The California Economy Is Dependent Upon Ponzi Borrowers

After years of free HELOC money, our economy is not completely dependent upon Ponzi borrowers. Today's featured property was another spent by its owners who stimulated California's economy. 

Irvine Home Address ... 74 LINHAVEN Irvine, CA 92602
Resale Home Price ...... $710,000

Go Ponzi, Young Debtor! How to Manage Your Finances The California Way

Have you ever borrowed money to pay off a creditor? If you have, you have participated in a debt Ponzi scheme. Do you manage your finances that way all the time? If so, you are a Ponzi. 

Irvine Home Address ... 453 EAST YALE Loop #34 Irvine, CA 92614
Resale Home Price ...... $634,900

Buying and Selling During a Decline

Buying and Selling During a Decline

During the bubble price rally, sellers and realtors, the agents of sellers, had everything going their way. It was easy to price and sell a house. A realtor would look at recent comparable sales, and set an asking price 5% to 10% higher and wait for multiple bids on the property–some of which would come in over asking. The quality of the property did not matter, and the techniques used to market and sell the property did not matter either. As far as buyers and sellers were concerned house prices always went up, so the sellers were thought to be giving away free money; obviously, the product was in high demand. As the financial mania ran its course, buyers became scarcer; all the ones who could buy did buy. The buyer pool was seriously depleted leaving prices at artificially high levels. When the abundance of sellers became greater than the number of available buyers qualifying for financing, prices began to fall.

Residential real estate markets generally move very slowly and trend in a single direction for long periods of time. Once these markets reach an inflection point, the direction of price movement changes, and the balance of negotiating power shifts from an advantage to one side to an advantage for the other. However, most market participants do not recognize this change for some time. Sellers continue to price and attempt to sell using tactics that worked during the rally, and they find they are unable to sell their properties. It often takes two years or more before sellers accept the reality of the new market and adjust their attitudes and behaviors to the new dynamics of a buyer’s market.

IHB News 5-22-2010

Fake auction today on the featured property. Ignore the asking price, there is a $648,000 first mortgage on the property, and I rather doubt the bank has pre-approved a short sale at $400,000. 

Irvine Home Address ... 41 BAMBOO Irvine, CA 92620
Resale Home Price ...... $400,000

Nearly 500 Properties Are Currently Scheduled for Foreclosure Auction In Irvine

The MLS inventory is growing. The pre-foreclosure inventory is growing. And shadow inventory is growing. Will our spring rally fizzle out? 

Irvine Home Address ... 24 ROSE TRELLIS Irvine, CA 92603
Resale Home Price ...... $1,900,000

Elitist Bank Economists Blame Housing Bubble on Subprime Borrower’s Poor Math Skills

Bankers are trying to blame borrowers for the deflation of the housing bubble. The geniuses who came up with the toxic Option ARM are lecturing the rest of us on the need for math proficiency. 

Irvine Home Address ... 4 MONTGOMERY Irvine, CA 92604
Resale Home Price ...... $280,000

How Gaming Interests Could Save the Las Vegas Housing Market, and Why They Should

Today, I am going to show in great detail how gaming interests in Las Vegas can save their local housing market and why they should do it. 

Irvine Home Address ... 5 LA SERENA #21 Irvine, CA 92612
Resale Home Price ...... $439,900