A question was posed in the forums - "How many do you know laid off?"

It's a hard question to answer. I am not sure how open most laid off people are. There's probably some I am not aware of. It seems also to me Cali was hit extra hard in the recent decade, but maybe slower to be hit this round? I am sure we will be hit plenty. For one, the state government is really slow to let people go this round. It's kind of absurd with our budget crisis. Is my memory failing me or it seems like they were quick to cut jobs before Arnold. (2002 comes to mind). I don't know. Not saying either is right or wrong, but when the city's biggest employer hasn't let go of anyone, well, then most people I know are still gainfully employed!

3 people came to mind - a good friend's husband (high tech), a client's hudband (MBA at a giant corporation) and another techy friend who was laid off a while ago but already found another job.

That's all that came to mind though dh's dad worked for a local government and is likely going to be axed, my dad's firm is a start up that depends on venture capital (who knows where that is going - though I think he said they actually got funding for another year) and then all our MBA friends at giant corporations and all our high tech friends. Yeah, pretty much ALL their jobs are on the line.

So it's not like it is all roses here.

I did just find out my uncle was laid off (another state) so that makes it a solid 3 I guess. He's one of those who is always jobless though - no idea what he does.

The economic report from my first 3 tax clients was all sunshine and roses though. But will see as the year progresses and I meet with more of my clients. (Frankly, 2 of them were retired so not like they were worried about jobs!)

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In other news, I briefly mentioned a foreclosure 2 doors down from us. IT was priced $240k, which was extremely aggressive if you ask me.

I was looking forward to a quick, discreet sale. Unlike some in the area that have sat bank owned for YEARS.

However, they did put a giant "bank owned" sign on the property. "Ugh," is all I Could think. So much for discreet.

$240k seemed like an odd price. Kind of on the low side. So I was nosy to see if I could look up the foreclosure data yet.

Well, yes indeed. House was bought in 2006 for $485k.

Bank chose a $240k price because that is how much the loan foreclosed for.

I was actually surprised the foreclosed amount was that low. Did not know these neighbors, but only noticed recently they were driving two $30k cars (maybe more expensive?). They were just very flashy, expensive looking cars. Next thing you know they are moving out with a foreclosure sign on their lawn.

Obviously I know nothing of their story but it seems they somehow sunk $245k into the house? Didn't even attempt a short sale? I don't know. A similar house sold not THAT long ago for almost $300k.

Nothing makes much sense in this market though.

Aw, but the beauty is this. When I looked it up today I saw the asking price has been lowered to $212k.

Okay, I am relieved to see the bank is motivated. Not holding out for exactly what they are owed. Because I now realize that is precisely where they started.

But $212k? Ugh. Boy I hope that house sells fast! For our sake.

For reference, this is the smallest home in our neighborhood, about 1800 square feet. They were selling for maybe $230k or $240k when we bought, mid-2001. So $240k didn't scare me terribly. But $212k is getting into pretty low territory. It's just to that point where everyone in the neighborhood paid more for their house than what they are worth today, it that is the going price. That's kind of scary.

I personally think it will sell fast. But what do I know? I e-mailed it to a friend at $240k and that's how I found out her spouse was laid off. They were house hunting. I think they would die to know they could own this house for $212k. But without a job, they ain't buying. Maybe that is precisely why prices are sinking so rapidly...

But yeah this is the friend who "ashamedly" told me they were "only approved for $200k." I think they $200k buys a pretty sweet house in this market. But the way she said it was so funny to me. Most people think we have a $400k mortgage or something. $200k sounds pretty good to me - I never felt comfortable borrowing much more than that!

I am not worried about our mortgage, but I am keenly aware at a certain price point and/or unemployment rate, our neighborhood could spiral downwards into foreclosure central, pretty rapidly. We prefer to have living, breathing neighbors! IT's kind of frightening. But probably a little early to panic.

& literally when we bought, the difference between 1800sf and 3000 sf was literally $20k or $30k dollars. (It's kind of my pet peeve that so many people thinks big houses cost twice as much in every way shaper or form. I think they don't cost twice as much in ANY way shape or form. LOL). But, um, our neighbors just bought a 3000sf-er (renting their 1800sf home) for $375k!!!!! & if this one sells for $212k? Ugh. What a price differential!!!! I guess it's good for us. The big ones are selling. Just when you think it can't get weirder. I guess today the big house does cost twice as much. You got me there!

I will just have to keep you all updated.

BTW - If we had a better savings rate or more cash, I tell you, I'd be tempted to buy some rental real estate right now. TEMPTING. This house will be a good investment for someone (for the LONG run). We're just not in a buying position right now. At all! Low prices change my tune a bit on the whole rental thing though. If I had the cash, I would consider it.