bostonbubble.com

[Hard Rain]

Time for my weekly Globe Real Estate update. In today's addition we get a look at the “savviest home buyers around”.

http://www.boston.com/realestate/news/articles/2008/03/02/look_homeward_gen_x/


Savvy, is not the term I would choose. Featured couple buy a 245k condo in Salem at the absolute peak of the bubble with a no money down, adjustable rate mortgage and piggyback. Under water and unable to sell, savvy buyer decides to purchase another property, a 1296 sq ft SF in Ashland for 385k, again using the no money down adjustable rate piggyback strategy (tells you something about the “savvy banks”). Even using overly optimistic estimates from the likes of Zillow and Cyberhomes they are now under water on property two, in essence paying the juice on 630k of high interest loans to live in a 1296 sq ft property where today one can buy a 2,191 sq ft two year old colonial for 359k. JPM and BofA get ready for some keys.....

[Guest]

nice research


somehow the Globe left that part out

[Booba]

Oh, those notorious "independent" Boston Globe, the lapdog of real estate industry!
How many cheerleading stories they published? How many buyers they fooled? How much money the real estate gang made thanks to Boston Globe's real estate publications?
Real estate mafia must be really grateful Boston Globe that helped to inflate the bubble in Boston and now helps real estate gange to lure simple minds to fallen real estate matket.

[jerseygirl]

Yes, the GLOB(e) is absolutely the "lapdog" of the RE market (NAR)! I find it incomprehensible that the Globe hasn't run ONE Sunday Globe story that sheds some light on the seriousness situation at hand in RE. Every week when I see the cover story, I just think they have the blinders on and their ears covered. One excellent source of info, in addition to this one, I've found is the following website

www.patrick.net

Each day this site compiles headlines from around the US and abroad ... because, yes, when the US financial system is in trouble, it's a global issue! While it's slanted toward the CA market, it's still a great resource!

Did anyone see Barbara Corcoran on the Today show last week, claiming that the Boston & Chicago markets have "bottomed?" I just feel statements like that are absolutely irresponsible, especially when the numbers released last week show that housing prices in Boston are at somewhat of a tipping point. Robert Schiller even stated that "things look bleak everywhere" (in all US markets).

A couple of great recent stories ...

http://paper-money.blogspot.com/2008/01/crashachusetts-existing-home-sales.html

http://www.realtruth.org/articles/080229-007-abc.html?ref=patrick.net

I guess time will tell, but the more I read, the more I can't imagine anyone jumping into the RE market right now .... the magnitude of the financial (system) crises we're facing is unprecedented.

[Paperboy]

The globe really is an excuse to sell advertisements. Don't want to disturb the applecart, no stories about reality please.

I am glad I have not bought into the market has bottomed out BS.

Now when is somebody going to call bernanke on his irresponsible rate cuts.
Oh yes Ron Paul did call him on it but the Globe has a theory about Ron Paul, Ignore him and he will go away. Kind of like that cancerous lump that you decided to ignore. What its now full blown cancer????

Benny boy is saving the asses of the dimwit real estate investors, or at least trying to. But in the mean time we are going to need a mortgage to fill the car with gas and buy a loaf of bread. The dollar is going down in value, How about printing some more and seeing what happens????

[john p]

I think that there is an economic pressure to cast a positive light on the market which many of your advertisement clients operate, but there are some writers at the Boston Globe that do try to call it balls and strikes.

I think that readers need to distinguish the responsible reporters and call out the ones that don't have a fundamental basis for their positions. When you think about it, to become a writer for the Globe, I'm sure your writing skills need to incredible so mastery of subject matter might be secondary. When a subject like housing graduates in importance, the Globe needs to underpin it's writing skills with subject matter experts or they will get exposed. I think it is about empowering the responsible reporters and not just the cheerleaders that root for our self interests...

http://www.boston.com/realestate/news/articles/2006/09/26/mass_home_prices_fall_61_as_downturn_gathers_speed/?page=full

[SoldAtTheTop]

I see a grand total of $645,400 of debt.

This “savvy” couple has a $196,400 first lien ARM (courtesy Fannie Freddie) and a $64,000 second lien on their Salem condo AND a $288,750 first lien ARM (courtesy Fannie Freddie) and $96,250 second lien on their Ashland home.

As Hard Rain noted, all of these “savvy” purchases came right at or just over the top of the market… Another great job by the Boston Globe…

[admin]

For the benefit of others who may not have seen it, SoldAtTheTop wrote up a good commentary on the facade of which this example is only one instance:

http://paper-money.blogspot.com/2008/03/almost-daily-2-perception-is-reality.html

- admin