Thursday, October 25, 2007

So it goes

From today's Capitol Weekly:


So it goes...

16 comments :

Gwynster said...

Ummm 687 for a 300k loan? Sure it's fixed for maybe a whole week.

I suppose if you had to target a group of people who _may_ still have jobs in the future, gov workers would be it.

(the rest of my post has been editted as it required lots of loose language and heavy drinking)

SheWrestles said...

LOL!

Hey Gwynster - We did NOT close yesterday, after all, and won't close today either.

The seller is now refusing to pay the full buyer's credit, so they're all going back and forth on that right now to see what they can work out.

My checkbook is officially closed, though, and I could care less either way. I'll be fine if we get the house, but won't be at all sad if we lose it.

Gwynster said...

the seller is an idiot.

Given what I'm seeing come out of the bank asset management circles, you may be very happy if you can walk away and live to make a deal another day. They are finally admitting they need to price aggressively which is about time.

Patient Renter said...

"the seller is an idiot.

Given what I'm seeing come out of the bank asset management circles, you may be very happy if you can walk away and live to make a deal another day."

Gwyn speaks the truth.

Anonymous said...

What's up with this home. It was forclosed on earlier this year. It was on the market, and is no longer showing up on the MLS. I don't see the home as being sold. Has it sold?

9507 2nd Ave, elk grove 95624

Max said...

9507 2nd Ave, elk grove 95624

The last date it was listed was Sept 1, 2007. I don't think it sold; looks like the listing expired

Scottsdale real estate said...

I was hoping we were moving away from these predatory lending tactics...

SheWrestles said...

My lender accepted some of the liability and then kicked in some money to get the deal closed.

They didn't have to. That impressed me.

Bubble Sitter said...

Here we go........into the abyss.

http://www.housingtracker.net/askingprices/California/Sacramento-Arden-Arcade-Roseville/

Asking prices dropped 4.9% last month, 16.5% last year. The rate of price decline is accelerating.

Inventory up slightly over last week, but down slightly for the month.

Whooo, whoo. The Little Engine That Could just pulled the rest of the train over the peak and it is headed down the other side....

shewrestles said...

I still think Roseville and Rocklin will fare better in the next 12-24 months than Lincoln will, but I'm banking on Twelve Bridges in Lincoln being a solid medium-range investment. Even if it takes 7 years to get back to 2005 prices, I'll be ok with that.

If it takes 15 years, however, um, not so much. lol

Regarding the retirees, I gotta be honest - if they start selling like crazy, I'll gladly grab up a couple of those currently overpriced havens in Sun City. :)

Bubble Sitter said...

SheWrestles,

Is your name a reflection of your concern about buying in this market, or do you work out with Hulk Hogan?

Before you buy anything in Sun City, consider that the properties there have always been 10-20% more to purchase, yet rent for 10-20% less than similar homes outside Sun City. It is a strange phenom, but unless you can count on appreciation (remember what that is?), Sun City properties are the worst places of all residential units, in which to invest.

The Bubble wisdom today says to buy nothing until prices are 10-12 times the rent (even less if the property has bonds). That way, you will make 5% cash flow on your down payment. That is investing vs speculating

That is what I am looking to accomplish in 2008-9. As near as I can tell, that will be 2001-2002 prices: $210,000 for a 1800 sf house in Roseville which rents for $1500/mon. Those same houses sold for $400,000 to $450,000 in 2005. I know because I own a couple that made it to that level (hind sight - 20/20) . Currently, a couple of bank owned 1700 sf models are listed at $320,000 around the corner. Another 25% decline and we will be at the right price to invest long term in houses.

I agree with you about Lincoln. I just signed up to purchase a 3150sf house to live in out there for a price of $125/sf. Thank you Wells Fargo. The PITI+bonds+HOA with an 80% loan means my house payment is $.87/sf/month ($2700/mon). And I pay down principal by $310/mon starting with my first payment. It helps to have 6.125% fixed rate financing for 30-years. After tax, the cost is equivalent to paying rent.

This market has selected opportunities today, and there will be blanket opportunities tomorrow. I do think it will go lower in the next 12-24 months, probably 15-20% overall.

wrong moves said...

"I suppose if you had to target a group of people who _may_ still have jobs in the future, gov workers would be it."

Hey, I resemble that remark!!

Honestly, how many gov't workers can/will afford most homes on the market though?

Gwynster said...

Wrong,

That's a drum I've been beating a long time - affordabilty especially for gov workers. People seem to think we all make millions when it's more like an earnings spread mirroring the general economy, less then 5% are making decent money.

I actually had someone tell me to get a real job if I couldn't afford a house in davis. The person making the comment was a stay at home mom who's husband is an ins agent. Now THAT was funny.

wrong moves said...

I guess we should work for the Sac City PD. Hell, the chief is retiring with 170,000 a year.

I just picked the wrong service.

Gwynster said...

Retirement padding is something many try but few succeed at. He'll won't get out with that 18.9% increase, especially with the public screaming about it.

Craptastic asshats like him make the rest of us look bad.

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