All the items on his menu (and most other places I go) have gone up... My people (that is, the YOUNG people) are financing their bottle service...used to be money was borrowed to invest, not to be barfed out 4 hours later... Anyways...that will soon end...
Maybe it was 550, I'll ask her again to confirm, but this was also in West Hills, not SOB... And not to say that her house isn't 'worth' over a million...but in foreclosure, the comp across the street did just sell for 700... SOB is excellent stuff (where I live) and should be somewhat stable, but paying 800K for a 50 year old 3 bedroom 1700 sq ft home with a small yard, is just insane. I'm happy to be renting. It's FAR cheaper to rent. Over a year ago, I lowballed a bid on a house SOB in Sherman Oaks (they were asking 1.4 and I offered 1.1...) Since I am a first time buyer, and susceptible to the emotion of this kind of investment, I was PETRIFIED that they were going to accept my offer and I was then SURE that it was the top of the market. Needless to say they went to a higher offer, thank God.
I remember you telling that story. I loved it! IMO L.A. is a place ONLY to rent. Who needs the risk of not just depreciation but also quakes, fires, mudslides, Villaraigosa....
Isn't the equity in the home more relevant than the home price? Doesn't really matter if the house that is now selling for 800K once sold for $150K if they refinanced and took out equity at the height of the bubble.
Except the home is fungible for the cash they owe. As far as I know the hillside communities in L.A. aren't down an iota from their peak. If they are I can't even imagine how expensive they were in 05/06!
Truth... I heard a story about a woman who bought her house 30 years ago for 50K. At the peak, it was valued at almost 15 times that. So, she refinanced...and refinanced...and consumed, and consumed...and now her house is worth about 400K, but she owes 500K...
No doubt.. I was looking at upstate NY.. 6.5 acres, 425 ft of waterfront on the St. Lawrence, 5 bd house, for $599K Here's a 3bd CONDO in my area for 785K http://www.trulia.com/property/1062879862-14290-Dickens-St-103-Sherman-Oaks-CA-91423
This thread deals not with the next month or so.... ...rather, the next year or so. If you can pound a profit trading around the cones until the music stops, go for it. Earnings have been a gigantic mixed bag of everything and nothing, and who's high on the future?
I dont buy priced in. Market is wrong imo. They priced in second half recovery, now trying first half 09. Will fail again. Waiting to short again.