April 19, 2008

Southern California housing crash now in full bloom - Riverside down 27%, San Bernardino down 28%, San Diego off 19%, SoCal down 24%. Ouch.


Trillions have been lost.

Trillions more will be lost.

And big SoCal lenders like WaMu, Wells Fargo, Indymac, GMAC, First Federal - and Fannie and Freddie who bought the junk loans - are in a heap of trouble.

It's not subprime folks. It's everything. And it's one ginormous Housing Ponzi Scheme that blew up in spectacular fashion.

No matter what discredited California REIC shills like Connie De Groot, Gary Watts, Leslie Appleton Young and Tom Adkins would have you believe.

Hat-tip to SoCal Bubble for the latest #s. Hat-tip Casey Serin for crashing the market.

19 comments:

Frank@Scottsdale-Sucks.com said...

WOOHOO! Gonna buy next year ... at a DEEP discount.....

peanut butter jelly time!!!!

Anonymous said...

“I feel real confident,” Watts told the audience at the Old Ranch Country Club in his third such gathering this month. “One year from now … we’ll be able to look at each other and say, ‘Wow! Another 15 percent.’ ”


http://www.ocregister.com/ocregister/money/housing/article_727675.php

Anonymous said...

http://www.socalbubble.com/2006/04/gary-watts-will-still-burn-in-hell.html#comment-53390

eric in vegas said...

"WOOHOO! Gonna buy next year ... at a DEEP discount.....

peanut butter jelly time!!!!"

I don't know... bailout attempt #14 could be the charm and keep prices from falling! Seriously though are you going for early or late 09'?

Bush said...

Wait will I'm out of office - SUCKAS


-W-

Anonymous said...

Dude, SOUTHERN MEXIFORNIA.

SoCal has been Reconquista'd by Mexicans, and will find its value to be only sightly higher than Tiajuana

Anonymous said...

People who bought in 2006 an 2007 must be sick

Paul E. Math said...

I really hope these discounts reach Boston. Massachusetts overall is down about 17% from peak but Boston itself is only down like 6% or so - not enough for me to declare peanut butter jelly time.

Skadefryd said...

2001 - when prizes rose in spite of the dot.com bust.

WC said...

28% isn't enough. It's still a good profit if someone bought their house at $250 and now has to sell it for $360 instead of $500 - but it really sucks for the people that bought at $500

Scum/Douche BAGS said...

When you jump, make sure it is high enough to kill you properly please.

Adkins, make sure your caveman-do doesn't get caught on the overpass.

DoratheSexplorer said...

I would wait until the prices drop more, and the banks have had time to foreclose in the next mortgage reset cycle here in the next two years, so that all the MS 13 and mexican Gang bangers will loose their equity and be forced to clear out of the finer neighborhoods currently populated by the "no money down" "demongraphic".

Yoski said...

Erioc in Vegas
"I don't know... bailout attempt #14 could be the charm and keep prices from falling! Seriously though are you going for early or late 09'?"
There are only 2 things that will keep prices from falling.
1. Easy and abundant credit to everybody. ...been there done that, didn't work out.
2. A bigger pay check for everybody. Maybe if Bernanke opens the flood gates even more and we get 10-20% inflation.
Other than that, prices WILL FALL back to traditional price/income ratios, no bailout program will change that, none!
Think about it, who is supposed to do all the buying if access to credit is restricted and disposable income is getting squeezed from all sides (food, gas, tution, medical, happy meals, french ticklers, etc.)

Gabor said...

God I hate it when people spell lose loose.

mairca izda debol said...

Wait until the hordes of Mestizos completely take over. All of SoCal will be like Tijuana. How do you pansies like that diversity now?

Lost Cause said...

No sign of a bottom yet. Prices in many cities are still crazy. Unemployment is rising. I actually expect the bottom will go farther below expected, since they top was so out of whack.

tater said...

These prices still have a ways to go downward, IMO-not only in California, but throughout this country, as well.

Anonymous said...

Hey Keith,

I am living in the panic!

I think we should also create a boat and rv panic out here also. The more time that passes by, I see more REO'S pile up, RV'S AND BOATS for sale and parked in driveways, stores closing at malls,
unemployment rising, moving business skyrocketing, rentals galore, security gaurds at some retail locations, garage sale panic, and super slow sales.

I think the city of Riverside could quite possibly be looking at price per s.f. at $119-129 right now. This would be a historic crash if this figure does pan out in two months! It is extremely possible that the figures will come in at this amount. The listings that I am seeing have had a huge downward swing in the 2000+
S.F. market. For example 3000 s.f. house could be had for $350,000 in a upper middle class area. Last year you could have a house like this for $750,000 - $1,000,000.

As of right now I could not predict where the bottom will be around here, which is very scary.
The real pressure has not even started yet.

I am hearing reports that commercial lending has reached 90% capacity for the year and will soon seize up. This is frightening. If you could fix housing, the dollar, inflation etc., but you cant fix this, we are screwed. These loans are the lifeblood of developments and if they do stop, there is going to be severe problems in the construction industry which will lead to deeper losses in housing throughout the country. The outlook for commercial loan hardship is 24-36 months which is horrific. This would lead to a practical halt in construction in the U.S. Wells Fargo has just announced that they will no longer be providing loans for commercial construction. Other big banks and Insurance companies tried to take the reigns for the funding but are having capital problems and will have to stop. This spells deep trouble and is already starting to affect the industry.

Nobody is talking about this problem, this recession is going to be very severe!!!!


ICEMAN

Anonymous said...

Dude, we are in a bad recession now.

That last leg you are talking about, when it gets kicked out.....

Then we are in a DEPRESSION.

King of the Bitter Renters