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This article is one of many...there is no dearth of rich fools here????!!!

William Wurster-designed Pacific Heights property sells 70% over asking
Posted on Tuesday, May 13 at 4:00am | By Emily Landes


We all know that multiple over-asking offers are the norm in San Francisco these days, but it still came as somewhat of a shock last week when 2514 Gough Street in Pacific Heights sold for $3.4 million—or 70% over its $1.995 million asking price.

The home came to market on April 21 and one week later it was sold to the highest of six bidders, according to agent Max Armour, who represented the sellers along with SF Properties partner Malin Giddings. Armour declined to give too many details about the bidding process, other than to say that all six offers came in over asking and that the sellers decided on the winning offer quickly. He was also mum on whether or not said offer was all-cash, but given that the property went into contract April 29 and closed on May 6, that seems like a fairly safe bet.

While Armour couldn’t give away too many details about how the extraordinary sale went down, he was much more forthcoming about why the property sold for so much over its asking price. “People just fell in love,” he said. “That it went to where it went to was because it was competitive and love is a very strong catalyst in home buying.” He felt that the “timeless” 1941 William Wurster design really spoke to buyers, as did the home’s prime Pacific Heights location, its private feel, unique L-shaped lot with frontage on Vallejo and Gough streets, and emphasis on indoor-outdoor living.

Armour said he knew from the beginning that the home was truly special when everyone who toured the property “had a smile on their faces.” He also knew that the initial asking price would be “compelling,” but he was not sure himself where the 2-bedroom, 2.5-bath home would end up.

“It was hard to know what the actual value was because it’s a small house. But, you can’t really look at it in terms of metrics,” he said. “It’s just kind of a treasure. The properties that do really well tend to have something unique about them. It sold because it was a very unique, emotional house.”

Emily Landes is a writer and editor who is obsessed with all things real estate. She also has a DIY problem that she blogs about at pritical.com.
Possible, Probable!!!!


Bizarro Housing Bubble Spills Over Into "Overbid Madness", $10 Million "Flips" In 24 Hours

While the housing bubble for anything but the ultra luxury segment has long since popped with $1.1 trillion of student loans playing a significant role in the burst, (as explained in "Stick A Fork In The "Housing Recovery"), as can be seen in the chart below which shows that the only increase in existing home sales from a year ago is that for the $500 and over price range (which accounts for only 10% of all actual transactions)....

... when it comes to the luxury segment, things have moved beyond the simply bizarre and have entered outright surreal territory.

Case in point: San Francisco, where realtors have had to come up with a new term to explain what is happening when a house just sold for $600,000 above the $1.5 million asking price! The term: "overbid madness" and it explains well the buying frenzy that has engulfed the smallest portion of the housing market - that of the rarefied ultraluxury housing where the wealthy - almost exclusively offshore buyers - merely flip properties back and forth from each other without regard for price, comps or any other traditional valuation metrics. The underlying objective - parking illegal cash into the safety of the US housing market in which the NAR is a perfectly willing receptacle of laundered money.

CBS explains:

Shrouded in fog, and swimming in cash a two bedroom, modern home in the Glen Park neighborhood was just snapped up for $2.1 million.

“That’s really unbelievable,” said Kendra Mastain of San Francisco.

The sleek home on Bosworth sold for $600,000 over asking price. “I’m a RN, I make a decent living,” said Tammy Elder of San Francisco. “I don’t ever picture myself buying a house here.”

Arrian Binnings of Christie’s / Pacific Union told KPIX 5, “That wasn’t even our highest offer.”

Binnings said it’s supply and demand, with most homes for sale commanding 12 percent over asking.

“That is a red hot market,” he said.
And while the bubble for most areas across the US has long since burst, in San Francisco it is raging like never before:

Real estate agents said if new property stopped coming on the market, San Francisco would run out of homes for sale in just five weeks. There were eight offers on the home, but only one person can win. It has turn San Francisco’s real estate market into contestant’s row on The Price Is Right, making the losing bidders desperate
Ridiculous? Yes. Insane? Absolutely.

But San Francisco has nothing on the the insanity that has gripped the ultra luxury housing segment in New York, where within 24 hours, an overzealous seller tried to flip a $31 million three-bedroom condo at One57 purchased on May 6, to an even more overzealous buyer on May 7 for... $41 million - a $10 million price increase in one day!

From Bloomberg:

A three-bedroom condo in the building sold for a record $31 million in April to a mysterious buyer known as Escape From New York LLC. The sale was officially memorialized in public real estate records on Tuesday. Then, on Wednesday, the new buyer put the property back on the market for $41 million, a miraculous 32 percent increase in value.

