patrick.net

bgamall4 says

Interesting. Is it going to crash everywhere? That is the question.

Let's just say I've seen a few of these starting in September of this year.

Foreclosure dosnt stop when you are selling your place. The bank says to sell and they foreclose at the same time. This one got foreclosed on.

When the bank relisted it the agent said to list it lower for whatever reason. Either a pocket buyer or to make themselves look good to th bank when it closes above this value. Also the bank managers look great and get bonuses for selling above appraise value...

Until it closes we don't know what its real market price is.

Probably one of those low ball listing prices trying to incite a bidding war.

John Bailo says

http://www.zillow.com/homedetails/11626-SE-270th-St-Kent-WA-98030/49064732_zpid/

Last Sold:Aug 1997 for $48,740

Adjusted for inflation: $69,241.65

Why would this piece of crap be worth $149,000 or over twice as much as it was worth when it was 15 years younger? Houses are not like fine wines that get more valuable with age. Houses are like women, they are best when new and young, before age turns them decrepit.

I'd say this house is probably worth about $70k legitimately, if you wanted to actually live in that house. If you were buying it for the lot and wanted to tear down the house and build a new one, $40k seems reasonable. The house itself, not including the land, is probably worth $30k.

You can build a brand new, manufactured home for $30k. See http://www.jandmhomes.com/manufactured-homes/you-do-not-need-a-huge-down-payment-with-manufactured-home-financing/

With most manufactured homes costing less than $30,000 you can pay off your home for an affordable monthly payment in 5 years or less.

Dan8267 says

You can build a brand new, manufactured home for $30k.

Why do manufactured homes always have to be in a "community" where they charge you $500 a month for "hookups". Why can't you just buy something like this outright for $30,000?

"Houses are depreciating assets"

Not since 1935 . . .

http://research.stlouisfed.org/fred2/series/CUUR0000SEHA

Many people are now paying $2000+ rent for sticks and bricks older than they are . . .

"Location Location Location" -- Learn it. Know it. Live it.

could it be due to the false flags they fly on the fourth??

bgamall4 says

Dan8267 says

Why would this piece of crap be worth $149,000 or over twice as much as it was worth when it was 15 years younger? Houses are not like fine wines that get more valuable with age. Houses are like women, they are best when new and young, before age turns them decrepit.

Houses are depreciating assets. It makes no sense for them to gain in value like they do.

Dan8267 says

You can build a brand new, manufactured home for $30k. See http://www.jandmhomes.com/manufactured-homes/you-do-not-need-a-huge-down-payment-with-manufactured-home-financing/

That price makes me really wonder about the quality of the materials.

Is that like an appreciative bassett??

Dan8267 says

Dan8267 says

Why would this piece of crap be worth $149,000 or over twice as much as it was worth when it was 15 years younger? Houses are not like fine wines that get more valuable with age. Houses are like women, they are best when new and young, before age turns them decrepit.

Houses are depreciating assets.

New Renter says

That price makes me really wonder about the quality of the materials.

many builders get their wood from the same mills coming out of the Northwest..
the same goes for nails, cement, etc etc. Tubs, paint and wiring..

fact is be it Palo Alto CA or New Mexico to Florida.. the wholesale sold material is the same.

thomaswong.1986 says

New Renter says

That price makes me really wonder about the quality of the materials.

many builders get their wood from the same mills coming out of the Northwest..

the same goes for nails, cement, etc etc. Tubs, paint and wiring..

fact is be it Palo Alto CA or New Mexico to Florida.. the wholesale sold material is the same.

I'd assume manufactured homes must meet the same codes as stick homes so as far as safety goes manufactured homes should be fine.

It could be the $30k does not include fixtures or appliances and assumes the cheapest possible roof, siding, doors, etc.

John Bailo says

Why do manufactured homes always have to be in a "community" where they charge you $500 a month for "hookups".

I don't think that's the case. I talked with someone who had a manufacture home built in a typical Florida single-family neighborhood. I think it depends on the company you buy from. There are lots to choose from.

Dan8267 says

The population has stagnated.

I was just at the gym and they had one of those house buying shows on TV. A couple was looking at typical modern suburban unit in a development. Very nice looking brand new. They were in their early 30s maybe. The house was a demo, pre-furnished. At one point they took them into a room set up as a nursery, with a crib. Then the RE agent said and "here is the nursery, I'm sure you want to see this" they both looked at each other, shook their heads and said "no...no!"

Get the picture?

"Wages have gone down even in nominal terms since the late 1990s"

http://research.stlouisfed.org/fred2/graph/?g=ojc

shows that since 11/1998 average nominal wage is up 50% and total full-time employment is up 5-10%.

http://research.stlouisfed.org/fred2/graph/?g=ojd

shows total wage base is up 60%+. This isn't broken out by quintile so it's not quite as useful, but it correlates with the average wage rise.

"and the largest generation ever, the Boomers, are retiring and downsizing, and soon will be moving into assisted living communities."

http://research.stlouisfed.org/fred2/series/LFWA24TTUSM647S

shows Gen Y is bigger than the boomers.

The boomers are age 49 to 67 so they're not all heading off to the home quite yet. Median boomer was born in 1955 so he's 58 this year.

