I know it’s a little bit old news but just in case you wonder why we live here, Blue Whales surf by our beaches.
I read this in our newspaper.
It’s a very powerful reminder that there is life on Earth outside the rush of our society and it’s headline preoccupations. I wish I would have seen it.
Now you know why prices are so expensive here…
I always like to keep an eye out to see who predicts what and who gets it right. So far, Calculated Risk has been pretty accurate.
This is a recap of his prediction.
It makes for an interesting reading because he gives a lot of short market history. With a quick review of how supply and demand effects the market, he goes on to explain how the inventory levels are still climbing. The quick and easy culprits are not enough owner owned homes on the markets. Too many investors and some stuck with loans that are rising faster then income.
One thing our governments could do, both locally and country wide would be to lower or review housing taxes. People paying $400 a year for home because they lived there 10 or 20 years, makes a hard sell when buyers realize they could pay $1,500 to 15,000. If push comes to shove, I’m sure a rewrite in taxes will have to happen.
You might have heard about CountryWide’s dismal fiscal reporting. 33% down compared to last year, etc.
It’s not to surprising after the feeding frenzy most of these lending institutions went through the last few years, and of course, who couldn’t have seen it coming.
Does it mean that it is a bad company? Probably not. I know some people who work for them and seem to be doing good. Does it mean you should shy away from a mortgage from these folks? That really depends on how aware you are and how much you are in control of your finances.
Away from the topic of who’s to blame, I believe we all share responsibilities, no matter. I think lending companies should have seen it coming and lending money to folks who could get in trouble is just plain bad business. Folks who took on the challenge of getting a loan and are close to defaulting now, should have a better understanding of their financial capabilities. It takes two to tango.
Here is a quick round up at Seeking Alpha where they get into a more in-depth discussion, especially focusing on the general economy of the country. Watch as that will unravel in the next few months, when the real problems will surface and we will see just how far the implications go.
Countrywide Financial Posts, and what happened. In a nutshell, 33% drop in Q2 in profits. Past-due mortgage payments cut into profit but the part to watch out for, delinquencies are no longer contained among subprime.
Countrywide Financial: Who Didn’t See It Coming? In a nut shell, Angelo Mozilo the company’s Chief Executive didn’t see it coming. He says others didn’t which is not accurate.
I watched a little bit of the CNN cheery picking questions asked for some hopeful presidential debaters last night. To CNN’s credit, some questions were tough. I thought they would avoid the serious ones, as politicians have accustomed us.
I’m neither Republican nor Democrat. Sorry, no can do. The money comes from the same places and both parties have been to complacent watching problems build. And this brings me to the next problem many people are facing today, who can believe them? Why would anyone believe politicians anymore? And mostly, my biggest, who votes for one person when we don’t know who the team will be?
The problem with politics is always the same. They make great speeches, get a lot of people hoping and believing only to turn their backs away from the voters in their elected ivory towers. We’ve seen all too many times. Promises amount to little once in power.
The second problem is a major one in my eyes. We are not voting for one person. No one is foolish enough to believe this anymore. One person doesn’t change the whole political landscape. A team will. The real question that is rarely asked is: “Who will you have on your team and why?”
I can’t vote for a person but I can vote for a team that has proven itself.
What a year we have to look forward to…
I can’t remember when I started doing this but walking away from a listing isn’t a easy thing to do, sometimes it’s the smart thing to do.
Many sellers still don’t have a clear idea of what is happening in the real estate market. Many still don’t know how much money we put out for advertisings, how commissions are split and all that goes on behind the scenes. A true good Realtor will make a transaction look easy, but believe me, it isn’t. You earn every single penny you make, despite what people like to say. Sometimes, though, no matter how attractive a listing is, if the seller wants too much, you just have to follow your professional experience. Asking more than the market allows is not a great way to sell.
As such, I walked away from a listing a client of mine. Even though, he had spent a lot of money on revamping his aging bungalow, the price he was hoping for was unrealistic. Here is a nice bungalow, around 1500 square foot, with two bedroom, one bath near the water I thought should be around the low $800s. He went to someone else who told him he could get close to a million for it.
This person is rational in normal times but he would not look at the state of the market and was allured by what someone thought he could get for him. Even though I told him to price his home competitively to attract many buyers and probably over-biddings, as we have seen in the office, he succumbed to the sound of the siren.
Sometimes, it makes no sense to have your name on a sign that sits too long in a neighborhood with a dreaded “Reduced Price” sign over it. Sometimes, you just have to say no. I see buyers on a daily basis and I know what they are looking for. Sometimes, you just have to say no.
