cactuscool
I Have Been Slimed
Premium
join:2002-07-21
Fullerton, CA
clubs:
| reply to dogma
Re: So Cal housing bubble ready to pop?
I honestly don't think there is a real estate bubble in So Cal. Prices may drop some in some areas, but I think we will just see prices stabilize, and not increase as crazily as they have in the past few years.
I think it will take: A) a major cut in the So Cal job market, B) a whole bunch of people declaring bankruptcy and flooding the market with houses, or C) a really big earthquake to dramatically drive real estate prices down.
A) The job market in So Cal is pretty solid right now. High-tech engineering firms are firmly established in the area, and from what I understand, that sector is growing, especially the bio-engineering/pharmaceutical area. With everything going on in the Middle-East, I doubt we will see any major cuts in the defense contracts or budgets. Of course the entertainment industry is strong. The high-paying jobs are there.
B) In addition to the job market not really in danger of collapsing, the Fed has put a stop to interest rate hikes for the time being. That will help all the people who may be in jeopardy of having an unaffordable payment on their ARMs and probably save many people from having to declare bankruptcy.
C) Well, these can happen whenever, I guess.
I just don't see why the price of real estate will come crashing down.e
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My tummy feels funny... |
