tag:blogger.com,1999:blog-35190061.post7159995275451854753..comments2023-10-17T03:59:01.588-07:00Comments on Doctor Housing Bubble Blog: Real Homes of Genius: Today we Salute you Arleta and Compton. Two Short-Sales for the Price of One.Dr Housing Bubblehttp://www.blogger.com/profile/12407700951720008626noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-35190061.post-53040046790209364432007-08-14T09:45:00.000-07:002007-08-14T09:45:00.000-07:00I live in the Washington, DC market and the Housin...I live in the Washington, DC market and the Housing bubble seems to be letting out more air than bursting. I think that Compton is a perfect example of the bigger market that saw great appreciation and really hurt the uninformed consumer. Now everyones greed has turned to pain. I always wondered how people could keep up with the rising market and high property taxes. I think this article is a great example and may help people make some sense of this new market. Thanks, keep them coming.Homezillhttps://www.blogger.com/profile/03401951196048602151noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-70423515525041548862007-08-13T15:52:00.000-07:002007-08-13T15:52:00.000-07:00@sandpiper,A few good books to give you an overvie...@sandpiper,<BR/><BR/>A few good books to give you an overview of what is going on:<BR/><BR/><I>The Millionaire Real Estate Investor</I> by: Gary Keller<BR/><BR/><I>The Millionaire Next Door</I><BR/> by: Thomas J. Stanley,William D. Danko <BR/><BR/><I>Coming Crash in Housing</I><BR/> by: John Talbot<BR/><BR/><I>How to Profit from the Coming Real Estate Bust</I> by: John Rubino <BR/><BR/><I>Manias, Panics, and Crashes</I> by: Charles P. Kindleberger<BR/><BR/>These books should keep you busy for awhile! <BR/><BR/>@Peppermint Hippo,<BR/><BR/>Once I have a better amount of data, I'll make sure to post it for everyone to access. Each week the number has been going up. <BR/><BR/>All:<BR/><BR/>Take a look at this fantastic article, they should of titled it Real Block of Genius: <A HREF="http://www.ocregister.com/money/loans-camile-percent-1806121-subprime-loan" REL="nofollow">A subprime block of housing in OC</A><BR/><BR/>A nice little quote from the article:<BR/><BR/><I>"I never sell. I never refinance," Zambrano said. "I don't take money out of my house to buy a car or take a vacation. I'm not stupid."</I><BR/><BR/>The only smart person in the entire story.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-33742777612107519182007-08-13T14:59:00.000-07:002007-08-13T14:59:00.000-07:00Dr. - just a quick suggestion. Could you post a l...Dr. - just a quick suggestion. Could you post a link to archived shortsale statistics displayed in the right column of your homepage? A breakdown by county would be nice too if it's not too much extra work for you. I'm guessing the IE percentages are higher than OC and LA for now.<BR/><BR/>Thanks.Peppermint Hippohttps://www.blogger.com/profile/16960932991788914511noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-49457139776813389532007-08-13T14:01:00.000-07:002007-08-13T14:01:00.000-07:00This blog is fascinating, but I don't have a backg...This blog is fascinating, but I don't have a background in economics so I'm having trouble following some of the discussions. In your resource section, could you please recommend a few primer books on finance and economics, as well as real estate, for novices trying to understand these complex issues. Thanks!Shireenhttps://www.blogger.com/profile/18386028026441044301noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-54450891967270230002007-08-13T12:03:00.000-07:002007-08-13T12:03:00.000-07:00What we are witnessing is corporate welfare at its...What we are witnessing is corporate welfare at its best. The injection of all this liquidity is tantamount to a bailout. If we believed in true free market capitalism, we would allow the markets to wash out mortgage companies and investors who made horrible bets in the housing market. <BR/><BR/>If you go to a Casino, and win $2,000 in one day I'm sure you aren't going to tell them, "hey, can you hold $1,000 in an insurance fund in case my luck goes bad?" Then you come back the next day and lose $1,000 and expect the Casino to bail you out. The mortgage companies and Wall Street players didn't build up enough cash reserves for a downturn. Who's fault is this? They kept on hedging their bets and betting on a non-stop growing housing market. Why do you think the credit crunch is happening? They don't have enough liquid cash to cover their losses!<BR/><BR/>In addition, this "bail out" talk is not for these families that are being foreclosed. It is for the lenders and Wall Street firms. It is too late for these families who now have lost their home.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-50165312092477632062007-08-13T10:14:00.000-07:002007-08-13T10:14:00.000-07:00I agree with Covered's comments. This isn't prejud...I agree with Covered's comments. This isn't prejudice - just facts. My sister owned real estate in that area - many of the people get government rent subsidies, like section 8. Collecting rent, getting it paid on time, maintaining the property, are more challenging with low income renters.<BR/><BR/>AND IT'S COMPTON! DUH!