New homes go straight to auction outside the bay area.

edited October 2007 in Housing Bubble
http://www.mercurynews.com/ci_7116307

Forwarded to me by a friend. Some choice quotes...

"I bought my house on August 16," Brown said. "If one of these houses goes for the minimum bid, I will have lost $155,000 in six weeks."


"We bought it for - I don't even want to say," she said. "$621,000 - ugh - it makes me sick just saying that number."

The minimum bid on the empty house next door is $355,000. And, it's bigger than hers at 3,310 square feet and loaded with upgrades and a finished back yard.

Comments

  • Nice find!

    I like this quote:
    Like her neighbors, she fears investors will swoop in and turn their "luxury" community into a rental slum. Green lawns could turn brown. Cars with flat tires might fill the cul de sacs.

    Lord knows that's the kind of thing I've done to my rental house.

    I can feel for them a bit, though, as much as I'm sure the houses were overpriced in the first place.
  • Here's the follow up story with the auction results:
    http://www.mercurynews.com/ci_7175582?source=most_viewed

    "I'm feeling my worst fears right now," said Cantrell, who estimated that the auction devalued his neighbors' homes by roughly $200,000 each compared with what many of them paid a year ago. "I lost a quarter million dollars in value. I'm screwed."
  • If they were smart, they would take a copy of the article and run, RUN I say, down to their local assessor's office and demand, INSIST I say, that their assessed values be reduced.

    Gotta make lemonade with those lemons, no? :?
  • So a 38% plummet in price in only a year according to the article. I know this is just one example, and hardly a trend. But...why is now the perfect time to buy again?
  • ...why is now the perfect time to buy again?
    I'll let Debra Sinick of the respected Seattle Real Estate Professionals blog field that one:
    Debra wrote:
    I also agree with The Tim. However, I do not agree with his timing. He recommends waiting until the winter of 08-09 to buy. I think no time is better than now into this winter. There is a great selection of homes and many agreeable sellers. Are we at rock bottom? Who knows, as I have said before, you will not know if you are at bottom until it is too late.
    Market roaring? It's the perfect time to buy, prices are going to keep heading up, up, up!
    Market sinking? It's the perfect time to buy, you've got great selection, and you never know when things will start heading back up!
    Market flat? It's the perfect time to buy, the market is finding its footing before heading back up!
    Market in a death spiral? It's the perfect time to buy, there's nowhere to go but up!
  • This article basically puts new development in the same category as condos, where occupancy level plays a key role in property value.

    I would urge anyone buying into Issaquah's newly developed area on the highlands, Talus in the downtown area, Snoqualmie Ridge re-evaluate their decision.
  • So a 38% plummet in price in only a year according to the article. I know this is just one example, and hardly a trend. But...why is now the perfect time to buy again?

    Because Manteca is way outside of the bay area. At least that's what RE agents will be saying. Sure the market is soft out there. They have way too many new housing developments and nobody wants to live out in the central valley. But we're safe here in the bay area because we have jobs and a moderate climate and Google. The only thing they have in the central valley are fruits and water slides.
  • I am still uncomfortable with agreeing on Seattle being such a desirable place to live...

    Seriously, if you grew up anywhere in the country, it's hard to live in this cloudy crap.
  • So a 38% plummet in price in only a year according to the article. I know this is just one example, and hardly a trend. But...why is now the perfect time to buy again?

    Because Manteca is way outside of the bay area. At least that's what RE agents will be saying. Sure the market is soft out there. They have way too many new housing developments and nobody wants to live out in the central valley. But we're safe here in the bay area because we have jobs and a moderate climate and Google. The only thing they have in the central valley are fruits and water slides.

    Riddle me this Batman: whether its upside down or right-side up, it doesn't change but its contents shake. What is it?

    A house.

    Seriously, name any other investment that middle class people can buy into where they will have -$250,000 equity in about a year. Because I cannot think of one. But I guess it's a small price to pay for a three hour round trip commute to San Francisco.

    I still don't know whether to feel sorry for these type of people for their situation or to be happy when they get their comeupance, because they drove up prices for rational people who would like to buy. I kind of think both is the right response.
  • Ubersalad wrote:
    Seriously, if you grew up anywhere in the country, it's hard to live in this cloudy crap.

    I grew up in Texas and I love it here, even the cloudy. Especially the cloudy most days.
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