patrick.net

David Lereah,

Go pound sand!

Check out David Lereah's link to "his" myspace site. Funny stuff.

I deeply resent the use of my image in this way. Let me assure anyone found misusing my name and image will be prosecuted to the full extent of the law.

I play a vital role not only in the field of real estate, but also finance and the world economy. My fans and followers rely on being able to trust my remarks.

I take full responsibility, sue me! :lol:

allah,

You've got to say that right, now damn it!

The correct way is to say;

"Go for it dude, even my company uniform is rented!"

http://www.dqnews.com/RRBay1106.shtm

October Bay Area housing numbers released.

David Lereah,

Welcome to the blog! We are most (dis)honored to have you here, sir! Your name often comes up in our many discussions about REIC propaganda, insider pumping/dumping and MSM dishonesty in general.

Just one question that's been puzzling me, though: what is the correct spelling of your surname? Is it "Liarrhea", "LiarRealtor", or "LiarRealtwhore" ?

Anyone notice how a lot of the babes listed as DL's MySpace "friends" really are bona-fide Realtwhores? I guess they're not all "in" on the joke.

lunarpark,

Well "prices" may not have reverted to OCT 2001 levels (but sales sure have).

Notice Marshall Prentice's comment that "the sky is "probably" not falling as some have predicted". (emphasis mine)

Well yeah Mr. Morrison B. Tuddworthy the freakin Third! Don't you think it's a little early to say the sky "probably" isn't falling! Comments like this have passed for "information" for years from the REIC and are not sitting well w/those "that bought at the peak and might have to sell" as Mr. Tuddworthy suggests. They are going to have to go back and re-think their whole spin effort b/c this stuff clearly isn't as easily palmed off as it was in the past!

Anyone notice how a lot of the babes listed as DL’s MySpace “friends” really are bona-fide Realtwhores? I guess they’re not all “in” on the joke.

I think they are only putting links to their pages for publicity, that's all. I think they know that it;s fake....but then again, you never know. :lol:

DinOR - I caught that "probably" as well.

@lunarpark,

Flat prices across the BA means that unless there was a steep drop off last October to November (2005), or there's a steep increase in prices this November (doubt it), prices will likely be negative YoY across the Bay Area the next time around. Looks like Santa Clara and Marin are holding up prices for the rest of the BA this month. Even SF is now down -0.9% YoY! Too bad ConfusedRealtor is not able to comment on that number. ("The sky is not falling. The economy is good. Life is good.")

I do think it's true that without a collapse in the economy (may still happen due to a RE collapse), there will be stickiness in the downward trend in prices, as Randy H has suggested. The same people buying the 3br/2ba in San Jose for $900K will be buying a nicer place in Mountain View or Cupertino, the ones buying in Cupertino will consider Palo Alto, etc. Buyers will still plan to spend the same amount of money (barring a huge runup in mortgage rates), it's just that they will be buying nicer places, in nicer locations, etc for the same money. This will keep prices up for a while, I believe. This is in part why these stats are a little misleading. If and when the overall jobs situation and economy turn, all bets are off.

lunarpark,

Sounds like George Costanza for crissakes.

You caught me! You caught me in a lie. My own....... web of lies Jerry!

Ah-hem. After 18 consecutive months of being almost single mindedly focused on lagging indicators and proclaiming;

"Indications of market distress are notably absent" YEAH, people are going to gravitate towards anything that looks like a deviation from your position! However slight. He's had the wind at his back for what Idunno......7 years. Yeah a fella gets comfortable. I'm so used to these "bump in the road" comments they barely even register anymore.

@"David Lereah",

The time to buy a home has NEVER been better

Actually, according to your most recent ad campaign (that hit all the major newspapers & publications), isn't now "a great time to buy or sell a home"? So, either buying or selling is A-ok, right?

skibum,

I can to a certain degree get on board w/the notion that buyers will look "upstream" so to speak but as Peter P noted there's a certain psychology that goes along w/that too.

When we first started seeing prices "crest" here in OR last year this time there was a real sense of relief! Kind of the sense you'd get when you bought beer for your younger brothers. It's daylight the next day and you haven't gotten a call from the police! (That kind of.......relief?)

