Forum Replies Created
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AuthorPosts
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cyphire
ParticipantHey fat_lazy (no offense!) – you might be right – when you suggest that a 600K in Chula compared to a 800K in Carmel Valley. But what 800K’s are you talking about? There are some (few) 800-1M’s in CV, they are not the typical I was used to. My old neighbor has his home (exact same plan I had) up for 1.8M. He copied our plans (we added a room by putting up a ceiling in a double high master, and we sold our house for 1.4M 3 years ago.
When we redid our kitchen, we found out that the crappy crew in 1992 who had recently learned how to use a nail gun, had put 5 nails into the kitchen trap pipe. When we opened up the cabinets, there was mold everywhere. Luckily we had completely gutted the kitchen (down to the studs – and we replaced those as well), but when you open up a CV home (especially circa early 90’s) – these homes are built like paper-mache.
There have been countless problems with the CV homes, mostly swept under the rug by the homeowners and the Realtors. Luckily they don’t have any realistic requirement to disclose (sure legally they do, but for the 10 hours of training and 100$ fee doesn’t exactly bring a sense of ethical responsibility). Some of the builders in CV went out of business in the last bust, not having completed required landscaping of public areas and fixing of major problems. Leaky pipes, air conditioners which leaked, crooked homes, cracks, etc. these houses were built quickly and with terrible quality – remember, they only cost 300ishK new (including the land!)… Now, supposedly these McMansions on 5-7K of usable land are worth between 1.1 and 1.9M????
I got a real sense of satisfaction moving to a very-high end tract home (oh excuse me ‘production home’) and getting away from the paper thin, listen to your neighbors cough CV home (in supposedly the nicest area of CV by Ashely Falls). I got an even better sense of satisfaction selling my recent home in December… No one is showing up to buy the other houses in the neighborhood… I’m sitting this one out!
ParticipantHey fat_lazy (no offense!) – you might be right – when you suggest that a 600K in Chula compared to a 800K in Carmel Valley. But what 800K’s are you talking about? There are some (few) 800-1M’s in CV, they are not the typical I was used to. My old neighbor has his home (exact same plan I had) up for 1.8M. He copied our plans (we added a room by putting up a ceiling in a double high master, and we sold our house for 1.4M 3 years ago.
When we redid our kitchen, we found out that the crappy crew in 1992 who had recently learned how to use a nail gun, had put 5 nails into the kitchen trap pipe. When we opened up the cabinets, there was mold everywhere. Luckily we had completely gutted the kitchen (down to the studs – and we replaced those as well), but when you open up a CV home (especially circa early 90’s) – these homes are built like paper-mache.
There have been countless problems with the CV homes, mostly swept under the rug by the homeowners and the Realtors. Luckily they don’t have any realistic requirement to disclose (sure legally they do, but for the 10 hours of training and 100$ fee doesn’t exactly bring a sense of ethical responsibility). Some of the builders in CV went out of business in the last bust, not having completed required landscaping of public areas and fixing of major problems. Leaky pipes, air conditioners which leaked, crooked homes, cracks, etc. these houses were built quickly and with terrible quality – remember, they only cost 300ishK new (including the land!)… Now, supposedly these McMansions on 5-7K of usable land are worth between 1.1 and 1.9M????
I got a real sense of satisfaction moving to a very-high end tract home (oh excuse me ‘production home’) and getting away from the paper thin, listen to your neighbors cough CV home (in supposedly the nicest area of CV by Ashely Falls). I got an even better sense of satisfaction selling my recent home in December… No one is showing up to buy the other houses in the neighborhood… I’m sitting this one out!
ParticipantHey fat_lazy (no offense!) – you might be right – when you suggest that a 600K in Chula compared to a 800K in Carmel Valley. But what 800K’s are you talking about? There are some (few) 800-1M’s in CV, they are not the typical I was used to. My old neighbor has his home (exact same plan I had) up for 1.8M. He copied our plans (we added a room by putting up a ceiling in a double high master, and we sold our house for 1.4M 3 years ago.
When we redid our kitchen, we found out that the crappy crew in 1992 who had recently learned how to use a nail gun, had put 5 nails into the kitchen trap pipe. When we opened up the cabinets, there was mold everywhere. Luckily we had completely gutted the kitchen (down to the studs – and we replaced those as well), but when you open up a CV home (especially circa early 90’s) – these homes are built like paper-mache.
