patrick.net

PAR,

The Realtor(TM) I used to buy my condo basically did your #7. We would go through a place and she'd comment 'Ugh, what a dump. You'd expect my client to pay for your clients' bad taste and remodel? Ugh' Or she'd say to the seller's agent 'Pacific Heights? You've advertised and priced like Pacific Heights but we're practically in the projects (Pine Street, in 1994).' Or my favorite 'I wouldn't let you buy this dump. Leased parking- hmph. I'll call your mother and talk to her if you try to buy this place. Your parking lease could expire and you'd be stuck parking and walking the streets at night. I won't let you buy this dump.' Right in front of the selling agent.

She probably wasn't too popular with other agents, but her clients loved her.

Unfortunately she died of breast cancer. She was a hoot.

SFWoman,

She sounds hilarious! I bet the other agents tried to hide their open houses from her. :D

Unfortunately she died of breast cancer. She was a hoot.

Sad. We need more funding in breast cancer research.

Anyone hear about a show called hidden potential? So this is the kind of crap that people are watching on TV? They take a POS house and turn it into something liveable. Such BS propaganda!!! Is this show funded by the NAR?

Did anyone else get this sent to them? Guiliani is toast, there's no way the Christian right will back this man.

http://tinyurl.com/yptrpt

I'm sure many of you have heard this already, but the #2 Subprime lender stopped issuing loans as of last night. They are expected to likely file for bankruptcy soon:

http://money.cnn.com/2007/03/09/news/companies/bc.newcentury.shares.reut/index.htm?postversion=2007030912

PAR:

Personally, I like item # 4 from your list

Pay your bills (since most of you actually can).

If jbrs are going to do well in a downturn, of course we can't be in debt on VISA and Mastercards when the time to buy comes!

OT can I mention I am starting my own cheaprealty website? It is nothing in the league of Patrick.net, but I can try.

No this is not spam, I have been posting here for several years, but if the moderators don't want me to say I have a web-site, delete my post!

No this is not spam, I have been posting here for several years, but if the moderators don’t want me to say I have a web-site, delete my post!

Huh? :) Congrats.

tsusiat, I love the Victoria area.

I believe that any RE correction up there is not going to happen for a while though. BC is now a highly international market.

Did you see that NEW announced last night it's not originating any more loans as nobody will give them extend them a thin dime. They're the institutional equivilant of a FB now. The subprimes going bad are much like an ARM reset to them. And they can't get any more credit much like the FBs can't refi their no-longer appreciating homes.

From the CNN story on New Century. The have arranged to refinance $710 million of loans. I am assuming this is to get the FBs more favorable terms so they don't default... oh, and to get them out of purchase money, non-recourse loans. (Here Mr. FB, let me handcuff you to your front door.)

So I guess October 2007 may be the start date of the bubble burst.

They're pretty much guarenteed to go bankrupt at this point. Good job to the shorters who caught the wave! :D

The question is how far will the subprime storm go.

I read that wall street firms are buying up subprime loans. I guess they are making friendly announcements before doing anything now. :)

Peter P

I hope you are wrong, but there are several factors pointing both ways -
in favour of a deflation or slow bursting

increasing inventory, I will post a chart about that later today.

unaffordability relative to local incomes

log run up in prices

strengthened Canadian versus US dollar

not in favour

baby boomer retirees selling up and moving to Victoria from Vancouver, Calgary, Toronto etc

Conservative lending practices that have not seen a proliferation of ARMS etc

Relatively strong local economy etc.

I still think HELOCs and other economic motors for the local economy may start grinding to a halt, but we will see what that means for local prices.

The last significant local price bust happened in around 1995-1996, a few years after it started in California.

We will see if the same pattern repeats itself this time.

tsusist, I do hope that sanity will return soon.

However, I laugh whenever someone says everybody wants to live in the Bay Area, but I am less rude when someone says everybody loves British Columbia.

It is also possible that the BC bubble may stay somewhat inflated (with some corrections) until the 2010 (winter olympics). Anticipation can be powerful at times.

Somehow locals there seem to be very bullish about the area. Well, they do have one of the prettiest city in the world.

They were bullish up until the Hong Kong handover to China, with an influx of moneyed Hong Kong chinese. The crash started about a year before the handover, though.

The Olympics will be nice advertising, but whether it can sustain a long term population influx of that much incluence remains to be seen.

How much effect did the winter olympics have on real estate prices in Salt Lake? I have no idea....

I know it didn't make that much difference to Calgary back in the 80s.

Personally, I think it is just another popular sentiment for realtors to hype.

Real estate is already so expensive in Whistler, more exposure can't do a lot to the market there.

