patrick.net

In Mountain View, Google-effect is raising rental prices. :(

Rent is not back up to 1999 level yet but it is higher. If this continues, a soft-landing is not impossible for some type of housing units in some locations.

surfer-x: Gods, I love these roads. Whenever I'm short of cash, I just take a garden trowel and pry up some of that gold.

DinOR: The Latin you were looking for is "Res ipsa loquitur" (the thing speaks for itself).

Peter P,

Even fresh off the assembly line in 1994 the Volvo 2.1 liter engine put out an impressive 110 HP! Now imagine years of idling in stalled traffic, an "iffy" rear main seal and about 300K miles. nomadtoons2 could have given me a run for my money with his lawn tractor!

To quote the most famous of Patrick Bears (now in hibernation), it’s the “intangibles” of the area that make it just so gosh darn expensive.

Hey, 'X',

Did you mean "most famous of Patrick BULLs" (Jack)? :-)

To quote the most famous of Patrick Bears (now in hibernation), it’s the “intangibles” of the area that make it just so gosh darn expensive.

Did you mean “most famous of Patrick BULLs” (Jack)?

"Reasonable bull" was the term we used.

Hmm, I thought bears hibernate but bulls do not...

requiem,

Thank you! We don't say it enough.

In Mountain View, Google-effect is raising rental prices.

Rent is not back up to 1999 level yet but it is higher. If this continues, a soft-landing is not impossible for some type of housing units in some locations.

Ok, that tears it! I'm going up to my manager right now and *demanding* a rent-driven salary increase. If rents are really going to double or triple to meet housing prices, then the boss is just going to *have* to pay me a lot more to stay here. I'll just point out to him how I'm a lot more productive than 12 illegals or overseas workers, not to mention my sparkling personality and smile!

Think this approach will work?

Harm,

It's too bad that it went until almost 11:00am before someone found the energy to challenge Benjamin's faulty premise. Now had that happened on a Tuesday!

Thank you.

I finally realized why there is so much open space protected here. It gives us all something to look at as we waste our lives in our cars.

Finally someone truly groks the BA.

@HARM, yup Bull not Bear. But Jack might be a bear, I don't know as I've never seen him with his shirt off. But I digress.

Joe Schmoe,

That old Volvo I had with a "four banger" would have protected you in a crash but the sheer weight of the thing was unbelievable. It sill weighed the better part of of 4,000 lbs. This made it even slower out of the hole and I'm not kidding when I say you had to "play the momentum" in anticipating an incline!

Who was it that had the quote about "the last bear relenting" signaling the peak of a market? Tomorrow on Bloomberg's Steven Roach will be on saying why he is now bullish on the global economy! I know I'll be tuned in.

@DinOR, np.

Bulls love to cherry-pick information and ignore the rest. BA Rents have gone up sharply for a whole MONTH now. See?? --SEE??? It's obvious this is a permanent macro-trend and wages are sure to follow. Never mind skyrocketing inventory and mortgage/tax delinquincies, while sales are falling off a cliff. It's a SOFT LANDING, boys!

Btw, nice to see Patrick posting again (this & last thread).

http://rismedia.com/index.php/article/articleview/14291/1/1/

RISMEDIA, April 25, 2006—RealtyTrac(TM) (www.realtytrac.com), a leading online marketplace for foreclosure properties, has released its 2006 Q1 U.S. Foreclosure Market Report, which showed that 323,102 properties nationwide entered some stage of foreclosure in the first quarter of 2006, a 38 percent increase from the previous quarter and a 72 percent year-over-year increase from the first quarter of 2005. The nation's quarterly foreclosure rate of one new foreclosure for every 358 U.S. households was higher than in any quarter of last year.

RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with more than 600,000 properties in more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.

"The sharp increase in foreclosures in Q1 continues a steady upward trend that we've observed since the beginning of last year," said James J. Saccacio, chief executive officer of RealtyTrac. "Foreclosures have now increased in four consecutive quarters and are on track to go above 1.2 million in 2006, which would push the nation's annual foreclosure rate to more than 1 percent of U.S. households."

Harm,

Yeah, it just seemed like someone "clutching at straws" and after the first *nice* weekend in OR since Sept. I just wasn't up to it. I was curious though what yourself and others thought about Stephen Roach finally turning bullish?

On a different note, my former neighbors I feel are about to put their "dream house" on the market. Now you may ask, "That's funny DinOR, how can you tell they are about to put it on the market?"

Ahem, "Because they have finished their landscaping".

