Parker CO Homes For Sale, Homes in Castle Rock, and Elizabeth CO Homes Blog: October 2008

Thursday, October 30, 2008

The Credit Default Swap Story

Watch CBS Videos Online

This is a great piece and educational tool on one crucial piece of the cause of the real estate market meltdown. It kills me that Congress could be so blind back in 2000 to legalized gambling for Wall Street, with no regulatory control at all, after it was deemed illegal 100 years ago.

"Credit Default Swaps," or "Credit Derivatives," is the bundling and selling of mortgages and the so-called insurance that was used to assure investors they were safe. These were "side bets" about whether a companies stock price will go up or down, and could be made without actually owning the stock, similar to betting on a football ball game. When real estate prices fell, these were bad things to have around, because everyone thought real estate prices would rise and not fall (a bad bet in hindsight.)

This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

Sunday, October 26, 2008

What Planet Are These People Living On?

Looked at those fancy magazine inserts from Fuller Towne and Country or Kentwood recently?

The listings in there are mind boggling. Most of those homes are in the upper tiers of the price ranges for the Denver Area, but to me, they look extremely expensive! I cannot believe homw many homes are listing for 2 million, 3 million, 4 million and way more up in Denver! To me, it seems like these people are living in a different world! The luxury home buyer is not stupid these days. The "Greater Fool" theory doesn't apply anymore in my mind, but these people are living in a dream world of their own fantasy.

Just because you spent 1 million on a home 3 years ago and remodeled a bathroom, doesn't mean that same home is now worth 1.8 million! What are these people thinking? Are they blind to the economy? Are they blind to the stock market crash? These people are crazy enough to think that in their price range, buyers don't care because they are probably going to pay cash anyway. The luxury home buyers are not sensitive to pricing and will pay whatever they have to to get the right property. Yeah, right. Those days are over.

The lower pricing tiers have seen a big hit in price, so why should these home be any different? One day over a year ago I was fortunate to show a few homes listed for over 4 million around Cherry Creek, and guess what? They are still sitting there at the same price! What gives? Are these people stupid enough to think that they can "wait until the market catches up to their pricing?" Are they willing to wait say, 9 years?

There is even a home in Parker Colorado listed for 22 million. It's been listed since September 2007 at this price. Do you think they might consider a price drop by now? No! Because those buyers living from another planet are going to swoop down from the heavens and give them their price someday! By the way, what does a price drop look like at that price level? You'd have to come down in increments of 500,000 to make any difference at all. Crazy.

Thursday, October 23, 2008

We continue to hear about problems in other areas...

But they DON'T APPLY TO COLORADO!

I keep hearing all the "experts" say we are going to be in a recession for the next 2 years because of housing. That is crap! Markets in Florida, California, Arizona, and Nevada have and should be depressed, and they deserve to go through a long housing depression (not recession.) They are the ones that doubled in the last 3 years AND SHOULDN'T HAVE. THEY are the markets that are overvalued. They are the ones that should suffer. So all of the news you hear NATIONALLY included those horrible horrible markets. The Colorado real estate market is in decent shape, and the Parker Colorado real estate is especially holding its own, so don't believe what you hear from MSNBC or any other national news media. All you should care about is YOUR TOWN and YOUR NEIGHBORHOOD. If you want data on your neighborhood then ASK A LOCAL REALTOR TO PROVIDE IT FOR YOU.

Wednesday, October 15, 2008

From Your Queen

To the citizens of the United States of America from Her Sovereign Majesty Queen Elizabeth II

In light of your failure in recent years to nominate competent candidates for President of the USA and thus to govern yourselves, we hereby give notice of the revocation of your independence, effective immediately.

(You should look up 'revocation' in the Oxford English Dictionary.)

Her Sovereign Majesty Queen Elizabeth II will resume monarchical duties over all states, commonwealths, and territories (except Kansas, which she does not fancy).

Your new Prime Minister, Gordon Brown, will appoint a Governor f or America without the need for further elections.

Congress and the Senate will be disbanded. A questionnaire may be circulated next year to determine whether any of you noticed.

