0
0

The "I really miss 'America's Overvalued Real Estate'" thread


 invite response                
2006 Jul 5, 6:36am   31,353 views  377 comments

by HARM   ➕follow (0)   💰tip   ignore  

As many of you know, we recently had a casualty in our extended bubble-battling blog family. Sadly, it looks as though the founder of one of my personal favorites, "'America's Overvalued Real Estate", has sold out to the highest bidder --a commercial RE company :-(. (Note: previous rumors to the effect that the site had been hijacked/sabotaged by the NAR have proven to be unfounded.) As Different Sean might say, "there's the perfect free market at work again." ;-)

This site --an instant classic-- hosted hundreds of examples of absurdly overpriced wrecks sent in from all over the U.S. and Canada, along with the satiric and often hilarious commentary from the blogmaster. It was wonderfully cathartic and priceless for its comic relief and real-life illustrations of how unhinged sellers have become, thanks to our Fed & GSE-blown liquidity bubble. I spent many a Friday afternoon perusing the latest submissions, often reading them aloud to Mrs. HARM. Truly fun for the whole family.

In honor of this fallen giant, I dedicate this thread as a tribute to A.O.R.E. Please post local examples --with photos and/or MLS links if you have then-- of the most outrageously overpriced $hitboxes in your local neighborhoods. International submissions are also welcome. I shall kick things off by re-posting one of the most egregrious and well publicized examples from last year -- the infamous $1.2 million shack from "Naked City", Las Vegas:

naked greed

Post & enjoy...
HARM

#housing

« First        Comments 76 - 115 of 377       Last »     Search these comments

76   HARM   2006 Jul 6, 4:26am  

California’s overall healthcare system sucks though. The one time I had to use emergency service here, I was treated like a half rotted piece of meat

I could start another rant about CA's failing emergency room system and the causes (hospitals being overwhelmed by illegals who can't/won't pay for ER services the government FORCES them to provide free of charge, etc.) but as we're already way OT, I'd better not go there.

77   skibum   2006 Jul 6, 4:42am  

SQT,
I'm glad things turned out well for your dad in OKC. If you're talking about U Oklahoma, yes, they have one of the top cardiology programs in the country, believe it or not. I've visited there several times for work collaborations in the past. The hospital is a massive sprawling complex. There would never be enough land in CA to build up something like that.

78   astrid   2006 Jul 6, 4:43am  

While CA's medical services is peripheral to the overall housing discussion, it does highlight the low quality of CA's living standards for the average middle class family. CA's overall education and healthcare quality has both gone down in the last two decades. The culture aspect really depends on your vantage point, but I'm not sure I'd want to raise any kids here. (If I'd ever had kids, I'd probably prefer to raise them in Shanghai in private schools, or in Australia or Canada)

The weather and food here is still fantastic, but those could be enjoyed on vacation. If I was rich or don't have kids, I think I can manage. But having kids here is just kind of scary.

79   Peter P   2006 Jul 6, 5:12am  

I could start another rant about CA’s failing emergency room system and the causes (hospitals being overwhelmed by illegals who can’t/won’t pay for ER services the government FORCES them to provide free of charge, etc.) but as we’re already way OT, I’d better not go there.

HARM, I have to say that if an illegal has a true emergency, he should be treated because of humanitarian reasons. One solution is to reduce the population of illegals, through legalization or deportation. Neither is really doable.

80   astrid   2006 Jul 6, 5:16am  

Peter P,

I'd say that's why punitatively punishing anyone hiring illegals is so important. When they hire illegals for so little money, they're not just robbing the illegals with low money and work from legal residents, but they're also pushing the social cost of those illegals onto everybody else.

81   surfer-x   2006 Jul 6, 5:17am  

The great thing about that Crapatino house is that it would require both parents working at very high paying jobs. This so they can get the 'good' Crapatino schools? Funny that as they are going to shove Jr. into day care so they can also drive their fancy german cars. Strangers raising your kids, now there's a good idea. Ok from totally out in left field, how about this, the school doesn't really matter so much if you are there to help in your childs education. If the McDebtor has a high paying job chances are they are also highly educated, more education than the schmuck teaching at Crapatino jr. high. So fill in the holes at home. Idiots. Or you could just work 60 and buy more crap you don't need to fill up your shallow existence.

82   surfer-x   2006 Jul 6, 5:18am  

Mr Schmoe, my comments were of course not directed at you. Keep the faith, fight the power. Free your mind and your ass will follow.

