This is from today’s WSJ

WSJ.com
Percentage of listed homes whose prices have been reduced as of 8/2/2006

From Gloria and Caitlin Darke:

The spread between the median and the average is pretty big for some cities. Hey Math majors, what is the implication of that?

Q&A: Housing Bubble Blogger – Newsweek Business – MSNBC.com
But something about the mania just didn’t sit right with Ben Jones. The Texas native learned a hard lesson in the 1980s, when the savings and loan scandal hit and real estate slumped just as he was preparing for a career in the property market. “I jumped in at the worst possible time,” the 42-year-old recalled from his home in Sedona, Arizona. That experience, coupled with a background in corporate accounting, made him wary of highflying markets, so when he saw housing appreciations rocket up and mortgage-lending restrictions sink low, Jones decided that this was a housing bubble, and he was going to warn his friends.

At first Jones just sent his cautionary data and news bites by email, but after a couple of months, he found blogging was a better way to get the word out. The blog, www.thehousingbubbleblog.com, quickly evolved into an information supercenter for real estate addicts. Jones posts news stories economic data, and analysts’ reports on the housing market (often minutes after their release), then lets his many contributors loose to offer their own analysis and rebuttals.

In early 2005, Jones was one of a handful of bloggers raising the red flag about real estate prices amid a sea of industry pom poms. Now it seems that even realtors are talking about a “cooling”—if not a bursting of the bubble—as prices sag and interest rates rise. Meanwhile, Jones’ blog, one of many on the subject, has grown to 85,000 readers a month. NEWSWEEK’s Kathy Jones (no relation) talked to the real estate seer about the power of collaborative blogging and why some readers use his site as an anonymous confessional.

Congrats to Ben Jones for making Newsweek. Does that mean that the bubble is now officially over?

ContraCostaTimes.com | 08/14/2006 | More use homes as main asset
The trend to tap equity seems especially prevalent in the East Bay, primarily because of the white-hot housing boom in the region. Valentine, who has hundreds of clients, sees differences in the portfolio mix of his East Bay and Peninsula customers.

“Among my East Bay clients, I often see a person’s retirement plan and equity in their home comprise well over 90 percent of their net worth,” Valentine said. “Among Peninsula clients, it’s only about 50 percent.”

Valentine believes South Bay clients tend to have more individual stocks and bonds, or wealth accumulated from venture-capital investment than is the case with East Bay clients, who have gained wealth from rising home values over the past 15 years.

Data specific to the East Bay seem to confirm that. In May 2004, the value of the average refinance mortgage was about $333,000. In May 2005, that climbed 17 percent to $390,000. In May 2006, it went up an additional 7 percent, to $417,000.

But tapping the equity in your house constantly, or cutting back on saving for retirement because of rising home values, can backfire, warned George Feiger, an executive with Berkeley-based Contango Capital Advisors.

“You are mortgaging your future,” Feiger said. “If you borrow money on the house, you have to pay the interest. That’s cash out of your pocket. So, you are betting not only on the house value appreciating in the future, you also need enough cash flow to service that debt.”

Fortunately, in the long run, real estate always appreciates. Of course, in the long run, we’re all dead.

Do you remember this post from July 10th?

$549,888 for the Milpitas Mystery Starter Mansion — Burbed.com: Your Silicon Valley Home and Mortgage Insanity Blog
MLSlistings Property Detail for MLS number 627630
323 SILVERTIP CT
Milpitas, CA 95035

$549,888
GREAT STARTER HOME
Welcome to this great starter home; bright and airy this home is situated on a quiet street. Close to major freeways and shopping. This beautiful home has distinctive appeal: • Hardwood Floors • Master Suite With Tub • Family Room With Fireplace • New Paint • Automatic Garage Door /Attached Garage • Office • Laundry In Garage • Schools: Zanker Elementary – Rancho Middle School, Milpitas High School

This Single Family Residence has the following features:
MLS#: 627630 Approx Age: 40 Years Approx Sq Ft: 1215