To aid in the transition to a British Crown dependency, the following rules are introduced with immediate effect:
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1. The letter 'U' will be reinstated in words such as 'colour,' 'favour,' 'labour' and 'neighbour.' Likewise, you will learn to spell 'doughnut' without skipping half the letters, and the suffix '-ize' will be replaced by the suffix '-ise.' Generally, you will be expected to raise your vocabulary to acceptable levels. (look up 'vocabulary').
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2. Using the same twenty-seven words interspersed with filler noises such as ''like' and 'you know' is an unacceptable and inefficient form of com munication. There is no such thing as U.S. English. We will let Microsoft know on your behalf. The Microsoft spell-checker will be adjusted to take into account the reinstated letter 'u'' and the elimination of '-ize.'
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3. July 4th will no longer be celebrated as a holiday.
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4. You will learn to resolve personal issues without using guns, lawyers, or therapists. The fact that you need so many lawyers and therapists shows that you're not quite ready to be independent. Guns should only be used for shooting grouse. If you can't sort things out without suing someone or speaking to a therapist,then you're not ready to shoot grouse.
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5. Therefore, you will no longer be allowed to own or carry anything more dangerous than a vegetable peeler. Although a permit will be required if you wish to carry a vegetable peeler in public.
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6. All intersections will be replaced with roundabouts, and you will start driving on the left side with immediate effect. At the same time, you will go metric with immediate effect and without the benefit of conversion tables. Both roundabouts and metrication will help you understand the British sense of humour.
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7. The former USA will adopt UK prices on petrol (which you have been calling gasoline) of roughly $10/US gallon. Get used to it.
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8. You will learn to make real chips. Those things you call French fries are not real chips, and those things you insist on calling potato chips are properly called crisps. Real chips are thick cut, fried in animal fat, and dressed not with catsup but with vinegar.
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9. The cold, tasteless stuff you insist on calling beer is not actually beer at all. Henceforth, only proper British Bitter will be referred to as beer, and European brews of known and accepted provenance will be referred to as Lager. South African beer is also acceptable, as they are pound for pound the greatest sporting nation on earth and it can only be due to the beer. They are also part of the British Commonwealth - see what it did for them. American brands will be referred to as Near-Frozen Gnat's Urine, so that all can be sold without risk of further confusion.
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10. Hollywood will be required occasionally to cast English actors as good guys. Hollywood will also be required to cast English actors to play English characters. Watching Andie Macdowell attempt English dialogue in Four Weddings and a Funeral was an experience akin to having one's ears removed with a cheese grater.
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11. You will cease playing American football. There is only one kind of proper football; you call it soccer. Those of you brave enough will, in time, be allowed to play rugby (which has some similarities to American football, but does not involve stopping for a rest every twenty seconds or wearing full kevlar body armour like a bunch of nancies).
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12. Further, you will stop playing baseball. It is not reasonable to host an event called the World Series for a game which is not played outside of America. Since only 2.1% of you are aware there is a world beyond your borders, your error is understandable. You will learn cricket, and we will let you face the South Africans first to take the sting out of their deliveries.
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13. You must tell us who killed JFK. It's been driving us mad.
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14. An internal revenue agent (i.e. tax collector) from Her Majesty's G overnment will be with you shortly to ensure the acquisition of all monies due (backdated to 1776).
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15. Daily Tea Time begins promptly at 4 p.m. with proper cups, with saucers, and never mugs, with high quality biscuits (cookies) and cakes; plus strawberries (with cream) when in season.
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God Save the Queen!

Dangerous Waters

It's slow, slower and slowest out there. Scary slow! Dead. So we are fixing the banking and credit mess...but Main Street is still a mess. Housing has to improve and if it does then everything else does! I say forget about trying to stop foreclosures, and focus on the demand side of the equation! Get buyers to buy! If we can get the balance back, then foreclosures and short-sales are minimized anyway. LOWER THE DANG MORTGAGE INTEREST RATES ALREADY! Prices can't fall anymore-prices have to stablize. That will only happen when the demand is back. I've heard people not wanting to buy because they think prices will fall further, and they are afraid. That is a bunch of crap! You are supposed to be buying real estate for the long haul anyway, not because you think it will appreciate 20% every year. It's an investment yes, but its not liquid and its not the stock market. Get over it!

Wednesday, October 08, 2008

What Does The Bottom Look Like?

It looks and feels like today!

Fear, Uncertainty, Bad News, Gloom and Doom, and Worry abound right now. Historically, this is when smart investors buy! If you are on the sidelines waiting, wait no more! People will ALWAYS need housing. Always. Demand will rise and fall, but it will always be there.

New Stock Market Terms for 2008

CEO --Chief Embezzlement Officer.

CFO-- Corporate Fraud Officer.

BULL MARKET -- A random market movement causing an investor
to mistake himself for a financial genius.

BEAR MARKET -- A 6 to 18 month period when the kids get no
allowance, the wife gets no jewelry, and the husband gets
no sex.

VALUE INVESTING -- The art of buying low and selling lower.

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What my broker has made me.

STANDARD & POOR -- Your life in a nutshell.

STOCK ANALYST -- Idiot who just downgraded your stock.

STOCK SPLIT -- When your ex-wife and her lawyer split your

assets equally between themselves.

FINANCIAL PLANNER -- A guy whose phone has been
disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW-- The movement your money makes as it disappears
down the toilet.

YAHOO -- What you yell after selling it to some poor sucker
for $240 per share.

WINDOWS -- What you jump out of when you're the sucker
who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR -- Past year investor who's now
locked up in a nuthouse.

PROFIT -- An archaic word no longer in use.

Friday, October 03, 2008

Historic Day!

And an historic week!

Wow. What a roller coaster. We are watching history unfold on Capitol Hill. We've got to get this credit crunch stuff all behind us, because things are dead right now in the market. We will probably have an overcorrection, like we usually do, to make it all as painful as possible. Even if this bill passes, it won't be enough. We're in for a seesaw market in the next 6 months for sure. Housing won't be appreciating much at all, so it will be boring. Hopefully people have lost the idea that they can buy a home and have it double in price in 3 years! Ain't going to happen. If you are a buyer and aren't buying now, you are foolish! There are unprecedented opportunites out there.