Saturday, December 01, 2007

An Ill Westwind Blows

The local old media fishwrap Star is following what might become a really big deal. An auction of 42 homes in a failing South Oxnard development. Excerpt:
On the day of the auction, there will be a dry run, giving bidders a sense of how the process works.

"It's very open and transparent for the buyer," said Winchell. "It's a great thing for them because they determine the price."
Bullsh¡it. There is the reserve, the prequalification, the auction fee, the closing costs, on and on. Auctions at this stage of the housing collapse are designed to do one thing; generate interest. Everything else is ephemera. And it is working. The Los Angeles station ABC7 carried the story. B@st@rds even title the story: "Sweet Deal for Home Buyers in Oxnard." Gotta love it when the old media starts sounding like Casey.

But what about Oxnard? They've been busy little urban planners. Here's one of their efforts: Federal Housing Assistance. Excerpt:
Total transactions for fiscal year 2002: 262
Federal funding (within this search) for the year : $5,837,500

How is all this working out? The OFHEO knows. Excerpt:
The states with the largest depreciation for the same period were: Michigan (-3.7%), California (-3.6%), Nevada (-2.4%), Massachusetts (-2.3%), and Rhode Island (-2.2%).
Be sure to read the comments following the Ventura County Star article:
No way in hell would I want to live there and it isn't even appealing as an investment property because the area will just trash any new home.

Auction tomorrow, be sure to read about it here on Monday.


Funny Circus Bears said...

Auctions at this point of the cycle are a sucker's bet.

Rob Dawg said...

Absolutely. Did you watch the ABC7 video? The neighbor who paid "over $600k" this summer? It is going to be really ugly. If these things don't sell at prices much higher than reserve things will get bad. Not just a flurry of recent buyers at full price walking away but the low prices attracting multiple family crime tenants. Heck, at $200k or so I'd buy 3 or 4 and set up some affordable group housing arrangements.

FlyingMonkeyWarrior said...

First and Murst. I win.

Debbie said...

When I lived in Ventura, my best friend from college was stuck in Oxnard. She got no end of teasing. Used to tell her if she felt like living it up I'd take her for a beer at Point Hueneme.

ha38349 said...

Instead of talking about discount from some hypothetical sales price perhaps builders will start to work up from actual cost to build?
Lets see a cost of land, materials, and labor figure. Land would be an interesting variable. Quality of materials and workmanship would be another. Are houses any different from other large expenditures (except for land) ?

Akubi said...

Oxnard had a branding problem from day 1. Who would want to live in a place called Oxnard? A cross between cattle and retards? No thanks - speaking of cattle, one finds some pretty strange shit mining for sweet erotica.
So I'm working with themes at Zillow Book and of course Fishnet Friday is an obvious one. I'm into Shibari Saturday even if it's not terribly popular. Even less popular yet intriguing is Spider Sundays. However, I'm not sure if I'll find enough spider material to keep it going.
BTW, how might I work a sweet pink candy-theme into a day of the week?

Sac RE Agent said...

There were some house auctions a while back in Sac. Generated a ton of interest and excitement. I can remember reading an article the next day in the Sac Bee. One of the home buyers was excited about his purchase. This was in spite of him spending $35,000 more than what he had budgeted to spend. So I'll be interested in hearing about the auction in Oxnard.

Portland has over 240 homes going to auction in two weeks. It's creating a lot of interest there too. But it will be interesting to see what effect auctions will have on the real estate market.

Akubi said...

I'm only interested in a sweet vintage 4-plex with a solid foundation.
BTW,Edgar has a new blog for toilet enthusiasts.