June 18, 2007

Los Angeles Housing Crash. Any Questions?

People who bought in LA a year ago are now financially ruined.



Suzanne!!!!!!!!!!!!!!!!!!!!!!!

29 comments:

Anonymous said...

OC Realtor Spokesman Gary Watts:

"Fifteen percent is pretty much in the bag for Orange County in 2006," he says. "It's impossible for prices to go down this year."

http://tinyurl.com/29pkce

Anonymous said...

i wonder.....hmmm........ok the median price of homes is going down. does this mean you can go before the appraisal district and tell them to lower your property appraisal for tax purposes?

if so, does this mean the county property tax bubble is about to pop as well?

also will this sort of thing spread to all of the lower 48 states?

JWM in SD said...

Yes, I have a question. Who gets the first piece of Humble Pie???

Veronica Lodge said...

Re: Lost Angeles in ruins...


LA, Riverside and Orange County real estate values are going down the toilet. Gloom and doom is everywhere.

Now's the time for a Casey break!

Forget your troubles and read all about your favorite real estate soap opera characters in the CaseyPedia.

I feel better already!

V.L.

Shakster said...

Kieth Did you see this?From Finincial Sense web site If you have any doubt how dependent we are on this industry let us take a look at California Real Estate licenses:

February 2007: 526,308
February 2006: 486,395
February 2005: 427,389
February 2004: 374,546
February 2003: 340,548
February 2002: 316,898
February 2001: 310,109
February 2000: 304,477*
*California Department of Real Estate Statistics
___________________________________

Effing D E N I A L Mannnn!

Anonymous said...

...from the OC article.

"And last year the area ranked fifth in job growth nationally. But Watts's favorite indicator is housing inventory. Orange County has only about a two-month supply (compared with the national average of five months). "That's just going to get sucked up," says agent Debbie Ferrari."

yea, but they're all real estate/ mortgage jobs. the market cannot feed on itself forever. especially when you take into account rising interest rates.

"agent Debbie Ferrari" - so classic!

Anonymous said...

not finacial ruin, only down about 65k from peak. It's the ones who "stick it out until the market rebounds" that will be ruined

Anonymous said...

The tide is just beginning to recede in the OC. Soon will find out who is wearing clothes and who isn't.

call him flipper said...

I hope they have a good supply of Depends for the ride down

Guy Daley said...

BIG STAT HERE - BIG STAT!!!!

As of June 4, nearly 1,050 lender-owned properties were listed for sale in Riverside County, up from less than a half-dozen in June 2006, according to ZipRealty, an Emeryville, Calif.-based real estate brokerage. Such properties account for about 3.5 percent of the properties for sale in the area, according to the company's data.

Now if we can only get some of these trolltards to buy some of these foreclosures with there newfound DOW gains so they'll shut for a while. Instead of picking there noses all day, it will give them something to do.

joseph cicciliano said...

It has only begun. The spring buying season failed to show up once again. How much longer can the FB's keep making payments? How much time is left until the ARMs explode? Can lower Fed rates help when cost of food, energy and taxes keep increasing?

The Chinese will never be able to cash in on the $1.2 trillion US Treasury notes they hold. The USD will depreciate faster than the Asians will be able to dump it. That will teach the BOJ a lesson for manipulating currencies. They sold us their crap and we paid for it in toilet paper currency. Maybe it's not so bad after all.

Anonymous said...

Where is the troll that posts here, and says that Los Angeles is up, up, up?????

My guess is he's at the courthouse/foreclosure proceedings.

K.W. - Southern Ca. said...

It will get much worse across the entire OC and LA areas as time progresses.

And, for that matter the entire country.

MSN, CNN, and the rest better start telling it like it is to fokes - regardless, the truth will become more and more evident.

Anonymous said...

That's nothing. Median prices are still around $600k.

Keep in mind that Cali, especially LA is the center of ARMS, interest only and option mortgages.

Combine that with the shutdown in subprime over the last few months and the 10 year rate rising 30 points in the last 2 weeks and tighter lending standards and we're just starting the drop.

Prices will drop another 20-30% in the next 2-3 years, depending on the economy.

HauspocalypseNow said...

BEST RON PAUL VID IVE SEEN YET

http://tinyurl.com/2cja7x

Kieth plz post it in its own post.

RONPAUL2008.COM

Frank@NeverColdCall.com said...

This is awesome. I'm in OC and the crash here isn't anywhere near as bad as Scottsdale but it's more than enough to get me a killer deal on a house in 1-2 years.

No I don't like renting, but yes I love that my patience renting for now will get me a house for 1/2 what the FBs paid for it.

Anonymous said...

So far in Scottsdale prices are still insane. (6% off disgustingly insane = regular insane.)

When will Scottsdale go down 80 (or $160k)??

Can someone answer this??? Thanks.

Anonymous said...

Who is Lee Williams and why should I believe what he says?

Anonymous said...

