Sunday, November 11, 2007

Early birds get screwed

We will see more and more stories like this one from the Fresno area; where the first purchasers listened to the REIC shills and they are now underwater by up 50%. Good luck ever getting out of that financial mess. Unfortunately the knife-catchers of today, who think they "stole" the properties, will be underwater a year from now also.

From the Fresnobee.com:

A frantic two-hour auction Saturday in downtown Fresno was a sign of the times as bidders snapped up 48 new houses -- most for thousands of dollars below the builder's original list price.

"We're giving away property, ladies and gentlemen," auctioneer Mike Carr of Atlanta told the crowd of about 300 bidders in the Fresno Convention Center's Valdez Hall. Jonathan Homes, based in Patterson, offered the houses in Kerman, Madera and Riverdale to the highest bidder.

The auction came as the area's housing market struggles in a slump, with many builders facing bloated inventories.

Carr kept the bidding going nonstop. Most final bids were between $200,000 and $300,000. Previous list prices on some of the homes had been as much as $498,000.

In another case, bidding started at $229,000 on a four-bedroom, three-bath Kerman house originally valued at $412,000. It sold for $295,000.

10 comments:

Funny Circus Bears said...

I remember in the early 90's going to auctions one or two weekends per month. Eventually, near the bottom, the prices were a screaming bargain. We are not near the bottom right now.

After the builders have liquidated their housing stock, they'll start auctioning off land - first attempting to sell large tracts conventionally and then, finally, auctioning off individual lots. At that point in the cycle the residential market was in complete and total collapse. Residential generals and subcontractors were working for subsistence wages and material prices were dirt cheap. At that point you could buy an individual lot and pay a general to build you a house for barely more than the peak value of the dirt.

Tim said...

295,000 for a house in Kerman is still very HIGH!!!

A 4/2 there back in 2004 was going for 245,000.

pismobear said...

Where is the bottom. I would say 2011. How about it?

Lou Minatti said...

There's no reason a tract house in the Central Valley should cost 3x or 4x more than a similar house in other hellhole locations (waves hand). A 4-bedroom tract house anywhere in the Central Valley should be $150k, max.

OT, but I am wondering if other Home Depot's around the country are featuring "Carpet any room in your house for $150" specials. The only asterisk is floor padding is extra. They are either desperate or they received a large allotment of carpet from China.

hankmeister said...

its way too early to buy. New lots are being cut. Developers are just now getting in to "cut our losses" mode.

harley1 said...

I believe that you guys might be the same people in 2005 and 2006 when the market was hot, buy buy buy, the market is going no where but up. Now you are just stating the sam crap just going in the opposite direction. with rates still at historic lows and homes out their that are great buys you shouldn't be advising people on what to do when they are actually buying for shelter and not speculating. I don't know who is worse the media or bloggers.

Bakersfield Bubble said...

Harley1-

Clearly you have been asleep for some time. Most of us have been at the bubble blogs since mid to early 2005 saying exactly the same thing, in fact most of what we said is now coming true.


Also, blaming the media and bloggers is comical.

hankmeister said...

I've been saying bubble since since early 2003. That was when I realized I could "flip" the 7 1/8 FHA loan I'd had for barely a year in to a conventional. Mind you I only put $1,000 down on that house.

WaitingToBuy said...

Harley1-

If BB would have named the site "Bakersfield Bubble Trouble" instead of Bakersfield Bubble, would that have satified someone like you who judges and entire group of people without reading more than one thread? At least peruse some archived stuff before jumping to conclusions, this site has been forcasting the housing downturn we're seeing for years.

I have one thing to say to people that are wanting to buy for shelter: Rent.

Tracedog said...

I know this is off base and out of context, but does anybody remember the old sign, weloming north-bound (presumably LA)travelers on 99 into Bakersfield with this glowing message:
"Bakersfield..SUN FUN PLAY STAY"
It was all multi-colored like the old motel "COLOR TV"(!) signs! Does anybody remember this sign and when it was taken down? (God forbid if it is still up!)
Please also reply to: Nevermindthedog.blogspot.com, (comments on first post will do)
or if that fails: nevermindthedog@gmail.com
Id love to hear your story. For my new blog Thanks again!