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Monday, November 30, 1981

Thursday Open Thread

This is your open thread for today. Please post random links and off-topic discussions here.

11 comments:

Kaleetan said...

Zillow has been updated for the month and the seattle area got a nice little jump in values.

I was expecting a decline but this was a pleasant suprise.

30-day change: $6,329

anyone else notice the changes?

This house i am watching in Denver is down 16K in one month...OUCH

Grivetti said...

I was expecting a decline but this was a pleasant suprise.

I like how zillow's morph'd into the etrade ticker of the dot-com era. The problem is, when your Pets.com stock soared above 200/share, you could actually cash it out! for whatever it was listed at minus a small transaction fee...

When home values 'bump' in zillow, its vapor, doesn't exist, and meaningless to one's portfolio.

The only way you can cash out your rented investment would be to HELOC it, but all this has interest overhead, way higher than the interest overhead of a stock as opposed to cash (i.e. Bank interest)and the transaction costs? wholly moley. If I had a broker that nipped 6% from any transaction fee, he'd be on his arse next to the curb in a heartbeat.... of course with a stock portfolio, you have no maintanence fees, no property taxes, no ARM's, etcetera...

The only way RE is comparable to stocks is if you're renting a property out for more than monly mortgage/maintanence/taxes... unless you're a flipper but flipper's just another word for 'day trader' and we know how lucrative that industry was

Slinky said...

http://money.cnn.com/popups/2006/biz2/newrules_bubbleproof/index.html

Bubbleproof, huh?

Grivetti said...

Bubbleproof, huh?

Boston had the strongest wage growth of these cities through the tech bust and jobless recovery. Over the next five years, it will have the highest per capita income, next to San Francisco.

CNN's got a funny way of defining the world 'bubble', are we talking depression era misery or dot-com bust misery? Because all Boston's apparently got going for it, ain't saving it from the following miserable fate...

Real Estate: House prices plunge: All hub gains since March '04 vanish

Boston house prices plunged last month at their fastest pace in more than 13 years, erasing all gains recorded since early 2004, new figures show.

Yeah, Seattle's 'bubble proof' too, I'm sure... but is that such a good thing?

The Tim said...

Slinky,

FYI, I already posted about that story over a month ago.

AndyMiamiBeach said...

Zillow has been updated for the month and the seattle area got a nice little jump in values.



Has anyone looked into who has invested in Zillow.com. Is it your typical angel investors or VCs? Maybe angel investors that have made millions in real estate.

How will Zillow make money? Ad supported from the real estate industry..mortgages, real estate agents...etc.

But, it's potential huge upside is creating a hedge product whereby owners/investors can hedge property values.

The CME (Chicago Merc. Exchange) began to trade real estate futures in May 06 for the top ten cities in the US.

Can you imagine buying a home and paying an extra $5K to protect a $100K drop in value..

But this will be quite speculative, just like crude or gasoline futures. What happens if you did buy the downward hedge protection for $100K and property values increased. You would have a loss on your futures contract, but a gain in the value of your house. But the loss is a cash loss and the increase in the home value may be less than $100k.

Nevertheless, this will happen in our near future - within 10 yrs..and maybe that is what Zillow is all about.

Kaleetan said...

zillow is sweet...the hottest site next to youtube

blueskitten said...

Surpringly, the Nov Zillow update seems pretty accurate for my property. Went down about 1% in November.

Richard said...

This article seems to confirm a suspicion I've had about the "bubble" in the classic car market being concurrent with the housing/credit bubble.

On the car market...some BIG news!! The market is changing as we speak! It seems that prices have finally started to come down

Grivetti said...

Death by condo

That's indisputably the case in the Pike/Pine neighborhood, where a dozen new condo and apartment developments have been conceived, designed, or completed in the last few years...

Developers and real-estate agents love to talk about the "vibrancy" of neighborhoods like Pike/Pine...When developers talk about "vibrancy," what they mean is places like the Cha Cha, Bimbo's, Manray, the Bus Stop, R Place, Bauhaus, Babeland, and dozens of other small, independent businesses. Pike/Pine wouldn't be "vibrant" without those businesses. Yet as empty lots get harder and harder to come by, developers are increasingly gobbling up land that's already occupied

Hahahaha! how ironic... the dot-condo boom of downtown allegedly fueled by 'young professionals' wanting to be close to 'vibrant nightlife' is in fact nuking the very virbrancy they expouse!

Yeppers, in my opinion the housing boom is the last nail in Seattle's 'hipster' coffin, forever lame and exploited by marketing by the iPod generation! A town built by squares (that's you Greg Nickels!) for squars...

Grunge is dead, if you want 'hip' move to Portland or Spokane or Wenatchee.. or something

Richard said...

But the hipsters here (on average) have trust funds. The Lower Middle Class ones are willing to cut back on auto expenses to keep up the lifestyle, location and clothing wise.