Posted on 09/25/2006 8:41:42 AM PDT by GodGunsGuts
Sep 20, 2006
4 Major California Home Markets See Drop In Prices
(AP) LOS ANGELES A real estate research firm says the median price of a California home increased last month at the slowest annual rate in nine years.
Four counties actually saw price declines. Among the largest real estate markets, according to DataQuick Information Systems, the steepest drop was 6.7 percent in San Mateo County. Other decreases were seen in Marin County (2.3 percent), San Diego County (2.2 percent) and Alameda County (1.5 percent).
Appreciation in Sonoma, Santa Clara, San Francisco and Contra Costa counties was essentially flat.
The statewide median price was $472,000 in August, a 3.5 percent hike over the year-ago period. It was the slowest increase since June 1997, when statewide home prices rose just 2.8 percent.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
ping
seek shelter, the sky is falling for sure ...
Agreed. However, the AP is just reporting the findings of DataQuick Information Systems.
So much for location, location, location...
!!!!
I've read several articles suggesting anywhere from 28% to 35% of our GDP comes from real estate.
Not only from the people who buy & sell (real estate agents) and those who lend (mortgage brokers), but also from banks and lending institutions.
In addition there is a boatload of related services, such as law firms, appraisers, all the way down to your local Home Depot and furniture stores. All of whom are being impacted from this continued slowing.
The other point to ponder is "momentum". The average bear market in the stock market lasts about 21 months. But the last one lasted about 3 years. The reason: The bigger the bubble, the longer it takes to work itself out.
The last major real estate correction occurred in 1989-1990 and lasted until 1993ish. That was a relatively small bubble compared to this current one.
This suggests, that we could see prices fall for the next three years at least.
Never catch a falling knife.
Good luck all.
I know. Isn't that crazy!
Why would nice weather, illegals overrunning the country and earthquakes be worth half a million in cash?
Yawnnnnnnnn
You don't know a damn thing about the California market.
Because they have to figures on closed deals they are far short of curent market drop in prices.
Curent market won't be able to be put into solid figures for at least 3 months.
I sense a theme.
2004: Home prices rise. Be very afraid.
2005: Home prices rise. Be very afraid.
2006: Home prices drop. Be very afraid.
/2007: Shark! Be very afraid.
Coming soon to a housing market near you.
OMG, what will they do now? Some of these people only saw a 200%, or so gain over the last few years.
Hopefully not. But I have a feeling you are right.
Do the media report this as "Homes more affordable" or do they twist it into a negative?
Sell everything you have and buy gold.
Dust off your Gary North-approved Y2K survival gear.
Draft Paul Craig Roberts for President in 2008.
Learn Chinese.
Shouldn't you be off praying for your great depression?
I'm truly happy *some* of those people.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.