Today we’re going to have a look at a realtard’s piece over on Trulia’s blog. Thanks very much to Burbed reader Real Estater for letting us know about this essay.
East Bay Real Estate Focus — Providing Definitive Information for the East Bay Area
By Carl Medford | Agent in Fremont, CA
Posted under: Market Conditions in Alameda County, Home Buying in Alameda County, Home Ownership in Alameda County | January 26, 2013 8:22 AM | 257 views | 1 comment
“TWO recent national surveys of real estate agents suggest that first-time buyers are on the decline, their access to the housing market blocked by tight credit and eager investors,” states Lisa Prevost, of The New York Times (12/20/212).
Old news. In fact, I’ve been saying the same thing since August, 2012.
Truth is, no one knows exactly how many have decided to sit things out a bit until the market calms down. Although we’ve seen a decline in the number of buyers “actively in the hunt,” in reality, there are not “fewer” first-time buyers – if anything, there are more. LOTS more. The problem is that less of them are actually managing to buy a home, and, unfortunately, that’s the primary statistic that is being measured. No one is sitting outside open houses counting the bodies as they hit the front door and then compiling the numbers to a national database. If they did, a much different story would be on the evening news.
Buyers trying to purchase a home in the existing market conditions are facing into the teeth of a perfect storm, real-estate style, and it doesn’t appear that it will be ending anytime soon.
Here are the Top 10 issues facing Bay Area buyers:
Actually, as realtard happyprop goes, this is a little bit better informed than most. It does say something other than “NOW IS THE TIME TO BUY,” and best of all, the disturbing faceless and sexless icons include the ever-popular, we swear we are not making this up, Dude With A Suitcase Full of Cash. We know you won’t believe without seeing, so here he is. (And from the minimal clothing, it’s either a Dude or it’s Annie Hall.)
Here’s that Top Ten list. If you’ve been a regular reader of Burbed, none of these should surprise you.
- Sorry, you missed the bottom. Sucks to be you. Medford says February 2012 was the official bottom. Maybe it was… in the East Bay.
- Inventory? What inventory? Raw meat, here’s the sharks.
- Prices are going up. Some areas are up 40% from last year. Actually, if Mr. Real Estate Person had read the actual data instead of just looking at a piece in the Chron, he’d have seen that some areas are up a lot more than 40%.
- Lots of cash buyers out there. Yeah, and not just in the hellhole that’s the East Bay. RBA too, only these aren’t investors. On this item the realtard confuses the difference between “Central County” (probably Alameda County given the link) and the entire Bay Area in claiming 30% of all offers are cash.
- Crowds lead to multiple offers. Take low inventory and desperate sellers, what do you expect, other than the author citing hard numbers with his opinion columns from a different site.
- FHA or VA buyer? Don’t even bother in this market; even conventional buyers are losing out to Mr. Suitcase. And Mr. Suitcase doesn’t care about appraisals.
- New homes are in demand again – according to CNN, that is. That doesn’t apply to the RBA because they still aren’t making any more land. Why the realtard didn’t quote this local story in his own backyard is left as an exercise to the reader.
- Appraisers haven’t a clue prices are up, which is preventing prices from going up even faster. Includes helpful link to another of his columns mostly about packed open houses with one throw-away graf about appraisers. What stayed with us was the tsetse flies. But there was something useful mentioned: appraisers were blamed for the last bubble, and they’re not ready for this one. Yet.
- Banks are mucking up your loan even more than usual, although the link provided explaining the loan approval process doesn’t look to us like anything has changed much. We suppose if you’re a realtard remembering the glory days of If You Can Fog This Mirror You Can Buy This House, you’d have a different opinion.
- Bank underwriters especially are being poopy-heads, and Medford’s happy to give some examples. Most of them look like underwriters working through a pile of documents, marking off inconsistencies, and resolving them later, where later is some period greater than the five minutes realtards think is appropriate.
While we are perfectly capable of posting house after house in the five mile radius of The Googleplex, we would never confuse the RBA with the entire Bay Area. Just because an agent can write a column even longer than one of ours doesn’t mean he won’t commit the Fallacy of Composition. The East Bay isn’t the entire Bay Area any more than the South Peninsula is. Market conditions vary, so may your mileage, and definitely will housing prices.
But we can guarantee there will always be some real estate professionals out there who take a few shortcuts. Let’s give this one a golf clap for giving the appearance of a housing market review, even if he found ten different ways to say You Are Now Priced Out Forever.