I want you guys to take a look at this and tell me the economy is not seriously going to crash.

Take a look, tell me what you notice.


CLICK HERE (http://realtor.com/Prop/1035477642?lnksrc=00045)

[QUOTE=Old White Goat]I want you guys to take a look at this and tell me the economy is not seriously going to crash.

Take a look, tell me what you notice.


CLICK HERE (http://realtor.com/Prop/1035477642?lnksrc=00045)[/QUOTE]

It's worth at the most $60,000 to $90,000.

Get ready... we're going for a ride!

Unrelated to the topic really, but I was browsing the rentals section and saw this:
http://graphics.rentnet.com/home/main_4.jpg

[QUOTE=R MacDonald 14-88]It's worth at the most $60,000 to $90,000.

Get ready... we're going for a ride![/QUOTE]

Around here that house is probably worth 150 grand tops, depending on the area. The price for that house is what around what I would expect to pay for a place in CA.

[QUOTE=Colonel-Voltz]Around here that house is probably worth 150 grand tops, depending on the area. The price for that house is what around what I would expect to pay for a place in CA.[/QUOTE]
Back in the early 60's those houses sold for between $15,000 for a starter home to $35,000 for an upper middle class home. $35,000 in the early 60's is roughly equivilent to $210,000 in 2003 money.

Well, I'm sure that price has a lot to do with supply and demand. With all the spics Bush is allowing to come on to this side of the boarder I would imagine there's high demand for housing in that area. I didn't check school quality, but given what I've been told about the school system in CA having a good(I mean decent, I doubt there are any good schools in CA) school near by would also have noticeable effect on the price of the house. Anyway, my mother is a realtor, so I’ll ask her about what she thinks a house over in that area should cost.

[QUOTE=Colonel-Voltz]Well, I'm sure that price has a lot to do with supply and demand. With all the spics Bush is allowing to come on to this side of the boarder I would imagine there's high demand for housing in that area. I didn't check school quality, but given what I've been told about the school system in CA having a good(I mean decent, I doubt there are any good schools in CA) school near by would also have noticeable effect on the price of the house. Anyway, my mother is a realtor, so I’ll ask her about what she thinks a house over in that area should cost.[/QUOTE]
There are NO good schools in that area. And its only 11 miles from Compton.

[QUOTE=norcalnative1971][SIZE=3]

Realtors should be among the first group to be "dealt with."[/SIZE][/QUOTE]

What do you find so deplorable about realtors?

[QUOTE=Old White Goat]I want you guys to take a look at this and tell me the economy is not seriously going to crash.

Take a look, tell me what you notice.


CLICK HERE (http://realtor.com/Prop/1035477642?lnksrc=00045)[/QUOTE]

Holy shit!! Half a million dollars for that tiny house??? UNREAL!! The house I grew up in as a child was that size and it was originally bought for only $35,000

[QUOTE=norcalnative1971][size=3]Two things:

1) Most of them willingly complied with "blockbusting" in the '60s and '70s, and most of them continue to actively comply with unconstitutional "fair housing" bullshit today.

2) Speculation on peoples' homes is basically a swindle. One of the first things Hitler did was shut down the Jew-capitalist land speculators who had preyed on German farmers and land-holders, as they do even more viciously today.[/size][/QUOTE]Thats ancient history.


What is driving this market is the Federal Reserve and its free flowing credit & low interest rates, combined with unrestrained immigration. Look at that link again and view the photo of the agent.

[QUOTE=norcalnative1971][SIZE=3]Two things:

1) Most of them willingly complied with "blockbusting" in the '60s and '70s, and most of them continue to actively comply with unconstitutional "fair housing" bullshit today.

2) Speculation on peoples' homes is basically a swindle. One of the first things Hitler did was shut down the Jew-capitalist land speculators who had preyed on German farmers and land-holders, as they do even more viciously today.[/SIZE][/QUOTE]

You make it sound as if realtors had a choice as to whether or not to comply with the 'fair housing act.' Come to think of it, anyone who sells a house has to comply with that law regardless of whether they are a realtor.

As for number 2, well, that's based on your own opinion. In some cases, I would agree, but not all realtors are out to swindle people. It's just like many other professions; there are some honest individuals and some dishonest individuals. I don't think it's prudent to condemn all realtors, just because they are realtors.

[QUOTE=Old White Goat]Thats ancient history.


What is driving this market is the Federal Reserve and its free flowing credit & low interest rates, combined with unrestrained immigration. Look at that link again and view the photo of the agent.[/QUOTE]

So true. Not to mention the 0% financing of cars has a lot to do with this too. It is an unreal scenario and war with Iraq is not solving the economy problem.

A guy who really knows his shit about the economy is Roger Arnold. He is unreal and knows about this better than anyone.

http://www.myhomelender.com/

[QUOTE=Old White Goat]I want you guys to take a look at this and tell me the economy is not seriously going to crash.[/QUOTE]

I wouldn't dare. What I will tell you is that this listing serves as no evidence for such a prediction. All it tells me is that this particular home will be affordable only for a small proportion of current Torrance residents:

http://www.ersys.com/usa/06/0680000/income.htm

[QUOTE= R MacDonald 14-88]It's worth at the most $60,000 to $90,000.[/QUOTE]

Based on what residential RE valuation principles? Replacement cost? Not the only factor. The realtor wants to move the property so likely would not have listed it at $639k if there were not some local "comparables" somewhere in that range. By your measure, if it last changed hands at $300K 5 years ago it would have been way overpriced then. And yet the buyer would now be looking at a 16% annual rate of return, even without accounting for the effects of leverage. As ZOG's own Fed will readily admit, calling a "bubble," whether in financial or RE markets, is much easier after it has burst.

