patrick.net

With the exception of SD & SAC areas, CA is lagging much of the rest of the country in this regard. In the DQ parlance, we haven’t seen very many unmistakable signs of market distress here –YET.

Let me put on my bullhorn hat...

The correction in the BA was milder than the rest last time around due to rising rent and improving fundamentals. This may repeat this time.

The economic climate here is quite difficult to judge. There are massive hirings and firings going on. As I have said before, BA is in constant flux. This may not help job security or ability for individual homeowners to repay his mortgage, but there will be new blood to buy in.

3 families living in a 3 bedroom 2 bath house.

How about a 3 bedroom 6.5 bath house?

"this guy is a dentist and seriously beyond stupid"

With all due respect to brillant and clear headed doctors out there, it does seem like doctors as a collective group make the dumbest investment decisions.

I can guarantee one thing:

1) More money will be useful in all scenarios (even Civil War).

Back to to the wheel I go...

Of course money will be useful! Esp. pennies and dimes, get them before the US government debases them further.

...but there will be new blood to buy in.

Almost every week I see multiple out-of-state license plates while going to or from work. Last week I saw Washington, D.C, Illinois, and Texas. My commute is only 4 miles. This place has the jobs. But big layoffs are coming for Sun and Maxtor this Summer.

Last Christmas, my uncle back in PA told me I was smart to move here. He said there aren't any jobs where he is.

So if the jobs disappear, this area is going to be in real trouble. But unless that happens, demand for housing will still be high. That is the critical factor for a real downturn in the Bay Area.

I remember thinking that prices had to come down back in 1994 when I was making 25% of my current salary. I wish I had stretched myself into a house back then. Because now a mortgage for $225K (Albany/Berkeley in '95) would be easier than my monthly grocery bill.

Almost every week I see multiple out-of-state license plates while going to or from work. Last week I saw Washington, D.C, Illinois, and Texas. My commute is only 4 miles. This place has the jobs. But big layoffs are coming for Sun and Maxtor this Summer.

I notice that too. We must be vigilant.

Again, to succeed, one must (in order of importance):

1) be born in the right place at the right time
2) be in the right place and at right time
3) do the right thing at the right time

I am aiming for #3.

Hint: #2 is easier and is more effective.

“90% of success is showing up.” -Woody Allen

Yes, 90% of success is showing up in the delivery room at the right time.

Bikes2work,
I think there exsists migration on both ends, but probably more going out than in. In fact, the last 3 years have shown a seepage of people leaving California. On the other hand, a friend of mine in South Carolina says that everytime he goes to the grocery store, he sees 5 or 6 California and New York plates more " assholes" as he calls them. Seems like every other person I know here has plans to leave at anytime.

Yeah, what a lousy time to be a young adult in 2006.

Huh? Being "born right" is 100% astrological. It is a karmic gift.

We must pass thru the 6th of June first.

Perhaps 06/06/06 is a great day to buy a house. Just kidding!

Happiness is relative in the context of social class and background.

“It was the best of times, it was the worst of times,…” Dickens A Tale of Two Cities

My favorite.

No generation is without merit or flaw.

Very true. Humanity is full of flaws.

Re: being born right

We should all be grateful. If you have the luck, use it to help people. If you do not, try to improve it by helping people.

But I do not pick up hitchhikers.

I do not do that either. Isn't it illegal to pick up hitchhikers?

Gas is at $2.75, so people are not as onery as they were.

I am so jealous. I paid $3.7 the other day.

Did you mention clambakes? :-P

I'm waiting for the first (or maybe the second) coming of the Church of Oprahism.

My apartment complex is 0 miles to a bar. The problem is: I do not drink.

Newsfreak,
If you ate that much shellfish all the time, you'd be dead in 10 years or less due to the huge amount of mercury in your system... either that or you'd set the metal detectors off at the airport.

For some reason I always wanted to have enough $ to endlessly eat clams.
Stuffed clams, steamed clams, corn-on-the-cob, and sand and sea.

I love:

Raw clams (cherrystone and little neck)
Steam clams (in white wine or sake)

Try using clam juice (from steaming clams with wine) to cook seabass or cod.

Besides, I would rather be a mayor of my own town, than start a religion.

Are you serious about starting a religion?

Peter P and newsfreak,

Sorry, it was mostly a futurama joke. In the 31st Century, Oprahism is a major religion. :oops:

Though when I was a teenager, I really did want to start my own cult. Someone once said that I'd make a good cult leader.

doddler,

Oh I don’t know - East Bay Area (Ala & CC counties) are at about X 3 of inventory compared to last year at this time. But I don’t know what the “typical” inventory should be - we haven’t has a “typical” real estate year here since about 1996.

