laserjobs
Premium
join:2004-05-02
Las Vegas, NV
 ·Cox HSI
| reply to jinjimbob
Re: CA Real Estate Market Study
said by jinjimbob  :"SoCal is in for a big correction in prices." I have been hearing that for almost 5 years myself. They might stop going up as fast, but they won't go down. Then answer me this, what made the prices go sky high?
Do you think the reversal of the same thing might cause the reverse effect?
Here is a clue: Interest rates and lending practices
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Bush has spent more $$$ than all other presidents combined in over 200 years!!!
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jig
join:2001-01-05
Hacienda Heights, CA | i think it's more a function of demand. and that isn't reversing. |
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81399672
Premium
join:2006-05-17
Los Angeles, CA
| reply to laserjobs
said by laserjobs :said by jinjimbob :"SoCal is in for a big correction in prices." I have been hearing that for almost 5 years myself. They might stop going up as fast, but they won't go down. Then answer me this, what made the prices go sky high? Do you think the reversal of the same thing might cause the reverse effect? Here is a clue: Interest rates and lending practices Demand, prices in California historically always been much higher then average prices across the world. Yes prices will go down but it will not crash like some people think it will. UCLA been saying 10% reduction for the last 3-4 years will happen and it haven't happened yet. The main reason why price may go down is because majority of speculators have left california real estate marketed and moved to Nevada. I am talking about those that buy the property hold it for 2-3 month and then sell it. Also prop 13 does help price stay up.
It seems people on this board want the prices to go down and praying it will go down because a)they can't afford the prices b)they can't immagine them self paying so much for the property. If you are in the b catigory then i am afraid you will have to wait for long time before you see high enough reduction in real estate prices |
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laserjobs
Premium
join:2004-05-02
Las Vegas, NV
·Cox HSI
| said by 81399672 :said by laserjobs :said by jinjimbob :"SoCal is in for a big correction in prices." I have been hearing that for almost 5 years myself. They might stop going up as fast, but they won't go down. Then answer me this, what made the prices go sky high? Do you think the reversal of the same thing might cause the reverse effect? Here is a clue: Interest rates and lending practices Demand, prices in California historically always been much higher then average prices across the world. Yes prices will go down but it will not crash like some people think it will. UCLA been saying 10% reduction for the last 3-4 years will happen and it haven't happened yet. The main reason why price may go down is because majority of speculators have left california real estate marketed and moved to Nevada. I am talking about those that buy the property hold it for 2-3 month and then sell it. Also prop 13 does help price stay up. It seems people on this board want the prices to go down and praying it will go down because a)they can't afford the prices b)they can't immagine them self paying so much for the property. If you are in the b catigory then i am afraid you will have to wait for long time before you see high enough reduction in real estate prices Why would the prices go down 10% in the last 3-4 years? There was no fundamental change that happened in those years to create a turn. Actually there was "creative" options developed to add fuel to the fire (interest only adjustable rate hybrids and 40-50 terms) Now we have a market full of speculators, questionable lending and rising interest rates with affordability at an all time low. Get out in the field and tell me their is not slowing market momentum and rising inventories.
When inventories go over the 9 month supply range then we will see the drop happen. It takes time for sellers to succumb to pressure of lowing prices so inventory rises first.
The only thing an open house is good for these days is to provide the neighbors with some free snacks. 
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Bush has spent more $$$ than all other presidents combined in over 200 years!!!
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jig
join:2001-01-05
Hacienda Heights, CA
| said by laserjobs :The only thing an open house is good for these days is to provide the neighbors with some free snacks. in some areas and at some prices. i'd agree with some orange county spots, maybe west la, houses above the 1.2 mill pricepoint, but east of the 710, in the $400-800k range, open houses aren't needed, the houses get offers within a week (days) of being on the market site unseen. the cocktail sausages are a waste of money.
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A man compounded of law and gospel is able to cheat a whole country with his religion and then destroy them under color of law. -Ben Franklin |
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81399672
Premium
join:2006-05-17
Los Angeles, CA | reply to laserjobs
You will have to ask UCLA economics why they predicts for the last 3-4 years that real estate prices will go down 10%. I personally didn't see it but do see it now. With that being said, i do not see what other seem to which is real estate collapse |
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laserjobs
Premium
join:2004-05-02
Las Vegas, NV
·Cox HSI
| reply to jig
said by jig :said by laserjobs :The only thing an open house is good for these days is to provide the neighbors with some free snacks. in some areas and at some prices. i'd agree with some orange county spots, maybe west la, houses above the 1.2 mill pricepoint, but east of the 710, in the $400-800k range, open houses aren't needed, the houses get offers within a week (days) of being on the market site unseen. the cocktail sausages are a waste of money. Just remember "shit rolls downhill". Higher priced properties will see the effects first. One of my friends has a $10 Million plus estate he has not been able to move for 2 years because the buyer pool dried up. Now it is starting to hit the $1-2 Million price points. Soon it will take the lower end markets. Because real estate is a local market some areas will be less effected than others. Unfortunately all of California looks like it is overbought at this time.
I don't know what Open Houses you have been going to but I have been eating sushi and drinking good wine.
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Bush has spent more $$$ than all other presidents combined in over 200 years!!!
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81399672
Premium
join:2006-05-17
Los Angeles, CA | you're taking about 10mil property, yes those will be on market for long time. Anything below 1 mil is being sold with out much problems. Btw, i must be going to wrong open houses i rarely ever see food |
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jinjimbob
Troy Mcclure
join:2001-11-13
| reply to laserjobs
said by laserjobs :said by jinjimbob :"SoCal is in for a big correction in prices." I have been hearing that for almost 5 years myself. They might stop going up as fast, but they won't go down. Then answer me this, what made the prices go sky high? Do you think the reversal of the same thing might cause the reverse effect? Here is a clue: Interest rates and lending practices While true the lenders are offering creative loans. But the 40 and 50 year loans really don't offer a lower payment.
People are moving to California from other countries, where they were used to substandard living conditions in cramp quarters. Whole families move here, club together to buy a huge house with a monstor mortgage, living in the same house with multiple generations.
Most of us wouldn't dream of this, its very un-American-like. But for newer Americans, they think splitting a $6k mortgage 6 ways between 6 wage earners is the best thing since sliced bread, and they feel lucky. |
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