Meanwhile, face it folks, lots of people will pay lots of money to live in small, even decrepit homes in select areas.

[QUOTE=Old White Goat]I want you guys to take a look at this and tell me the economy is not seriously going to crash.

Take a look, tell me what you notice.


CLICK HERE (http://realtor.com/Prop/1035477642?lnksrc=00045)[/QUOTE]

I think it will be sold to a large asian family who will pack it with 16-20 of their family members. 3 Bedrooms plus a garage that can accomidate them nicely ,this is how they live. The front lawns will be paved to accomidate the 8 cars the family will have. The garage could accomidate an enirely different family if they need help with the housepayment.
It has been along time since I was in Torrence ,I would imagine it is similar or better than the Bay Area. I have seen "single family dwellings" that are occupied by 5 families of shitskins.

My family and I recently sold a place that fell apart due to its owners(relatives of ours we had evicted) neglect. The black-mold ridden death trap(one of the cleaners we hired to help clear it out fell through the floor) sold for $400,000 because it is a very wealthy area with room no left to build more houses.

Ka-fuckin-ching!

[QUOTE=The Final Solution]I wouldn't dare. What I will tell you is that this listing serves as no evidence for such a prediction. All it tells me is that this particular home will be affordable only for a small proportion of current Torrance residents:

http://www.ersys.com/usa/06/0680000/income.htm
[/QUOTE]

You wouldnt huh?

Have you taken into consideration that interest rates will eventually rise again?

Know what happens then?

If the Fed chooses to snap interest rates back up to 1985 levels of 10% or 15% that home you just bought for $640,000 will only be worth $415,000 at 10% and $280,000 at 15% interest.

Now a good portion of todays mortgage's are 3/1 ARM, as in 3 years fixed then adjustable rate.

3 years from now we should see a sharp rise in foreclosures and BK's if interest rates go up.

You'd have to be a damn fool to buy a home in this economic weather, its the same as buying gold at record highs, only a fool would do such a thing.

Lots of fools are going to be moving into rental housing in a few years. And alot of bank owned rentals are going to be made out of these foreclosures.

Banks are now going to take away peoples houses like they took away the rural peoples farms way back when.

Trouble is a brewing.

[QUOTE=Draco]My family and I recently sold a place that fell apart due to its owners(relatives of ours we had evicted) neglect. The black-mold ridden death trap(one of the cleaners we hired to help clear it out fell through the floor) sold for $400,000 because it is a very wealthy area with room no left to build more houses.

Ka-fuckin-ching![/QUOTE]
Yeah its a great time to sell, but terrible to buy.

Goat, sounds right to me. Look at the damn interest rates; 2.4% in some places, and they just keep falling. That should be scary in itself.

[QUOTE=Old White Goat]Have you taken into consideration that interest rates will eventually rise again?[/QUOTE]

Uh, that possibility had not entirely escaped me. In fact, the most prominent macroeconomic modellers will confidently forecast that rates may go up, down or sideways. Exactly as they said 2 years ago, and 20.

If the Fed chooses to snap interest rates back up to 1985 levels of 10% or 15% that home you just bought for $640,000 will only be worth $415,000 at 10% and $280,000 at 15% interest.

All depends on the circumstances leading to the rate hike. If an anti-inflation measure due to a sustained economic expansion (specifically, a non-jobless recovery), higher household incomes could offset the negative pressure on valuation due to the higher rate. Or not. In any event (and I oversimplify here), the price only matters when you buy and sell. So long as you keep your job (a big if these days) and make the payments you still get to live there.

3 years from now we should see a sharp rise in foreclosures and BK's if interest rates go up.

As I said, purchase money on owner-occupied, not at all clear. The ubiquitous second to pay for gleaming granite kitchens and consolidate profligacy at the toy store, another matter.

You'd have to be a damn fool to buy a home in this economic weather, its the same as buying gold at record highs, only a fool would do such a thing.

On a national basis, if you spot check these 2 time series (nominal to nominal #s), instead of shockingly record highs you'll see a pretty stable relationship between median household income and house price, so I guess once a fool...

http://www.economagic.com/em-cgi/data.exe/cenc25/c25m01

http://www.census.gov/hhes/income/histinc/h08.html

Banks are now going to take away peoples houses like they took away the rural peoples farms way back when.

Lots of fools are going to be moving into rental housing in a few years. And alot of bank owned rentals are going to be made out of these foreclosures.


The regulatory pressure against banks/thrifts holding REO (real estate owned) is such that you may view your predicted mass foreclosure as a huge buying opportunity. Just like 1989.

Trouble is a brewing.

Generally the "trouble" in places like that is more social than economic. College grads overstay their welcome at their folks' house, then share a cramped apartment and finally if they're lucky, a "townhome" is increasing the place to raise the smaller and smaller families. But young people seemed resigned to it by now. They can always move away from the pricey SMSA's and buy much more house for much less money, but from what you've presented, life in Torrance must have some appeal. Pls do tell.