There have been countless problems with the CV homes, mostly swept under the rug by the homeowners and the Realtors. Luckily they don’t have any realistic requirement to disclose (sure legally they do, but for the 10 hours of training and 100$ fee doesn’t exactly bring a sense of ethical responsibility). Some of the builders in CV went out of business in the last bust, not having completed required landscaping of public areas and fixing of major problems. Leaky pipes, air conditioners which leaked, crooked homes, cracks, etc. these houses were built quickly and with terrible quality – remember, they only cost 300ishK new (including the land!)… Now, supposedly these McMansions on 5-7K of usable land are worth between 1.1 and 1.9M????
I got a real sense of satisfaction moving to a very-high end tract home (oh excuse me ‘production home’) and getting away from the paper thin, listen to your neighbors cough CV home (in supposedly the nicest area of CV by Ashely Falls). I got an even better sense of satisfaction selling my recent home in December… No one is showing up to buy the other houses in the neighborhood… I’m sitting this one out!
ParticipantThere are victims here – but they are victims of timing and of chance. They might have drunk the kool-aid, but there was a kool-aid station at every single corner, and all their friends and neighbors were drinking the kool-aid too.
Lets look at the REALLY big picture for a sec….
This country is, and has been, going back to a turn of the century economy. There is a large gap between the wealthy and everyone else, the middle class is shrinking and getting squeezed, and the wealthy are getting HUGELY wealthy. We import everything and keep prices low by having huge numbers of workers (china) making a subsistence wage.
This is the same dynamic we are seeing and have seen in the financial markets. The US is a service economy and instead of building anything, we trade financial futures and financial instruments. Up till last month it was billions of billions of dollars being leveraged for / with corporate debt to buy out everything in sight. Mortgages were sold by the millions, without documentation etc. and repackaged to be just another low risk paper, but in reality explosively toxic financial instruments.
Our Republican administration has advanced greed and screw the people to an unprecedented point. No healthcare, low taxes for the wealthy, capital gains of 15%, anything goes in the financial community, approval of mergers which are anti-competitive, whatever the lobbyists want – carte’ blanch. Sorry – no rants against this please… It’s the middle and lower classes which got screwed by this administration, and it will continue for as long as the party of wealth and power keep paying off corrupt officials (on both sides).
From a micro standpoint – there has to be fuel for the Orc’s underground lair to make weapons with and to get rich off of. This is where the homeowners came in. Desperate to buy a house (whether a orange picker in Barstow, to a doctor’s wife in CV), people do what they have to to get their home. NO ONE is non-emotional and detached when then think of their future, and their living conditions compared to their peers and neighbors. Our government had a hands off policy toward wall street and toward the housing industry. Our politicians get reelected based on the economy (it’s the economy stupid!) and if the price that is paid is lemmings jumping off the edge to feed the financial fires, so be it.
Please… Understand my position. Almost no one can stand under the pressure of timing the market… The market is the market and the hucksters who are making more and more money start going out of control. They lie, misrepresent and then repackage and sell. Will they pay? No. Absolutely not. They will move on to something else and their short term prospects are pretty good – they make out like bandits.
Who pays? We all do. Our government should identify and stop this behavior… But they are the enablers. Where was Greenspan when he dropped interest rates to 0.5%? Why didn’t he report to congress the potential for disaster? Why didn’t congress stop the mortgage market from selling loans to people who were ninjas? This is what Government is supposed to do. Capitalism needs controls, or we have what we had at the beginning of the century – small numbers of people controlling and owning everything, and the regular guy getting screwed.
It is a house of cards…. It’s a house of cards because the dealers have the game rigged.
ParticipantThere are victims here – but they are victims of timing and of chance. They might have drunk the kool-aid, but there was a kool-aid station at every single corner, and all their friends and neighbors were drinking the kool-aid too.
Lets look at the REALLY big picture for a sec….
This country is, and has been, going back to a turn of the century economy. There is a large gap between the wealthy and everyone else, the middle class is shrinking and getting squeezed, and the wealthy are getting HUGELY wealthy. We import everything and keep prices low by having huge numbers of workers (china) making a subsistence wage.
This is the same dynamic we are seeing and have seen in the financial markets. The US is a service economy and instead of building anything, we trade financial futures and financial instruments. Up till last month it was billions of billions of dollars being leveraged for / with corporate debt to buy out everything in sight. Mortgages were sold by the millions, without documentation etc. and repackaged to be just another low risk paper, but in reality explosively toxic financial instruments.
