[no_such_reality]

Where are jobs growing?

From the report, the two big growers were Education and Government. AKA, Government and Government.

Overall, I doubt Government can be a job growth engine.

[no_such_reality]

Where are jobs growing?

From the report, the two big growers were Education and Government. AKA, Government and Government.

Overall, I doubt Government can be a job growth engine.

[no_such_reality]

41640 Evening Shade, ouch $111/square foot.

And every 8th house looks to be for sale in the neighborhood.

[no_such_reality]

41640 Evening Shade, ouch $111/square foot.

And every 8th house looks to be for sale in the neighborhood.

[no_such_reality]

I always think to myself,

You know what I was think to myself? If I didn’t sell the place I bought in 1999 because it was worth an insane amount, I wouldn’t be concern about any of this.

The other thing I think not so much to myself, if they bought before 2003 and didn’t HELOC themselves to death, they don’t have to think about it either.

Buying and selling homes have massive transaction costs.

[no_such_reality]

I always think to myself,

You know what I was think to myself? If I didn’t sell the place I bought in 1999 because it was worth an insane amount, I wouldn’t be concern about any of this.

The other thing I think not so much to myself, if they bought before 2003 and didn’t HELOC themselves to death, they don’t have to think about it either.

Buying and selling homes have massive transaction costs.

[no_such_reality]

Remember, that these costs include 10 months worth of back payments

What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.

I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.

[no_such_reality]

Remember, that these costs include 10 months worth of back payments

What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.

I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.

[no_such_reality]

5132 Do you remember?

It is tough to bet on these monster crashes, because in reality only one has ever happened ( 1929 )

Do you know what 5132 is? I do. It’s the NASDAQ high from March 2000. Today, the NASDAQ is at 2700.

If in March 2000 you had or moved $1,000,000 into the NASDAQ and followed up with an additional $2000 a month to build your investments, today, you have $750,000.

That to me, is what SoCal home buyers in 2004, 2005, 2006 are likely facing for the next several years.

[no_such_reality]

5132 Do you remember?

It is tough to bet on these monster crashes, because in reality only one has ever happened ( 1929 )

Do you know what 5132 is? I do. It’s the NASDAQ high from March 2000. Today, the NASDAQ is at 2700.

If in March 2000 you had or moved $1,000,000 into the NASDAQ and followed up with an additional $2000 a month to build your investments, today, you have $750,000.

That to me, is what SoCal home buyers in 2004, 2005, 2006 are likely facing for the next several years.

[no_such_reality]

Interesting, looking across, you see a lot of June/July/August ’06 peak prices.

[no_such_reality]

Interesting, looking across, you see a lot of June/July/August ’06 peak prices.

[no_such_reality]

The indices seem to be disconnected from the broader markets they supposedly represent. Not only does the DOW rise disporportionately on a few, but the broader market will be mostly down and the QQQ and S&P 100 still show increases. I’m convinced the indices have taken a life of their own due to number of “index” funds and chronic investment of 401Ks.

For the indices, and in particular, the DJIA which is hovering at 14,000, it’s like watching the reporting of median home price. It keeps going up, but a smaller and smaller segment of the market is all that is producing.

[no_such_reality]

The indices seem to be disconnected from the broader markets they supposedly represent. Not only does the DOW rise disporportionately on a few, but the broader market will be mostly down and the QQQ and S&P 100 still show increases. I’m convinced the indices have taken a life of their own due to number of “index” funds and chronic investment of 401Ks.

For the indices, and in particular, the DJIA which is hovering at 14,000, it’s like watching the reporting of median home price. It keeps going up, but a smaller and smaller segment of the market is all that is producing.

[no_such_reality]

could be way wrong, but I’m just not seeing La Jolla SFRs bottoming out to $350,000.

I’d agree, but I also agree when you said something of the line: f i f t y t h o u s a n d d o l l a r s !!!!

I too remember the day, not too long ago when a price premium between a good and bad area was $50,000-$100,000. And a million dollar home, was a million dollar home.

Today, less than a decade later, the difference between a okay area and bad are is $300,000 and an good area adds another $200-$300K and average homes are million dollar homes and what was a million dollar home is now a $5,000,000 or $8,000,000 home.

While I doubt you’ll see $350,000 in La Jolla, you will else where. Possibly even less. Then the question becomes, how much is the price premium when a good home in a not so great area is $200-300,000. What’s a good home in a good area go for? And was does a good home is a premium area like la Jolla go for?

Will the premium become less? Or will it be more? The majority are living on credit, that points to less. Yet, the premium areas cluster with high income earners whose incomes and wealth are and have risen disproportionately to the majority. That tends to indicate the premium will be steeper (as a percentage).

[Author]

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