This is a sign of what real estate writers often describe as “a frothy” market. The Real Deal, which uncovered the fast-appreciating home, describes it as a “4,483-square-foot, 62nd-floor apartment [featuring] four bathrooms and floor-to-ceiling windows.” It must be adorable. But could such comforts be worth $10 million more overnight? We won’t know until the aspiring investor-escapee completes the flip of No. 62A.
A $10 million flip in a day? Why not - and if the greater fool for whom money is no object appears, others will promptly follow:

If the entity known as Escape From New York gets its asking price, there will be at least one other satisfied party in the tower: the owner of a three-bedroom unit on two floors below. That unit sold for $30 million last month, too, in a transaction that inspired a bit of real-estate porn in the New York Times:

“The apartment, No. 60A, has four-and-a-half marble baths and the ultimate view magnet, 60 feet of park frontage in the living/dining/entertaining area. The master suite has his-and-hers baths and bird’s-eye views of the city and the Hudson River. The custom eat-in kitchen by Smallbone of Devizes has hand-painted white cabinetry (although buyers at One57 do have the option of choosing a Macassar ebony color scheme).”

Throw in the optional room service—wouldn’t you expect it at this price?—and such opulence suddenly seems like a bargain at only $30 million.
How much longer can this undisputed housing bubble last? Going back to San Francisco, here is what a Christie's real estate agent thinks:

Binnings believes there is an end to the real estate crazy train. “The type of growth we’re seeing right now is not sustainable year over year, I expect to see these types of prices tame down a little bit,” he said.
Then again, neither Binnings, noe anyone else, has seen what happens when central banks inject $10 trillion into a global economy with very finite real assets.

Expect the sheer idiocy created by Bernanke, the Charimanwoman et al to last at least a little bit longer: because why rush the epic amusement associated with the biggest bubble burst ever seen in human history?

If anything, the more terminal the destruction in its wake, the more certain that the Keynesian idiocy that has gripped the "very serious" people of the world with its final deathly grip, dies the slow and miserable death it so deserves.
bet Rich Chinese are behind some of these.

Don't think there is a bubble in the bay area.. it's the best place to live in the entire united states.
the money laundering angle is interesting. I think that is very possible.

overbid to park your cash. preferably maybe sell to a friend or an associate.
This rich Chinese fuckers need to stop buying property everywhere (that they're NEVER going to live in) and making life miserable for everyone.

And that goes for everyone, not just the Chinese. This is a crime against humanity.

Imagine if rich ppl started buying and hoarding food EVERYWHERE, causing the price to skyrocket through increased aggregate demand, just so that they can make a profit by selling it later at a higher price. This means that millions of ppl will starve, even though there's plenty of food to eat everywhere. But of course, food speculation is illegal, and criminal.

Then how come this is permissible in dog shit China? How come engineers in Beijing have a difficult time securing even a rathole apartment to live in? Wtf is wrong with you "conservative" retards calling for deregulation of everything? Why do you like enabling these ass hole millionaire scumbags?

Why it's not like this shady and reprehensible behavior has caused multiple economic downturns throughout the world. Just typical. Asians have a bad name in places like Vancouver and Auckland because the local white ppl can no longer afford houses.

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It's even worse in the west where ppl are buying houses with money they don't even have yet.

At least the Chinese try to buy houses with cold cash.

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When revolution comes will be houses for all, no problem.
the chinese just need to park their illegally obtained cash. They don't even care about making a profit.

The govt. is cracking down HARD on corruption and thievery.. so they are scrambling now.
China is the only major government in the world with an open eugenics program.

they're actually talking about improving the moral quality of the Chinese people.

good for them. 没有共产党,没有新中国!
China allows all poor ethnic minorities to have multipile children. I don't see how that's eugenics.
That is eugenics, if they'd be shitting 6 kids each otherwise (which was the norm throughout Chinese history)

And Han Chinese need some more of that dirty minority blood. they are way too pacified and domesticated.

the 1 child policy is not eugenics. it's just being prudent when you have too many people. Most Chinese people agree with it.

If you see how overcrowded China is, measures like that had to be taken.
At least 30% of Chinese should be sterilized in each generation.

just think of the benefits. you do that, and after 150 years, you could increase the average penis size of the race to European levels. increase average height by 7 cm. make the Chinese orderly and disciplined on the order of the Japanese.

But only one of these traits at a time, though. You try to increase all these metrics simultaneously and the race can only improve at a pace that is commensurate with the correlation between all factors. which might take thousands of years.
Although I think it is somewhat true that Han Chinese want some minority genetics esp. from the North. Probably want some western genetics as well.

Han Chinese are generally derived from sedentary farming stock.. while North Chinese minorities like Manchus, Mongols etc. are derived from warrior fighting stock.
(05-14-2014 06:58 PM)EVILYOSHIDA Wrote: [ -> ]Although I think it is somewhat true that Han Chinese want some minority genetics esp. from the North. Probably want some western genetics as well.

Han Chinese are generally derived from sedentary farming stock.. while North Chinese minorities like Manchus, Mongols etc. are derived from warrior fighting stock.
What about some Brazilian stock: that will make them better fighters, and maybe better race-car drivers???!!!
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