Monday, May 07, 2007

Distrubing Data from CAR

I am not a supporter of CAR, however even they can no longer deny the stench this market is emitting. Existing home sales are down more than 20% from last year even though interest rates are almost the same. This points to tightening lending standards and an increase in buyer IQs.
The median price is up (which I question), but this may be an indicator that sellers (want to go down with there ship) are stubborn in decreasing their asking price.
Nonetheless, we are heading for a train crash, both buyers and sellers are not moving from there positions, but I am betting that the greed of the sellers will get the best of them.
Stay tuned.......

Sunday, May 06, 2007

1515 LOKOYA DR, Chula Vista
List Price: $610,000 - $610,000

I don't think that this flipper thought his capital gains break (after 2 years) would be a huge capital loss of about a $140K. I'm sure you had someone telling you not to buy in '05, but you didn't listen, and thats why you are in my blog.

What, a $270K loss in Carmel Valley?....Are you sure?

13506 MOONFLOWER MEADOWS TRL, SD - Carmel Valley
List Price: $620,000 - $670,000

Yes, the mighty have fallen! Even Carmel Valley is not immune to stupidity and hast. Do you think that this seller considered that hefty $10,600 tax burden associated with this house?
Live and learn my friend.........

727 Kirkwall Dr. San Marcos, List Price: $520,000

Where do we start here? This seller is already taking over a $150K loss on this home (if he gets lucky), yet I have yet to see why this is a good deal.
At $520K the taxes and HOA add up to about $700 per month.
Put 20% down on this house and your mortgage payment is $2,500.
So thats $3,200 a month with no utility bills, no landscaping, no home get the point.
The lenders, the state, the flippers and the builders are all making money off stupid people who purchased homes in the last 5 -years.
Hold off your purchase another year or two and you will be rewarded!