83   Peter P   2006 Jul 6, 5:21am  

I’d say that’s why punitatively punishing anyone hiring illegals is so important.

I definitely agree. That should be a felony crime. However, it is not going to happen. The second best option is

1. legalize their stay, authorize them to work, but deny them residency
2. tax them as US residents but give them no welfare
3. make them pay a special fine every year
4. make them pay all back taxes

84   surfer-x   2006 Jul 6, 5:32am  

I’d say that’s why punitatively punishing anyone hiring illegals is so important.

I definitely agree. That should be a felony crime. However, it is not going to happen. The second best option is:

1) Give them a '64 Impala, but not a SS
2) Let them have hydraulics, but no batteries.
3) Let them have 3-wheel motion, but sip of the potion.

85   surfer-x   2006 Jul 6, 5:33am  

Whoops, category 3 should read, Let them have 3-wheel motion, but no sip of the potion

86   astrid   2006 Jul 6, 5:37am  

Surfer-X,

Great observation about Cupertino school districts. Makes you wonder why they can't just live in a cheaper district and do home schooling in conjunction with other parents.

87   surfer-x   2006 Jul 6, 5:41am  

Schmoe at Law, have you filed our class action suit against the boomers yet? Why I think you should be happy living in a crappy apt. you think all that schooling, talent, hard work, and suffering can possibly replace getting high and having group sex? Dude, 60 is so the new 20. From what I can see the boomers will never let us up to the Masters house. The boomer I share an office with had me help him with excel yesterday, seems Holmes couldn't select non-contiguous rows of data. Oh and he has me get data for him which he then puts his name on. Is my name found anywhere? They aren't going to go away, they are going to stay on the job until they are in their 70's. We need to formulate a plan to oust them.

88   astrid   2006 Jul 6, 5:44am  

Surfer-X,

If those boomers are out of a job, guess who they'll depend on to support them? We're screwed no matter what we do.

89   Girgl   2006 Jul 6, 5:52am  

SFWoman Says:
Yesterday’s article in the WSJ really should help burst the bubble. The manager of the best performing real estate mutual fund over the past ten years in the US said that prices could come down about 50% in California, Florida, the Northeast and other bubble areas.

Hm. The folks who are crowding the open house across the street as I write this (on a weekday!) may not have read that article.
They're falling over themselves, and there's no parking left within about 300ft up and down the street.
The house is listed for $1.2 mil. It's a nicely remodeled 2000SF 4BR rancher on a rather large lot in West San Jose. Nothing special, though.

(For those who are keeping track, the house for sale I'm talking about is different from the one I posted about a few weeks ago, also across the street. That one sold and stayed sold. Asking price was $1.3 mil, no sale price in Zillow yet.)

I don't know what to think, really.
On one hand, I think it's great that folks who still have too much money on their hands are keen on sinking it into a depreciating asset, so that when finally everybody has theirs and/or is fully leveraged, prices can come back to fundamentals.
On the other hand, I'm starting to question my own convictions (which I should have in early 2002, when I was convinced that the bubble would pop, learned about multiple offers for crappy houses at a much lower level than now, and continued to deny reality).

The scary thing is that with every such sale, paper gains become real money which starts to slosh around. Now there's real money in the seller's bank account, and there's real money to be repaid to the lender over the next 30 years.

90   surfer-x   2006 Jul 6, 6:27am  

@Girgl, San jose, especially West San Jose is a paradise on earth. 1.2mil, shit, that house should go for 1.8-2.2 mil. The FB's should consider themselves lucky to have such a place. You are correct that it is real money, in their pockets. I say get one and watch your future savings grow.

91   Randy H   2006 Jul 6, 6:29am  

This is what kills me when reading a typical FAB “you can get medical ins. for only $56/month” rant.

If you go back through FAB's comments, you'll find that this is the same fount of knowledge which declared that public schools in Mill Valley are dangerous because of too many black people, professional women are the enemy of proper families, middle aged men can copulate with over a hundred women while simultaneously declaring that younger women are increasingly sluts, only conservatives have a greater than middle school science education, and that poor folks shouldn't have babies.

Elitist naivete aside, such wisdom is what we're likely to see more of as things continue to slide.

92   HARM   2006 Jul 6, 6:36am  

HARM, I have to say that if an illegal has a true emergency, he should be treated because of humanitarian reasons.

