Saturday, December 01, 2012

It Is Not Over

Prices have bottomed? No. Increasingly it may seem so as the lowest priced properties are bundled and kept off the comps. Here's what happens:
The $742k house is a foreclosure estimate.  $690 is the Trulia estimate.  Somebody is losing big.

Nice, newer neighborhood over the hill from me in the city. Disgusting to me personally but some people like these kinds of places. I'm not a snob.  Let them live there and keep my choices from being overwhelmed.  Same thing for places like Phelan, CA.  Hell on Earth but better than crowding those masses of humanity any nearer to me.



11 comments:

Cobradriver said...

I was just doing some looking at classic cars to get an idea of what the market is doing. I found a pretty good year over year example...

1963 ZO6 Vette. Rare 36 gallon tank coupe that has a bit of a race history.

2009 sale price at auction...193K

2011 sale price at auction...111K

This was for the exact same car. The money to keep this market afloat just isn't there without all the HELOC's.

Chris

Rob Dawg said...

Nowadays even the people who can tap equity don't.

I'm trying to think of what item I'd go into debt to acquire. Drawing a blank. Income property and super low car rate being obvious exceptions. Could pay cash for a vehicle but I won't turn down free money either.

Makes me wonder if a lot of this year's auto sales are actually people "hoarding" with no intention of another purchase for a decade. Other than slowly degrading gas economy the '99 Expedition at 142k just keeps working.

Rob Dawg said...

Off topic but an interesting read:
http://www.ritholtz.com/blog/2012/11/if-you-give-a-mouse-a-cookie/

The article is about House retail politics and the replies are frankly disconcerting.

W.C. Varones said...

Was it over when the Germans bombed Pearl Harbor?

W.C. Varones said...

On the other hand, buyers are going Full Retard here in San Diego.

Cobradriver said...

After reading those comments...I'm leaning more towards firing the mowing service back up. Why do a franchise on the books?

W.C.,
While I miss the Socal weather,I sure don't miss those prices!

Then again it's pretty damn nice here in Florida today.

Chris

Son of Brock Landers said...

Re: that Ritholtz link. If you think of jobs that many libs hold, they have no concept of wealth and capital creation. It's hard to explain this to them when their voting coalition is basically the coalition of victim groups with a rich and educated elite on top using them. Sure, the educated ones might understand it, but due to thoughtcrime indoctrination to remain orthodox to their side, they must deny reality.

Rob Dawg said...

The Keynsians say run deficits in recessions and surpluses in expansions. They say we arein a recovery and yet still need to run deficits. They have to admit that all their deficit spending didn't work first. They built a house of cards and now cannot move without taking it down.

Truth is they are not Keynesians. They are rediistributionists and about fostering dependency. Time to stop digging.

TJandTheBear said...

They'll only stop digging when they go so deep that the walls cave in on them, so let'em dig. Once they're buried we can start clean.

Thomas Stone said...

Dawg, you are a snob. Being able to discriminate between shit and honey is a good thing...

TJandTheBear said...

Don't you mean shit and shinola?