I do not see many signs here in Pasadena. The ones I do see say SOLD. Go figure?

Anonymous said...

Quite honestly number of for sale signs and asking prices don't mean anything to me. What I care about are selling prices. Looking at selling prices and nothing else LA is nothing near 15% down, mabe 1.5% down from peak.

Take a home that sold for $500K in 2005. In 2006 that home was listed for $600K. Nobody bought. Now that home is listed for $550K. So you say wow prices have dropped $50K. No, asking price has dropped $50K. Big deal. It might as well have gone from $5M to $550K, point is it's still above the $500K it sold for in 2005.

Unless that house sells for under $500K, all this other stuff is meaningless.

K.W. - Southern Ca. said...

Pasadena has a good percentage
of middle-aged couples, retired school teachers, county parole officers, fireman and policeman.

They're selling while they can, to downsize to something smaller and affordable - makes sense.

The bottom-line is houses are just way overpriced everywhere, and we've set ourselves up for a long-long fall back to more realistic price levels.

Anonymous said...
I do not see many signs here in Pasadena. The ones I do see say SOLD. Go figure?

Westside Bubble said...

I do not see many signs here in Pasadena. The ones I do see say SOLD. Go figure?

Keith, you should specify that those graphs from Housing Tracker were for asking prices. Median selling prices in L.A. County are still rising year-to-year according to DataQuick (but probably distorted by fewer lower-priced houses selling).

A lot of houses are still selling on the Westside (and in Pasadena, per Anon above). See the LA Times yesterday for what's up and what's down here.

anon said...

>> i wonder.....hmmm........ok the median price of homes is going down. does this mean you can go before the appraisal district and tell them to lower your property appraisal for tax purposes?

Good question. I've read, but I don't know the legality of it, that counties will simply raise the tax rate to make up for it.

Anonymous said...

To the ONLY SOLD SIGNS in Pasadena poster:

I have been following Pasadena pretty closely. Inventory just floats within a pretty small range. Prices for like properties are coming down. The low end stuff is not selling. Like most cities of its size, there is a bad part of Pasadena. No one is interested in paying $400k for a 1,000 sq foot condo in a bad neighborhood where even the bums pack nines.

Anonymous said...

The republic is lost. The only thing left to do is drive to Mount Vernon and crap on the graves of founding fathers.

westwest888 said...

Is there a free site that has the median SELLING prices, like the ASKING prices HousingWatch has? To me, that's the meaningful data. Also, homes sold YOY.

Westside Bubble said...

Is there a free site that has the median SELLING prices

Westwest, for California median sale prices see DataQuick for monthly by county and the current month by zip code.

For OFHEO and S&P/Case Shiller see my post for current summary and links to sources for more.

K.W. - Southern Ca. said...

Just keep watching the stats.
Perhaps you'll be more convinced by year-end.

Let's put it this way, I wouldn't want to be one of those house debters trying to unload a property now - it's going to be a real disaster for many of them.


Anonymous said...
Quite honestly number of for sale signs and asking prices don't mean anything to me. What I care about are selling prices. Looking at selling prices and nothing else LA is nothing near 15% down, mabe 1.5% down from peak.

Take a home that sold for $500K in 2005. In 2006 that home was listed for $600K. Nobody bought. Now that home is listed for $550K. So you say wow prices have dropped $50K. No, asking price has dropped $50K. Big deal. It might as well have gone from $5M to $550K, point is it's still above the $500K it sold for in 2005.

Unless that house sells for under $500K, all this other stuff is meaningless.

Anonymous said...

latimes.com LA Land BLOG

« Monday Morning: Weakest Home Builder Sentiment in 16 Years | Main | Tuesday Morning: Wall Street Braces for Next Chapter of Subprime Meltdown »
L.A. Asking Prices Slip Again, to $539K, as Inventory Climbs

Many4salereuters Asking prices in greater L.A. fell slightly in the last week as inventory continued to pile up, according to Housing Tracker's analysis of MLS listings, which we monitor here every week. Housing Tracker shows the median asking price fell $1,000, to $539,000 this week. Inventory lurched higher again, with an additional 558 homes listed, and now 41,324 are on the market.

More on the numbers: The $539,000 median asking price represents a drop of 6.9% over the last year, and 1.1% over the last month. Inventory increased 5.7% in the last month and 18.7% over the last year.

Date Median Price Inventory

4/16 $545,000 35,489
4/23 $545,000 36,348
4/30 $545,000 37,338
5/07 $545,000 37,511
5/14 $545,000 38,297
5/21 $545,000 39,100
5/28 $540,000 39,941 (up 24.6% y/y)
6/4 $540,000 40,458 (up 23.3% y/y)
6/11 $540,000 40,766 (up 20.4% y/y)
6/18 $539,000 41,324 (up 18.7% y/y)

Comments? Analysis? Let Loose. E-mail story tips to lalandblog@yahoo.com.
Photo Credit: Reuters