I agree, however what I'm referreing to was not the use of ERs for legitimate medical emergencies, but abuse of them as proxy "free clinics". As far as punishing/fining employers hiring illegals, I agree it's the right thing to do and would be incredibly effective at dis-incentivizing illegal immigration. However, thanks to the alignment of powerful special interests/lobbies on both the corporate right & pro-"diversity" left (the former in favor of unlimited cheap exploitable labor; the latter pursuing "reparations/Reconquista" for perceived historical wrongs), I also doubt this will happen anytime soon.

And anyone under the mistaken impression that BushCo & Associates is really serious about "cracking down" for any reason other than getting those election year media soundbites ought to read this:

Illegal Hiring Is Rarely Penalized
Washinton Post

Between 1999 and 2003, work-site enforcement operations were scaled back 95 percent by the Immigration and Naturalization Service, which subsequently was merged into the Homeland Security Department. The number of employers prosecuted for unlawfully employing immigrants dropped from 182 in 1999 to four in 2003, and fines collected declined from $3.6 million to $212,000, according to federal statistics.

In 1999, the United States initiated fines against 417 companies. In 2004, it issued fine notices to three.

The government's steady retreat from workplace enforcement in the 20 years since it became illegal to hire undocumented workers is the result of fierce political pressure from business lobbies, immigrant rights groups and members of Congress, according to law enforcement veterans. Punishing employers also was de-emphasized as the government recognized that it lacks the tools to do the job well, and as the Department of Homeland Security shifted resources to combat terrorism.

93   Peter P   2006 Jul 6, 6:42am  

I think the guest worker program is a great idea. The pro-business side should be happy, as business will get workers that must work in order to stay in the country. So long as these people are properly taxed, the situation will improve.

Need a way to silence the pro-diversity people. How about a "Diversity = Food" campaign? Since illegal aliens are not food items, diversity does not apply to them. :-P

94   Randy H   2006 Jul 6, 6:45am  

“Hm. The folks who are crowding the open house across the street as I write this (on a weekday!) may not have read that article.

Brokers' Tour definitely. The less business volume agents do, the more they'll fall all over each other to see new inventory...probably in hopes of finding something that's "perfect" to motivate a slowfooting client of theirs

95   Peter P   2006 Jul 6, 6:48am  

Punishing employers also was de-emphasized as the government recognized that it lacks the tools to do the job well, and as the Department of Homeland Security shifted resources to combat terrorism.

There are two ways to increase the expected cost of hiring illegal workers:

1. Increase enforcement
2. Increase penalty

If anyone found knowingly hire illegal workers is sentenced to 10 year in prison, effects can be felt with just a few (high-profile) prosecutions. However, businesses need workers. The guest worker program must be implemented in parallel.

96   astrid   2006 Jul 6, 6:51am  

Peter P,

The guest worker program is just corporate subsidy by another name. Society as a whole subsidizes the employers of minimum wage workers since the workers pay in less in taxes than they get in return in benefits. While this might be a reasonable solution to a low immigration society, this leads to workplace arbitrage and race to the bottom in a society like the US.

You can get someone to do almost any job, as long as the wage given is right. There's no reason to import workers, especially unskilled laborers. Just start cutting back welfare for the natives and give them jobs they can live on and be proud of.

97   astrid   2006 Jul 6, 6:54am  

I'm against market distortions in all its forms and I want people to pay the fair and total cost of any goods and services they receive. In my opinion, guest workers are a highly disruptive market distortion that subsidize the users of the cheap laborers while penalizing everybody else.

98   tsusiat   2006 Jul 6, 6:54am  

There are two ways to increase the expected cost of hiring illegal workers:

1. Increase enforcement
2. Increase penalty

If anyone found knowingly hire illegal workers is sentenced to 10 year in prison, effects can be felt with just a few (high-profile) prosecutions. However, businesses need workers. The guest worker program must be implemented in parallel.

Wouldn't America have been better if this type of forward thinking policy had been adopted during times of much higher immigration, like the 1800s to 1950s.

My my, too bad computers didn't exist to make it all possible back then and the civil service wasn't big enough to handle such programs.

Just think about how much more homogenious and appreciative the american population would have been if the irish, ukranians, poles, germans, japs and chinese had been accepted on an enforceable temporary basis.

They're just like those darn Mexicans, bunch of foreign opportunists all of them!

99   HARM   2006 Jul 6, 6:56am  

However, businesses need workers. The guest worker program must be implemented in parallel.

I am wary of any sort of blanket amnesty for illegals already here, as all this will do is basically reward breaking the law and provide even more incentives for others to do so in the future. Basically like saying, "Get here any way you can. If you get caught, we'll 'punish' you by making you a legal guest worker."

