« previous   misc   next »

Just how is it that things have improved or stabilized in northern CA?


By nehope   Follow   Mon, 22 Oct 2012, 11:33pm PDT   3,575 views   36 comments
Watch (1)   Share   Quote   Permalink   Like (1)   Dislike  

http://www.realtor.com/realestateandhomes-detail/2214-Pacheco-Blvd_Martinez_CA_94553_M25668-83426

Okay, I purchased the house in this link in 1996 for $119K, re-fied twice till total owed was 200K, and then sold it in 2006 for 406K - as is (and it needed a lot of expensive work). When I owned it it was 2bd 2ba, 1100 sq ft with no central air or heat. The people who bought it apparently sunk a great deal of money - now 3 bd 2ba, 1300 sq ft with garage finished as in-law and central air/heat. They also put on a new roof, redid the front porch and replaced the concrete in the back yard with grass. A lot of money! Anyway, I doubt this will sell for $199K especially as the house next door went for $135K as a foreclosure. I also noticed as I searched this zip code (been keeping a eye on it since I left) there were only 50 houses for sale in Martinez where there used to be hundreds. Has everyone given up or are those now part of the so-called "shadow inventory" waiting to be loosed on the world?

I feel sorry for these folks - first house, young family, probably poured their hearts & souls into making this a home, but I've been predicting this would happen for six years and it still makes me sad. Especially since I won this game - despite having used that house as an ATM for ten years, I still walked away with enough to pay cash for a brand new house in NC.

Anyway, I don't see an end in sight out there.

Comments 1-36 of 36     Last »

Goran_K   Tue, 23 Oct 2012, 12:49am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 1

In short, no. California as a whole is still bleeding more jobs than it is creating, especially in the sweet spot ($50,000+). Of course if you want to be part-time employed, or work in Fast Food, there are lots of those jobs.

The housing market had a short dead cat bounce, but it came at the cost of demand destruction, and now the market volume is extremely low.

The fiscal cliff is coming, and I'm looking forward to seeing more homeless people as a whole.

pdg   Tue, 23 Oct 2012, 1:03am PDT   Share   Quote   Permalink   Like   Dislike (1)     Comment 2

Wow, was that post just a drawn out excuse to pat yourself on the back? If you had left out your involvement in the house your post might have come across as sincere.

pazuzu   Tue, 23 Oct 2012, 2:38am PDT   Share   Quote   Permalink   Like (2)   Dislike (1)     Comment 3

"Or sometime between now and 2028, for $500k, that would be the next peak."

Wow, no offense ptiemann but you are in fucking fantasy land.

Goran_K   Tue, 23 Oct 2012, 2:40am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 4

I think his scenario could come true if compensation rises by 3% to 5% annually as well.

Anyone see that happening?

pazuzu   Tue, 23 Oct 2012, 2:53am PDT   Share   Quote   Permalink   Like   Dislike     Comment 5

"Anyone see that happening?'

Quite the opposite:

http://www.businessweek.com/news/2011-09-14/decline-in-u-s-income-raises-stakes-in-2012-presidential-race.html

http://www.huffingtonpost.com/2012/08/24/us-annual-income-recovery-recession_n_1828127.html

http://news.firedoglake.com/2012/09/12/census-statistics-show-continued-decline-in-median-income/

bubblesitter   Tue, 23 Oct 2012, 9:16am PDT   Share   Quote   Permalink   Like   Dislike     Comment 6

Goran_K says

I think his scenario could come true if compensation rises by 3% to 5% annually as well.

Anyone see that happening?

Well,compensation has not gone anywhere in last few years,so our govt. decided to keep rates super low to keep the mortgage payment the same. I don't see that wage hikes but yeah interest will remain low despite temporary bumps.

Goran_K   Tue, 23 Oct 2012, 9:21am PDT   Share   Quote   Permalink   Like (2)   Dislike     Comment 7

bubblesitter says

Well,compensation has not gone anywhere in last few years,so our govt. decided to keep rates super low to keep the mortgage payment the same. I don't see that wage hikes but yeah interest will remain low despite temporary bumps.

When the government starts paying us to borrow money, then you'll know cannibal anarchy is right around the corner.

rufita11   Tue, 23 Oct 2012, 10:14am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 8

ptiemann says

I believe that whoever buys this now for ~$200k will be doing similarly well. Think of it.. $119k adjusted for inflation over 16 years is..

In the meantime, the house is getting older and older, and the neighborhood is getting worse and worse.

pkennedy   Tue, 23 Oct 2012, 10:43am PDT   Share   Quote   Permalink   Like   Dislike     Comment 9

In 1996 interest rates were 8.5%. Using no inflation, that 119K loan would have cost around $915/month back then and today you could get a loan for 200K for the same monthly payment. Not factoring in any inflation.

bubblesitter   Wed, 24 Oct 2012, 2:03am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 10

Goran_K says

When the government starts paying us to borrow money, then you'll know cannibal anarchy is right around the corner.

Sure. Where is AF lately? I miss his comments.