Our Republican administration has advanced greed and screw the people to an unprecedented point. No healthcare, low taxes for the wealthy, capital gains of 15%, anything goes in the financial community, approval of mergers which are anti-competitive, whatever the lobbyists want – carte’ blanch. Sorry – no rants against this please… It’s the middle and lower classes which got screwed by this administration, and it will continue for as long as the party of wealth and power keep paying off corrupt officials (on both sides).
From a micro standpoint – there has to be fuel for the Orc’s underground lair to make weapons with and to get rich off of. This is where the homeowners came in. Desperate to buy a house (whether a orange picker in Barstow, to a doctor’s wife in CV), people do what they have to to get their home. NO ONE is non-emotional and detached when then think of their future, and their living conditions compared to their peers and neighbors. Our government had a hands off policy toward wall street and toward the housing industry. Our politicians get reelected based on the economy (it’s the economy stupid!) and if the price that is paid is lemmings jumping off the edge to feed the financial fires, so be it.
Please… Understand my position. Almost no one can stand under the pressure of timing the market… The market is the market and the hucksters who are making more and more money start going out of control. They lie, misrepresent and then repackage and sell. Will they pay? No. Absolutely not. They will move on to something else and their short term prospects are pretty good – they make out like bandits.
Who pays? We all do. Our government should identify and stop this behavior… But they are the enablers. Where was Greenspan when he dropped interest rates to 0.5%? Why didn’t he report to congress the potential for disaster? Why didn’t congress stop the mortgage market from selling loans to people who were ninjas? This is what Government is supposed to do. Capitalism needs controls, or we have what we had at the beginning of the century – small numbers of people controlling and owning everything, and the regular guy getting screwed.
It is a house of cards…. It’s a house of cards because the dealers have the game rigged.
ParticipantThere are victims here – but they are victims of timing and of chance. They might have drunk the kool-aid, but there was a kool-aid station at every single corner, and all their friends and neighbors were drinking the kool-aid too.
Lets look at the REALLY big picture for a sec….
This country is, and has been, going back to a turn of the century economy. There is a large gap between the wealthy and everyone else, the middle class is shrinking and getting squeezed, and the wealthy are getting HUGELY wealthy. We import everything and keep prices low by having huge numbers of workers (china) making a subsistence wage.
This is the same dynamic we are seeing and have seen in the financial markets. The US is a service economy and instead of building anything, we trade financial futures and financial instruments. Up till last month it was billions of billions of dollars being leveraged for / with corporate debt to buy out everything in sight. Mortgages were sold by the millions, without documentation etc. and repackaged to be just another low risk paper, but in reality explosively toxic financial instruments.
Our Republican administration has advanced greed and screw the people to an unprecedented point. No healthcare, low taxes for the wealthy, capital gains of 15%, anything goes in the financial community, approval of mergers which are anti-competitive, whatever the lobbyists want – carte’ blanch. Sorry – no rants against this please… It’s the middle and lower classes which got screwed by this administration, and it will continue for as long as the party of wealth and power keep paying off corrupt officials (on both sides).
From a micro standpoint – there has to be fuel for the Orc’s underground lair to make weapons with and to get rich off of. This is where the homeowners came in. Desperate to buy a house (whether a orange picker in Barstow, to a doctor’s wife in CV), people do what they have to to get their home. NO ONE is non-emotional and detached when then think of their future, and their living conditions compared to their peers and neighbors. Our government had a hands off policy toward wall street and toward the housing industry. Our politicians get reelected based on the economy (it’s the economy stupid!) and if the price that is paid is lemmings jumping off the edge to feed the financial fires, so be it.
Please… Understand my position. Almost no one can stand under the pressure of timing the market… The market is the market and the hucksters who are making more and more money start going out of control. They lie, misrepresent and then repackage and sell. Will they pay? No. Absolutely not. They will move on to something else and their short term prospects are pretty good – they make out like bandits.
Who pays? We all do. Our government should identify and stop this behavior… But they are the enablers. Where was Greenspan when he dropped interest rates to 0.5%? Why didn’t he report to congress the potential for disaster? Why didn’t congress stop the mortgage market from selling loans to people who were ninjas? This is what Government is supposed to do. Capitalism needs controls, or we have what we had at the beginning of the century – small numbers of people controlling and owning everything, and the regular guy getting screwed.
It is a house of cards…. It’s a house of cards because the dealers have the game rigged.
ParticipantSomething like 2% of the California work force has a real estate license! I heard this twice on CNN this morning. Is it true? What are they going to do for food?
