Prices have a long way to fall before that bubble is deflated.
Posted on 11/15/2007 11:14:55 AM PST by ex-Texan
Home prices fell last month in all six major Southern California counties for the first time in 12 years, prompting some economists to wonder whether the housing decline will push areas of the state into a recession.
But San Diego County, one of the first markets to see a housing downturn, [might] be among the first to recover, one prominent economist said.
DataQuick Information Systems reported yesterday that sales from Ventura to San Diego were at their lowest for any October since the La Jolla-based firm began keeping records in 1988.
In the greatest drop-off, year-to-year sales were down 54.8 percent in San Bernardino County. For the first time since 1997, housing prices in Los Angeles County declined. * * *
DataQuick said median prices in Southern California fell 8 percent to $444,000 last month, down from $482,750 in October 2006. Figures were not available for Imperial County. * * *
Median prices in Riverside County fell the steepest, down 15.1 percent from October 2006 to $350,000 last month. San Diego County, as DataQuick reported this week, was down 6.1 percent to $460,000 – a figure last seen in May 2004. * * *
Read the entire article at the primary source.
(Excerpt) Read more at signonsandiego.com ...
Most of you know that I took three weeks in March and traveled the entire state. Home prices were down significantly eight months ago. Today they must be down even further. Back then I noted prices were down about 10% - 15% in parts of Northern California (e.g. Sacramento, Redding, Modesto). So-Cal prices were off as much as 25%.
Please note that the article uses 2006 sales price figures. But the high water mark for real estate prices occurred in 2005 ! How much have real estate prices fallen since their peak? The article is no help whatsoever. Nada. Nil. Zilch.
Do your own research. It's easy as pie.
Median housing price in Los Angeles was $542,720 in June, 2005
Why do the print media reporters still quote the NAR and other sources tied to the real estate ponzi scheme? Why do they engage in deception and disingenuous evasions? Why, why, why . . .
The answer is obvious. Money. Local newspapers are dependent on real estate advertising. Mortgage company advertising. Credit card advertising. Auto dealer advertising. Everything is linked together. There are no coincidences.
Yada, Yada. Want to learn more? Or do you just want to remain 'in the dark?' Sort of like growing mushrooms: They are grown in the dark where farmers cover them up with tons of horse manure. 'Nuff said . . .
Well, this is good news for people who can’t pick up a two bedroom for $400,000....
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DSL short/puts....
Bought condo in Laguna Niguel in 1987 for 130K
Sold condo in Laguna Niguel in 1992 for 145K, carried paper for new owner using AITD.
She gave it back 3 years later in 1995. She walked away from it as she owed more than it was worth.
Sold condo again in 1997 for 100K. Shoulda hung onto it and kept it rented but you know how divorces go. El stupido!
Same condo was worth 400K in 2003.
It’s probably dropped off recently. Time will tell if it goes up in the future.
Real Estate prices fluctuate and go up and down and mostly up over the years. Hang onto your real estate and don’t go irrationally speculative and you should do all right.
No big deal anyway. According to the Mayans 2012 will bring to return of major earth changes. Based on coming events in our whole solar system. LOL, LOL ! But some experts believe that 2012 date is an error based on scientists using the wrong calendar. Actually, the key date is 2008.
Oh, well . . .
“Please note that the article uses 2006 sales price figures. But the high water mark for real estate prices occurred in 2005”
House prices indeed peaked in 05. They are off 20% from the high, according to my RE pro’s.
Prices are still about $300,000 too high. The same average house in Houston Tx sells for about $140,000
I suspect property values will really go down the tube in that area after the Mexicans move in, along with 14 other famillies and have been in the region for a few years establishing their front yard mini farms and back lane auto wrecking businesses.
On the local radio stations, any mention of price decreases or housing slowdown is talked about in almost apologetic tones and then immediately downplayed or dismissed. Roger Hedgecock had a shill from Barret-American builders on the other day trying to downplay things. I find it comical how many Californians have so much of their egos tied up in their riduculously overpriced houses.
Wrong. A $140,000 house in Houston can be a very nice home in a “good” school district. $450,000 in CA still buys a small, poor constructed house..
Prices have a long way to fall before that bubble is deflated.
“Why do the print media reporters still quote the NAR and other sources tied to the real estate ponzi scheme?”
The success or failure of any “ponzi” scheme is derived from the number of greedy people who think they can get something for nothing and are willing to become large debtors in order to “buy in”.
Where housing prices are down greatly, from their “peak” it is because at their peak they were hugely over-priced, on the notion that the current, and inevitable decline would never come.
The excessive exuberance of that belief and the numbers of greedy that latched onto it, kept the “dramatic” increases going in some places, between the late 1990s and 2005, far longer than would they would have under saner conditions.
Now those who played into the myth of prices never going down want to blame those who loaned them the money with which they attempted to satisfy their envy and greed.
Anyone who watched housing prices rise so much for so many years and then decided to go “trade up”, when the over-exuberance and the length of its course should have told them to hold on for the fall, have no one else to blame but themselves.
Fortunately, the vast majority of homeowners did not buy their homes less ten years ago and continue to have greater equity value in their homes, compared to what they paid more than a decade ago, even with current price declines.
There, that is the truth!
Can it be that Californians can no longer get rich by selling each other real estate at inflated prices with no money down using other people’s money? Naw. It just wouldn’t be right.
A realtor friend of mine farms some townhouses in north Orange County. Identical units so the comps are easy to make. They were trading from $410,000- $450,000 last summer. Now they are being offered in the $380s, and the last unit to sell just closed at $350,000. There are two REOs that have been vacant over a year, and one is slated for auction. Based on rents these townhouses should stop falling at $190,000, which is slightly more than they sold for 6 years ago.
"After"? I guarantee you that "after" occurred a long time ago in the Inland Empire, not to mention large swaths of LA and OC.
No more than 2 replies? Incredible.
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