Chicken Little 2.0

Local blog, Flippers in Trouble, received a mention recently in a Forbes.com article about the best places to flip a home.

Watching asking prices drop on flipper properties–those bought and sold within two years, according to real estate agents–has become a sport in the Sacramento real estate blogosphere. By filtering official Multiple Listing Service (MLS) data, the blog Flippers In Trouble tracks every area flipper–those who bought a home in the last two years–and reports who is trying to sell his property for less than he paid.

So, uh, I guess congratulations are in order? After 1 or 2 or 1,348 listings don’t you sort of get the picture that folks are having a hard time flipping properties? It’s a down market, we get it. I wonder if sacbee.com sponsors this Web site because they love them some piling on about the housing market.

UPDATE: Turns out we aren’t the only ones with the market cornered on snark. The folks over at Sacramento Land(ing) are having some fun with this post, too. Nice work, guys.

Author: RonTopofIt

RonTopofIt is a complex personality, as are most of the small breed of modern day renaissance millionaires. He wishes more people were like him and yet believes that it takes all kinds. You've met RonTopofIt many times, you just don't remember him.

22 thoughts on “Chicken Little 2.0”

  1. It’s actually a little surprising to see SacBee biting the hand that feeds them. During the real estate boom, when my sunday paper weighed an extra two pounds due to real estate ads, SacBee claime that there was no such thing as a bubble.

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  2. No- the housing vultures start now, taking advantage of the people losing their *only* home. Let the fun begin! BWWAAAHHHHHH!

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  3. actually the vultures are starving too. these “corpses” have no meat on their bones. The only people who stand to gain were the little guys who couldn’t afford a house last year. Of course now they can’t get a loan because of the credit crunch.

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  4. I seriously doubt SacBee would sponsor that site. Any why are you so interested? Are you so desparate for traffic that you need to start a housing bubble discussion too?

    /snark off

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  5. If we were desparate for increased traffic we’d title every post “Paul Joncich and Jennifer Whitney: Where are they now?” or just refer to Eileen Javora’s boobs in every post.

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  6. These people are only interested in one thing: profit at the cost of neighborhood. They have no interest in pricing neighbors out of their own homes by artificially inflating prices, they have no interest in historic preservation of an individual property or an area, and the only thing they pay more than lip service to is their own bottom line.

    The more people who ‘unfairly’ pile on these folks the better. There are tens of thousands of working people who can’t afford to own their own house because of greedy real estate investors, and it’s time to realize that this kind of “me first” attitude is not healthy.

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  7. Mmmm… Eileen Javora’s boobs… Must update automatic Google search to only alert on new PICTURES thereof.

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  8. Dude, you are not to up with things. These websites have been predicting the doom well before the main media picked up on it.

    Rather than piling on these websites were the first to predict and document the biggest decline of real estate prices in the USA ever!

    Rather than effectively ignoring them, you might want to find an exit to get out of your home. Before long I predict a substantial amount of the Sacramento real estate owners will be underwater (house worth less than the mortgage).

    The average wage earner has to be able to buy the median home price with a 30 year fixed loan (5% down), pure and simple. Until that sort of pricing returns to the market prices will keep going down. In fact, looking at history of these sorts of financial crisis prices will overshoot to the downside. Just look at Texas in the late 80s.

    Sorry, you might not like the news, but you best be planning to adapt to the change.

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  9. What’s happening is not hard to understand.

    Looks at this graph:

    This is what a bubble is about: Prices going up with no solid economic reasons behind it.

    All these websites are doing are reporting the facts. Don’t kill the messenger.

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  10. Phil: So basically you’re saying that prices are going to go down until they reach a lower level. I feel like I need a PhD in Mathematics to understand that.

    QuiteSimple: What exactly is it that you think RonTopofIt didn’t understand when he said “it’s a down market”?

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  11. Phil, I think that’s a bit narrow minded. From my understanding of things, if prices were lower, more people would be buying houses, which means mortgage rates might actually go up to levelize things, meaning that a 30 year fixed might actually cost more then than it does now. No?

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  12. I suggest a trip to the Ben’s blog if you want to see what folks are talking about and have been talking about since 04′. http://thehousingbubbleblog.com/

    If you know Sacramento and have experience with the socioeconomic data for the region in the last 15 yrs, you knew this growth wasn’t sustainable. Now we are in the beginnings of a sizeable outmigration pattern where people priced out move to locations without our rampant local inflation.

    Remember our inflation has been restricted to everything but wage growth. If wages had grown alongside our regional inflation, we would not be in this situation. The downturn will continue for years until the MHI (median household income) earners can afford a decent starter home. All we are predicting is a return to fundamentals.

    I would also say do not underestimate what boomer era retirements will do to Sacramento. I personally know of many who are 2 to 5 years from retirement and every single one is planning on leaving the area because it’s too expensive on a fixed income. Better to sell and relocate into a low cost area.

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  13. Gwynster: by mentioning “piling on” I thought it was clear that we have in fact been hearing this for years and are just sort of sick of it.

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  14. Remember kids – you can’t have a battle of wit with an unarmed person. If their reading comprehension is poor, please don’t bait them. They can’t help themselves.

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  15. MrsTopofIt does not seem to be on the top of it afterall… why are you getting personnal ?

    I found a lot more wit in Gwynster’s writing then you seem to.

    I understand that it can be frustrating in particular for home owners to see the market going down. You can’t however blame the media or a couple blogs for the downturn. Aferall nobody was complaining when the same media frenzy was artificially pumping up prices in Sacramento.

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  16. Reading comprehension doesn’t seem to be stylish these days.

    The original post is about sacbee piling on.

    MrsTopofIt’s comment was about a comment about a comment about a comment. That makes MrsTopofIt’s subject the third-cousin twice removed of RonTopofIt’s original subject. Assuming there are no step-subjects involved.

    My subject relates to a comment about a comment about a comment about a comment.

    Sometimes I just plug the surge protector into itself to save money on my electricity bill.

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