In my looking for houses here in La Jolla – my biggest turn off was the low quality of the Realtors. The high end Realtors know what they are doing. But the vast majority have gone into RE because they were looking for the big buck upsizing in their personal lives.
I have encountered: Housewives who never worked, teachers who don’t teach, an architect, a couple of stay at home dads, college grads without jobs, family members of other Realtors, ex-cops, ex-lawyers, ex everything.
Only one of them knew the true differences in the 3 school systems here in La Jolla. None of them knew the school principal names. Virtually all of them were less informed then I was about the community – even though I have never lived here before. As salespeople they basically didn’t have ANY skills. It was embarrassing. But Prudential kept hiring them. Someone told me that there were 400 agents in Prudential La Jolla alone.
The fallout from the housing bubble will be dramatic. My sister lives in OC and lots of her friends are losing their jobs or have lost their jobs in the financial sector of mortgages, etc. My cousin is a Realtor up by Malibu – no sales – he lives next door to Countrywide’s headquarters. His house has been on the market for a year – he refuses to lower his price significantly because he wasn’t willing to give away his equity. He has a reverse amortization resetting mortgage and will soon be upside down. It gets worse….
I was in Home Depot – it was a ghost town… Seriously – Costco might have been an off day, and maybe everyone had already shopped for their parties, but Home Depot was a wreck. We will suffer large executive and middle level job losses in Construction, financing, etc. My broker told me that WaMu has spent so much money and has so many offices dedicated to sub-prime and that these offices will be closed and the people fired. My last comment is my friend in New Jersey works for a subprime lender that WaMu owns. He is switching jobs this month, his volume went down by 97% since last year – (he went from making Real Estate money to McDonalds money over the last year)… He and a legion of others will start putting this state into recession.
ParticipantSomething like 2% of the California work force has a real estate license! I heard this twice on CNN this morning. Is it true? What are they going to do for food?
In my looking for houses here in La Jolla – my biggest turn off was the low quality of the Realtors. The high end Realtors know what they are doing. But the vast majority have gone into RE because they were looking for the big buck upsizing in their personal lives.
I have encountered: Housewives who never worked, teachers who don’t teach, an architect, a couple of stay at home dads, college grads without jobs, family members of other Realtors, ex-cops, ex-lawyers, ex everything.
Only one of them knew the true differences in the 3 school systems here in La Jolla. None of them knew the school principal names. Virtually all of them were less informed then I was about the community – even though I have never lived here before. As salespeople they basically didn’t have ANY skills. It was embarrassing. But Prudential kept hiring them. Someone told me that there were 400 agents in Prudential La Jolla alone.
The fallout from the housing bubble will be dramatic. My sister lives in OC and lots of her friends are losing their jobs or have lost their jobs in the financial sector of mortgages, etc. My cousin is a Realtor up by Malibu – no sales – he lives next door to Countrywide’s headquarters. His house has been on the market for a year – he refuses to lower his price significantly because he wasn’t willing to give away his equity. He has a reverse amortization resetting mortgage and will soon be upside down. It gets worse….
I was in Home Depot – it was a ghost town… Seriously – Costco might have been an off day, and maybe everyone had already shopped for their parties, but Home Depot was a wreck. We will suffer large executive and middle level job losses in Construction, financing, etc. My broker told me that WaMu has spent so much money and has so many offices dedicated to sub-prime and that these offices will be closed and the people fired. My last comment is my friend in New Jersey works for a subprime lender that WaMu owns. He is switching jobs this month, his volume went down by 97% since last year – (he went from making Real Estate money to McDonalds money over the last year)… He and a legion of others will start putting this state into recession.
ParticipantSomething like 2% of the California work force has a real estate license! I heard this twice on CNN this morning. Is it true? What are they going to do for food?
In my looking for houses here in La Jolla – my biggest turn off was the low quality of the Realtors. The high end Realtors know what they are doing. But the vast majority have gone into RE because they were looking for the big buck upsizing in their personal lives.
I have encountered: Housewives who never worked, teachers who don’t teach, an architect, a couple of stay at home dads, college grads without jobs, family members of other Realtors, ex-cops, ex-lawyers, ex everything.
Only one of them knew the true differences in the 3 school systems here in La Jolla. None of them knew the school principal names. Virtually all of them were less informed then I was about the community – even though I have never lived here before. As salespeople they basically didn’t have ANY skills. It was embarrassing. But Prudential kept hiring them. Someone told me that there were 400 agents in Prudential La Jolla alone.