Well, it looks like the price has just been cut! Let’s look at what Movoto has to say:

323 SILVERTIP CT, Milpitas Property Details – Milpitas Real Estate – Milpitas Homes for Sale – Movoto
323 SILVERTIP CT, Milpitas 95035

Bedroom: 2 Bathroom: 2 Square Footage: 1215 $538,000
Status:
Active
Year Built: 1966 List Date: 8/1/2006 Lot Size: 2613
Parking Spaces: 1 MLS#: 648026
Ask a Question Neighborhood Data Comparable Sale Data Email this to a friend
DESCRIPTION -
323 SILVERTIP CT, Milpitas
NEW PRICE/COMM NICE STARTER HOME*NEW PAINT*HARDWOOD FLOORS*FAMILY ROOM*OFFICE* CLEAN/SHARP*READY TO MOVE IN*LAUNDRY IN GARAGE*SOLD “AS IS”* HOA IS APPROX $250/- YEAR*

Here’s a question though: If the owner and I were discussing this listing back in early July – why does this listing say that it started on August 1st?

I’ve heard that listings expire after 90 days – is that true?

Update: Henry from Movoto explains what’s going on. Click here to see what he has to say about this listing. Apparently this house has been on the market since 5/12 – 94 days.

Alright… I’m stumped. What are these things for?

Update: Still no answer, but to help, they can be found here.

Mountain View Voice: Cop report describes attack filled with racial slurs (August 11, 2006)
When Mountain View police officers approached Pioneer Park on Saturday, July 29 at 10:10 p.m., a fight was still in progress. An officer drew his gun and told everyone to get on the ground.

After the fight was quelled, officers compiled a 22-page police report in which witnesses recalled Nazi salutes, repeated use of the word “nigger,” and numerous shouts of “Aryan race!” and “white power!” on the part of suspects Joseph Krueger, 21, and Jonathan Rhodes, 18. In all, seven witnesses were interviewed for the police report, a copy of which was obtained by the Voice.

According to the report, there were two victims of the attack in Pioneer Park, behind City Hall, including a young black man who was the object of the racial slurs. His troubles that night reportedly began when he saw Krueger and Rhodes chasing a white man out through the Wells Fargo Bank parking lot on Castro Street.

A bit surprising for a place where the median home price is $650,000. I hope this doesn’t become a trend in little ol’ Mountain View

Mountain View Voice: Letters to the Editor (August 11, 2006)
Mountain View has too many jobs

Editor:

The Bay Area Council has given Mountain View an “F” for providing housing because of the jobs-to-housing imbalance. The common assumption seems to be that Mountain View doesn’t have enough housing.

I would like to suggest that Mountain View has too many jobs. The Bay Area Council could just as easily have cited Los Altos and Los Altos Hills for not providing enough jobs for their citizens, thus requiring them to drive to Mountain View. We could quickly achieve a more equitable balance by transferring the land that Google sits on to Los Altos.

Glenn Meier

Walnut Drive

I’m pretty much speechless. What do you think?

See any “short” sales? See any “great” deals? See any “specials”?

Let me know! Your support is always valued!

Woot! Over $1000 per square foot!

REALTOR.com: Find a Home – Listing Detail
70 7TH AV
Santa Cruz, CA 95062
MLS ID#: 607340
$889,000
2 Bed, 1 Bath
779 Sq. Ft.
Estimated payment:
$4,495 Per Month*

Single Family Property, County: Santa Cruz, Age: 68 year(s) old, Ocean view, View, Waterview, Single story
This listing is brokered by: American Dream Realty
Office: (831)429-5700
Property Features

* Single Family Property
* County: Santa Cruz
* Age: 68 year(s) old
* 2 total bedroom(s)
* 1 total bath(s)
* Approximately 779 sq. ft.

* Single story
* Style: Cottage, Detached
* Interior features: Clothes dryer, Clothes washer, Disposal, Microwave, Range/oven
* View
* Ocean view
* Waterview

That ocean view had better be darn good!

Thanks for the find, Tiffany D!