Dr. Housing Bubble 07/17/14

[Crewleader]

Tiny homes with big price tags in Pasadena: Inventory grows in Southern California and cash investors continue to pullback from the market.

When you are deep in the euphoria of a mania it is funny what you will come up with to justify shoddy construction, aged properties, and ultimately a profound delusion of value. People are willing to pay outrageous prices because other lemmings are willing to walk alongside them holding their sweaty palms and chanting “real estate only goes up, real estate only goes up, real estate only goes up.” I’ve recently looked at older areas in more desirable cities and you will find older homeowners inching along in a million dollar home yet unable to unlock their equity. Instead of living like a millionaire homeowner, they are counting their pennies for their next gourmet meal of Fancy Feast with a side of Purina Dog Chow. Many do not want to give up their lottery ticket even though they have incredibly out stretched budgets. Some complain about taxes, insurance, and other costs but live in homes with incredibly high assessed values. There is also an interesting movement for minimalist living in parts of this country. However, in California, folks are trying to jump on this bandwagon yet at the same time, maintain the not so tiny price tag which is at the core of the tiny homes movement. California has a big push with this overpaying mentality. You see this with the whole foods movement. I’m all for eating good and healthy and this is absolutely important and critical to your wellbeing. But paying $15 for a tiny bottle of freshly squeeze orange juice? Either eat a freaking orange out right or squeeze the damn thing yourself! Today we’ll take another look at Pasadena and see what the market has to offer us if we went shopping right now.

Tiny homes with big price tags

http://www.doctorhousingbubble.com/tiny-socal-homes-big-price-tags-pasadena-lower-priced-homes-cash-buyers/

[msongs]

1. not that typical of california homes as pasadena markets itself on snob appeal lol nt

[NYC_SKP]

2. Homes and condos rose in value by 32% in Santa Cruz county YOY (November 2012-2013)

But things still suck in the valley.

Per Santa Cruz Sentinel article.

http://www.santacruzsentinel.com/santacruz/ci_24805447/santa-cruz-county-home-values-appreciate-2013

[Crewleader]

3. Thanks for the link NYC_SKP

[Demeter]

4. The only advantage to pursuing the all-organic diet

is you can't afford to get fat. Not at those prices, anyway.

The only advantage to pursuing the "trophy" house is bragging rights, and the Greater Fool possibility of cashing out.

The only advantage to following the lemmings is mutual suffering when the excrement hits the revolving blades.

The only disadvantage to not buying the BS is you don't know when the volcano will explode, hence your planning and sacrifices of daily pleasures could end up never paying off in your lifetime...but in your children's, or grandchildren's. Or never, if catastrophe wipes out your lineage.

There are no guarantees except death and taxes...and the 1% have managed to escape the latter.

Moral of the story: the best personal defense, coupled with the best political offense, is the way to go.