Of course, mortgage rates are also down a lot compared to 1998, falling from 7.5% to 4% . . .

http://research.stlouisfed.org/fred2/series/MORTGAGE30US

$1400/mo at 4% buys a $300,000 mortgage, while at 7.5%, that same $1400/mo payment only pays down a $200,000 mortgage.

New Renter says

I'd assume manufactured homes must meet the same codes as stick homes so as far as safety goes manufactured homes should be fine.

It could be the $30k does not include fixtures or appliances and assumes the cheapest possible roof, siding, doors, etc.

as with all other homes mfg included, its govt in Ca which impose additional taxes/costs. The excuse is the same ... its all for the kids and education...

Bellingham Bill says

Of course, mortgage rates are also down a lot compared to 1998, falling from 7.5% to 4% . . .

http://research.stlouisfed.org/fred2/series/MORTGAGE30US

$1400/mo at 4% buys a $300,000 mortgage, while at 7.5%, that same $1400/mo payment only pays down a $200,000 mortgage.

that should translate to higher savings rates not increase in prices..
cost of financing does not impact prices...

we had rates fall in prior decades and seen prices fall as well...
so there is no direct correlation between rates and prices.

thomaswong.1986 says

New Renter says

I'd assume manufactured homes must meet the same codes as stick homes so as far as safety goes manufactured homes should be fine.

It could be the $30k does not include fixtures or appliances and assumes the cheapest possible roof, siding, doors, etc.

as with all other homes mfg included, its govt in Ca which impose additional taxes/costs. The excuse is the same ... its all for the kids and education...

Well the earthquake, fire and energy codes may have something to do with it as well.

I wonder what the price differential would be to build two identical houses, one in Ashland OR the other in Redding CA.

For whatever it is worth, it is nearly 2014 and this arrives in my email box this morning:

http://www.auction.com/California/residential-auction-asset/1408409-5390-5460-WHITE-OAK-AVE-A206-ENCINO-CA-91316-E1095

Sure, the real estate market margins have improved.
I do not recall auctions in Encino for 1 bedroom condos in a normal, healthy, or booming market.

Dan8267 says

Don't worry. I'll change my position if the facts say otherwise.

Accordingly, do you now accept that the notion

"Wages have gone down even in nominal terms since the late 1990s."

Is just flat out wrong? I ask because I seem to remember that at least once before you have been shown the data showing plenty of nominal wage growth (again, nominal, not real which have indeed stagnated), yet here you are now in late 2013 asserting that nominal wages declined.

If that wasn't you, I apologize. It just seems like certain people continue to repeat certain falsehoods - over and over again, to the detriment to anyone else here who is actually trying to learn.

New Renter says

Well the earthquake, fire and energy codes may have something to do with it as well.

I wonder what the price differential would be to build two identical houses, one in Ashland OR the other in Redding CA.

perhaps from the point of view of local govt, but we had earthquakes and fire dangers before...

well. for Ashland and Redding pre bubble samo material/labor and similar prices.

thomaswong.1986 says

well. for Ashland and Redding pre bubble samo material/labor and similar prices.

Which is my point. Any differences in building costs should mostly be due to differences in state building codes and policies.

thomaswong.1986 says

perhaps from the point of view of local govt, but we had earthquakes and fire dangers before...

Yes we have and if you remember older brick buildings in Santa Cruz and Los Gatos were heavily damaged. They were repaired but had to be brought up to code in the process.

A house built in California today is NOT the same as one built in the 1970s or earlier. Some of the materials may not be as good (e.g. old growth wood) but the codes by which the house is built are far superior.

New Renter says

Which is my point. Any differences in building costs should mostly be due to differences in state building codes and policies.

yes.. not to mention local policies.. you might even find Marin building codes
being "Dolphin Friendly"...

New Renter says

Yes we have and if you remember older brick buildings in Santa Cruz and Los Gatos were heavily damaged. They were repaired but had to be brought up to code in the process.

yes.. heavy damage old brick building and across the same street that the glass windows untounched... equally old buildings.. not sure it was a good example..

it was unusual and selective damage which we had here in LG .

thomaswong.1986 says

New Renter says

Which is my point. Any differences in building costs should mostly be due to differences in state building codes and policies.

yes.. not to mention local policies.. you might even find Marin building codes

being "Dolphin Friendly"...

Why, do they prohibit fishing nets in the building code?

thomaswong.1986 says

yes.. heavy damage old brick building and across the same street that the glass windows untounched... equally old buildings.. not sure it was a good example..

it was unusual and selective damage which we had here in LG .

Communities that sustained heavy damage in the epicentral region include Los Gatos, Santa Cruz, and Watsonville. Most of the major damage to buildings was confined to unreinforced masonry buildings (URMs) constructed of wood-frame roof and floor systems supported by unreinforced brick walls.

http://bayquakealliance.org/lomaprieta/

Newer codes prohibit such construction.

New Renter says

Why, do they prohibit fishing nets in the building code?

its a joke...

thomaswong.1986 says

New Renter says

Why, do they prohibit fishing nets in the building code?

its a joke...

Exactly