The Olympics will be nice advertising, but whether it can sustain a long term population influx of that much incluence remains to be seen.

Whatever possible optimistism about the upcoming Olympics has already been priced-in. Reality will decide if such optimistism has been overly optimistic.

How much effect did the winter olympics have on real estate prices in Salt Lake? I have no idea….

You cannot compare SLC to Vancouver. Everybody wants to... ;)

And Calgary? It is soooooo cold. Lower tax though.

Some more perspective from the archives (courtesy of S&P Case Shiller Index). So how bad was it in LA during the early nineties?
Peak: 100.24 (June 1990)
Low: 73.07 (March 1996)
Percentage drop: 27.1%
Depending on whose inflation numbers you use, this comes to about a 50% haircut in real terms.

EB Guy,

I will settle for a 25% haircut here in real terms, as long as it doesn't take until 2012!

I will settle for a 25% haircut here in real terms, as long as it doesn’t take until 2012!

What if the poles reverse in 2012?

Maxed Out on credit card debt: the movie:

http://www.maxedoutmovie.com/debtcrisis/index.html

Will there be a housing bubble movie?

Will there be a housing bubble movie?

If there was, it would be rather long! :lol:

There is more going on in Seattle. But I think Vancouver is cute, nicer and gentler.

I like having fewer things going on... :)

This is why I prefer Victoria to Vancouver. My wife will strongly disagree though.

I prefer museums in London.

PAR said:
EBguy, the Shiller index is already adjusted for inflation.

You are thinking of the Shiller graph on Randy's website www.capitalism2.org, which takes into account inflation. The S&P/Case-Shiller Home Price Indices are NOT adjusted for inflation.
http://www.homeprice.standardandpoors.com./spf/pdf/index/SP_Case_Shiller_Home_Price_Indices_Methodology_Web.pdf

If I offended you yesterday, I apologize.

You have overestimated your ability in offending me. :)

BTW, when might you have offended me?

The British Meseum is a place that I’ve always wanted to visit.

I have never been there.

I always prefer a science, technology, or natural history museum. I am not too patience with art, although I do love Vincent van Gogh.

I have never been to Victoria, mainly due to the difficulty of getting there.

Just drive up and take a ferry near the border. The buffet on the boat was not very good though.

http://www.mercurynews.com/ci_5387915

It's virtually impossible to find a reputable expert who believes a basic home purchased in the Bay Area today will be worth less 10 years from now. History, and continued restrictions on new residential construction, indicate prices will rise over the long term. But the value certainly can drop or stagnate during any 10-year span.

Mark Martel and his wife, Anita, are renters in Mountain View who began looking to buy a townhouse in the middle of last year. They say the conditions for buyers were kinder last summer than they have been early this year, because there are fewer homes on the market now, and more competition. They made their first purchase offer, on a Mountain View townhouse, last month and lost out in a field of seven. They offered 6 percent more than list price, Martel said, but the winning bid was 12 percent over.

"There are a few people I've talked to who are listening to the nationwide hype, who think the market is declining," Morgan said. "In the Bay Area, we're in a unique bubble ... we're not really seeing prices go down per se."

That's that. Fortress Mountain View.

"I don’t think the housing will crash this year. No way. I am uncertain that I made the right choice to sell my condo now, as opposed to selling it in 6 months."

You know better than to hold out for the last marginal dollar...

Some people are always drawn to listings that are under-priced. It seems more reasonable to find something a little bit overpriced and have my agent break theirs. :)

Anyone here ever taken the ferry up Alaska's Inside Passage? I'm thinking about doing that for my big trip this summer (before all the Glacier melts)

Anyone here ever taken the ferry up Alaska’s Inside Passage? I’m thinking about doing that for my big trip this summer (before all the Glacier melts)

I haven't. But I love cruises. Choose one with good food, they may have lobsters!

PS - Anyone here (other than GOOG employees, you know who you are) played around with Google's new custom search? I would love to build a patrick.net housing bubble metasearch...if you guys are willing to help...

Peter P,

I can't afford a good cruise (I have very little after tax money after student loans, living costs, Roth 401K and I spend most of that on clothes and books and kitchen implements) .

I was thinking of the government runned ferries that goes between Seattle and Alaska.

Astrid, they may have good cruise deals from time to time. Last time we took Princess to Vancouver and the food was decent (though not mindblowing) and it cost us less than $100 a person-night. An Alaskan criuse may cost more though.

http://res.cruisecheap.com/travel/cruise/sailplan.rvlx?CruiseItineraryID=78375

I heard good things about Crystal but they are very expensive.