It all starts with a vacation, then turns into an impulsive need to buy. We’re already seeing more Europeans purchasing New York property, so if San Francisco can get past the extra 5-6 hours spent on a plane for most Europeans, we will certainly begin to see more of them pouring some of their hard … Continue reading …and Here they Come: Foreigners Buying San Francisco Real Estate is Next
Tag: Economy
In His Own Words: Warren Buffett and the Mortgage Crisis
On the issue of the securitized mortgages, Buffett said one can make more money “selling toxic waste to customers,” but that doesn’t mean it’s a good idea. “Wall Street started believing its own PR on this – they started holding this stuff themselves, maybe because they couldn’t sell it. It worked wonderfully until it didn’t … Continue reading In His Own Words: Warren Buffett and the Mortgage Crisis
The Wall Street Journal Front Page Story
US Mortgage Crisis Rivals S&L Meltdown Make sure you get to the very end of that scare the sh*t out of us article to read this: In spite of the gloom, the economy may avoid recession. Housing comprises a much smaller share of the economy than business investment, which dragged the U.S. into recession in … Continue reading The Wall Street Journal Front Page Story
Grave Dancing, Cheering, Puke, Our Market, and the Bandwagon
This article from Delaware Online is a perfect example of how some people can see the other side and capitalize on it. We’re not denying the market has changed, but we’re certainly not going to change our tune that real estate is a bad investment, and at the very least a great place to call … Continue reading Grave Dancing, Cheering, Puke, Our Market, and the Bandwagon
Verbatim: “Why is housing in some cities still booming?”
Real Estate: Last of the red-hot markets Why is housing in some cities still booming? The answers may help you navigate your own market. For the most part, the iron laws of supply and demand explain what’s going on… The basics haven’t changed. Job growth and rising incomes boost demand for, and prices of, housing… … Continue reading Verbatim: “Why is housing in some cities still booming?”
Headlines versus Reality, Volume Down, Median Up…again.
Headlines: “Bay Area median prices rise, but overall home sales news grim. Reality: “As Homeowners, Volume is not Very Relevant. For what it’s worth, we’re happy to see our little report was right on the money as far as the decline in volume at around 41%. Guess we’re not so mathematically challenged after all. And … Continue reading Headlines versus Reality, Volume Down, Median Up…again.
Let’s fix this mess, says Shiller
From a reader, “This is the same person who publishes the Case/Schiller housing index which is so widely cited…”: We have to consider the possibility that the housing price downturn will eventually be as big as that of the last truly big decline, from 1925 to 1933, when prices fell by a total of 30 … Continue reading Let’s fix this mess, says Shiller
More mortgage fiasco reporting
From today’s San Francisco Chronicle: The subprime mortgage fiasco stands to cost the Bay Area economy more than $5.4 billion next year, according to the latest report intending to put a dollar figure on the rising wave of real estate foreclosures. The lending crisis will cost the national economy $166 billion and 524,000 potential jobs, … Continue reading More mortgage fiasco reporting
Is Help on the Way?
“Countrywide, GMAC, Litton and HomeEq – which collectively service more than one quarter of subprime loans to people with poor credit – agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are scheduled to jump significantly higher. To qualify, borrowers must occupy their homes, have made their payments on time … Continue reading Is Help on the Way?
Not such a pretty picture for Bay Area housing
Is that why this guy is so smiley? His predictions are coming true? For those wondering, that is “[e]conomist Ken Rosen, a notorious bear on housing who has called for a correction for several years, [who] said home prices in the urban core of the Bay Area could drop 5 to 10 percent – but … Continue reading Not such a pretty picture for Bay Area housing
“What Market Slump”-NY Times
A reader recently forwarded us this article from the New York Times, and thought it might paint a comparative picture of what is going on here, or what could come to be. We’d tend to agree, however, on a much smaller scale (so far). Everybody, ourselves included, likes to keep a watch on other markets … Continue reading “What Market Slump”-NY Times
Is SocketSite Growing Bull Horns?
Maybe it’s a Halloween prank, maybe a treat, and we have yet to get the trick, but yesterday on SocketSite, they (we know it’s you Adam, but we’ll play along) had a decidedly confused tone: The Federal Reserve Cuts Benchmark/Discount Rates By 0.25% The known: the Federal Reserve has cut both its benchmark interest rate … Continue reading Is SocketSite Growing Bull Horns?
Point, counter point, more Sub Prime mortgage blaming
We’re not ones to only tell one side of the story (although continually blamed for it, and admitadly a bit bullish). We’re certainly not ones to always point to roses, and we’re definitely not afraid of helpful comments and good articles to keep us thinking, so keep sending them, and please discuss. At the heart … Continue reading Point, counter point, more Sub Prime mortgage blaming
Bank of America exiting wholesale mortgage business?
Could it be true? “It is with much sadness that I write to inform you that Bank of America has opted to close its Wholesale Channel effective December 31, 2007. This is a bank strategy to become number one in direct to consumer… do not have much information at this time but it is my … Continue reading Bank of America exiting wholesale mortgage business?
“The Real State of Real Estate”
This piece, the Real State of Real Estate (pdf) was sent to us by a very reliable mortgage broker in our city. However, he did not write it, so we can’t give credit to him, nor can we give credit to the person who wrote it, as we don’t know who did. If anyone can … Continue reading “The Real State of Real Estate”
Verbatim: “San Francisco is back!”
As if it ever left: By almost every measure, San Francisco is in far better economic shape than it was when [our Mayor] took office in 2004 and faced a nearly $350 million budget deficit. The city has recovered from the double whammy of the dot-com bust and the tourism crash that followed the Sept. … Continue reading Verbatim: “San Francisco is back!”