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Don't Panic!


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2007 Feb 7, 10:35am   22,690 views  277 comments

by HARM   ➕follow (0)   💰tip   ignore  

Inspired by Rainman18 (from Ben Jones' blog):

Expect real estate prices to decline in the coming year
Redlandsdailyfacts.com
posted 02/06/2007

Attention everyone:
"When put into perspective of a 10-year pattern, the downturn should have been expected based on the huge run up since 2002."

"...No reason to panic if you purchased your home for the quiet peaceful enjoyment of it" (vs. appreciation)

"Only the speculators and flippers ...are in any trouble at all."

"...and the last ones that purchased in 2005-2006..."

"The rest of us just need to continue to enjoy our homes, unless we were using it as an automatic teller machine."

Crickets: (Chirp chirp, Chirp chirp...)

#housing

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29   Claire   2007 Feb 7, 1:58pm  

Why don't you try the new Dr Who? There are three series out there now!

30   astrid   2007 Feb 7, 2:02pm  

I'd say Battlestar Galactica and Dr. Who are very good, but rather different from Firefly.

I wish I had HBO so I could watch Rome.

31   Claire   2007 Feb 7, 2:04pm  

I must admit I am disappointed that the Bay Area has not nose dived already, however, I think it will be hit - who are the specuvestors in AZ, TX etc - most likely the CA lot, who will find their main residencies are more vulnerable when their flips go sour and turn into alligators. Or that's what I think anyway!

I have seen some houses sold for less than asking in the last few months, for significant amounts (if we were anywhere else) but a small percentage against the sale prices in this area!

32   Claire   2007 Feb 7, 2:05pm  

Yeah - I loved Firefly!

33   HARM   2007 Feb 7, 2:21pm  

Face,

I live in SCAL and have never lived in the Bay area (though visit family there fairly often). Why are you questioning my knowledge when I'm agreeing with you? I already said it was immune to any non-existent "crash" --what more do you want?

34   Peter P   2007 Feb 7, 2:22pm  

Yeah - I loved Firefly!

Looks like those who love Firefly love it very much.

It is my all-time favorite sci-fi show. Sorry Cap'n Kirk. :)

35   StuckInBA   2007 Feb 7, 2:22pm  

HARM :

You forgot that in BA everyone buys with 20% down and has a FRM. So the meltdown in Subprime lenders will have no effect. If a financial need arises, people either just demand and get a raise, or sell some of their stock options and get new ones granted to replace them.

36   HARM   2007 Feb 7, 2:23pm  

Otherwise, plan to grow some gray hair while waiting for the BA meltdown.

Again, you are correct. Overextended borrowers do not age or grow gray hair. Aging is an affliction reserved for JBRs.

37   Peter P   2007 Feb 7, 2:25pm  

Aging is an affliction reserved for JBRs.

No wonder I have gray hair. I should have bought with a Voodoo loan. I knew it!

38   Peter P   2007 Feb 7, 2:26pm  

I’m not very knowledgable about other curries, but Chinese “curry” is pretty weak and never mixed with dairy products or coconut milk. Still makes for a good meat and potato dish though.

Japanese curry is very good with seafood, 'specially shellfishes.

39   Claire   2007 Feb 7, 2:26pm  

I don't remember it too well now, but I remember I loved Blake 7 when I was a kid and was so upset when that was cancelled.

40   Peter P   2007 Feb 7, 2:29pm  

I don’t remember it too well now, but I remember I loved Blake 7 when I was a kid and was so upset when that was canceled.

I did not even know about Firefly until they talked about it on this blog last year. Then the show suddenly arrived from Netflix...

41   Claire   2007 Feb 7, 2:31pm  

Unfortunately for Firefly, it was not shown primetime, so it did not pick up a huge fan base quick enough to stop the show from being canned.

42   Peter P   2007 Feb 7, 2:35pm  

Unfortunately for Firefly, it was not shown primetime, so it did not pick up a huge fan base quick enough to stop the show from being canned.

Too bad. :(

Well, at least it got a movie. What other canceled shows get a movie? :)

43   Peter P   2007 Feb 7, 2:36pm  

Again, if you can’t afford it without a “voodoo” loan, don’t buy it, and try to make more money.

This is why I am a JBR. And I will grow old with gray hair. Homeowners will be immortal because they will never age.

See, immortal homeowners + new babies + they are not making any more land = prices will never go down.

Not advice of any kind

44   StuckInBA   2007 Feb 7, 2:36pm  

The spring bounce that will test your resolve ! How true. I was fully expecting the following report. (Be prepared to hear more from the RE bulls on this one.)

http://www.sanjoseproperty.com/newsletter.html

From my anecdotal evidence, the gist of the report is indeed true. People are catching the falling knife. The arguments I have heard are same as FaceReality gives. In one line - no crash has happened, so it won't happen.

(The people I talked to were tired of waiting for the crash, stock market is good, there is still no shortage of funny money and some wanted to take advantage of buyer's market and buy before the prices go again in spring. Their words, not mine.)

I honestly have no problem with it. I won't mind if people get into bidding wars again and the frenzy pushes even the last bear into buying. I have never told anyone to not buy, and I will not. It's their money, not mine.

