But in the Nicer Neighborhoods...

Surely prices shall always remain levitated, submit many who previously contended that SV Real Estate Always Goes Up. And surely I'll get that slice of blue rare prime rib I've drooled over every night in my dreams. Let's see, shall we? First, we have the original reset schedule for the Adjusted Rate Mortgages that were so in vogue until so very recently:

Here we see, perhaps boringly, that subprime resets were due to peak in the middle of 2008. In 20/20 hindsight, some of those loans came a cropper rather earlier, hence the to-do in 2007 over the subprime crisis which is still being parroted. And that is where many choose to stop thinking about it. A stickler, however, might notice that the bars stack yet higher when 2011 comes rolling around. All is not lost, however.

Thanks to the wonders of stagnant-to-falling price and minimum payment and resultant zero to negative equity, at least the Option ARM parts of those peak bars (aka "nicer neighborhood" bid funds) should actually come even sooner, now:


Apparently things should start getting interesting, and sellers more motivated, mid to late 2009.

Now if only that prime rib would materialize already, properly aged or otherwise.