Comments on: 13 years of depreciation

By: Didi

Didi — Sun, 27 Jul 2008 04:00:02 +0000

Sean, you hit about a hundred nails right on the head with that post! Touche!

Yet the “rich Asian” myth perpetuates.

By: TheArcadian

TheArcadian — Thu, 24 Jul 2008 15:52:07 +0000

They keep saying that Florida will be ok once all the Europeans buy their vacation homes for dirt cheap. Unfortunately, that has not stopped it from crashing compared to last year’s prices.

By: Sean

Sean — Thu, 24 Jul 2008 02:26:33 +0000

The average Asian buyer is no smarter (or dumber) then the average American buyer. People are people and the bubble does discriminate based on Race or Color. And many Asians live way beyond their means (just like Americans.) Their culture likes to show wealth by driving a Benz, carrying designer bags, and “appearing” to be wealthy. But my years in the banking business has let me know that Asians also have low bank accounts, maxed credit, and bills like everyone else. Once you see the car is leased, the LV bag on the Macy’s card, and the 2nd loan on the home to pay for “private pre-school” you begin to see things a different way.

So whether they pay in Euros or Chinese Dollars let them buy all the homes they want. The problem is that foreigners can’t buy there way into the United States. The US has complex system known as Immigration (USCIS). So in order to live in your cheap home, you need a job or to employ US citizens. You can’t just establish a 2nd residence here for your family. You can visit for a max of 6-months and if immigration is having a bad day you can get a 1-month stamp.

By: Arc Lost

Arc Lost — Thu, 24 Jul 2008 00:52:52 +0000

TK, Do you think this view that prices will drop another 20% is shared by the average “asian” buyer in the SGV? I still see some people who are visiting from outside the States thinking that US housing prices are reasonable since they are buying with cheap Euros, Reals (Brazil), and Renminbi. Although they see housing values dropping, they don’t appear reluctant to buy if they want to establish a second residence here for themselves or wife/children.

By: T K Eng

T K Eng — Thu, 24 Jul 2008 00:26:28 +0000

Looks like something bigger than the subprime meltdown is about to take a shot at the depressed housing market-Recession. With rising umeployment, tightened credit (both individual and commercial), % will go up (not due to Fed raising %, but due to concern over defaults) and demand will drop b/c of unemployment. I would not be surprised if prices in SGV drop another 20% through 2009.

By: Caveman

Caveman — Wed, 23 Jul 2008 22:43:51 +0000

The listing was meant to read: “Owner hopes to get lucky selling this house, so he can afford the multi-million dollar home he moved in”.
That scheme stopped working in about, well, 2006.

By: Anonymous

Anonymous — Wed, 23 Jul 2008 20:36:13 +0000

If you move around the street view, you can see that there is a for sale sign. This must have been a repost.

By: 3deyeball

3deyeball — Wed, 23 Jul 2008 20:26:43 +0000

I feel the same as you do after seeing the aerial map. The Fung Shui will be an issue for some potential buyers.

By: Anonymous

Anonymous — Wed, 23 Jul 2008 20:21:56 +0000

From the map you can see that the house has a big “feng shui” problem. A street is running towards it. Most Asians will have problem with this. It might be a reason for the more “reasonable” list price, compared with other houses.

By: TheArcadian

TheArcadian — Wed, 23 Jul 2008 18:34:05 +0000

That was actually my first impression. Then you look closely and it could be that the owner purposely “upgraded” or left it that way.