Thursday, November 21, 2013

Re-listed the New Pending

One of the early signs of the first lobe of the credit/monetary seizure back in 2006 was the failure to close real estate deals.  At the time it was a perfect storm; lack of qualified buyers, standards that couldn't get any lower, velocity of money, you all know the litany.  That's why when I start seeing routine sales cancelled and the property getting relisted I pay attention.

There are two types so it is important to be careful.  The first type is bank greed in an era of lax regulation.  Used to be the banks needed to get off the books any repossessed physical asset before the close of quarter.  That rule is dead and buried so these days a "short sale" like linked below is not a short sale but a bank trolling for BPOs (Best Price Opinions) before settling on a real price.

1471 IRENE St, Wrightwood, CA 92397
$166,000 3Beds 2Baths  1,428 Sq. Ft. $116 / Sq. Ft.

Nota bene.  Never trust square footage or price per square foot. 

$166k would cash flow for a private investor.  Certainly fully price but like I said, it cash flows.  Problem being, the $166,000 is not a price, it is an opening bid by a bank with negative incentive to deal. 

These distractions are just part of the new real estate scene. 

Then there are the transactions worth following.  These are the on market for days or weeks with no condition issues and market pricing.  When those start relisitng pay attention. 

646 MOUNTAIN VIEW Ave, Wrightwood, CA 92397
$169,900 1Beds  1Baths  850 Sq. Ft. $200 / Sq. Ft.

Come to the mountains.  See into the future. 


Rob Dawg said...

Blog note. I've been gone for several days and no one even suspects I've had Ken delete my HCN account. Pretty much validates my decision to leave the cesspool to the natives.

Cinco-X said...

Shakeup at Minneapolis Fed ousts two top economists...Some observers say the loss of highly regarded researchers signals a change to less collaboration and fewer policy debates.

McGrattan said she does not know why Kocherlakota would fire Kehoe or let her leave — “It’s absolutely mysterious to us,” she said — but...there are subtle policy differences between Kocherlakota and the economists who are leaving. Kocherlakota has been at the center of a debate over the effectiveness of the Fed’s low-interest-rate policy. He has pushed for nearly two years for the Fed to hold down rates until unemployment drops to 5.5 percent.

Cinco-X said...

Kocherlakota...argues, in general, that what are known as “New Keynesian” economic models are helpful. This school of thought has helped create an unprecedented intervention in the financial markets by the country’s central bank — the $85 billion a month bond-buying program known as quantitative easing.

But Kehoe and McGrattan published a paper in 2008 arguing that monetary policy can do little to affect the unemployment rate, and Fed policymakers should instead focus primarily on controlling inflation.

“New Keynesian models are not yet useful for policy analysis,” they wrote.

Prescott laments that this sort of debate within the bank, long encouraged, no longer appears to be welcome.

Rob Dawg said...

Speaking truth to power is dangerous. Unprecedented intervention has yielded the arguably worst results ever.

The answer to too much debt as ever been more debt.

Cinco-X said...

Obamacare: Too Small to Succeed?..The problems with the Affordable Care Act stem from government being too small and weak, not too big and powerful.

...And the solution to stifling government regulation is even more regulation...

sm_landlord said...

Blog note. I've been gone for several days and no one even suspects I've had Ken delete my HCN account. Pretty much validates my decision to leave the cesspool to the natives.

So, you're not going to roll over the HCNometer to six digits?

Kinda sad over there, but Shill popped up with a reco of a Greek bank stock today, NBG if you want to speculate on a long shot.

I've been too busy to spend much time looking at blogs. The last time I got motivated to write something non-trivial was October 6th, at

I have an apartment to remodel now, along with everything else. A tenant had been in the place for many years, at a ludicrously low rent, thanks to rent control. So I have 25 years of wear, tear, and damage to fix. The good news is that the price goes to market when it's ready to rent out.

Fun and Gamez...

Property Flopper said...

And here I was ready to give this one up for dead. Hadn't checked back for a while since there were no new postings. Glad to see you're back.

Interesting housing market - the wife and I just picked up a nice vacation rental place. Housing has been going crazy (at least here in the Bay Area), a lot of irrational exhuberence has returned.

TJandTheBear said...


OMG, it's amazing how far off the deep end some are, isn't it?

Rob Dawg said...

To this day I get abused for back in the 80s being on both sides of socialism living in rent controlled Santa Monica and owning unregulated rentals in San Bernardino.

Rob Dawg said...

Prop Flop,
Thanks I'm going to step it up a notch to catch the long delayed second "soft patch.". Or was it second permanently high plateau? Second coming of Keynes? I forget.

Oh yes, and scantily clad babes. That I do remember.

Cinco-X said...

TJandTheBear said...OMG, it's amazing how far off the deep end some are, isn't it?

After nearly 5 years at another blog, I'm never really surprised. More like disappointed...

Cinco-X said...

mmmmmmm...scantily clad babes.

Rob Dawg said...

You an just imagine the pic I've saved for the "minimal down" post. :O

Cinco-X said...

Yesterday I found a letter in my mail from a reputable-sounding source: The Union of Concerned Scientists (UCS). Scientists, I thought. I bet they advocate on behalf of policy that is the most scientifically supported. Sounds like a great idea!
Before I made out the check for which they were begging me, I decided to carry out a little research to see for myself.
After a brief UCS website tour, however, I tore up their letter and threw it away. (Just kidding, I recycled it!) This group does not consistently practice “science advocacy.” Rather, it mostly pursues partisan politics, unashamedly using “science” as nothing more than a phony badge of credibility.

Rob Dawg said...

UCS "lost it" long ago. They were co-opted the same way the Sierra Club and other similar groups were co-opted. Too many causes in need of legitimacy. Stray off message for a good cause. Eh, what could happen?

The article does have one thing that is wrong. There are difference between some GMOs and organics. The other thing they carefully avoid is that many organic farmers like GMO because they need less pampering.

Son of Brock Landers said...

Glad you're back. Cheesecake plus econ sounds good.

The Sierra Club took a $100 mil bribe to never mention the negative effects of immigration ever.

Rob Dawg said...

Welcome back Son of and all.

I'll try to keep it entertaining but content relevant. I expect over the next few weeks to see some refugees showing up at the door. Sice I don't have access anymore if you see someone getting fed up feel free to suggest they give this place a try.

As to Sierra Club yes that was a truly hideous moment in conservation advocacy. You might also notice their not addressing forest destroying grow ops on public lands.

Cinco-X said...

You shouldn't have your account deleted. Someone, and I'm not naming any names, might create an account under that name as start posting garbage.

Rob Dawg said...

Ken wouldn't let that happen. It's no big deal. Apparently so many people had me on ignore they haven't noticed. It will be interesting to stop in when they realize not that I expect any introspection on their part as to why they had me on ignore.