Wednesday, July 04, 2007

The Villas of Lodi

UPDATE: KB Home responds to the Lodi News article (180 comments and counting). Hat tip: Spacebar


Lander said...

Thanks to the reader you sent this in. Read the story here.

Perfect Storm said... indicates foreclosures in the Sacramento area are increasing at a rate of 500 a week.

Lender imploder meter hit 93 liar loan outfits taking a dirt nape.

Subprime delinquencies are set to increase for the next year.

Bank of England just raised rates.

Population growth in Sacramento is stagnant.

Recod inventory in Sacramento.

40% of all homes for sale in Sacramento are vacant.

Housing/Mortgage Doom 2007.

Were right on track for a 50% decline by 2009.

Gwynster said...

In Davis, I'd say about 15% are empty including apts and homes on the market. I know it's the turnover season but in talking with people (students, owners, us older renters), it seems like more places aren't filling up as fast as they used to.

Diggin Deeper said...

Perfect Storm...

500 per week is big number. If correct, then monthly foreclosures could outstrip monthly sales in July. Banks can't seem to find the right price to entice buyers off the fence. I wonder when the first bank caves in and we get a real fire sale on some of this aging inventory.

I guess houses don't spoil like burritos at Taco Bell. Wrong! One look at that photo and we've got a burrito with mold on it. And you can go into any middle class neighborhood and find the same. I'd bet the inside is just as bad.

David said...

No homeowners' association to take care of the front lawn? Isn't that more standard these days? That seems weird.

Diggin Deeper said...

What offsetting fundamentals can anyone add to the 10 below that will effectively stop the bleeding in this market? And if we do have a recession, do you really think that the 10% location oriented neighborhood in Sacto's "real estate heaven" will be spared?

1. Falling sales (almost 60% fewer in June '07 then in June '05)

2. Rising inventory(if foreclosures are not MLS counted they add almost 40% of the total inventory at distressed prices)

3. NOD's accumualting and continue to lead the way for future foreclosures. Sacramento high on the list for past exploding loans.

4. Auctions bring mixed but hardly encouraging results. If its not a circus, nothing sells.

5. Builders giving away the store in order to put a single flag pin into the plat map over any given weekend.

6. Investment banks bailing out or allowing hedge funds to fail because of subprime paper. And Bear Stearns is the first to fess up! What about those that don't?

7. Key rates on 10 and 30 year treasuries rising forcing more prospective buyers out of the market.

8. Fed on hold until inflation pressure subsides. Who the hell needs them, the bond market's already taking care of the problem.

9. Inflation in key everyday items is taking more bite out of the consumer every month leaving less and less spending power that could be applied to home ownership.

10. Economy is faltering. Past inverted yield curves on Treasuries have successfully predicted 7 out 8 recessions. What's different about this time?

Patient Renter said...

I don't know if affordability is considered a fundamental, but it is certainly a key factor that will drive down prices. As some economists have indicated, the bubble would have peaked in 2002 if lending standards (allowing artificial affordability) weren't changed.

lexi said...

We're on the top of the roller coaster ride in that few seconds
before you start plunging down...
it's going to be a rough ride once
it really starts going!

smf said...

Channel 3 is reporting a 'suspicious' 4-plex house fire, two units vacant...hmm...

"40% of all homes for sale in Sacramento are vacant."

That figure does not indicate 'buyers on the fence' but too much housing.

norcaljeff said...

So who besides Sippin thinks anyone is going to be looking at homes this weekend, in 108 degree heat? :) Gonna be another long hot summer for the RE market :)