45   Claire   2007 Feb 7, 2:39pm  

Peter P - not many get a movie, I think the hope was that if the movie was a blockbuster, then the networks would pick the series up again. There are quite a few websites dedicated to Firefly and the "browncoats".

46   StuckInBA   2007 Feb 7, 2:41pm  

Otherwise, plan to grow some gray hair while waiting for the BA meltdown.

I don't think that I will have to worry about that problem ;-) At the rate I am loosing hair, there won't be anything left to gray ...

47   Peter P   2007 Feb 7, 2:43pm  

There are quite a few websites dedicated to Firefly and the “browncoats”.

I know.

How are they going to pick up the series again after the events in the movie?

48   StuckInBA   2007 Feb 7, 2:43pm  

Again, if you can’t afford it without a “voodoo” loan, don’t buy it,

Cannot disagree with that. But what will happen to those who bought before they got a chance to read your advice ? Are there any such people in BA ?

49   Claire   2007 Feb 7, 2:43pm  

The FB's will have grey hair before I do

50   Peter P   2007 Feb 7, 2:44pm  

At the rate I am loosing hair, there won’t be anything left to gray …

Perhaps we should have a thread about keeping your hair as a bubblehead.

51   Peter P   2007 Feb 7, 2:45pm  

Cannot disagree with that. But what will happen to those who bought before they got a chance to read your advice ? Are there any such people in BA ?

Can they un-buy their houses?

52   Peter P   2007 Feb 7, 2:46pm  

We need a spring bounce for the thread bubble too.

53   StuckInBA   2007 Feb 7, 2:48pm  

Arghhh.
s/loosing/losing

54   Claire   2007 Feb 7, 2:49pm  

Oh - I could think of a million story lines for Firefly - but it is unlikely that it will be revived.

55   Peter P   2007 Feb 7, 2:50pm  

Oh - I could think of a million story lines for Firefly - but it is unlikely that it will be revived.

Have you checked out some of the fanfics out there?

56   Claire   2007 Feb 7, 2:50pm  

Goodnight all.

57   Claire   2007 Feb 7, 2:51pm  

Peter P - no - are they good? Really must sign off now.

58   StuckInBA   2007 Feb 7, 2:53pm  

The best quote I heard in a while ... from a friend's friend who bought it Cupertino after a bidding war just a few days ago.

It doesn't make any financial sense to buy a home ... but I can't wait forever !

Now how could I argue with THAT ? :-)

(That's when I wrote the comment about how the combination of funny money and dual income couples will support Cupertino ... for a while, and invited mighty wrath on this board.)

59   Peter P   2007 Feb 7, 2:56pm  

Peter P - no - are they good? Really must sign off now.

Good night.

Some of them are better than others. Just check out the usual fan sites. They have links to the fanfics.

60   Peter P   2007 Feb 7, 2:57pm  

(That’s when I wrote the comment about how the combination of funny money and dual income couples will support Cupertino … for a while, and invited mighty wrath on this board.)

Wrath is better than boredom. :(

61   StuckInBA   2007 Feb 7, 3:09pm  

There are clearly some owners in a bad financial situation - just not enough of them to impact the area significantly.

I guess I am in the wrong company then ! EVERYONE I know has bought using either an ARM (3/1 and some rare 5/1) and used a second mortgage, because they couldn't afford it with 30 year FRM and 20% down payment. But that's not a surprise, as I am also one the very few sub 200K income person.

62   Peter P   2007 Feb 7, 3:10pm  

There are clearly some owners in a bad financial situation - just not enough of them to impact the area significantly.

s/bad/good
s/impact/support

I wonder... :roll:

63   StuckInBA   2007 Feb 7, 3:13pm  

I was wondering how FaceReality figured out HARM doesn't know much about BA.

And that the sidewalks are paved with gold.

Ah ! That gave it away HARM. The sidewalks are NOT paved with gold. Yet. We are still working on it. Once the first round of Web 2.0 IPO are over, we will get it done pronto !

64   B.A.C.A.H.   2007 Feb 7, 3:14pm  

It is not just the wealth of the local population here that is preventing a meltdown.

It is the wealth in China and India. Poor countries, yes, but with half the world's population, even the smallest population of their elites is a massive number in proportion to the size of the Bay Area. And they all want to live here, or at least have a residence here, or buy their kids an education for an H1 so their kids can live here.

Some of their wealth is capital that people worked so hard for, and traded at WalMart for some of those cheap goods, those recycled dollars finding their way into Bay Area real estate.

When the Bay Area starts to get as crowded and unpleasant as places like Bombay and Taipei, that's when they won't covet buying more property here. But if you have seen those places you will know that we still have a long haul ahead of us till this area has become spoilt like those places.

65   Peter P   2007 Feb 7, 3:17pm  

You know, they are at least tens if not hundreds are places on earth that are as special or more special as the Bay Area. I have never heard of a place that is not considered special by its residents.

66   Peter P   2007 Feb 7, 3:18pm  

To me, Bay Area is special because I am here. The moment I leave, another place will become special.

67   Peter P   2007 Feb 7, 3:25pm  

When will we have thousand-comment-threads again? :(

68   lunarpark   2007 Feb 7, 3:26pm  

On the bright side, rents are still low (relatively speaking). So there is that.

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