Another problem is the type of workers such programs tend to attract: low-skilled, uneducated dirt-poor laborers (as in unlikely to join/expand the middle class). Why not try to attract the world's "best & brightest" by expanding existing H1-B programs in key sectors that are experiencing the supposed shortages of skilled labor (hard sciences, engineering, R&D, etc.)?

100   Peter P   2006 Jul 6, 6:58am  

The guest worker program is just corporate subsidy by another name.

From another perspective, this is the only feasible way to obtain support for regulating illegal immigrants.

You can get someone to do almost any job, as long as the wage given is right.

But the right wage will lead to the wrong price. :)

101   tsusiat   2006 Jul 6, 7:01am  

You can get someone to do almost any job, as long as the wage given is right.

But the right wage will lead to the wrong price.

What, you mean urban professional couples won't be able to afford nannies and gardeners anymore?

Who will do the work if the mexicans and filipinos can't do it and slacker youth from the suburbs can't be bothered.

Migawd, a pending national crisis for the boomers and their best paid progeny - anything, I mean anything, must be done to avoid this disaster!

102   astrid   2006 Jul 6, 7:03am  

tsusiat,

Except that America didn't have high wages and a huge infrastructure that props up a high living standard. Would you advocate that the new arrivals receive the sort of living standard and wages and life expectations that awaited those 19th century immigrants? Furthermore, those 19th century immigrants treated immigration as a lifetime commitment for themselves and their children. A lot of immigrants today just treat America as a place to make money and get some benefits, without truly merging into the American society at large.

103   HARM   2006 Jul 6, 7:06am  

tsusiat Says:

Wouldn’t America have been better if this type of forward thinking policy had been adopted during times of much higher immigration, like the 1800s to 1950s.

Tusiat,

As a matter of fact, in the 1950s immigration laws were actually enforced with some degree of regularity and consistency. Not surprisingly, this was also a period when the middle and working classes made great strides in terms of real income and a higher standard of living.

As far comparing the U.S. of 2006 to the U.S. of the 1800s, there's really no comparison. In the 1800s, the U.S. was still a young, sparsely populated nation. Huge swaths of the West & Midwest were basically undeveloped & uninhabited wilderness. We're now a nation of 300 million people, rivalling Europe for population density --especially along the coasts. I believe we should still allow as much legal immigration as we can absorb. However, no nation can accept unlimited numbers of dirt-poor immigrants indefinitely without it negatively impacting its citizens' own standard of living.

104   astrid   2006 Jul 6, 7:06am  

Peter P,

What the hell is a "wrong price"? A cat sitter that costs you $30/hr rather than $5/hr? Lettuce at $3/lb rather than $0.75/lb? Have you seriously thought about the degradations that illegal immigrants have caused the ordinary Americans in the form of worse schools, greater wealth disparities, more crime (underemployed native born underclass), and overworked emergency rooms?

Or are you so sheltered from those problems all your life that you never had to think about them at all?

105   skibum   2006 Jul 6, 7:12am  

Didn't we all have this same illegal immigrant/guest worker program discussion a few threads back? And again several threads before that?

106   Peter P   2006 Jul 6, 7:14am  

Have you seriously thought about the degradations that illegal immigrants have caused the ordinary Americans in the form of worse schools, greater wealth disparities, more crime (underemployed native born underclass), and overworked emergency rooms?

My point is that the guest worker program will allow tougher enforcement measures to be implemented. Also, once these "guest workers" are registered, they can be tracked easily. In the future, new taxes can be levied against them and they can no longer go underground anymore.

Manufacturing jobs will have to be done by cheaper labor, here or overseas. I wonder which is more preferable.

107   requiem   2006 Jul 6, 7:15am  

Didn’t we all have this same illegal immigrant/guest worker program discussion a few threads back? And again several threads before that?

Quick! Get rid of him! He's starting to... remember!

108   astrid   2006 Jul 6, 7:22am  

skibum,

Sorry, I missed those discussions. I guess I'm also a bit bored by repeating the same anti-bubble mantra everyday. It's like, "we're right" "have patience" "stay the course" "screw the flippers"... I like talking more in depth about the positives and negatives of the Bay Area and America at large. It's not entirely an issue of when to buy. There is still active disputes about whether to buy at all.

Also, I'm not happy with Peter P's rather woolly minded approach to these serious societal issues. I'm not convinced that my position is right, since the rights and wrongs of human society is hard to determine even in retrospect (Was the North American continent really so empty? Was the ecological ravages mankind have created on this continent the right thing?) But passing the buck of decision making onto the stars? Talking about the necessity of guest workers without talking about the whole cost of such a program? Sorry, I just can't let that pass.

