Another Housing Bubble Post

Surfing at the Calculated Risk blog I found this scary graphic. Its the Case-Shiller home price index for several cities. Look at the precipitous drop-off in prices for Miami, San Diego, and Vegas. Ouch. Comparatively the bubble never got so big in Chicago, so hopefully the drop won't be as bad. Still, its kinda sucky that we bought near the peak.

Meet Me in the Middle

My hair has been out of control for a while. Today after work I dropped by the local haircut chain to get a trim before catching the train back to Oak Park. The woman who cut my hair did the usual chitchat. She asked where I lived, and I answered "About 35 miles east of here." She told me she lived about 35 miles west of here. Thirty-five miles west?!?! I didn't realize anybody lived that far out. That's cornfield country. She was telling me about the annual farm festival or something. I could've told her about the overpriced old houses, crime, and pollution (I kid, I kid), but I just said I liked the ease of getting into Chicago. Then she mentioned the American Girl store in Chicago, and how her six-year-old daughter loved going there, and I mentioned how Kelly looked forward to taking Julia there in a few years.

A nice little conversation, and the haircut wasn't bad either.

Update: It's confirmed! Kelly approves.

Four Dollars a Gallon

I was driving in Chicago last weekend and I noticed that gas prices have finally hit the four dollar mark. They're a little bit cheaper here in the 'burbs but I expect prices here will reach four dollars soon enough. Between Kelly and I, we barely drive 100 miles per week so, unlike everyone else who has to drive far every day, we are not as affected by ever increasing prices. Let's hear it for public transit! But I can imagine the pain of those who do drive a lot. At some price point the current lifestyle model of driving everywhere becomes unaffordable to all but the wealthy. Our region has better public transit than most parts of the country, but it is still far from ideal.

More Blogginess

I've always been a gloom and doom kind of person. I remember being unable to sleep at night in the early eighties (during high school) worried about the Federal deficit. I suppose I prefer to be pleasantly surprised when my predictions of disaster fail to come true than painfully disappointed. Thus, I'm morbidly fascinated by the current economic crisis as well as the more long-term crisis of peak oil. Two blogs I've discovered recently help me get my doom and disaster fix. Calculated Risk is a finance and economics blog which these days is documenting the horros of the housing collapse, as well as the foolishness which led to the collapse. The Oil Drum blog discusses energy and the future of energy (ie Peak Oil). To complete the trifecta, I probably should find a blog dedicated to global warming.

Going Postal

We got a notice from the postman a few days ago that Kelly received a package which was being held at the downtown post office. Since it was on the way to work for me, I offered to pick it up, as well as drop off a few letters and a package.

So on the way to the train station I stop in, drop off the outgoing mail, and stand in line. Of course the line moves like molasses, so after a few minutes I give up since I don't want to miss my train.

My second attempt, the next morning is more promising. There's no line so I successfully ship the package (overseas baby gift) and then realize I've left the package notice at home. Whoops.

The next day I return with the notice and there's only a short line. Problem. The notice only has Kelly's name, not mine. The package is also addressed to KW, not KWC, so there's no common last name on my driver's license. Finally, my license has our old apartment address listed, not our current house, so I can't even prove we live together!

On my fourth trip back, I've gotten Kelly to sign the notice to authorize me to pick up the package for her. Kelly suggests I bring a copy of our marriage license, but I don't (not leaving it at home probably would have helped). After a little bit of discussion the postal employee agrees to give me the package.

More Bad Economy News on the Housing Front

The foreclosure epidemic is not just hitting poor areas. Even wealthy, "McMansion" neighborhoods are suffering. Just goes to show how crazy the real estate market had gotten over the past few years. I don't think Chicago has been hit as badly as some of the coastal markets, but there has still been plenty of pain locally.


http://news.yahoo.com/s/nm/20080407/us_nm...

Foreclosures come to McMansion country

LEESBURG, Virginia (Reuters) - Million-dollar fixer-upper for sale: five bedrooms, four baths, three-car garage, cavernous living room. Big holes above fireplace where flat-screen TV used to hang.

The U.S. housing crisis has come to McMansion country.

Just as the foreclosure crisis has hollowed out poorer neighborhoods, "for sale" signs are sprouting in upscale developments so new they don't show up on GPS navigation screens.

Poor people weren't the only ones who took out risky, high-interest loans during the housing boom. The sharp increase in housing costs -- and the desire to live in brand-new, spacious houses with modern features -- led many affluent buyers to take out loans they couldn't afford.