If 1996 is the benchmark, then this typical house-on-house comparison for my old next-door neighbor's home in Redwood City, who bought same time as I did (RWC is a great example because it is not more desirable today, nor have the schools improved):

$ 316K Nominal in 1996
$ 720K Nominal in 2002
$1,099K Nominal in 2005 (March)
$1,189K Nominal in 2005 (Aug) {a flip}
$1,345K Nominal current Zillow estimate

Those deflated figures would be:

$ 370K (1996 in 2006 dollars)
$ 761K (2002 in 2006 dollars)
$1,132K (Q12005 in 2006 dollars)
$1,203K (Q32005 in 2006 dollars)
$1,345K (2006 dollars)

That's only a 264% real-price appreciation. If that's "typical" then I wonder what would qualify as a bubble. 10,000% real return over 10 years? But, you could be right; that's the point of this thread. Anything is possible.

Though when I was a teenager, I really did want to start my own cult. Someone once said that I’d make a good cult leader.

Really? Someone said that to me too! Perhaps we should form a partnership.

"Really? Someone said that to me too! Perhaps we should form a partnership."

Sounds great! I'm working on incorporating MMOG features into the revenue to facilitate communication, revenue collection, and recruitment.

- revenue
+ religion

Freudian (or maybe Smithian) slip :oops:

Economic recessions are a great time for cult-recruiting.

Yeah, what a lousy time to be a young adult in 2006.

Robert,

I don't think any of the Gen-Xers or Millenials on this blog are operating under the mistaken assumption that we have had it "harder" than every other generation in the history of mankind --quite the contrary. We are all well aware that anyone born in the U.S. since WWII automatically has it a lot better than people born before, thanks to modern medical technology, relative peace & prospertity, etc. Any non-elite born today in North America, Europe, Oz, NZ, Japan, etc. automatically has it a lot better than most average people living anywhere else. This is not up for debate.

However, the fact remains that Boomers --in general, there are always exceptions-- have had it far easier economically than any other generation that came before OR after it. Even this isn't really a point of contention, though it may be a source of jealousy/envy for some. This isn't an issue to me. What really irritates me (and others) so much about your typical Boomer is the fact that so many of them either:

(a) Simply ASSUME that later generations enjoy the same advantages/privileges that they took for GRANTED.
"I just don't see why you couldn't go to college for free and buy a house here on a working person's salary --I bought my first place back in 196x for 3X my gross salary as a teacher. Why can't you do the same?"

Or,
(b) Understand this isn't so, but just don't give a shit.
"No way I'm gonna let some "affordable" housing complex block MY view of the Bay! No more new developments in my town --ever! And NO WAY anyone's gonna try to take away my $2/hour illegal housekeeper/gardener/nanny. I don't have to worry about MY job getting cut/outsourced! I got mine, so F--- you, man! (takes bong hit)

What's mainly driving anti-Boomer sentiment isn't so much class envy as it is the smug, arrogant condescension and self-righteous hypocrisy constantly shown BY Boomers towards later generations.

Astrid, there's this nice guy named Elron here to see you. Mumbled something about his "turf".

Requiem,

I feel Scientology's pricing model is getting a little outdated. I'm looking for a different pricing model to make it affordable for a wider audience.

"Forget about the price, let's talk about what payments you can afford"?

Sooner or later, the fabled flower of real estate will wilt.

Just like it's progenitors, the wilted flower children Boomers of the '60s & '70s, as they scrape the last bit of resin from their Gerry Garcia 50th Anniversary bongs for one last hoorah!

Everything must die, my friends!

"its" rather.

Here is the key. US stock market must NOT crash, and I think it won't.

All other RE crashes happen *as* the stock market crashes, causing more collapse of confidence or margin call on specuvestors as they spread their money across different assets.

That's why I think the big guys here will do everything possible to make sure that our stock market *looks* fine. You will continue to see up and down 10 points each day for many years to come, until inflation catches up.

OO,

What can the big guys do to keep the stock market afloat? More corporate subsidies? More cheap credit? More cheap consumer goods?

It seems to me that the big boys are already doing everything they can to keep up experience and they've been doing it since the dot.com bust. I don't think they have the leverage to keep the stock market looking fine for the next 5 or 10 years.

-experience
+ appearance

:oops:

SP,

You can call it anything you like, as long as Peter P is fine with it. :)