The fallout from the housing bubble will be dramatic. My sister lives in OC and lots of her friends are losing their jobs or have lost their jobs in the financial sector of mortgages, etc. My cousin is a Realtor up by Malibu – no sales – he lives next door to Countrywide’s headquarters. His house has been on the market for a year – he refuses to lower his price significantly because he wasn’t willing to give away his equity. He has a reverse amortization resetting mortgage and will soon be upside down. It gets worse….
I was in Home Depot – it was a ghost town… Seriously – Costco might have been an off day, and maybe everyone had already shopped for their parties, but Home Depot was a wreck. We will suffer large executive and middle level job losses in Construction, financing, etc. My broker told me that WaMu has spent so much money and has so many offices dedicated to sub-prime and that these offices will be closed and the people fired. My last comment is my friend in New Jersey works for a subprime lender that WaMu owns. He is switching jobs this month, his volume went down by 97% since last year – (he went from making Real Estate money to McDonalds money over the last year)… He and a legion of others will start putting this state into recession.
ParticipantHaving lived in CV for 5 years (up to 3 years ago) there is something to be said for both opinions (in my opinion!). Carmel Valley is very overpriced – this is a fundamental flaw in the logic that it will hold it’s pricing relative to other areas. I’m not sure that the amount it is overpriced is realistic as other properties go down. CV was a roller coaster over the last 10+ years going straight up. My neighbor still has his house on the market for 1.8M. I think it should be 1.3M, but only if housing prices stay stable. Reality? 800K (eventually)
There has been lots of movement of people in and out of these areas. This is a neighborhood started in 1992, that’s only 15 years ago. The typical owner is a small business owner, executive, doctor, lawyer, investments, banking, etc. If the economy holds up, the prices should stay stable and downward. If the economy does NOT hold up, I still maintain that a lot of these folks are living at a very high level even with very high incomes. They are not banking their income. This isn’t Rancho Santa Fe, it’s not Del Mar at the beach. They have held up because the economy has held up. We are in the first level of crisis in the financial markets. Next year should be awful. The business that these people employ should start layoffs and downsizing to correspond with the economy. This should devastate CV.
Another factor… These houses suck. They are stucco and wire crappy houses 6 feet from their neighbors. Any oversized lots are oversized because half the lot is a hill-side. There is a huge amount of new construction which has yet to be leveraged into the market. It’s an illiquid market, and will not show destabilization until time itself makes the correction.
Bottom line – CV will fall as fast or faster because it has grown faster and higher than it’s more stable long term areas. If the economy chugs along – it won’t fall quickly. If there is a recession – it is a gonner!
ParticipantHaving lived in CV for 5 years (up to 3 years ago) there is something to be said for both opinions (in my opinion!). Carmel Valley is very overpriced – this is a fundamental flaw in the logic that it will hold it’s pricing relative to other areas. I’m not sure that the amount it is overpriced is realistic as other properties go down. CV was a roller coaster over the last 10+ years going straight up. My neighbor still has his house on the market for 1.8M. I think it should be 1.3M, but only if housing prices stay stable. Reality? 800K (eventually)
There has been lots of movement of people in and out of these areas. This is a neighborhood started in 1992, that’s only 15 years ago. The typical owner is a small business owner, executive, doctor, lawyer, investments, banking, etc. If the economy holds up, the prices should stay stable and downward. If the economy does NOT hold up, I still maintain that a lot of these folks are living at a very high level even with very high incomes. They are not banking their income. This isn’t Rancho Santa Fe, it’s not Del Mar at the beach. They have held up because the economy has held up. We are in the first level of crisis in the financial markets. Next year should be awful. The business that these people employ should start layoffs and downsizing to correspond with the economy. This should devastate CV.
Another factor… These houses suck. They are stucco and wire crappy houses 6 feet from their neighbors. Any oversized lots are oversized because half the lot is a hill-side. There is a huge amount of new construction which has yet to be leveraged into the market. It’s an illiquid market, and will not show destabilization until time itself makes the correction.
Bottom line – CV will fall as fast or faster because it has grown faster and higher than it’s more stable long term areas. If the economy chugs along – it won’t fall quickly. If there is a recession – it is a gonner!
