Bubbleishisly Good Schadenfreude
There are a number of sites that take great glee in tracking the desperation of property flippers in California who are now bleeding cash. In some ways, I agree with their glee – many of these flippers artificially changed the market creating a false supply-and-demand atmosphere that has no basis in reality. The real losers will be ordinary people who thought they HAD TO BUY of they would be priced out forever – some are projecting that if you bought a condo after 2003 you will lose money. That’s a long way to fall.
I am beginning to believe the price drop could be more than 40% over the next two years. Some of the stats on liar loans (made up numbers to qualify people for loans they can’t afford) are frightening. If it falls out the way it appears it might – some of the behavior by brokers and the like seems downright criminal.
If you want to see the desperation, here are some great sites – these folks track prices, research outstanding loans amounts, and generally sniff out the most glaring examples of the crumbling that is occurring. Some point out the smell of desperation in ads for condos. Others even track outstanding loan amounts that are in foreclosure.
I noticed MLS put out a desperation ad last week in the LA TIMES – REALLY! Prices are going UP UP UP still!
Orange County Flippers Blog
Tracks specific properties. Some of the entries here and on other FF blogs (f**d flippers) also discuss how one desperate person will drag down other condos – if you see the desperate guy listing $50 K lower, you aren’t going to buy the same unit for the higher price – so you negotiate them down or buy the cheaper unit.
Some have maps showing how many other places are for sale in the same area – and the signs of the coming mess are obvious.
Lists inventory and percent of listings where prices have been reduced.
Flippers in Trouble covers the Sacramento area. There are some shocking losses going on here!
Housing Bubble – links to lots of other sites tracking local pricing.
San Diego Death-by-Flipping Blog
Same concept – track specific properties – see how much they lost.
Wish I could find the NJ site I found last week – I’ll keep looking – some real low balling going on there – and people are accepting offers more than 40% below original asking price. Eeek.
And always a good room with a view:
Real Estate Listing Results 1 – 25 of 35,068 (for the state of California – yikes)