OUR NATION'S MOST OPPRESSED MINORITY  10:14 am August 3, 2009

Rich People Missing Out On Housing Rebound

by Sara K. Smith

This cost $1.6 million in Marin County just two years ago!Sad news! While sales of peasant dwellings have begun to creep upward due to the first-time home buyer tax credit, low mortgage rates, expanded FHA loans, and of course FIRE SALE PRICING on foreclosed homes, homes costing more than $750,000 have been difficult to move in this market. Wealthy home owners (or “the middle class,” as they’re known in pricey markets like New York, DC, and the Bay Area) are finding it difficult to sell their million-dollar shacks. However, at least some of them are able to rent out their sad dwellings for, oh, $7500 a month, so don’t feel too bad about this problem yet.

Here is a relevant quote from the WSJ article that now sadly lurks behind a paywall, for rich people’s exclusive reading pleasure:

Susan Forney rented her six-bedroom Georgian colonial in Northfield, Ill., for $7,500 a month after it didn’t sell.

Over the past two years, she reduced the price by $1 million to $2.25 million, but her only offer came in at $1.6 million, about $100,000 less than she paid for the house in 1999.

Ms. Kobor says it is ironic that two of the most powerful men in the country know of these problems first hand.

Treasury Secretary Timothy Geithner decided to rent out his Larchmont, N.Y., home after it failed to sell and President Obama purchased a $1.65 million Chicago home with a $1.3 million jumbo mortgage in 2005, at the height of the real-estate bubble. The property is now worth $1.2 million, according to an estimate by Zillow.

How can President Obama run the economy when he cannot even behave like a competent real estate speculator?

[Wall Street Journal]

 

Hola wonkerados.

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{ 44 comments }

Don Juanquete August 3, 2009 at 10:21 am

There it is. I was wondering whatever happened to Paulville.

Hieronymus Botch August 3, 2009 at 10:23 am

Does the WSJ take payment in hobo beans to access paywalled content?

Boojum August 3, 2009 at 10:25 am

Obv need more trickle down.

Bypartizoa August 3, 2009 at 10:26 am

My heart bleeds.

smartypants August 3, 2009 at 10:28 am

Oh, you did it again–used pic of my house after H. Katrina. Send royalty check immediately or my lawyer Thomas Van Flies will sue your ass.

ManchuCandidate August 3, 2009 at 10:33 am

If only the porn industry were thriving and could use these homes for their shoots. See Rich US America? Even you have to suffer the indignities that you created.

gurukalehuru August 3, 2009 at 10:33 am

Whenever I go to a pub, I look with envy and hatred on those who buy the fancy multi-colored drinks, because I can only afford beer, and then only when there is a two for 1 offer, or a special price on pitchers.
So, my sympathy for anybody who owns a home worth more than a million dollars is somewhere between zero and get out the pitchforks.

honkyman August 3, 2009 at 10:34 am

“jumbo mortgage”

heh

gurukalehuru August 3, 2009 at 10:35 am

I was a bit confused by the excerpt. Who’s Forney and who’s Kobor?

smartypants August 3, 2009 at 10:36 am

Forget this. Let’s talk about Barry’s Kenyan birth certificate. Come’on, hurry up with it already! Need snark.

hobospacejunkie August 3, 2009 at 10:37 am

So Zillow is the authority on house pricing now. That saves the reporter valuable time researching, otherwise known as “doing your fucking job.”

MARCdMan August 3, 2009 at 10:40 am

Those poor Riches, they’ll have to keep driving last year’s BMW.

V572625694 August 3, 2009 at 10:41 am

[re=376581]hobospacejunkie[/re]: Zillow’s right up there with Google as the lazy reporter’s friend. “An internet search on the term ‘housing crisis’ returned 7,528,382,382 hits.” That’s reporting!

Remember when a reporter at least had to flip through his Rol-o-dex and call some obscure college professor to get an opinion?