<BR/><BR/>Thanks, another great post, Dr. HB.ProblemWithCaringhttps://www.blogger.com/profile/08095117977468663616noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-3663411861041578892007-08-13T09:20:00.000-07:002007-08-13T09:20:00.000-07:00$342K still seems pretty far out for a house like ...$342K still seems pretty far out for a house like this in the sort of neighborhood you describe.<BR/><BR/>This is a very shacky little house. It's old. The lawn looks scrofulous.Even in SoCal something like this shouldn't be more than $100K, even if the land is zoned multifamily.The North Coasthttps://www.blogger.com/profile/14292115710427172625noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-44773987152050326562007-08-13T09:08:00.000-07:002007-08-13T09:08:00.000-07:00Let the gnashing of teeth begin:NEW YORK (CNNMoney...Let the gnashing of teeth begin:<BR/><BR/><A HREF="http://money.cnn.com/2007/08/09/real_estate/pols_play_subprime_blame_game/index.htm?postversion=2007081311" REL="nofollow"><BR/>NEW YORK (CNNMoney.com) -- In the wake of the subprime mess, Democratic presidential candidates are grabbing hold of the issue and offering their own solutions. And the problem, according to many of them, lies with the <I>mortgage broker.</I></A><BR/><BR/>You think these two homes would be scrutinized under this new proposed legislation?Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-81875342717460753882007-08-12T22:54:00.000-07:002007-08-12T22:54:00.000-07:00You mean one has to prove their income and have mo...You mean one has to prove their income and have money down? <BR/><BR/>Oh no...I think I heard a gigantic THUD coming from SoCal....formul8https://www.blogger.com/profile/01565170272049750733noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-76781005642879138722007-08-12T11:17:00.000-07:002007-08-12T11:17:00.000-07:00Dr. HB,I was around when the Hunt Brothers tried t...Dr. HB,<BR/><BR/>I was around when the Hunt Brothers tried to corner the silver market back in the early'80s. They did swell on their huge margin accounts all the way from $6 to $53. Then, a funny thing happened. The board of directors at the Chicago Board of Trade raised the margin requirements from $5000 per contract to $50,000 per contract overnight. On top of that, they made all new orders "liquidation only." That effectively meant that only the board members could "sell short" silver and the Hunts and everyone else could only sell period. What happened next was predictable and has been well documented.<BR/><BR/>I think we are seeing sort of a hybrid mass "margin call" from the easy money housing lenders as of last week. They've now raised the lending standards back to sane levels and Bush basically said Friday that the caps on Fannie and Freddie would be raised over his dead body (no jokes, please.) Any ARM that is 2003 to present vintage is history. Guaranteed to blow up. What we Bubblebloggers have been warning about has finally came true. It. Had. To.<BR/><BR/>Prices will come back to earth, but I still wonder how bad it's going to hurt the rest of the economy. Will our US Dollars be worth enough to buy a $250,000 real house or are we going the way of Wiemar Germany? At this point, I really don't think there's anyway to tell. As they say...something's gotta give.coveredhttps://www.blogger.com/profile/16980598678646245375noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-75901412973282222502007-08-12T10:17:00.000-07:002007-08-12T10:17:00.000-07:00covered,You are right. Most people buy homes in a...covered,<BR/><BR/>You are right. Most people buy homes in areas that have good schools, nice neighborhoods, or something that will benefit them and their family. You would expect this as a minimum for a home approaching $500,000. <BR/><BR/>Yet the last few years, the majority of folks almost took it as a new rule and said <I>"well, this is California therefore it makes sense. If you don't like it too bad"</I> Maybe if we are talking about prime locations but we are not.<BR/><BR/>There are reports stating that in the last 2 years, 70+ percent of all originated loans in California are adjustable or interest only mortgages. When they adjust and the refinancing bunny isn't an option anymore, what do you think happens?Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-50514818335934257522007-08-12T03:05:00.000-07:002007-08-12T03:05:00.000-07:00Welcome back, RHOGA! We've sorely missed them, Dr....Welcome back, RHOGA! We've sorely missed them, Dr.HB. IMO, I think you are being WAY too generous with your 50% overpriced estimate of these beauties. I think you may have inadvertently forgotten not only the financial risk the would-be buyer is taking but the monthly personal risk in trying to collect the rent. Maybe an off duty police officer or a well armed private investigator would do it for $500 a pop...just not me in the murder capital of the US. But then again who would want to rent out such palatial luxury when they could realize the "American Dream" and experience the joy of "pride of ownership" by actually living there! <BR/><BR/>Seriously, is there really some VP of a bank somewhere really hanging these kind of prices on this garbage?! Unreal. Still.coveredhttps://www.blogger.com/profile/16980598678646245375noreply@blogger.com