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SD R,

I wholeheartedly agree. However, politicians wasting money on unethical ideas is nothing new and as long as it does not artifically prop up the market or bail out out too many “scammers”, I’m not going to raise my blood pressure over it. There are bigger wastes of money to get angry about.

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That is a pretty narrow scope for SD. Possibly there are a few condo owners that purchased before 03 that it applies to. Not much else…

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That seems like a good thing regardless of the reasoning. Essential wouldn’t that push prices down quicker? Which in turn would correct the market that much sooner.

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I threw out for the wise PIGS to comment on what this means especially when the other markets in the southwest have continued to climb. It is a fact that inventory is at a record high it is not still increasing as of April of 07 according…

1: You are reading it incorrectly. Other southwest areas are not climbing. They all adjusted down from the 6 month to 12 month just like SD. They just have not adjusted down to flat YOY like SD. But they are all showing the same pattern. Possibly a seasonal thing. I believe march-aug is the hot season to sell.

2: As other posters have said. It is a somewhat meaningless stat. It’s all about months of inventory. The decrease in inventory did not translate into sales it translates to listings going away in some manner. Most listings that remain are “must sell” IMO

3: Sales continues to decline.

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“I signed and came home and gave the papers to my husband. He read them and ended up having a heart attack and [later] a stroke. He was in the hospital, and he said, ‘What are we going to do now? Our payments are going up. We’ll lose our house, everything. We’ll be in the streets.’ He was in the hospital for three weeks and lost his mind. He’s not able to think for himself or do anything. Sometimes he doesn’t remember things. My life changed from bad to worse.”

Ok, I only made it thru the the 2nd page and it does not make sense. The loan paperwork actually said what there payment was going to do.

You have 3 days to cancel the loan. Why didn’t they do it?
The purchased in 02 and refi’d in 05. They should have had plenty of equity for at least a year after the 05 refi. Why didn’t they refi to better terms?

It also said the opening bid was $1000 for there home. I don’t believe that is happening.
And finally it said that the home sold for 100K or 25% lower than the 02 price? Another suspect comment…

The story seems made up….? Or did the reporter leave out facts, like they cashed out a bunch of their equity for toys in 05. Something is fishy?

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I can count an extra 25-30% inventory with the new construction condos in my zipcode w/o putting much effort into it….

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I live right by the other DR Horton developement (Atlas). It looks to be just about complete. I have a feeling the fate of Atlas will be the same as La Boheme. I saw someone trying to pawn their pre-construction unit off on craigslist last month so they could get their deposit back.

On a side note. I rent in a new condo developement. My landlord was an investor and he owns 3 units of the 12 with a contigency that he will not sell for 5 years. We moved in back in November when it was first completed. Since then they have sold the 2 smaller units and thats it.

Today there were workers installing blinds and carpet in all of the units. I guess they decided to turn them into rentals according the the workers. I can’t imagine how it feels for the 2 buyers who pay double what eveybody else does to live in the same place. I actually feel uncomfortable when I am in the elevator with them.

[Arraya]

many areas in SD are already selling 04 prices. Some condos are going for 03 prices in some of the harder hit areas.

I think OC peaked about 6 months after SD. So you guys are a little behind in rollbacks… Don’t worry it’s coming!

Time to go to the beach….

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These types of markets were not propped up by loose lending standards and speculative buying. So I would assume they are not going to be affected in the same way as “regular” markets that were.

With that said, there was another post a few days ago of a property that sold for 8 million in 05 and 6.5 last month in La Jolla. But I can only imagine that the rules are different because the prices were not artificialy inflated.

From what I read the extremely wealthy are doing very well these days with all the taxes breaks and such. So one could only assume that their RE markets are going up because their incomes are. That would be my guess….

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If you and your wife are ok with throwing lots of money away just go ahead and buy the SFR. Buying something that you do not want to spend a lot of time in will just increase the money wasted and possibly ruin your future plans. I’m sure that condo will not cash flow out if rented. You need to check your math…

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Yes and in usual Bushie fashion will probably appoint somebody like Charles Keating to head a committee to spearhead the problem…

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“Among the most tangible moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates.

So if I read this correctly. They are modifiying underwriting guidlines to include people that have fallen behind on payments. In other words willing to lend money to people with poor credit on an asset that is depreciating in value with little or no equity at very low rates. Not sure that is a great idea.

Does this appy to those who are upside down in their home?

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Bsharma, I agree with what you are saying. However, I think you are minimizing what an appraiser does. Besides giving you a value and a pageful of comps, they also do a market analysis, which is what is needed in this case. Though, you’re correct, I am sure an experienced realtor could do a much better job than the one in question.

I think we are all in agreement that the current realtor is just pulling numbers out of there a@$….

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I think your first mistake is asking a realtor to price it (no offense to any realtors, some are not experienced at pricing in a down market). Take the pricing into your own hands. Get an appraisal from an experienced appraiser. Ask for as many comps a possible to get a good idea of where pricing is, where it was and where it looks to be going in your neigborhood. Then price ahead of the curve 5-10%, depending on how fast prices are declining in your area.

[Arraya]

Want to get your blood pressure up more. Check out this seminar from last year that George did talking about negative media bias on housing. Oh, btw did you know children of renters are more likely to get pregnant out of wedlock….

http://delsurseminar.delsurliving.com./

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