I thought the market would be up today in order to get today's IPO out the door and to set the stage for tomorrows huge offering from Citigroup. Anyway, here's a cute blurb from SF Gate regarding complacency in real estate:
Surreal Estate Now
The madness shows no sign of abating in the SF Bay area
by Carol Lloyd, special to SF Gate Tuesday, March 19, 2002
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Lately I've been hearing stories that make me think our surreal estate market is not simply the result of a housing crisis coupled with a crazy economy, but a contagious madness unto itself.
So sure, low interest rates and a prevailing housing shortage have continued to make it attractive for many people to buy in the Bay Area. And it is normal family homes in less-expensive areas that continue to sell briskly, while million-dollar estates languish.
But what I can't seem to wrap my mind around are the stories of multiple offers, bidding wars and all-cash, no-contingency offers that have become increasingly common in the market for homes under $500,000.
Here's but one example: a rat-infested two-bedroom house near Holly Park in Bernal Heights. "It needed everything," said a friend who ultimately made an offer on the house. "In the upstairs bathroom, you could see the sky, [even though] there was no skylight. Pigeons were coming in. The toilet was just a hole à la a Tijuana gas station circa 1960. The house needed to be gutted, basically."
But because the little house was listed at "just" $380,000, it attracted interest. A lot of interest. When my friend's real estate agent called to tell her the bad news, there had been 18 bids, and the winning bid was an all-cash offer for over $500,000. " |