109   FRIFY   2006 Jul 6, 7:24am  

Let's make sure we're all using the same terms:

"Americans" - People who arrived on US Soil at the same time or before I or my ancestors did.

"Immigrants" - People who arrived on US Soil after I or my ancestors did.

"Illegal Immigrants" - People I don't care a rats ass about.

"Legal Immigrants" - People competing for the jobs of other people

"Excessive Immigration" - When immigrants are competing for my job.

If you really hate immigration, why don't you start boycotting Taquerias, stop ordering take out food delivered, etc.

This type of comment:


A lot of immigrants today just treat America as a place to make money and get some benefits, without truly merging into the American society at large.

has been leveled at every immigrant group in our country's history.

110   requiem   2006 Jul 6, 7:25am  

PeterP: My point is that the guest worker program will allow tougher enforcement measures to be implemented.

Deportation isn't tough?

I get your meaning, of course. Going totally underground takes more effort and breeds its own set of 'regulatory authorities'. (Cue references to prohibition, war on drugs, etc.)

With the classic examples though, the choice is about criminalizing your own citizens. I think when immigration is involved, the desired affect may not happen, as each time someone becomes "legal", another "illegal" would take their place. It basically becomes a wide open immigration policy.

111   skibum   2006 Jul 6, 7:27am  

You guys should glimpse at this:

http://tinyurl.com/owagn

From the RE Complex mouthpiece, CNN, titled, "Higher prices, higher rates: The 1st-time homebuyer squeeze"

This joke of an article purports that rising interest rates and rising home prices are pricing out new homebuyers more than ever. Never once does it mention that prices are actually dropping now as we speak. This is really just outright lying. The RE Complex is getting desperate!

112   tsusiat   2006 Jul 6, 7:27am  

HARM,

you either missed my point or didn't note the sarcasm -

the point being that all the above mentioned groups were castigated, or locked up, or variously railed against by the bourgeouisie of the day as a drain and dangerous foreign element to admit into whichever status quo constituted the "society" of the day.

Do I need to provide a supporting quote? Just go google those ethnicities and US Immigration and do some reading.

Do you think the english welcomed the irish?

Do you think german - americans were welcome during WW1/WW2?

Remember incarceration of the Japs during WW2?

In Canada, the Chineses had to pay a "head tax" as a means of keeping them out, at the same time they were handing out homesteads to immigrants from the UK.

I wasn't comparing the situation economically, just noting that the "native born" constantly whine and complain about the underclass arriving from over there. It has been going on a lot longer then since your supposed current problems began - many of which could be more easily solved by a different type of social safety net.

I won't even begin to compare the immigration policies of Canada and the US, it might be rather depressing reading for anyone in California.

113   Peter P   2006 Jul 6, 7:30am  

Also, I’m not happy with Peter P’s rather woolly minded approach to these serious societal issues.

Okay, if you are not happy we have to talk about it. I cannot have someone unhappy.

114   astrid   2006 Jul 6, 7:35am  

Peter P,

If the choice is between outsourcing and importing the workers, I'll go with the first every time. Immigrants and guest workers are like having children, once they're in this country, we have a moral responsibility to look after them. If they're abroad, they're like the neighbor's kids. We can try to help them if they're in trouble, but we are not compelled to act.

The other point you make, that guest workers can be taxed to pay their way here, is rather impossible. These guest workers are going to be paid minimum wage or less. In order to afford them a reasonable living standard, they will have to keep most of that wage. The taxes they pay are unlikely to cover their government provided social benefits, unless we want to be completely inhumane and not give them healthcare and education and proper policing of their neighborhoods.

Furthermore, these workers aren't doing that many manufacturing jobs. They're mostly agriculture workers and service workers, these jobs will not be outsourced, they will be taken by legal residents who will be paid better (due to decrease in supply of labor).

Finally, just check out the record of guest workers in countries that have them. They're treated horribly, subject to abuse and oppression by their employers. They're outright second class citizens, accorded even less respect than we currently give illegal immigrants. Is this really an acceptable solution?

115   Peter P   2006 Jul 6, 7:35am  

Deportation isn’t tough?

You cannot get illegals to be deported in any significant numbers. Both greed (business) and compassion (pro-diversity) are working to prevent that.

But if you throw in the guest worker program, greed will be distracted and compassion will have to work alone. Greed always defeats compassion. Real enforcement can then be implemented.

« First        Comments 76 - 115 of 377       Last »     Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions   gaiste