Thursday, September 25, 2008

Little Cabin in the Sky


You're going to be hearing this stock phrase used more often in the housing market; "Round Trip."

People rode the stock/house up and now down. Today's moral hazard lesson is:
1600 Betty St, Wrightwood, CA 92397
Price: $182,000 BEDS: 2
BATHS: 1 SQ. FT.: 780 $/SQ. FT.: $233
LOT SIZE: 4,268 Sq. Ft.
YEAR BUILT: 1932 MLS#: I08135172
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Fairly typical for the area. Equally typical is the ownership record:

Sales History
Date Price Appreciation
Nov 14, 2005 $230,000
Mar 20, 2007 $285,000 17.3%/yr
Aug 14, 2008 $243,347 -10.6%/yr
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Gee who do you think paid two hundred forty three thousand three hundred and forty seven dollars? Buyer #1 held for 14 months and made $55,000. Buyer #2 probably put down 20% and lost everything to the bank who...
Wishes they can only lose $61k. Good luck with that Mr. Bank.
----

Meanwhile a few blocks over we have the patient investor:
1446 Laura St, Wrightwood, CA 92397
Price: $299,000
BEDS: 3 BATHS: 2
SQ. FT.: 1,152 $/SQ. FT.: $260
ON REDFIN: 542 days
Sales History Jan 19, 2001 $120,000
----

That's what this cabin is worth. $100/sf. Round trip.

18 comments:

Northern Renter said...

Furst of all, the place should be named Wrongwood.

NR

Rob Dawg said...

Clever. Mr. Wright would disagree.

Anyway that last one? $299,000? $115,000 IMO. I could break even at that price.

chickenlittle said...

Bought my round trip ticket in 2001for $180k. Topped out at $495 appraised phoney value, but still zillows for $325k which is probably $50k too high. But there are some horror stories in the cul.

Bill in NC said...

No problem with those prices once we monetize $1 trillion in bailout dollars into circulation.

That'll raise domestic prices levels to the point we won't have to deal with politically unpalatable falling house values.

I'm not looking forward to paying $9 for a gallon of milk at Costco, however.

Lex said...

Tear down the house and put up four of these, you'd be a real estate mogul

Jean ValJean said...

Could it be Lost Mittens?

Surely not Dam(i?)on...?

PukeyPuke said...

I got a rap for Casey:



Mocha Hoka dippledy doo
She comes outta hiding to post without clue
Who could support Casey but why oh why
When we know he will be cooking the popular french fry
Working Mickey D’s is the future he knows be coming
He thinks it’s beneath him, he thinks it be slumming
Why is it slumming if you ain’t got tha college paper?
What’s this you say you be planning another caper??
A pyramid scheme did not work
Begging made you look like a jerk
Ignoring all the people who come to offers
They help you out to legitimately fill your coffers
You’d rather not work you’d rather be broke
Playing on the internets and being a joke
It’s all about you and your not so brilliant idea
Passive Income won’t make you Chick Corea
Chick’s the best at what he does and that’s no lie
What’s wrong Casey does that make you cry?
You aren’t nothing but a big giant faker
You’ll be broke for life until you meet your maker
You tell us how smart you really are
But we don’t believe it not us not star
You can’t be good at business with a neg balance
It’s getting pretty stupid sort of like Jack Palance
Believe it or not is what he used to say
Benoit might be right and you probably gay
Your site is dying no matter how much you troll
Don’t believe us, let me take a poll
When you rely on Shark as your go to guy
It shows you are slow and not very spry
He’s dead weight like your actions and words
Talking about lemons, depression and turds
That isn’t personal blogging whatever you say
Talking about religion and saying you pray
Nobody buys this crap sept you and a few
Soon many will ask Casey who?
That’s right you aren’t as famous as you think you are
Don’t really like it think it’s bizarre?
It’s the truth if your ratings keep showing decline
Kinda like that ring where you continue to pine
She won’t come back not matter what you say
She won’t come back even if you could pay
All your debts and close them out
Your really just a conman pretending to have clout
Living off the credit how long will that last
One day you will have to own up to the past
Maybe not in jail or whatever the haterz post
But your finances will be nothing but toast
The stock won’t save you pennies have issues
It won’t buy you anything not even some tissues
Pull those certs and prepare for the end
For you the end is right around the bend
The end is where you run out of juicy meat
The end is where you won’t have shoes on your feet
You’ll be living under a bridge if it doesn’t fall
You won’t even have a phone to make a call
Be careful young man this tale could come true
It always does when you are without a clue
Credit is not any way to live a life
One day somebody will make you their wife
In one of those prisons you like to talk about
Debtors prisons may be reality without doubt
Making people like you work off their debt
While your cellmate Bubba makes you his pet

Pukey Puke in da hizzouse.

Lab Dog™ said...

@PukeyPuke,
Sweet rap!
MOCHA is back?
With everything in this country unraveling like one of Casey's entrepreneurial schemes, I haven't been tracking him much.
I fear that even Casey is more intelligent than this utterly clueless VP candidate.

Pleather Murse said...

(OT, sorry) "Sept. 25 (Bloomberg) -- JPMorgan Chase & Co., the third-biggest U.S. bank by assets, agreed to acquire the deposits of Washington Mutual Inc. for $1.9 billion as the thrift was seized by regulators in the biggest bank failure in U.S. history. The U.S. government closed Seattle-based Washington Mutual amid customer withdrawals of $16.7 billion since Sept 15, the Office of Thrift Supervision said in a statement. WaMu had 'insufficient liquidity' and was in an 'unsound' condition, the OTS said." ... Another one bites the dust.

Peripheral Visionary said...

Off topic, but the WaMu deal is a big win for the FDIC and taxpayers. The WaMu mess gets cleaned up, and taxpayers don't pay a dime--so why all the whining and complaining on the various blogs? The losses on WaMu's alt-A were going to have to be absorbed by someone--and instead of the taxpayers footing the bill, it's the stockholders and bondholders who die, which is exactly as it should be. WaMu is off the crisis list, taxpayers dodge a huge bullet, rich people lose money, it's win-win™ as our mutual friend would say.

Akubi said...

@PV,
Thanks for verbalizing what I was saying to Ogg while being distracted throwing a ball to my hyperactive dog.

Pleather Murse said...

Agreed. Better this than the other way. Not like we didn't see it coming either. Just another sign of the times. I never thought I'd refer to the "biggest bank failure in US history" so nonchalantly but this has been a very unusual year. $1.9B of deposits actually sounds miniscule compared to the upcoming Paulson Plan.

Akubi said...

P.S.
That place should be named wormwood.

H Simpson said...

Will JP Morgan keep the gang of old time bankers or the zippy new manager in those lame commericals?

I say score one for the old geezers.

Well actually, they are probably all in going into the unemployment line today.

With all these bank collapses, how is a mop hair swindler suppose to get multiple mortages? It is just not fair..

Soon only 4 banks left in the US.
-BoA
-Citibank
-JP Morgan
-Goldman Sachs

h.

wagga said...

Wells Fargo?

Aaron said...

You forgot one bank...The FED. oh wait they're going BK too. all of us just don't know it yet!

Pleather Murse said...

WaMu was the one with those insulting commercials showing the uppity young negro putting all those dumb old white bankers in their place. Talk about comeuppance.

serinitis said...

The current Mocha is a Tavington Troll.

GSPG hit .018 today. Somebody better buy it or Casey's Mom goes under the bus.