Are You A Real Estate Contrarian Investor?

Governor Schwarzenegger Lobbies Congress for California Homebuyer Assistance

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I admit that I am a book warm.  I read a lot of enlightening articles every day.  So many articles inspired me so much yesterday that I would like to write an article entitled: "From K to P."

However, it is rainy and cold today.  I am not in the mood to use my brain power.  Hummm.......  Do something easy at a time and make fun so that I decide to open "A Funny World" window column.  Here is just a lazy guy's first two pennies for you to explore the wonderful world we have:

At 11:00 11-24-2007, I got my updated email alert.  Here is a REO we talked about 7 days ago in my article: Southern Californian Housing Drown Fast!  The listing price dropped in today's email as follows:

In the previous article, did I say: "Just for your reference, it may go bellow $120K in this downhill drive very soon"?  Well, they just dropped it from 247.9K to $228.5K.  A price cut of $20K in less than 7 days.  Smart guys did it so quick!  So sharp action makes me assume it is not a REO of HUD or CFC.  May I ask you guys how long it will take to reach my above price forecast if the momentum of driving down is so rapid to have $20K cut in a week?  Sooner than you can imagine, right?

Provided the financial big cats can cope with the reality, a $20K drop a week is taking place now.  It is a brilliant move.  It is one of the realistic ways to deal with problems if we allow the market force set the rule.  However, it will upset all the politicians.  Because they are going to be out of job.

For a regular guy, it is crazy to expect $20K price cut a week every week.  Am I so crazy to have such an expectation?  I don't know the answer yet. 

Okay, I am kidding?  No way for that sort of "funny" things happen in USA, as you think.  But, how come recently I has seen some places having a weekly $500K plus price depreciation for a piece of property zestimated at about 1 million?  That's more than 50% off in a week!?  Gee! I gave up, I don't want to buy that property I am planing to get.  You don't believe me?  No problem, I don't believe it when I saw it too. 

But, go ask Zillow.com, is it true and possible NOW?  At least, please check their website.  it is not my fabrication or invention since they gave me the information that is supposed to be reliable as they claimed.  Of course, it is NOT guaranteed.  Who likes liability or responsibility in this law-suit prone modern society?

Okay, maybe it did happen in a area in Texas that is supposed not so depressed as Riverside or central valley counties of Cali.  But in no way here in the Golden state, shining and appreciating as gold is now.  Are you so sure about the immunity of southern California? 

I do hope there is no "real estate aids" in Cali.   As you see or wish, some politicians are working on to get FED aids for Cali.  Am I nuts?  Just hands out to get it.  Free lunch!  Why not? 

Sorry, you misunderstand my term "aids."  It is the AIDS deadly disease scared us since 20 years ago.  I didn't mean something like a student aid.  Maybe I should use real estate "bubble" instead, in order to not confuse you.  But do you know it is a must to create more and more confusion for us to have this funny world.  Without it, it would be too simple and boring as the Holly See.  Please make sure you know the big difference between "Holly See" I mentioned here and " holly shit" almost everybody talked about.  No confusion, okay.  Here something comes next from our terminator Governor the Great.  What is that? Holly Se..... or Sh...... You tell me.

If you were our Governor Arnold, you will see what a kindergarten student has in his innocent mind: Alice in the Wonderland.  Sorry, I mis-quoted it.  It shall be precisely said as a "Kindergarten Cop" in Kindergarten Cop Mortgages: 4 Reasons Why the Governator's Foreclosure Plan Will Fail.  

Now you know something of what I am going to put into my article "From K to P."  At least, a little bit about the term "K", right?