[quote author="Maltese" date=1242222403][quote author="graphrix" date=1242221252][quote author="IrvineRenter" date=1242214591][quote author="Mcdonna1980" date=1242214405]Found this in the comments:
<em>CR writes: ...that first house is at 721 Narcissus CA 92625 and is listed for $2.4 million... They are asking $5,000 a month for a lease.
Anyone else here do the same math that I just did, and come out with the same conclusion that something is way out-of-whack here? </em>
GRM ouch!</blockquote>
This is one of the reasons I now believe the beach communities are going to see 65%-70% price declines.</blockquote>
No... no... the high end is immune! I mean, the 200% increase in NODs is just a seasonal blip, most of them have the money to pay their loans off in cash, or they will get loan mods. At least that is what the moron brigade tells me over at Lansner's blog. Really, they are f*cked.
http://i41.tinypic.com/24zvpj9.jpg
And to confirm that even original owners are not immune, <a href="http://www.zillow.com/homedetails/2006-Beryl-Ln-Newport-Beach-CA-92660/25213028_zpid/">this place in Newport was picked up at the auction today for $305k</a>. They owed $81k, and their prop taxes were $937 a year. Kinda sad actually. Even if it is a tear down, at that price you are looking at $100-$200k in profit. If you don't tear it down, $400k profit no problem. I am seeing a lot more deals in Newport at the auction, CDM included. Which proves Dimmy is a fake, and just likes to rile up the bears.</blockquote>
How the heck did that one go for only $350K at auction? That makes no sense, given the lower price homes in Westcliff/Dover Shores area have been selling relatively briskly in the 850K range. Even as land value it would fetch at least 650K, would it not? Something doesnt jive.</blockquote>
At the auction, the bidder must have cash. How many folks can bid with cash?
It may speak to the difference between what a house is worth using one's own money or using the banks money and it may speak to how prices are inflated because of a fractional reserve banking system.