Low inventory?

NEW -> Contingent Buyer Assistance Program
As of 9:30pm, we are down to 481 active listings in Irvine.  What the heck, the number of listings should be increasing not decreasing... >:(  :-\  The frustrating part is that it's not just Irvine....same thing is going on in Ladera Ranch, Aliso Viejo, Laguna Niguel, Yorba Linda, Orange, etc.
 
Include the Bay Area; Dublin, San Ramon, Pleasanton, Fremont, Santa Clara, Sunnyvale, Mountain View, etc.

These crooks ran out of money for tax credits so now they are letting squatters off the hook, and letting vacant homes rot.

I actually feel sorry for you RE Agents. If this continues, a lot of you are going to have to find other lines of work.
 
IndieDev said:
Include the Bay Area; Dublin, San Ramon, Pleasanton, Fremont, Santa Clara, Sunnyvale, Mountain View, etc.

These crooks ran out of money for tax credits so now they are letting squatters off the hook, and letting vacant homes rot.

I actually feel sorry for you RE Agents. If this continues, a lot of you are going to have to find other lines of work.
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Same thing is going on over in Vegas in the zip code that my dad lives in.  The number of homes on the market is about half what it was throughout 2011.  Thank goodness I can fall back on my CPA.  :D  :P
 
IndieDev said:
I didn't know you were a CPA (or maybe I did but since I'm old I forget more than I remember).
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They say the memory is the first thing to go.  haha  I'm not too worried about this low inventory, I still a few buyers into escrow in the 2-3 weeks.  The key is to move fast on decent homes. 

Btw, where's that REO tsunami that the bears on IHB were talking about for 2 years?  We could use the banks releasing the REO flood gates.
 
Put yourself in the position of the banks; would you release any REOs? Your business is insolvent, releasing inventory would simply make you have to realize that you are insolvent. Uncle Ben says he'll keeping give you money to keep you solvent on the "books" while you slowly realize you losses for the next 10 to 20 years. No one will be the wiser, but the middle class will be a lot poorer. But who cares right? They just work for you.  8)
 
IndieDev said:
Put yourself in the position of the banks; would you release any REOs? Your business is insolvent, releasing inventory would simply make you have to realize that you are insolvent. Uncle Ben says he'll keeping give you money to keep you solvent on the "books" while you slowly realize you losses for the next 10 to 20 years. No one will be the wiser, but the middle class will be a lot poorer. But who cares right? They just work for you.  8)
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Oh yeah, I know that tsunami will just be a slow leak for the next decade or so.  If you want to talk about zombies, you should be talking about the big banks that are holding onto all that REO inventory because they are the walking dead with their market-to-fantasy accounting.
 
Banks are actively selling off their distressed portfolios.

BofA is beyond toxic. No one wants to deal with them anymore in the OTC space.
 
I've read that BofA has a more toxic leverage ratio than Countrywide (which they bought in 2008) had during the bubble. Remember during the congressional disposition, Countrywide was something like 20:1 to 30:1 (tier 1 capital/total assets). BofA on the books is about 15:1, but in reality is probably closer to 40:1. That's just as bad as any of the Euro banks right now which have pretty much crippled the EU.
 
The big banks are screwing us all in three ways.

1. Pathetically low interest rates on savings.
2. Holding back on home inventory and creating artificially tight market conditions.
3. The looming government bailout that will cost us taxpayers big time ($1 trillion or more).
 
Check out BofA earnings, this bank is teetering on the brink:
wfearnings.JPG
 
zubs said:
It's really hard to bet against Buffet...
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Buffet has made some fairly expensive follies, especially in the energy sector (ConocoPhillips comes to mind). I believe his bet on BofA is a foolish one as well.
 
IndieDev said:
Buffet has made some fairly expensive follies, especially in the energy sector (ConocoPhillips comes to mind). I believe his bet on BofA is a foolish one as well.
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Not if the bank is too big to fail (aka TARP).  BofA is propped up by the US Government.  As long as we can print money and stick to socialist ideals, BofA will not bankrupt itself.

 
variable229 said:
IndieDev said:
Buffet has made some fairly expensive follies, especially in the energy sector (ConocoPhillips comes to mind). I believe his bet on BofA is a foolish one as well.
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Not if the bank is too big to fail (aka TARP).  BofA is propped up by the US Government.  As long as we can print money and stick to socialist ideals, BofA will not bankrupt itself.
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Even Rome didn't last forever.
 
zubs said:
It's really hard to bet against Buffet...
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It?s even harder to bet against the perpetual issuance of money and credit that?s going on. 
Leveraged speculation keeps expanding unchecked.
 
What you guys are saying is that you are betting for the USA to collapse.  Not now, but maybe in 5 years? 

If the US is about to collapse, you are better off buying guns and ammo as well as a defend able property with arable land.

If you believe the US still has 40 more years before collapse, and will trudge along until that time, then you would bet with Buffet.

This is a similar discussion about interest rates we are having.  Interest rates will never go up again...reason is the US will collapse if they do, and if the US collapses, housing prices will be the least of your concerns.

So the choices are:
1. The US will collapse within 5 years
2. The US won't collapse within 40 years.

I don't think the US will collapse anytime soon, so we will be in low interest rates for a long time, while slowly debasing our currency.  40 year time frame & a slow road to hell.

 
zubs said:
What you guys are saying is that you are betting for the USA to collapse.
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This is exactly what the people wanting to destroy your wealth want you to think, "If Bank of America fails the country will collapse! The horror!" Fear is a great motivator for the peons.

Chicken little had nothing on the banking cartels.
 
It's simply the "too big to fail" principle.

If low inventories continue and demand stays where it is, prices will start to rise. Before long we could be seeing the beginning of another speculation bubble, fueled mainly by investors. They may say that they're buying real estate to rent out homes, but rising prices will make them start thinking about flipping.

And you can thank the Fed for this.
 
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