Dr. Housing Bubble 04/22/09

[Crewleader]

Real Homes of Genius: It Takes a Pink Home to Lose 80 Percent in Value. 3 Sample Compton Homes Showing the Magnitude of the Housing Bubble and Subprime Mess. Going back to 1990 Prices.

Most people have a difficult time conceptualizing the magnitude of the housing problem. I hesitate to call it a housing problem since we do have homes, plenty of them actually. At the root of it all is we have an affordable housing issue. The bubble simply exaggerated the problem where it became too large to manage. Folks keep hearing about companies losing billions and bailouts reaching into the trillions. Some choose to ignore the crisis and some wallow in it too much causing psychological distress. Or as many others are reacting, they are simply frustrated and angry. The bottom line is you would be hard pressed to find a large group of people who think things are going well in our current economy. I’ve put together three Compton homes on the market to help you understand why we are in the mess we are in. Examples usually help to make things more understandable or at least put a picture to the insanity. Today we salute you Compton California with our Real Homes of Genius Award.

Dreaming of 1997 - 80 Percent Price Decline in Compton



Pink homes usually go hand and hand with Malibu Barbie. Here is a great home for your Malibu lifestyle on a beer budget. This home has taken this housing bubble on the dance floor and performed every move imaginable including the price decline tango. Looking at the sale and price history, we can only imagine the stories it has to tell us. This home is a foreclosure, one of the many thousands in California, and is listed as having 2 bedrooms and 1 bath. It is 817 square feet and is now going for 124 days on the market. I know, what a shocker. Let us look at the wonderful pricing history over the past 124 days:

Price Reduced: 01/08/09 — $144,900 to $139,900
Price Reduced: 01/21/09 — $139,900 to $114,900
Price Reduced: 02/12/09 — $114,900 to $109,800
Price Reduced: 02/24/09 — $109,800 to $74,800
Price Reduced: 04/06/09 — $69,800 to $64,800

http://www.doctorhousingbubble.com/real-homes-of-genius-it-takes-a-pink-home-to-lose-80-percent-in-value-3-sample-compton-homes-showing-the-magnitude-of-the-housing-bubble-and-subprime-mess-going-back-to-1990-prices/

[cutlassmama]

1. I wouldn't live in Compton

if someone paid me. I don't care what color the house is. My mom and dad's was peach and sold for $300,000.00. I'm still not living in Compton. I'd live in a tent in a rural area, but not Compton. I'd live in my car, but not Compton. A person literally takes their life in their hands when they live in Compton.

[ww2player]

2. I like this one -

http://www.californiahousingforecast.com/commentary/2007/11/5/18-mil-superior-property-sells-at-loss.html

$ 18 mil superior property sells at loss
Sunday, November 4, 2007 at 07:59PM
Creative architecture - check out these full-wall windows, retractable roof, and ocean views in this $ 18 million listing in La Jolla.

This home's annual property tax is $198,000.

It was purchased with no money down in the summer of 2006 by an out of state investors who is now on the board of directors of one of the Federal Reserve Banks. I will keep his name anonymous, but anyone can look it up at the County Recorder office.


According to the tax records, they got a 70/30 loan from Bank of America, in the total amount of $18 million. No money down. This stunning house is 10,000 sq ft on half an acre. Now just one year later is is on the market. It is listed for sale for $ 17,900,000 and is pending since July. In 2002, this property sold for $ 11,200,000.


If the sellers get their $17.9 mil price, they could lose about $1 mil on this investment, due to closing costs and realtor fees. This listing puts to rest the idea that "superior properties" are immune to the housing downturn.


Dream.... the video tour photography is pretty good, and so are the pictures.

Do you have a dream home to share?