Friday, September 7, 2007

John Lockwood

John Lockwood, Sacramento Realtor, Elite Properties
Just your typical rah-rah NAR cheerleader, and full of that special kool-aid. Read his blog and you'll get the idea. This fool will deny the existence of a bubble to the bitter end, or the bitter bottom, which is approaching very soon.
March 2006: Prices rose again in February. Darn, aren’t they supposed to keep falling? Isn’t Sacramento Land(ing) begging for us to call them price drops instead of price corrections?
And come to think of it, even when dropping that was a pretty smooth curve compared to a bursting bubble, wasn’t it? And now it’s on the rise again. Awww… and just when Sacramento Landing was reporting Central Valley “Bubble Appears to be Bursting”, we had to go screw it up with a price increase.

Here was an interesting home listed at the blog:
Aug 2006: home for sale.. 4032 Birchgrove Way, $320K
Jun 2007: price reduced.. 4032 Birchgrove Way, $255K
Jul 2007: home sold........ 4032 Birchgrove Way, $290K * 1 year later *
John-boy: "...toward the end the winning combination was a deeply discounted list price and an above market commission."
Funny business? Cash back? The true price drop appears to be 20%. The "above market commission" may have added back 10%. Is this classic illegal cash-back activity, which also inflates COMPS.

Oct 2006: "...prices are down about seven percent from last year in Sacramento County. or they’re up 2,214 percent from fifty years ago." Spin it!
Dec 2006: writing about foreclosures, REOs, NODs, short sales, etc.
Apr 2007: I’m more than unimpressed by the bubblers. I used to be simply unimpressed — now I’m impressively unimpressed!
And we are equally unimpressed with you, Realtor-boy!
No bubble, but...

John:My belief about what’s driving prices down is what always drives prices down: supply is outstripping demand. Tightening lending standards and fear mongering are wreaking havoc on the demand side, while defaults and rising inventory are adding to the supply.

This fool will deny the existence of a bubble 'til the bitter end. The "tightening" of the lending standards he refers to is requiring people to qualify for the loan.
Lockwood Blog

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