Monsieur Grumpe August 3, 2009 at 10:55 am

Hey WSJ. How about some practical information like the going price for a cardboard refrigerator box in a prime location under a bridge? Clean!

hobospacejunkie August 3, 2009 at 10:57 am

[re=376584]V572625694[/re]: Weird how so many reporters have lost their jobs recently. But as a good, party-line socialist it would be uncomradely of me to suggest reporters have contributed to their own Untergang. Not least by rebranding themselves “journalists” and professionalizing a job that, at least until Peter Jennings, required no more than high school graduation.

Chain Tattoo August 3, 2009 at 11:00 am

Why does our Wonkette hate the rich so much?
This Schadenfreude is just plain ol’ hatin’ on our achievers — and if our Wonkette hates our achievers it hates ourself. Also.

queeraselvis v 2.0 August 3, 2009 at 11:01 am

[re=376581]hobospacejunkie[/re]: [re=376584]V572625694[/re]: But, but… Zillow is so totally relevant! I mean, where else can you find such earth-shattering news as Karl Rove trying to shift his DC home, especially under the heading of “celebrity real estate news?” C’mon!

AnnieGetYourFun August 3, 2009 at 11:07 am

What kind of house rents for $7500 a month? My house is nice and in a decent location, and I couldn’t get even 70% of the mortgage for it.

V572625694 August 3, 2009 at 11:07 am

[re=376600]queeraselvis v 2.0[/re]: True, and an Official Professional Journalist® doesn’t have to get off his or her ample backside to garner these “facts”! These are the secrets they teach at the Medill School of Official Journalistical Practice at Northwestern University. Also:

“remains to be seen”

and

“some say”

and

“comes at a time when”

“To be sure…”

Sweet, aren’t they?

WadISay August 3, 2009 at 11:10 am

Maybe I could sell my yacht if I renamed it the SS Karl Marx.

loquaciousmusic August 3, 2009 at 11:11 am

There’s a lovely 1,750 sq. ft. house that I always eye on my way to work. A few weeks ago, I noticed a “For Sale” sign in the driveway. I was excited, so I immediately went to the computer when I got home.

Yeah. It’s listed for $724,000. Fucking Connecticut.

bitchincamaro August 3, 2009 at 11:14 am

[re=376574]gurukalehuru[/re]: Whenever I go to a pub…

Yeah, right. Like beer doesn’t flow freely from the cold water tap in all Praque homes. Who you kiddin’?

Katydid August 3, 2009 at 11:19 am

[re=376599]Chain Tattoo[/re]: case in point, my brother. Bastard grew up in the same extremely liberal, Kennedy-loving, GOP-hating house I did. Then he got rich and became a Republican, because of his taxes. When I pointed out that I know he doesn’t agree with the GOP platform on any other issues, he had no answer for me. Idiot hadn’t bothered to think about it. And he’s a really bright guy, esp. for an idiot. And that’s why I hate the rich.

Gorillionaire August 3, 2009 at 11:21 am

Hey, might be a good business venture in this somewhere. I’m thinking professional insurance scam arsonist.

Cape Clod August 3, 2009 at 11:23 am

[re=376612]loquaciousmusic[/re]: Where in Connecticut? Westport? Greenwich?

Gorillionaire August 3, 2009 at 11:29 am

[re=376622]Katydid[/re]: I hear ya. My father-in-law, brilliant, been all over the world, sweet guy, votes GOP because “I don’t want my taxes to go up”. This from a guy who wouldn’t know the difference if Dennis Kucinich became Socialist President of America for Life – he would still have the same two houses, take the same vacations and drive the same brand new Merc.

ManchuCandidate August 3, 2009 at 11:38 am

[re=376637]Gorillionaire[/re]:
The problem with a lot of rich is they think they made their fortunes by themselves. If we lived in a universe they Randian style objectivism actually worked then they might have a point. That is if roads, sewers and other infrastructure in the background that helps keep civilization together only existed for them. We all use the roads, sewers and bridges and without it everything falls to shit. How do we pay for it? Uh, taxes. Sorry to break it to you GOP and low tax ‘tards. There IS NO INFRASTRUCTURE FAIRY!!!

trickyrick August 3, 2009 at 11:52 am

I still think someone rich would pay more for the Obama house. Just ‘cuz Barry is so cool an all. Geithner, not so much. He is gonna take a bath on that real estate because everyone thinks he is a pussy.

