I just googled and yes, I think it’s Zocalo’s. There’s a restaurant called Cafe Paradis or something like that nearby, and it seems like a nice ‘hood with interesting places to go.

You know, I initially thought a REO would be a terrible idea because they’re usually in bad shape, but now that you explain that you can inspect the place, it sounds more interesting. Too bad you didn’t get this one, but as you say, it can only get better, with more possibilities coming up. Would you fix the place up before moving in? Is that your plan?

Unfortunately the bank rejected my offer today in favor of another offer. But I’m sure there will be more inventory to choose from all over Oakland and SL, and maybe even Alameda in the next few months.

Are you thinking of Zocalo’s in SL?

I used to live up the street from that donut shop. Moved though after they found that body in the Rose Garden, and a guy got shot to death at the gas station.

Funny you should mention Grand Lake. I was just there today – sweet! I went to a donut shop that makes its own donuts and uses no trans fats, Daily Delectables. So many cool restaurants and of course the Grand Lake Theater. There’s a way cool cafe in San Leandro, though, very friendly, a whole community of people hang out there. It’s in the downtown area where there’s a pretty good number of shops and the like. Phooey, can’t recall its name.

Keeping my fingers crossed for your bid on this cool-sounding REO! But David, I thought you can’t even go inside a REO before you bid? Or did you see photos?

SL is a little ‘burby for me, but in general it’s safer than Oakland, but crime has ticked up recently, although, unlike Oakland, residents are really working to do something about it before it becomes a bigger problem. Can’t comment too much on business-friendliness, it does seem that way, however, the retail scene isn’t as happening as, say Grand Lake.

REOs, well, some are in better shape than others.
Putting in a bid today on one that seems in pretty good shape–needs new appliances and kitchen cabinets, and some cosmetic bathroom fixing. Otherwise though is pretty darn solid, with new windows, floors, and a low (less than $2500) termite report.

David, you recommended San Leandro and I just wanted to say I think SL is a really cool city! Somehow I have this belief SL is safer than Oakland – I see it as a more business-friendly city. Maybe I’m just blowing smoke. Obviously, safety varies from ‘hood to ‘hood within Oakland, too.

Very interested in your comment, David, about REOs! I think of REOs as something to be avoided, worse-than-fixer-uppers, full of pitfalls? But perhaps not? Man, there are some simply shocking bargains out there when you look at the auctions, for example.

Janis, in 1975, the unemployment rate was 8.3% and inflation was 9%, and it just got worse from there until about 1982 (when inflation started dropping) to 1984 (when unemployment started dropping). After all if inflation=jobs, we’d all be moving to Zimbabwe right now, that is if we hadn’t already all moved to the paradise that was Weimar Germany.

Again, as David alluded to, a taxpayer bailout will likely just drag out the inevitable repricing/correction of housing prices. No puny $168B bailout can prevent it. And inflationary wage/income increases will have to be strong for awhile to catch up to the level where real-term price-to-income ratios need to get to.

The market needs to be taught a lesson and let natural forces play out, and they will, eventually.

As far as timing the market on the buy side in the near- to mid-term, that depends on where one is looking purchase. I am strongly considering a beaten down (in price, that is) house in Oakland somewhere in the next 6-24 months. Probably not until at least the end of this year, and likely 09 or even 10. After all, this is a moving target and we are in uncharted waters as far as a historical home price correction goes. But Oakland may be one of the first to reach bottom as far as the “inner-bay” areas (i.e. not counting solano, sac, modesto, etc.) and some homes are already priced at 30-40% off from peak. There is a house currently listed at 410k under its Jan 07 sales price in a good neighborhood. And maybe it will go even lower to a full 50% off. That is pretty amazing.

I live in SF currently and enjoy it here, but the pricing is not coming down yet (in desirable areas anyway). I feel the condo glut will be feeling the affect this year at some point, but that may be minimized due to foreign buyers with their stronger currencies buying them up. I am not sure.

But it sure is fun to watch! And who doesn’t love a sale?