ParticipantHaving lived in CV for 5 years (up to 3 years ago) there is something to be said for both opinions (in my opinion!). Carmel Valley is very overpriced – this is a fundamental flaw in the logic that it will hold it’s pricing relative to other areas. I’m not sure that the amount it is overpriced is realistic as other properties go down. CV was a roller coaster over the last 10+ years going straight up. My neighbor still has his house on the market for 1.8M. I think it should be 1.3M, but only if housing prices stay stable. Reality? 800K (eventually)
There has been lots of movement of people in and out of these areas. This is a neighborhood started in 1992, that’s only 15 years ago. The typical owner is a small business owner, executive, doctor, lawyer, investments, banking, etc. If the economy holds up, the prices should stay stable and downward. If the economy does NOT hold up, I still maintain that a lot of these folks are living at a very high level even with very high incomes. They are not banking their income. This isn’t Rancho Santa Fe, it’s not Del Mar at the beach. They have held up because the economy has held up. We are in the first level of crisis in the financial markets. Next year should be awful. The business that these people employ should start layoffs and downsizing to correspond with the economy. This should devastate CV.
Another factor… These houses suck. They are stucco and wire crappy houses 6 feet from their neighbors. Any oversized lots are oversized because half the lot is a hill-side. There is a huge amount of new construction which has yet to be leveraged into the market. It’s an illiquid market, and will not show destabilization until time itself makes the correction.
Bottom line – CV will fall as fast or faster because it has grown faster and higher than it’s more stable long term areas. If the economy chugs along – it won’t fall quickly. If there is a recession – it is a gonner!
ParticipantAlex_angel…. I not sure that your reality fits where the market is going.
We bought a house in Carmel Valley in 2001 for 810K. Sold it in 2004 for 1.4M. My neighbors paid 300K in 1992. My broker told me to get a 1.16% mortgage floating with the LIBOR. I got a 10 year arm at about 5% instead. When I bought my last house got a 1.5M mortgage at 5.5% for 10 years (interest only). Now a 30 year is 7.5% or more (if you can qualify and get it).
Pardee does own all that land (for 20 years or more). They might sit on it. But all those lovely CV houses at 1.5M need to be financed somehow. And a lot of those people worked as Realtors, Mortgage brokers, etc. There was NO reason for the prices to go up like they did. There are lots of lots still for sale, lots being sat on, Pardee only has 1 derby hill home for sale (that I could see)… They will wait till someone buys it and then put up the next one. This could happen all while prices fall and fall and fall.
Wait till all the people in CV start losing all their equity. Wonder what will happen?!!! Every single neighbor in our street in CV redid their entire home with new kitchens, pools, baths, extensions, landscaping. They didn’t save up for it, they refinanced. They also bought a crapload of vacation homes, 3rd cars, timeshares, vacations, boats, and toys. They didn’t intend to sell, they have watched their equity go up, so did their mortgages. As the equity shrinks, the spending will go down, as the houses on the market get hammered, the sentiment will change.
Oh the arrogance to think that prices can only go up! How much are these houses worth jammed 6 feet away from each other, crappy pipes, crap construction, 6000-9000 foot lots, when interest rates are 8%…
ParticipantAlex_angel…. I not sure that your reality fits where the market is going.
We bought a house in Carmel Valley in 2001 for 810K. Sold it in 2004 for 1.4M. My neighbors paid 300K in 1992. My broker told me to get a 1.16% mortgage floating with the LIBOR. I got a 10 year arm at about 5% instead. When I bought my last house got a 1.5M mortgage at 5.5% for 10 years (interest only). Now a 30 year is 7.5% or more (if you can qualify and get it).
Pardee does own all that land (for 20 years or more). They might sit on it. But all those lovely CV houses at 1.5M need to be financed somehow. And a lot of those people worked as Realtors, Mortgage brokers, etc. There was NO reason for the prices to go up like they did. There are lots of lots still for sale, lots being sat on, Pardee only has 1 derby hill home for sale (that I could see)… They will wait till someone buys it and then put up the next one. This could happen all while prices fall and fall and fall.
Wait till all the people in CV start losing all their equity. Wonder what will happen?!!! Every single neighbor in our street in CV redid their entire home with new kitchens, pools, baths, extensions, landscaping. They didn’t save up for it, they refinanced. They also bought a crapload of vacation homes, 3rd cars, timeshares, vacations, boats, and toys. They didn’t intend to sell, they have watched their equity go up, so did their mortgages. As the equity shrinks, the spending will go down, as the houses on the market get hammered, the sentiment will change.
Oh the arrogance to think that prices can only go up! How much are these houses worth jammed 6 feet away from each other, crappy pipes, crap construction, 6000-9000 foot lots, when interest rates are 8%…
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