queeraselvis v 2.0 August 3, 2009 at 11:54 am

[re=376606]V572625694[/re]: Oh yes. I remember fondly ripping my Freshman Composition students a new one every time one of those bon mots appeared in their papers. Of course, that could explain why none of my students ended up majoring in journalism.

smartypants August 3, 2009 at 11:55 am

[re=376637]Gorillionaire[/re]: Dude, you just described every third person in my community, each one terrified that the last third of his/her life will be spent trying to scrape together a mtge. payment for a house that is now unmarketable, if that’s even a word. Not all the Riches are blood-sucking sea monkeys–they’re just scared, and now their grown(uninsured)children are all moving back in with them. Many of them voted for the Decider–twice–so now they’re reapin’ it.

Bitter harvest, that.

Cicada August 3, 2009 at 11:57 am

[re=376650]ManchuCandidate[/re]: No, no, no. You simply turn over the infrastructure to private industry. Then, if you want to leave your house you have to pay a toll every half mile or so.

It’s a system that appeals to the typical Randian, since they never leave the house anyway. They might get a bit tetchy when they have to pay $40 for a bag of Ch

V572625694 August 3, 2009 at 12:00 pm

[re=376675]Cicada[/re]: -eetos?

honkyman August 3, 2009 at 12:01 pm

[re=376650]ManchuCandidate[/re]: Yes, Virginia, there IS an Infrastructure Fairy. It’s just that there is no Sanity Claus.

Cicada August 3, 2009 at 12:04 pm

[re=376650]ManchuCandidate[/re]: No, no, no. In the Randian utopia, private industry will take over the maintenance of infrastructure. We will all pay tolls every time we leave our homes – simple!
This appeals to the typical Randian, since they never leave the house anyway. Of course they may be a little disappointed when they have to pay $40 for a bag of Cheetos that shipped from Texas, but it’s the price you have to pay for FREEDOM.

loquaciousmusic August 3, 2009 at 12:05 pm

[re=376612]loquaciousmusic[/re]: Fairfield, which, in Connecticut terms, is basically a giant ghetto.

Cicada August 3, 2009 at 12:06 pm

[re=376684]V572625694[/re]: Dammit. I wondered what happened to that comment. Now I have a double post.

SayItWithWookies August 3, 2009 at 12:11 pm

I’m sure Rick Santelli is telling these losers that their bad decisions got them to this point, right?

S.Luggo August 3, 2009 at 12:34 pm

As Louis the 14th said, as he overlooked his palace at Versailles, “Après moi, le sheriff’s sale.”
Plus ca change, plus la meme chose.

Oldskool August 3, 2009 at 12:58 pm

[re=376650]ManchuCandidate[/re]: Oh yeah. My bro is one of those and he and his wife have always worked for the city or the state! Me, a know-nothing liberal, is the one who started a business. Makes for lively holiday gatherings.

Accordion-o-rama August 3, 2009 at 1:29 pm
RushLickBall August 3, 2009 at 2:33 pm

[re=376650]ManchuCandidate[/re]: So your point is the rich leaned on everyone’s infrastructure to make their wallets fat. But if the infrastructure is available to everyone, how come only the few got rich? Just askin.

ManchuCandidate August 3, 2009 at 4:45 pm

[re=376880]RushLickBall[/re]:
I dunno. Sometimes hard work. Sometimes outright theft. Sometimes good luck. Sometimes all of the above. Never said life was fair.

zhubajie August 3, 2009 at 6:27 pm

[re=376880]RushLickBall[/re]: Because behind every great fortune there lies a great crime.

Zhu Bajie

Carly August 4, 2009 at 2:49 am

Growing population:-Agriculture is not done! Growing population, no new farmland, production per acre down, food for fuel, government intervention to “solve” the problem. Theres so much more than “people have to eat” argument. This article explains it all in a bit more detail. You don’t want to miss out on ag http://bit.ly/ag_opportunity
This is a good case, but oversimplified. There is so much more to ag. I found this article a few weeks ago which has a lot of it.

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