March 23, 2006

Overvalued.blogspot points out this San Mateo gem. Guess how much?

I grew up in a small town in Michigan, where $50,000 was a really nice house, $100,000 was a near mansion.

So I'll always be shocked to see a dump like this house going for what it's going for today. It would've been worth about $10,000 from my 1980's Michigan memory, and the people living in would be unemployed, uneducated and unwashed...

Plus, should anyone have to pay $5000 a month plus to live in such a hellhole?

Yup, this gem is listed at $725,000

When does the madness end?


Anonymous said...

My favorite Sunday morning activity is to find the "house of the week" in the Real Estate section of the Detroit newspaper.I cannot believe the mind numbing prices for these homes in the Detroit Metropolitan area. And I'm talking about OLD homes, less than 1500 square, 50x100 lots and don't forget the property tax.....Amazing.

Bake McBride said...

Not to put down Detroit, but I can't believe there is a bubble there?? I guess the lure of easy money didn't escape the Rust Belt. Suprising since the cities population has been decreasing.

Anonymous said...'s in CALIFORNIA!!! That means it's worth untold millions and millions and millions of dollars!

Anonymous said...

No-one knows if this bubble

a) is really a bubble,

b) will continue, or

c) has finished.

But there are methods of protecting against a housing collapse. The Syracuse Home Equity Protection scheme is one. A similar scheme is available for other areas. Take a look at which covers most parts of the US.

Tom DC/VA said...

"No-one knows if this bubble

a) is really a bubble,

b) will continue, or

c) has finished."

Nobody knows if the sun will rise tomorrow either, but it's a safe bet.

Anonymous said...

I usually like this blog, but I am a bit put-off by this posting. So this house is a "hellhole"? Then I guess I live in a "hellhole" too. Of course, until today, I didn't know that I should be embarrassed about it. Then again, I lived in South Korea for three years and this little "hellhole" would have been a sign of tremendous wealth. But, I suppose that is exactly what is wrong with our country. Everything has to be big to be good - big cars, big houses, big bellies, and big asses. Yes, the price of the house is over the top. But, the house itself, looks very liveable. I guess when electric prices go through the roof and everyone in this country is trying to heat their 400,000 square foot McMansion, us "hellhole" dwellers will feel wise for having chosen a home just "big enough" for our needs.

Anonymous said...

I agree with Yogsoggoth here... prices are outrageous, but this is hardly a hellhole. It's just a very modest, somewhat obnoxiously painted house. That said, it is bizarre that people have to spend $3500+ every month for the next 30 years to buy it. Eh, even a housing bear like me suspects that in 30 years, $3500 a month won't seem like all that high a payment.

Anonymous said...

The National Association of Retailers said February home resales unexpectedly rose 5.2 percent to a 6.91 million unit annual rate compared with expectations for a decline to 6.50 million units.

Could someone please point to what part of the country this here data is linked to as far as sales go? Here in mass it seems pretty stagnet, but then again tis just the govermnet cooking the numbers as usual, to justify for another intrest rate hike. Goverment in the markets = 2007 recession as we all know.

Out at the peak said...

That Lock-In Value Equity (LIVE) is crazy. They are definitely betting that the market will remain flat or better. If the market starts to tank, and people start making claims against their LIVE insurance, the company can just fold. What's to prevent them from dropping existing customers once their insurance pool runs out?

brokersleaveyoubroke said...

That LIVE company is a UK company. Offshore insurance schemes are scams more often then not. I would use extreme caution if dealing with this company. If there is a nationwide housing bust there is no way they could make good all the claims even if they are a real company.

brokersleaveyoubroke said...

I agree with yogsoggoth. Aside from the color, this is a fine, albeit modest little house. It's nicely kept up and certainly not a dump. The price is insane but I see no need to put down people who don't live in huge houses.

Anonymous said...

Well than if such sympathy is going to go to that pink house, Ihave a nice brown one for sale, and its moblie you can move it anywhere in the country you want...asking price $300,000 large, any takers?

Anonymous said...

Yeah. This house doesn't look so bad, but the price is kind of crazy. If you work silly valley and want to buy a house in the area, this is what you're looking at. I lived in San Mateo throughout the dot-com bubble and I couldn't believe when people paid $500k for the same type of house. They may well get $750k. And if you and your wife make 100k+ working at Oracle... That's life in silly valley.

AustinYankee said...

There is no superlative that can capture how ugly this will be.

Anonymous said...

btw, my friends bought a house uglier than this that's 750 sq. feet for $450k about a year or two ago. It seems like a bargain by today's standards.

Anonymous said...

Anonymous said:

"No-one knows if this bubble

"a) is really a bubble,

"b) will continue, or

"c) has finished.

"But there are methods of protecting against a housing collapse. The Syracuse Home Equity Protection scheme is one. A similar scheme is available for other areas. Take a look at which covers most parts of the US."

Could this POSSIBLY be a posting from somebody working for Lock-in Value Equity Limited (LIVE), the UK company offering this so called protection plan? Is is possible its promoters could be trolling bubble sites looking for frightened investors and home-buyers they can sell to?

The whole idea is to get away from schemers and scammers, and people with gimmicks. Or so I thought.

blogger said...

I agree too - it's a cute house. hellhole refers to what $725,000 should buy you, vs. this house.

you want hellhole, I can show you hellhole. at least this house has nice paint and is taken care of.

bad choice of words. how about "overpriced gem"?

Anonymous said...

I dont think the point of the posting was the house itself, but the price.

Come on, lets be honest here, who in their right mind would want to bust their ass until they die to pay off that mortgage.

Its just a poor value. Even with work, there are areas in NY/NJ that are in about the same shape "tear downs" for sale for $12,000.

Anonymous said...

It's small and ugly, but you'll think it's a hellhole only when you remember how much you paid for it.

And again when you can no longer make the payments on it.

And again when you can't sell it, it gets foreclosed, and you go bankrupt.

Anonymous said...

a large and luxurious, old, brick, three-story house (very beautiful) on historic main street in Farmington CT (very upscale) just sold for about this price

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