Tuesday, February 26, 2008

A picture paints a thousand words



This chart is from The Office of Federal Housing Enterprise Oversights latest report released today. The last time I saw something fall that fast was when the Challenger exploded.

10 comments:

Anonymous said...

Housing slump? L.A. condo sells for record $15 million
Who says there's a slump in the housing market?

In a deal sure to skew this month's Southland home-price average, a Century City condominium was sold for a record $15 million, the building developer announced Tuesday.

The 5,647-square-foot penthouse, which was sold to an undisclosed local buyer, takes up half of the 38th floor at The Century, a 42-story luxury tower still under construction. Located in the heart of Century City, it is scheduled to be ready for occupancy in 2009.

The penthouse, at $2,700 per square foot, set the record for a Los Angeles-area condo, according to the developer, Related Cos. It features three bedrooms, including a master bedroom suite with a library, a midnight kitchen, his and hers bathrooms and dressing areas.

It also features three terraces, a private elevator vestibule, a chef's kitchen and views to the south and east from each room, thanks to the elliptical shape of the building. The Century project will also include landscaped estate gardens with fountains, walking paths, a 75-foot pool with views stretching to the ocean and poolside cabanas available for purchase, a restaurant, a wine-tasting room, an entertainment suite with a banquet room and a private screening room and a fitness center.

—From news services

Posted by PE.com at 7:01 AM, February 27

LAdrifter said...

That's just propaganda. Since the building will not be ready to 2009 the sale will not close/post until 2009 or when ever the building gets finished. Makes for a nice story though.....

perrishater said...

I'm not totally sure of what that chart is showing. Even after reading the report I's a little fuzzy. But its a good reprezentation fo the value of my Perris house. Bought it for $385k in 2006, worth about $200k (if I'm lucky). Youl be adding mine to the list of forclosures soon enough.

Anonymous said...

Has anyone seen the offers on IE Homes by Standard Pacific. 20% off plus probably another 20+% in upgrades plus up to 6% payment on property taxes plus a 60^ plasma screen if signed up by month end. SPF has to be circling the drain.

Anonymous said...

'Bought it for $385k in 2006, worth about $200k (if I'm lucky). Youl be adding mine to the list of forclosures soon enough.'

Please fill in the blanks as to 'why' you will be in foreclosure. I have been seeing comments like 'as long as you can afford the payment just ride it out'.

perrishater said...

Why will I be loosing my house,

I have a 300k pay option loan that the min payment has gone from 1100 to 1600 and it's about to go to 2400 because I am reaching my 110% limit on the loan amount. I also have a 2nd with a 900/mo payment When I hit the limit my payments will be 3500/mo. I cant afford that, I can barely pay the 2500 now. Plus there are taxes and insurance on top of that payment. My family take home is 4 to 5 thousand a month. how can I make a 3500/mo payment? not eat maybe. The plan was to refiniace into a fixed rate loan after 2 years. I'm not a flipper but I took the chance that the house would go up in price so I could get a cheap loan and stay in the house. It's didn't go up. It's gone way down. I just have to decide whehter to buy another cheap house before my credit is ruined or take my lumps and rent for the next 5 years.

GoBust said...

So, who do you blame for? yourself or Bush? Keep asking yourself and you will understand why...

Anonymous said...

GoBust said...
"So, who do you blame for? yourself or Bush? Keep asking yourself and you will understand why..."

Who cares about who is to blame, GoBust? Perrishater made a decision which it turned out to be wrong, and now s/he has to deal with the consequences. Whether or not someone is to blame is irrelevant. It seems to me that allowing the bank to take back the house is a reasonable economic decision, and especially practical since perrishater hates Perris. (Won't hold that against him!)

golfer_X said...

It's easy to fault everyone for this fiasco but the fact is the the vast majority of the recent buyers were just trying to do what was best for their families. Most people want a house and for a family it's important. Raising kids in an apartment is not a great way to go. I lived that nightmare for 2 years with my first daughter. I got caught up in the frenzy of the last boom (late 80s). I bought so I would not be priced out forever. The difference was I could afford the house and did not need to refinance to keep it. Of course I was underwater for about 5 years when the market tanked.

Perris hater sounds like he/she (I'll assume he) new what he was getting into. I don't see him laying any blame. He rolled the dice and crapped out. At least he knows he can't afford the house and is not looking to waste time with workouts, modifications or a bail out. Personally I don't have a problem with him buying a new house and mailing the keys back to the bank. Especially if he has a wife and kids. You have to take care of number 1. Buying the house was a deal between him and the lender. The lender knew the consequences of him not paying. In that case they take the house back. That's the way business works. I know it sounds wrong but that's the contract. Pay me or give me the house back. Ok, here's the house. His problem is going to be with the 2nd mortgage. They can probably come after him for that money and if he buys a new house they may put a lien on it.

Anonymous said...

'I just have to decide whehter to buy another cheap house before my credit is ruined or take my lumps and rent for the next 5 years.'


With the so called tighter lending standards, how do you qualify for a loan on a second home already with income maxing out on a first home with a 2nd mortgage? Is it possible? I ask because I keep reading of many people thinking of this as an option.