade…

[CA renter]

socrattt,

We’re seeing the same things you are. Could this be the “inflation” so many have been anticipating? Is it the result of the Fed/govt flooding the market with trillions of dollars that were meant specifically to prop up asset prices? Don’t forget about the “cash for clunkers” which was meant to reduce the number of used cars in the market so that new cars (and the remaining used ones) could be priced higher.

It is all a game of asset price inflation. Wish they could figure out a way to inflate wages! Who knows how long they can continue this charade…

[sdrealtor]

Its very sporadic as most things I see in NCC are 15 to 20% below peak pricing (which was between March 2004 and late 2005 in NCC). I’m sure there are some things selling above 2006 prices but would be interested to see the properties as they may be circumstance specific and not the norm.

I believe this can go and will go on for years, so the question is how can you find a way to win under these rules?

[sdrealtor]

Its very sporadic as most things I see in NCC are 15 to 20% below peak pricing (which was between March 2004 and late 2005 in NCC). I’m sure there are some things selling above 2006 prices but would be interested to see the properties as they may be circumstance specific and not the norm.

I believe this can go and will go on for years, so the question is how can you find a way to win under these rules?

[sdrealtor]

Its very sporadic as most things I see in NCC are 15 to 20% below peak pricing (which was between March 2004 and late 2005 in NCC). I’m sure there are some things selling above 2006 prices but would be interested to see the properties as they may be circumstance specific and not the norm.

I believe this can go and will go on for years, so the question is how can you find a way to win under these rules?

[sdrealtor]

Its very sporadic as most things I see in NCC are 15 to 20% below peak pricing (which was between March 2004 and late 2005 in NCC). I’m sure there are some things selling above 2006 prices but would be interested to see the properties as they may be circumstance specific and not the norm.

I believe this can go and will go on for years, so the question is how can you find a way to win under these rules?

[Author]

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