Don’t try telling me we are not living in the most delusional, warped times in the history of mankind. At least tulips looked nice.
In many cities across the country, $350,000 is enough to buy a nice sized home with all the trimmings.
But in America’s most expensive city, San Francisco, that amount of money is only enough to land a person in a wooden shack.
A new real estate listing in the Outer Mission neighborhood of the city has a dilapidated 765-square-foot wood siding home for sale for $350,000.
The two bedroom and one bathroom California dwelling sits on a 1,633-square-foot lot on 16 De Long Street in the city.
No, it’s not a fucking joke.
It is zero for the house. The land in what costs so much.
Yes, that is one very precious, rare parcel of land in an extremely desirable neighborhood.
I can’t remember San Fran ever being reasonably priced, at least not in my lifetime. It was always outrageous relative to almost every other city area in the country.
The surprise is how expensive Los Angeles has become. When I was growing up in the 60s, Los Angeles was still extremely reasonable, and was dominated by aerospace and defense, which provided a huge array of good, high-wage jobs. Houses cost no more on average than they did for comparable homes in other city areas such as St Louis or Cleveland. LA was considered to be far less desirable than San Fran, but now it is more overpriced than San Fran, relative to local incomes.
I’d make an offer, but my general rule of thumb is to not buy houses shorter than me.
Every Friday I read my real estate porn, the Mansion section of the Wall Street Journal to see how the .1% to 1% house themselves. It appears to me that we have reached another peak, there are now 20 homes on the market for over $100 million, up from 10 in April. Of course many of these are far more than just homes and no one is sure exactly how many are on the market because many are shrouded in secrecy. There is an entire tower in NYC that every unit in it is $20 million and over. One precious developer thinks that they “may” have saturated the market for the $20 million price point. Fortunately for the stratospheric price points there is a tremendous amount of “hot” money coming out of Russia and China as the criminals are trying to park there money before either of those economies implode thinking that it will be safe in US real estate. We do indeed live in interesting times.
Bob.
http://www.marketwatch.com/story/amid-boom-fears-of-too-many-20-million-manhattan-condos-2015-05-14
I know a couple that bought a house in 06 right at the top of the market. They paid about 600k with a 500k loan. Sometime around 2010 or 11 it was foreclosed. Their timing for hitting the top of the market was impeccable.
Guess what this couple last month just bought their next house, I don’t know the exact price but I was told it was in excess of 1M
I would be willing to bet they did it again, hit the peak in the market.
Wow, you can get foreclosed on a $500K loan, and get back in the game with a $1M loan less than a decade later. Guess who absorbed the hit from that first foreclosure? Hint: it wasn’t the lender.
This is one of the many reasons I have so little sympathy for the foreclosure “victims” of the Great Rampage of the 00s.
I’m with you- we can figure we’re at the peak when the “victims” of the first blood bath come back in and buy at prices over those at the last peak in 2006, and almost twice those of the trough in 2006. Chicago’s fashionable inner-city nabes are screaming- $1M condos and $5M houses are flying off the shelves, even though the less desirable outer nabes like mine are still priced only about 30% above the trough.
Everything it takes to create a bubble is in place: Zero-down loans from Fannie Mae, ARM loans, and even some Interest Only, though only for “sophisticated” buyers, heh.
I’m thinkin a fresh coat of paint we can flip this baby for a quick 25K, no?
Chicago
The couple wasn’t married at the time of the purchase of the first house. They met after he bought the house. So the foreclosure was only in his name I do know that.
I don’t know but on the second house the purchase might be in her name, she makes the big bucks in the family.
I read somewhere that stated loans (liar loans) are now back.
That’s a sure sign of desperation to Goose the housing market. And yet with all the attempts to boost housing it appears as though the real estate market has stalled.
Looks like a top to me.
ASIG, sounds like he found another sucker like himself to marry, and the house is in her name. If she has a high income and a down payment, she’s in. With the low interest rates, you can get a mortgage for 5X your income.
The flippers are back, too. Somebody bought a unit in my place (nowhere near $1M) thinking to “flip” it for $25K over his very recent purchase price after slapping some paint and kitchen flooring on it. I’m thinking, if it took 4 summer months to sell at the price you bought it, what makes you think the coat of paint and a new kitchen floor is going to make it sell for a substantial premium going into winter? I would not want to try to sell a place in Chicago in winter.
And now, the real estate seminars are back, telling idiots how to make their fortunes flipping houses.
Everything is in place for a final blowoff, and subsequent bust.
Easy money for welfare housing until the election and after unless a Republican wins and then the bureaucrats will go into sabotage mode.