Sligo Rags performs the fiery Celtic music tomorrow between 6-7:30 p.m., and it’s free.!
The garden will open by 5:15 p.m. and the adobe house will remain open for self-guided tours during the concerts.
Sligo Rags is southland’s Celtic Bluegrass ensemble which was nominated for Best Folk Act by the 2006 Southern California Music Awards.
Fun times.
In a normal market, the perfect amount of supply is what the demand is looking for. Unfortunately, our market has too much supply and little demand comparatively.
I was looking at the statistics for the last three years. I chose the 1st of 2005 through the 21st of July 2005 and the same for 2006 and 2007. What came out was that homes sold easier in 2005, as predicted and became harder and harder as we get to this year.
The numbers are taken from the MLS Realtors use. All the numbers are part of what was entered and might fully reflect the market, however, it gives us a pretty good clue as to what is happening.
The first 7 months of 2005 looked like this for Long Beach, all regions included:
Out of 5936 listed homes, 2672 sold, 281 were canceled and 524 expired.
The first 7 months of 2006 were:
6229 listed homes, 2021 sold, 693 canceled and 999 expired.
The first 7 months of this year, 2007 are:
6040 homes listed on the MLS, 1638 sold, 867 canceled and 966 expired.
What this tells us is pretty obvious, less homes are selling as the inventory is climbing. This creates an offset of too many homes on the market, a glut estimated at years of constant selling until we return to a balanced market. What this means for buyers is more choice. What this means to sellers is finding the right current price is crucial.
Unfortunately, how does one find the “normal” price in a market where there are too many homes and not enough buyers? Obviously, this makes comparables harder to trust since little is selling compared to the number that gets on the market, and stays there.
It’s hard to predict the future, it’s really a question of guessing it right. There are a few constants we can look for, such as a relative balance between demand and supply. Too much supply means buyers have too much to chose from and will drive and even harder bargain. Too little supply and we are back to three years ago. Trends can be spotted if you keep on top of a specific market and area. Right now, I have noticed more sellers interested in finding the right price. We have witnessed in our office multiple biddings on homes. They were all priced low and achieved more. But remember, no two homes are ever the same. What sold in your street might not reflect what you have, for better or for worse. The affordability ratio is also important to calculate and keeping a eye on the general economy, unemployment, gas price, food prices, etc, will tell you how much buyers will afford.
I couldn’t find an easy way to figure out what happened to the homes that are left after taking all traffic and sold homes. Some were rented, some withdrawn, etc. The key words were how many were listed, how many sold and how many canceled or expired. Obviously, homes stay longer on the market and we are coming back to a more balanced market.
Call it my pet peeve, but I also wonder about the use of the breakwater. Far from being an expert, I can only look at the facts. Our beaches are dirtier than Seal Beach’s. Having two notoriously rivers dump into our closed bay, probably doesn’t help.
Comes to the rescue council members ODonnell And Gabelich who are request funding for a study on the breakwater today. During today’s meeting, 4th District Councilmember Patrick ODonnell and 8th District Councilmember Rae Gabelich will request that the council approve allocating $100,000 from the citys Tidelands Fund for a study of the Long Beach Breakwater.
Via The Long Beach Business Journal
Don’t know what to do tomorrow evening? How about a movie at Granada on the beach?
There are many replicas of the original Shelby AC Cobra but not all are built with top quality in mind. The Kirkham brothers pulled an incredible challenge by being faithful to the original design while redesigning the chassis as well as using modern technology. What few people know is that Cobras were welded together with little quality control. Most replicas use the original blueprint, with the original flaws. The Kirkham brothers decided it was time to go one step beyond. After realizing nothing fitted perfectly or formed perfect angles, they took the original blueprints and redesigned the car with perfection in mind. Everything would fit, everything would all come together at last and the driving would reflect it.
The result is a great looking car that keeps the originality intact but handles as it should have. The great quality of the welding of the chassis, as well as its redesigning to reflect a better quality, down to the door hinges which makes it in a class of its own. With modern suspensions and modern breaks, the car is civilized enough for normal driving with plenty of horse power to have fun on a track. In fact, I felt I was going to have to see my Chyropractor after testing it!
I guess the choice boils down to what you are looking for. When it comes to Cobras, they come in at cheap and expensive. Cheap replicas are easy to find. Unfortunately, no matter how much money you spend on it, it won’t have the quality a top notch replica will have. Also, it will never appreciate as well. Then, comes the real AC Cobras but they are in a league of their own. With climbing prices for the original ones, those good quality ones are starting to look more and more interesting.
By far, the best muscle car fun I have been in to date. By far, the best quality Cobra replica I have ever seen, hands down!
Click here for more.