“To many people in the affluent Bay Area, losing a home to foreclosure sounds like a Depression-era relic or a Rust Belt phenomenon. Our real estate prices have defied gravity for so long; our job market is so strong; our cachet as a place to live seems so obvious. How could foreclosures happen here?
But in recent months, the Bay Area has proven to be home to numerous victims of the subprime loan debacle. Just like elsewhere in the country, people here with tarnished credit or limited funds bought houses that proved to be beyond their means, often putting little or no money down, and borrowing money through exotic, expensive loans that were virtual time bombs set to soar to unaffordable levels after an introductory period.”
“New indications of a struggling housing market sank the shares of homebuilders and their suppliers Thursday. Three of the biggest builders swung to huge losses during their latest quarters and a government report showed weaker-than-expected home sales.
The builders are feeling the sting of weak housing demand and abundant supply. That has forced them to slash prices to lure buyers and write down the value of the land and houses they own.
The heavy losses from the trio combined with weak new homes sales numbers to paint a gloomy picture of housing. The Commerce Department reported Thursday that new home sales plunged to 834,000 from 893,000 a month ago. That undershot consensus expectations for 900,000.“
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It ain’t over yet….
Posted: July 26, 2007 at 6:21 am by Somesh
Caught these images past Saturday.
People lininig up to buy condo units in brand new Symphony Towers
This is the building at 750 Van Ness, San Francisco.
“More than 80 homes from Santa Rosa to Oakley will go on the auction block Saturday in another sign that the drooping Bay Area housing market is taking its toll, particularly on people who relied on exotic mortgages.
At a Hilton hotel in Concord, auctioneers will hawk scores of condos, fixer-uppers and Victorians that have been repossessed by lenders and couldn’t be sold through conventional means.
Just as in the bidding wars during the recent housing boom, however, would-be buyers should do their homework — specifically on the homes themselves, but also on the extra fees, good-faith money and closing terms set out in the auction guidelines.
In the Bay Area and California, such auctions are becoming more common. This week Hudson and Marshall, the Dallas firm holding Saturday’s sale, had auctions in Fresno, Seaside (Monterey County) and Modesto. Another auction — they usually feature a piano player and offer fresh juices to the participants — will take place in Sacramento on Sunday. Last month, another firm gaveled 88 properties in Alameda, Contra Costa and Solano counties.“
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Hearst Mansion on the market for $165 million
Posted: July 10, 2007 at 6:11 am by Somesh
The LA Times Reports :
“The rich are getting richer, and their properties are getting pricier.
The 1920s-era Beverly Hills mansion of William Randolph Hearst and Marion Davies was put on the market Monday for $165 million, making it the nation’s most expensive residential listing.
The pink stucco, H-shaped estate, dubbed “Beverly House” by the late newspaper magnate, is spread across 6.5 acres north of Sunset Boulevard. It has just about everything a billionaire could want — including three pools, 29 bedrooms, a state-of-the-art movie theater and even a disco.
The compound boasts six residences — four houses, an apartment and a cottage for the security staff.”