CDon   Wed, 24 Oct 2012, 4:21am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 11

Unless he is trying to troll you, he may be confused because while the word sounds like "wallah" it is actually spelled "Voila"

http://www.merriam-webster.com/dictionary/voil%C3%A0

ZoabKhan   Wed, 24 Oct 2012, 5:49am PDT   Share   Quote   Permalink   Like (2)   Dislike     Comment 12

So i have a question for you guys.

A few days ago we went looking for a townhome in Sunnyvale/Santa Clara area. I make decent money. Probably a little above avg for Silicon Valley.

We went to 2 new property builders

1. Taylor Morrision is the builder, on Duane ave, across street from AMD. Called 37degrees. The models are releasing in November. We walk in and are told the price range is 740k to 800k and they have multiple offers on them. And we could put in a bid. The size of the homes is..1700 to 2100sqft.

2. A few minutes walk from this place also on Duane Ave is a a place called Fusion. Prices start in the high 550's(out of our range already). The one we liked was decent, 4/3 1900sq feet. Good size for this area. I walk into the office and are told bidding starts at 850k. WTFFFFF.

3. While depressed, we drove around a saw a couple of townhomes about 5-6 years old in Santa Clara. Saw a decent one around Scott Blvd, a 1700 sq ft 3/2 selling for 600k+ in a matter of days the realtor tells me and they got multiple offers.

Who is buying all these places? I am very confused as to what has changed in the last 1 year that prices middle of the road townhomes in the dumps of Sunnyvale and Santa Clara are selling for 750-850k and getting multiple offers. Meanwhile my rent is being raised about $300/month.

edvard2   Wed, 24 Oct 2012, 7:25am PDT   Share   Quote   Permalink   Like   Dislike     Comment 13

Darrell In Phoenix says

He's a certifiable idiot..

Exactly how do you come to that conclusion seeing as how you do not personally know me? Inquiring minds want to know...

edvard2   Wed, 24 Oct 2012, 7:31am PDT   Share   Quote   Permalink   Like   Dislike     Comment 14

You didn't answer the question.
Moving on,
1: How long have you been waiting for the bubble to pop assuming there still is one?
2: How long have you saved cash for a house?

Just curious...

edvard2   Wed, 24 Oct 2012, 7:52am PDT   Share   Quote   Permalink   Like   Dislike     Comment 15

This seems to be a common theme on this site: ask any of those who flatly deny that the housing market might have changed a question and you'll never get an answer. Seeing as how this post was about improvements in the NorCal housing market, the questions I asked were directly related. So do you have answers or not?

rufita11   Wed, 24 Oct 2012, 8:10am PDT   Share   Quote   Permalink   Like   Dislike     Comment 16

ptiemann says

rufita11 says

ptiemann says

I believe that whoever buys this now for ~$200k will be doing similarly well. Think of it.. $119k adjusted for inflation over 16 years is..

In the meantime, the house is getting older and older, and the neighborhood is getting worse and worse.

Did you see the original poster mention that the current owner spent money on improvements e.g. central heating, room addition (garage conversion), landscaping etc?

Selective reading?

They could make it into a marble palace, but it would still be on Pacheco Blvd., which is situated in a pretty dismal, industrial area between freeways, the dump, and a couple refineries. That area is full of homeless methheads too. Downtown Martinez may seem quaint, but it's really not. You (and my brother) are lucky enough to live in Capitola, so you don't really understand the context.

edvard2   Wed, 24 Oct 2012, 8:19am PDT   Share   Quote   Permalink   Like   Dislike     Comment 17

I'll answer the question for you.
I waited out the bubble for close to 13 years.
I watched the market fall from its height to its bottom
I saved up a lot of cash
I then bought a house I could easily afford
My payments are less than what I paid for rent.

The reason you won't answer the question is because doing so more or less disproves your argument.

edvard2   Wed, 24 Oct 2012, 8:27am PDT   Share   Quote   Permalink   Like   Dislike     Comment 18

Dude, you lost the argument.

edvard2   Wed, 24 Oct 2012, 8:51am PDT   Share   Quote   Permalink   Like   Dislike     Comment 19

I already did. Again- you aren't going to answer the questions I asked because again-doing so would more or less prove my point.

Facebooksux   Wed, 24 Oct 2012, 8:58am PDT   Share   Quote   Permalink   Like   Dislike     Comment 20

ZoabKhan says

. A few minutes walk from this place also on Duane Ave is a a place called Fusion. Prices start in the high 550's(out of our range already). The one we liked was decent, 4/3 1900sq feet. Good size for this area. I walk into the office and are told bidding starts at 850k. WTFFFFF.

3. While depressed, we drove around a saw a couple of townhomes about 5-6 years old in Santa Clara. Saw a decent one around Scott Blvd, a 1700 sq ft 3/2 selling for 600k+ in a matter of days the realtor tells me and they got multiple offers.

Who is buying all these places? I am very confused as to what has changed in the last 1 year that prices middle of the road townhomes in the dumps of Sunnyvale and Santa Clara are selling for 750-850k and getting multiple offers. Meanwhile my rent is being raised about $300/month.

I looked into renting at Fusion from a Craigslist ad last year.

