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The Santa Barbara home was Property Ladder on TLC, that one is still interesting becuase it uses amatuers.

I think there are four shows like this between A&E and TLC.

Flip This House is on A&E and used to involve the guy in So. Carolina that was a professional flipping company. Now it’s the Montelongo “pro” company flipping some 200 units a year in San Antonio primarily and the Leccima group in Atlanta.

Property Ladder is on TLC and involves Amatuers.

Flip That House is also on TLC and involves ‘pros’ or at least seasoned flippers with occasional first timers mixed in.

I really wish they’d correct the money. I talk about profit on many but it’s often before realtor fees. Only recently, with the slowing market did they start to do the dings for carrying costs.

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I agree SDR, if you can absorb the additional 10% cut on asking price and subsequent negotiation cut, odds are your in good enough shape to weather the store to make transaction costs outway the benefit of doing it.

If you bought 2005 you probably can’t absorb the cut and get out without a loss. In 2004, you may be breaking even. If back in 2003, well, free taxes helps, but housing has a ways to go to make it worth that kind of reset.

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Ah lying with statistics.

I like it. It’s affordable if you can buy something 15% below median. Heck median is even below average so…

Maybe next month they define affordable to be based on buying a starter condo… of course, that’s not quite as easy to spin with the rationale babble they have.

Does anybody have stats on what percentage of people with PITI payments at 40% get into trouble?

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Oh boy, I just laughed so hard I think I have to pee.

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Dang, it’s a shame they stopped reporting the more useful numbers. Is this just a last month thing? Previously, they had high/low and median for each.

It’s an eye opener looking back to August ’98 and seeing Poway with 68 SFR sales. Median – $230,000. Low – $113,000. High – $1,275,000. Or even Escondido – 176 SFR sales Median $182,500, but high was $740,000 and the low was $70,000.

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Well, at least he isn’t starting a debt collection agency.

It’s minor but small difference between credit repair and debt collection.

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PC, what kind of policy do you have?

Replacement cost? Market value? or Defined value?

If you have replacement cost or market value, you big increases correspond with the big increase in underlying replacement or value. Keep in mind during the boom, cost per sq ft of construction went through the roof too.

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How late did Poway start the run up?

By these numbers either July of last year was really bad in Poway or they came to the runup game late. Median sale last year had to be $596K.

Or there’s bad data somewhere.

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I disagree. Common sense isn’t the herd think, in fact, it’s quite the opposite.

Common sense is applying some pretty basic thought and understanding to something. i.e.
Spending $2000/month when you make $1000/month will lead to problems.

Sleeping with my wife’s sister could be problematic.

Smoking 3 packs a day won’t be good for me.

Having a house payment of $2200/month when your take home is $2400/month is going to get rough.

I don’t know what I’m doing, I’ll ask someone I trust that does… that’s common sense.

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Cheap money.

That’s what caused the bubble. I remember watching the home sales median month after month of new highs. The OC register had another small chart showing the previous year of “median” house payment. Homes were jumping $100K in a year, but the house payment was moving $100.

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A nice luxury automobile. Preferrably Bavarian in origin. That’s a good investment.

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sending them PR reports that prices have declined 25%

Actually, that’s not that far off. There is a major difference between what people thought the market was at and where houses are actually selling. Link

Not to mention where houses are now selling, and houses that get bought this month, really close at next month and reported the one after that. Remember, July numbers are really for homes agreed to in June. So a home “bought” in August, closes in September and is reported just before Halloween…

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I see these stories all over the place. My question, why is the San Diego condo over development a mainline story for the Boston Globe?

Is it that Boston, did the same kind of condo glut overbuild and tank in 89-90? Or is this type of story, a kind of perversion of the news. I recall stories in the LA Times talking about the property tax problem in Las Vegas, that’s somewhat relevant as many speculators in LA owned LV property. But they’ve also run stories on the real estate market in further less connected places.

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Hmmm, not really a studio, not really a one bedroom. What’s a place called with a bedroom but no stovetop and range for a kitchen?

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Powayseller, agree, foreclosures will drive prices down.

My original question on how liquid a foreclosure is was geared to the number of people I suspect are upside down and won’t be able to afford their loan.

They basically have two options: negotiate a short-sale or go foreclosure.

For those houses, an investor could arrange the short sale and loan payoffs, but… it requires more experience to make money on it.

For the homes that end up worth $500,000, with $600,000 of loans. How liquid are they and how much downward price pressure do they have once they go foreclosure sale? How long can they sit as a REO, owned by the bank? Once they go to auction, investors, really professional foreclosure buyers, will buy them, cheap. That price doesn’t get reported. The question is, when they turn back around to sell, how discounted will they be?

I also recall another thing. I remember 1994 and listening to coworkers talk and needing to talk to the bank about forgiving a chunk of their loan or they’d walk away because they were so upside down.

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