I’m going to say that outside of a narrow spectrum of higher end housing (whose rent is currently ridiculously cheap compared to owning), rent will stay at the rate of wage inflation. Most people rent not by choice, but because they can’t afford to buy. Any rent increase will quickly run into demand inelasticity. Furthermore, the future economic hardship will force a lot of middle class people to rent out converted garages, basements, and bedrooms to make ends meet. That fresh supply may even depress low end housing.

Nomad,

Thank you! If you were going to buy a small car, just go with the one with the best test crash ratings and good handling and good braking. Surviving a crash is good news, but not having a crash in the first place is much better news.

Astrid,
Interestingly enough,I recall watching a thing on ABC news years ago shortly after I bought my tacoma. The clip was of various trucks and how they stood up in crashes.At first it seemed unfair that my tiny truck and the other 2 compacts- a Ford Ranger and Nissan were up against full sized Chevy and Dodge trucks. Well... the front ends of the large trucks caved in on impact, causing massive damage to the dummies. On the other hand, 2 of the smaller trucks- thr ford and toyota did really well, with no damage to the interior of the cab structure.Made me feel better.

nomad,

Yup, that's the dirty little secret about SUVs, they're basically a minivan body strapped to a truck undercarriage. They got size going for them, but many SUVs have poor structural integrity. You add the likelihood of serious crashes and the poor handling, and I don't think they're safer for the average driver and they're certainly quite deadly for everybody else.

Well… the front ends of the large trucks caved in on impact, causing massive damage to the dummies. On the other hand, 2 of the smaller trucks- thr ford and toyota did really well, with no damage to the interior of the cab structure.Made me feel better.

One thing: frontal crash tests is valid for comparison only with vehicles of the same weight and size. If one of those large trucks hit one of those small trucks, the result will be totally different. Be careful!

My advice*: get a LARGE SUV/seden with a good frontal crash test rating.

*Not an advice

I was curious though what yourself and others thought about Stephen Roach finally turning bullish?

Honestly, I don't know much about him, other than him being M.S.'s main financial guru. My impression of him from the few pieces I've read in the past is that he's pretty much a trend follower who carefully hedges his forecasts. He's had some intelligent things to say about global outsourcing/wage arbitrage, but I wouldn't accept his opinions as the word of God.

They got size going for them, but many SUVs have poor structural integrity. You add the likelihood of serious crashes and the poor handling, and I don’t think they’re safer for the average driver and they’re certainly quite deadly for everybody else.

Some SUVs have pretty good structural integrity (as domostrated in offset tests):

http://www.iihs.org/ratings/summary.aspx?class=50

Nomad-

Sort of agree, and sort disagree. My sister-in-law has a 2004 Toyota Tacoma, the same truck you have. I've driven it several times. On the one hand, it is an exceptionally well made car. It is the most practical vehicle I have ever seen and the attention to the little details that make up durability is amazing. For examplle, all of the paint on the lower panels has exceptionally thick orange peel -- but it's on purpose. It is there to prevent stone chips and keep the truck looking good for years to come. There are impressive little details like that everywhere on the truck. When she first got it I thought about getting one myself, I was that impressed.

The thing is, though, the truck has no comfort featuers whatsoever. The ride is much, much harsher than the Blazer it replaced. My Jeep has solid front and rear axles and is not known for its plush ride. However, it is about ten times more "luxurious" than the Tacoma. Those comfort featuers really make a difference.

I wouldn't mind having a Tacoma if I used it for running errands, and it is obviously an excellent work truck if the standard configurations suit you, but I sure wouldn't want to commute in one every day. Sometimes it is worth paying more for a little extra luxury. Would I pay 7-8 times as much in order to get the S550? No, no way. But I'd pay more, sometimes it is worth a little extra.

Would I pay 7-8 times as much in order to get the S550? No, no way. But I’d pay more, sometimes it is worth a little extra.

Try the Toyota Avalon. I am under the impression that the 30K - 40K segment offers the best value. Buy used and get a big discount, of course.

@Garth Farkley,

Wow --Patrick.net's the #2 bubble blog cited on that Wikipedia Bubble article (after Ben's blog). Looks like we're on the map, folks.

Peter P,

The new Volvo SUV is quite nice, but it's like $50K! I can get an new S2000 and a new Jeep for that much. And if I had that sort of dough, I would!

The new Volvo SUV is quite nice, but it’s like $50K! I can get an new S2000 and a new Jeep for that much. And if I had that sort of dough, I would!

I would only lease a Volvo. It does not seem to have Toyota-like reliability.

But Volvo saved my life...

I heard about all the parts shifting for Volvos and Saabs. It's too bad because their exteriors are now very appealing. On the other hand, so many middle age posers have bought them, so I really don't want to be included in that group.

