realrant 50% Watch

Roy 'realrant' Merlino, Real Estate Guru
(Part I)
Back in November '07 at a Sacramento Land(ing) post, I left the following comment (see below), which drew a response from a local realtard. He believed that a median price drop of 50% for Sacramento zip code 95864 was impossible. Well, the impossible appears to be on its way. Lets start the 'realrant 50% Watch'. We're already at 40%.

And there is a lesson to be learned from this. First, you cannot trust realtors, and second, this housing bubble was far larger than most could imagine and it is not over. House prices will continue to drop in California until 2011. The toxic ARMs are starting to reset and the economy is tanking. When things reach bottom, the words used to describe the devastation will be 'shock' and 'awe'.

Sacramento Landing Post: November 16, 2007

Tyrone said...
If that "best deal" isn't a mark-down of 30-50%, forget it; you're just a sucker, otherwise. Price-to-rent ratio has a long way to come down in Sacramento.

RealRant said...
Hey Tyrone. Re: If that "best deal" isn't a mark-down of 30-50%, forget it...So I want everyone to remember that Tyrone says that the median price in 95864 needs to be $194,000 before anyone but a sucker would buy. Hey... do I get some kind of membership card or T-shirt for the Housing Bubble Hall of Shame? What are the criteria for induction?

This is the 95864 Percent (%) Drop Watch:

Sacramento 95864
Nov '07 $388,000
...
Oct '08 $271,000 -30% (DQNews)
Nov '08 $234,000 -40% (DQNews)
Dec '08 $425,000 xxxx (DQNews) Low Sales?
Jan '09 $218,000 -43% (DQNews)
Feb '09
Mar '09
Apr '09 $325,000
May '09
Jun '09 $317,000

Target $194,000
.