As spring 06 rolled around we were no longer concerned w/ever higher prices and began to see "Reduced" signs in print, on the internet and on lawns. Hmm? Now for the 400K we were planning on spending we could get a pool. Hmm (waits another week) now we can get a pool AND all new high end appliances and so on. Again the BA may well be different but a sort of "buyer's snobbery" develops and I'm getting pickier and snobbier by the day. That's just me though.

DinOR's younger brother

I just wanted to say that DinOR is a stand up guy! Hell I've known him all my life. He would NEVER provide alcoholic beverages to a minor! That's just plain ridiculous.

Oh man... the tips here are awesome:

http://www.flippernation.com/tips/default.htm

2. Starbucks proximity.
Must be within 3 blocks of a Starbucks. Poor people can't afford Starbucks, so then you know you're in a nice neighborhood.

Of course!

Speaking of the Bay Area DQ numbers, one place I've been tracking a bit is Menlo Park. Has anyone else noticed that of all places, MP has had significant price declines over the past several months? Is that due to more sales in the sketchier side (closer to 101)? Or are prices just dropping faster there? Any insight would be appreciated.

Again the BA may well be different but a sort of “buyer’s snobbery” develops and I’m getting pickier and snobbier by the day.

@DinOR,

This "snobbery" may be true, but I doubt it will keep potential buyers from buying forever. People keep saying how no one is buying now, the market is dead, etc., but there are still transactions happening. Sales dropped 20-30% in the bay area, not 100%. All I'm saying is that there is always a segment of the population that still wants to buy and sell, market be damned. The sellers are reluctant to lower prices, and even if they do, potential buyers aren't likely to just say, "hey, let's buy this same house we've been eyeing for X amount less!" Many will instead, think, "Hey, let's take that same amount we were planning to spend and look in a better school district, or look for a McAlbatross with 4 garages instead of 3, or with real hardwood instead of Pergo (TM), or in a subdivision with McMonsters 10 feet apart from each other instead of 4!"

The mentality of falling prices is likely the same as in a deflationary environment. In my case, I watched the "Veteran's Day Weekend" sale at Macy's head right into the "Holiday Wardrobe Sale" on Monday. Now, with all the press about sales1 being down and sales2 starting earlier, I'm tempted to grab a few bargains now, but mainly hold off until prices get even better. Of course, I could just pricematch what I bought before, and use the money from that to buy a few more shirts in the meantime. You could come home each day with a new item and a credit to your american express.

SHTF:
Welcome back, join the club.

skibum,

I believe Peter P's snobbery has elevated to a point where "feng shui" is now a primary consideration! Some of that 70% you're talking about though I attribute to Robert Cote's "Last Waltz" where FB's are desperately scrambling for a "last call" of MEW and a slightly better home w/a slightly better financing package!

Robert can explain it better than I, but I believe it had something to do with having that last great materialistic fling before the house ATM is shut down for the foreseeable future? I do agree though (kidding aside) that we'll probably never see "0" sales. Randy H would argue that there are "price making sellers" and then there are "price TAKING sellers". What kind are you seeing in the BA?

@CB,
I think that's probably true. I have indeed been tracking (loosely) on Zillow, taking their stupid zestimates with a grain of salt, and have noticed that Southern San Mateo county (Menlo, RWC, San Carlos) prices are dropping relatively faster than northern Santa Clara. The West side of MP probably is holding up better, but in the end, like you mentioned, all of MP has to send their kids to private high school or face sending to Menlo-Atherton HS, and I'd venture to guess that this plays a role.

Beware: No rate cut until 2008

Minutes from latest Fed meeting show the central bank, still worried about inflation, might stand pat through 2007.

King_Cobra,

Interesting article but rather than think of it as a sign that HB's have bottomed out I see this as nothing more than a cash flush endowment without a clue as to what to buy next. Paul Allen's Vulcan Enterprises has thrown money at some really far flung stuff too.

Allah,

In the movie "Back to School" w/Rodney Dangerfield he tells the waitress to bring a pitcher of beer every 7 minutes until someone passes out (then bring one every 10 minutes).