The landlord was your typical computer geek/pinhead. Barely in his early twenties, Chinese, with an accent, unkempt, coke bottle glasses, etc. I'm not being racist. Just laying out the demographic. I asked him where he works and he said he's an engineer at google.

This guy told me he bought TWO of the townhomes and he's renting one out.

Now, I doubt he's a long-time employee with millions in the bank. If he were, he wouldn't be living in shitty Sunnyvale, across from crapboxes built in the 50s.

He either got 2 FHA loans or has rich parents in China who own sweatshops.

Again, not being Xenophobic but we all know that Chinese wealth is built upon corruption and treating humans like animals with no regard to their well being or safety (not much different than us, but at least we have some modicum of worker safety).

edvard2   Wed, 24 Oct 2012, 9:00am PDT   Share   Quote   Permalink   Like   Dislike     Comment 21

Darrell In Phoenix says

Again. You didn't answer the question.

Is there a skipping record in here? Give it a rest. Like I said-you already lost the argument so give it up.

Facebooksux   Wed, 24 Oct 2012, 9:00am PDT   Share   Quote   Permalink   Like   Dislike     Comment 22

ZoabKhan says

Meanwhile my rent is being raised about $300/month.

HOW IS THAT POSSIBLE??

edvard2   Wed, 24 Oct 2012, 9:06am PDT   Share   Quote   Permalink   Like   Dislike     Comment 23

1: How long have you been waiting for the bubble to pop assuming there still is one?
2: How long have you saved cash for a house?

edvard2   Wed, 24 Oct 2012, 9:15am PDT   Share   Quote   Permalink   Like   Dislike     Comment 24

How long have you been waiting for the bubble to pop assuming there still is one?
How long have you saved cash for a house?

edvard2   Wed, 24 Oct 2012, 9:23am PDT   Share   Quote   Permalink   Like   Dislike     Comment 25

edvard2 says

How long have you been waiting for the bubble to pop assuming there still is one?
How long have you saved cash for a house?

edvard2   Wed, 24 Oct 2012, 9:25am PDT   Share   Quote   Permalink   Like   Dislike     Comment 26

ANSWER the questions:
How long have you been waiting for the bubble to pop assuming there still is one?
How long have you saved cash for a house?

FunTime   Wed, 24 Oct 2012, 11:06am PDT   Share   Quote   Permalink   Like   Dislike     Comment 27

CDon says

Unless he is trying to troll you

HA! Internet is confusion.

FunTime   Wed, 24 Oct 2012, 11:08am PDT   Share   Quote   Permalink   Like   Dislike     Comment 28

Darrell In Phoenix says

You didn't answer the question.
What is "Wallah"?
Just curious.

Dude. Chill. It's bread for French toast.

edvard2   Wed, 24 Oct 2012, 12:10pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 29

How long have you been waiting for the bubble to pop assuming there still is one?
How long have you saved cash for a house?

edvard2   Wed, 24 Oct 2012, 12:14pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 30

You didn't answer the questions:
How long have you been waiting for the bubble to pop assuming there still is one?
How long have you saved cash for a house?

wave9x   Wed, 24 Oct 2012, 12:35pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 31

Darrell are you a dweeb or just a run-of-the-mill retard? You really are devaluing what is left of anything of substance on this site.

soopercommuter   Wed, 24 Oct 2012, 2:33pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 32

MORON, you friggin looked it up. You know he meant Voi'la. 90% of Americans write it as walla or something like that. What, you think that is the only foreign phrase that yanks misspell? Give it a rest will ya. Your childish ranting is sooooo getting old.

ZoabKhan   Wed, 24 Oct 2012, 4:04pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 33

facebooksux,

Our rent has gone up about 600/month in our 2nd year of lease.

bubblesitter   Thu, 25 Oct 2012, 1:12am PDT   Share   Quote   Permalink   Like   Dislike     Comment 34

ZoabKhan says

facebooksux,

Our rent has gone up about 600/month in our 2nd year of lease.

Get the hell out of there.

FunTime   Thu, 25 Oct 2012, 3:56am PDT   Share   Quote   Permalink   Like   Dislike     Comment 35

soopercommuter says

90% of Americans write it as walla or something like that. What, you think that is the only foreign phrase that yanks misspell? Give it a rest will ya. Your childish ranting is sooooo getting old.

I disagree and thought it was really funny. There's room for a little more education for all of us. I've been throwing out at least a type per comment.
It sounds like this has been cause for anger, though, and I'm sad about that. I hope others enjoy the good humored side of the situation, since it seems clear that Darrell is here to lighten the conversation and to provide balance to a conversation that is normally extremely biased toward always, of course, why would you think otherwise, buying houses. The inundation of that message has driven people to decisions which significantly deter from their pursuit of happiness despite thoughts which seemed to align with that pursuit.

bg   Thu, 25 Oct 2012, 8:26am PDT   Share   Quote   Permalink   Like   Dislike     Comment 36

bubblesitter says

Where is AF lately? I miss his comments.

Me, too.

nehope is moderator of this thread.

Email

Username

Watch comments by email

home   top   share   questions or suggestions? write p@patrick.net