Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Monday, April 17, 2006

When the Truth Hurts, Deny and Lie...


Our well informed poster Moonvalley caught a bit of a scoop today:

moonvalley said...
"Very interesting show on KSVY this afternoon. All about RE, hosted by someone from Sothebys'. When asked about the Bubble, she in her wonderful British accent denied one existed. And, if by chance it did, it certainly wouldn't be found anywhere near magical Sonoma, where the rules of gravity do not apply and things only go up."

"When asked if there had ever been a price drop in RE from a bubble popping she said never, as long as they'd been keeping accurate records (1968). I couldn't believe it, I remember well the bubble poop of 90/91 when my house went from 550k to 200k in what seemed like the bat of an eye, another friends place went from 750k to...well, he sure as shit couldn't sell it, let's leave it at that and draw the veil. How can people say such things and not be challenged??????!!!"


Well... how can they go unchallenged indeed MV?!?!

First of all, Sotheby's is a newbie to Sonoma Valley and only jumped on the all things shishi bandwagon in Sonoma in recent years.

Secondly, either they don't keep accurate records, are too lazy to do actual research or they are lying.

Which one do you think it is?

Third, this is not rocket science, intelligent people with integrity try to be informed before they speak. The information is out there and a monkey could find it.

For example:

The Press Democrat November 9th, 2002

"Giovan said she is seeing investors flee from the stock market to invest in real estate because the returns are more dependable."

'``In one month,'' she said, ``I lost $40,000 in one account in the stock market. Other people have lost more. It's depressing. But it's a good reason to invest in real estate.'''

"There are pitfalls in real estate investing, financial planners cautioned. Landlords need to invest time overseeing their property. They don't have instant access to their money. Property values can fall, as they did in Sonoma County between 1992 and 1997. Rents can fall and vacancy rates can rise, as they have in Sonoma County this year. And investors need to study the market carefully, to be sure the rents they hope to charge are realistic."

That is but one example. Anyone with computer access could go to zillow.com and look for properties that sold between 1993 and 1998 and you can see that many of them sold for less in 1998 than they did in 1993.

7 Comments:

At 4/18/2006 12:33:00 AM , Blogger moonvalley said...

Yes, someone we rented our Sonoma Valley place from back in 92 had delusions of selling it to us for 700k. Of course, meanwhile back in LA the aforesaid property filed to rise and plummeted like a stone. We couldn't give it away, so no SV easy pickings for him.

 
At 4/18/2006 12:45:00 AM , Blogger Athena said...

he tried to sell you a place in 92 for 700k?

I remember the property values taking a dive here back then. I had just gone back to school.. a good time to do that when the economy is in the tank by the way... rode it all out quite nicely. However, I knew quite a few normal average joes who were underwater and walking away from their mortgages.

And... we didn't even have any particular issues going on up here at the time. The whole recession was launched by the defense and aerospace industry layoffs in southern california... but it pushed people who were stretched thin over the edge when the ripple effects of so cal's layoffs hit the northern half of the state.

And... we didn't have nearly the plethora of risky loans out there saturating the market like we do these days.

But anyway... the real news, is this denial of property values falling in Sonoma shant be taken as fact from the horse's mouth, as it sounds more like the substance from the horse's a$$.

 
At 4/18/2006 10:07:00 AM , Anonymous tom stone said...

hey,if you have a nice english accent and good legs,you can be lazy,stupid and rich...a snotty attitude helps if you are also dishonest.

 
At 4/18/2006 11:09:00 AM , Blogger Athena said...

no kidding... why is it that some people swallow lies easier if they come with an accent?

 
At 4/18/2006 11:29:00 AM , Blogger moonvalley said...

I guess it depends on the accent. Are certain accents more believeable? And yes, our GlenEllen landlord, thought he had a couple of movie business chuckleheads who didn't know any better. He never paid any mind to the fact that I'm a 5th generation San Franciscan..also that we had a house in LA that we couldn't move due to bubbleness. We actually sent him Robert DeN..as a tenant..he didn't buy it either. The guy wound up selling the property for about 500k. He thought he was going to clean up and move to Ross.

 
At 4/18/2006 11:31:00 AM , Blogger Athena said...

well the world would be so dull without delusional people. ;-)

 
At 4/28/2006 11:59:00 AM , Blogger HomePriceMaps.com said...

www.HomePriceMaps.com integrates how much homes SOLD for nationwide using the google mapping technology. Simply select city and state from the city menu and click search. If you don't see data for your area simply email HomePriceMaps@gmail.com with your zipcode and or address and they'll update the site with your info and email you within a few days.

www.HomePriceMaps.com

 

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