Irvine Housing Blog

$383 per sq ft, the irvine “crash” continues to devastate… those that said we would drop to $150-200 per sq ft that is, the devastation continues.  6 years into the “crash” and counting the money keeps flowing 30% median cash down payment cotinue for Irvine

Irvine Inventory

3-14-2011 = 811 homes for sale
3-13-2010 = 552 homes for sale
3-13-2009 = 775 homes for sale
3-15-2008 = 924 homes for sale

“declining loan balances (remember the rent is paying down the note”

Is it? Unless the amount lent by the bank represents current rental parity I don’t think you can make this assumption.

Personally I think this is a desperate effort by the banks. How long will they have to sit on these homes before they are above water? And if it’s years, just what kind of shape will these homes be in after years of renters?

These banks should have been left to die instead of being bailed out and their bondholders left to twist in the wind. We’d be done with this already instead of staring at years of decline ahead.

anonymous released a slew of BofA emails regarding their dirty dealings in foreclosing on people.

http://news.yahoo.com/s/nm/20110314/wr_nm/us_bankofamerica_emails

All of those inventory numbers are extremely low.

As someone who works at Balboa, I can attest to the systems involved and can say that these emails say nothing about foreclosure fraud. Firstly, we are in the lender-placed property insurance business. This means on behalf of the lender, we will insure the property automatically, if the property owner lapses in keeping their property insurance current during the life of the loan. We have NOTHING to do with the foreclosure process at GMAC or BAC (who are our customers).

As such, this looks to me like a former employee cherry picking a piece of an email thread and trying to smear his former employers with it.

IrvineRenter -

Are we going to be seeing a post about your local swindler ripping off the gullible?

We were SHOCKED!  SHOCKED I tell you!  He smiled at us in church every Sunday!  GASP!!

Thank you for the interesting and timely article.

You question: “Will lenders maintain their properties to a reasonable standard, or will they all become slumlords?”

I expect to see a kind of leased property living like that presented in the 1973 movie Solyent Green

In my article European Leaders Affirm Angela Merkel’s European Economic Governance And Austerity Plan, I communicate the concept that Neoliberalism was the political and economic regime that governed mankind from the time that the Free To Choose economic theory of Milton Friedman replaced the gold standard in the early 1970s, to the exhaustion of Ben Bernanke’s quantitative easing 1 and 2 on February 22, 2011, which was reflected in the fall in value of the distressed securities, which underwrote quantitative easing, and which are approximated by the Fidelity Mutual Fund FAGIX. It was on February 22, 2011 that the value of FAGIX, and world stocks, ACWI, both fell lower.

The fall lower in world stocks, ACWI, commodities, DJP, world major currencies, DBV, emerging market currencies, CEW, documents the failure of seigniorage of the neoliberal economic and political regime, as well as entrance into Kondratieff Winter on March 11, 2011. It is reasonable to expect desperate economic conditions and great austerity with evaporation of lending and falling investment prices.

US Government Treasuries fell lower in an Elliott Wave 3 Decline, as reflected by the 30 Year US Government Bond, EDV, trading lower from 80.46 to 78.40; and the 10 Year US Government Note, TLT, trading lower from 92.37 to 91.55.  The beginning of the Elliott Wave 3 Down in US Treasury values means the likelihood of failed Treasury auctions. We are witnessing the end of credit as it has traditionally been known. Both bank lending and home lending will be a thing of the past.

Conclusion: Failure of seigniorage as well as the failure of US Treasuries as an investment means leasing of homes will be commonplace

I once renting on Cherrybrook. These “homes” (technically they are detached condos, some with shared driveways) are SO TINY! I’m shocked at the $575,000 asking price, which still equals prices in late 2003.

1500 sq ft (but 2 story). Remember that includes the stairs, etc.

They’re only worth what some sucker is willing to pay for them. The reason we’re in this mess is that Wall St decided to commoditize home ownership, thus prices can rise an fall on the whims of Wall St bankers.