Given a choice, I really prefer Honda/Acura and Mazdas and Suburus. I really like their handling and their styling. As for reliability, my mom got a lemon Corolla so I've never quite forgiven Toyota for selling it.

I heard about all the parts shifting for Volvos and Saabs. It’s too bad because their exteriors are now very appealing. On the other hand, so many middle age posers have bought them, so I really don’t want to be included in that group.

I lease a Saab. Since nobody wants to buy them, the financing cost is next to nothing after all the rebates and incentives. PLUS you have the assurance that it can be disposed of after 3 years no matter what has happened to it.

Harm,

True, true. He has been quite an outspoken bear when it wasn't exactly popular to do so and he has a candor you won't get from most chief economists. It will be interesting to hear what he has to say. Speaking of "careful hedges" how about a few of these gems from folks that don't consider themselves flippers:

Oh we bought into this neighborhood "long term", but if someone did make us a really nice offer.......

We really needed the extra/our/the space (followed in short order w/a For Sale sign) and we really didn't need all of that extra/our/the space so we're putting it on the market (for 30% more than we paid 11 months ago) but no, we're not flippers.

When we bought this place we were thinking about having children/more children but now with the economy and the gas prices and all we just decided we didn't need a 3 story home for 2/3 people. We're selling b/c we're reevaluating our lives. But flippers? You've known us for all of 11 months so you know us better than that!

With Joe's new job we just wanted to move closer to work. But lady, he works at the same place! Well, I know but with all of the extra job responsibilities and all and hey I don't have to justify any of this to you! We had a shot to cash in so we did, but we're not like those crazy flippers you see on TV shows.

With Joe's new job we just wanted to move farther from work. But lady, he works at the same place! Well, I know but with all of the extra job responsibilities we just wanted a little privacy during our "down time". The fact that we'll pocket 150/500K tax free did not influence our decision.

With Joe's new job, oh for crissakes lady it's at the same off ramp!

How many times have all of us had to endure these kinds of conversations over the last five or so years. They're all flippers. Actually I take that back. I have more respect for someone that takes a risk and actually does a little work. To tell you the truth I don't know what they are.

Joe,

The IS300 is kind of an awkward car. Try the Acura TL or the Infiniti G series. those are nicer all around for not much more. The problem with the Acura is that it's also a front wheel drive, which BMW drivers will completely diss. But the G series (essentially the luxury version of 350Z) has rear wheel drive and looks very very nice.

The IS300 is kind of an awkward car.

The new IS looks pretty nice. But it is way too small. Rear-drive is quite important. Get a nice, used GS300 with side curtain airbag.

Peter P = Toyota Century

astrid = Acura NSX (hey, when's the new one coming out?)

Any questions?

BTW, one of my uncles drives a Toyota Crown, on which the Toyota Century is based. It's very Avalonish, but the parking assist is pretty nifty for city drivers.

BTW, one of my uncles drives a Toyota Crown, on which the Toyota Century is based. It’s very Avalonish, but the parking assist is pretty nifty for city drivers.

I like the Crown I saw in Japan. I love fender mirrors - no blind spots. I want to see more fender-mirrors in new cars. Why install mirrors on doors anyway?

DinOR,

I have no problem with flippers. It's the macro economic consequences of their actions that worries me.

Why install mirrors on doors anyway?

So you can tie a tuna to the fenders.

Joe.... the Taurus? Seriously, the Taurus is a masterpiece of mechanical stupidity. I came from a family of Ford people. My uncle sold them, and most people in my family still drive them. But the Taurus is seriously the worst american car made in large qauntities. The main reason the fact that the car blows head gaskets with predicted reliability, usually at around 80-100k. The reason? Ford uses tons of disimiliar metals in the engine coolant passages. Electrogalvenic corrosion does the rest, and since about 90% of all car owners never change the coolant frequently enough, the caustic corrosive mixture that results in the coolant eats away at the joints between the head and block. I go to Pick your part and Dorris auto supply all the time, and the guys there like to point out "Taurus lane", where EVERY single one of them sits with an engine compartment full of foamy, white residue leftover from a blown head gasket. These things are ticking time bombs. In your defense, however, given the choice between a Toyota Camry and Buick Lucerne, I'd pick the Lucerne, Very nice car for not a lot of money. Besides- everyone in the BA drives Volvos and Hondas. It'd be nice to be original.

nomad,

That's for the info about the Taurus. My boyfriend has a ZX2 based on the Taurus. I bet he doesn't change his coolant regularly.

The fool! He should have gotten a Mazda Protege.