laserjobs
Premium
join:2004-05-02
Las Vegas, NV
 ·Cox HSI
| reply to No_Strings
Re: CA Real Estate Market Study
SoCal is in for a big correction in prices. The fed lowered rates to reduce the effect of the tech bubble to spur the availability of cheap money. In effect adding fuel to the fire. Lots of properties purchased with sketchy loan products like short term ARMs with teaser rates. Inventory is starting to build rapidly and if history repeats itself we should see the really price drops happen in 8-12 months when investors can not hold anymore.
Historically in California the affordability rate has been around 40% on average. Now it is sitting in the low teens.
There are a few factors that would help retain some of the prices from dropping off. Inflation across the board including salaries. Availability of longer loans like a 40 or 50 year term mortgage. Local economic stimulus like a new company coming to town with more local jobs created.
If I was to guess I would think that the fed is going to try to deflate us out of debt like we have done in the past.
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Bush has spent more $$$ than all other presidents combined in over 200 years!!!
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