I want you to re-post that every 7th post until........

Wow! Love to hear that. I think the REIC was already planning their triumphant return and then........

So Bill Gates & Carl Icahn now are assuming the role of HB Plunge Protection Team? Or perhaps they see themselves more in the role of J.P. Morgan circa 1907?

Aaron,

Nice work. What did you use to do that "Ornaments" video clip? Maya?

"Wanted to do a plasma screen too"

Aaron, welcome aboard!

Just got off the phone w/MB in SD and he's (get this) elated that sales have been up 2 months in a row! Now there's reason for celebration! These guys are totally convinced that all of the FB's they put into I/O's will come back grovelling to re-fi that one last time (to stave off a foreclosure) that it will be like the re-fi craze of all over again! Yea!

The message is the same, debt=wealth. Sheesh. Sorry @$$ f@ckers.

@Aaron Erimez,

Your Photoshop & animation skills humble me. And welcome to the blog!

Anyone else notice the following in DQ's report. Emphasis mine.

Adjusted for inflation, mortgage payments are 14 percent higher than they were at the peak of the prior cycle fourteen years ago.

It's interesting that they are comparing this to the peak of previous cycle. Isn't that admitting that this is indeed a peak (and not a flat plateau) ? This is their strongest admission so far.

Maybe I am reading too much between the lines. But it's impossible that DQ does not understand what's going on. So this must have been a slip they did not intend to make.

Adjusted for inflation, mortgage payments are 14 percent higher than they were at the peak of the prior cycle fourteen years ago.

hmm. I've seen an analysis that shows that people are hurting more today with repayments relative to wages, due to exorbitant prices, than in the 18% interest days in the 1980s. That was about 20 years ago.

Entertaining Thread today! Thanks for the post Senor Harm much appreciated.. The David LeReah spoof very cheeky! I miss Cali especially with the holidays approaching..

@Ha Ha,

The spelling and grammar are par for realtors (TM): crappy!

Hey folks, this is your last chance !

http://tinyurl.com/yjpdvf

On ZipRealty, the description reads
Last chance! Huge price reduction! Must see to believe. Granite counters, real hardwood floors, marble entryways, tavertine tile bathrooms, 3 fireplaces, stainless steel appliances, french doors & much more.

DOM : 70 (!)
Price Reduced: 11/08/06 -- $989,000 to $959,000
Price Reduced: 11/10/06 -- $959,000 to $898,000

Last Chance ? To do what ??

This is clearly a remodelled house. Most likely puchased to flip. Last sale according to Zillow was in 6/2005 for 675K.

Price reduction of 100K in Cupertino. I thought Cupertino was the differentestest of the differentest BA.

Anyway. I will wait for the lastest of the last chances.

Flipper Nation - the Show

Am I the last one to hear about this? Cited on Casey Serin's blog, but he though it was legit! omg...

I'd just like to take this opportunity to declare Craigslist........ officially dead!

Obviously none of us can check each market every day but really, what's the point. There's this insane practice on the part of sellers to attempt to re-direct traffic back to their listing by tweaking or retooling the ad (however slightly) to once again expose you to their STILL overpriced POS!

Dude, you've posted your power line infested, zip privacy, quicker fixer upper for the last 11 months with the EXACT same pictures. I didn't want to buy it then and I DAMN sure don't want to buy it now! Yet again you've "tricked" me into clicking on your "steaming pile" and in essence stolen my time! Congratulations all delusional C/L posters!

"They're still waiting for Santa to deliver their asking price"

Who says Indians are without humor!

King_Cobra

I did not sell to time the market. I sold because we had to move for real-world reasons. My decision was to *not buy* until prices correct. I believe DinOR also had pragmatic reasons for selling.

I would not advise anyone to sell their primary home merely as a market speculation. But if you have to move anyway, then you should wait before buying again.

As to the stock-market versus home-as-investment: it all depends upon how you measure risk. Houses tend to be uncorrelated to stock prices, so in that regard they are "safe". But, stocks and bonds allow you to diversify, which makes them much less risky than putting all your family wealth into a leveraged McMansion off of 680.