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nightdesigns
Gone missing, back soon
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join:2002-05-31
AZ | Fun, I purchased a house last weekend =). Regardless of the market though, I'm in for the long run, and not a quick buck, so if the market fluctuates now and then I won't been too concerned.
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aztecnology
O Rly?
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Murrieta, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Just out of curiosity what were the specs of the purchase/loan...? Do you feel like you got a good deal relative to the area you purchased in? | |
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nightdesigns
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AZ
 ·Cox HSI
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by aztecnology  :Just out of curiosity what were the specs of the purchase/loan...? Do you feel like you got a good deal relative to the area you purchased in? I purchased the house as a 50/50 partner with my grandmother. The loan terms were a 10/20 loan (interest only the first 10 years, 20 year traditional, rate fixed across the 30). I understand the risks of this type of loan and I will be putting money away in investments to offset my lack of Principal. My goal is to buy out my Grandmother is 10 years, or sell and we split the profits and then I'll have enough in savings and earned to do a full purchase on my own.
We got the house for about $50k under the comps (we set the lowest price on the block). The owner had a previous offer fall through and needed to sell with a quick escrow.
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CurtesyFlush
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Fontana, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc What city? | |
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nightdesigns
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AZ | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Rancho Santa Margarita | |
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CurtesyFlush
Bababooey, fafafooey, tatatoothy.
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join:2002-08-23
Fontana, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc $$$$$ | |
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nightdesigns
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| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by CurtesyFlush :$$$$$ Yes and no. RSM is cheaper than the surrounding areas, Mission Viejo, Irvine, San Clemente, etc.
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CurtesyFlush
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Fontana, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc House or condo?
I once lived in the canyon below the mesa that RSM would one day be built on.Trabuco Oaks section of Trabuco Canyon.
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nightdesigns
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| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by CurtesyFlush :House or condo? House.
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| said by nightdesigns :Fun, I purchased a house last weekend =). Regardless of the market though, I'm in for the long run, and not a quick buck, so if the market fluctuates now and then I won't been too concerned. Same here...I sign the papers this weekend.
First/second 320k..buying out my sisters..175k..appraised value last month 696k..left over cash ~ 50k....realtor offering me 850k for the house.. priceless  | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
 ·Verizon FIOS
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by Kibbles :said by nightdesigns :Fun, I purchased a house last weekend =). Regardless of the market though, I'm in for the long run, and not a quick buck, so if the market fluctuates now and then I won't been too concerned. Same here...I sign the papers this weekend. First/second 320k..buying out my sisters..175k..appraised value last month 696k..left over cash ~ 50k....realtor offering me 850k for the house.. priceless If the realtor wants to buy it for $850k( $150k over comps), why aren't you selling...?
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bobrk
You kids get offa my lawn
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San Jose, CA
 ·SONIC.NET
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by aztecnology :said by Kibbles :said by nightdesigns :Fun, I purchased a house last weekend =). Regardless of the market though, I'm in for the long run, and not a quick buck, so if the market fluctuates now and then I won't been too concerned. Same here...I sign the papers this weekend. First/second 320k..buying out my sisters..175k..appraised value last month 696k..left over cash ~ 50k....realtor offering me 850k for the house.. priceless If the realtor wants to buy it for $850k( $150k over comps), why aren't you selling...? Maybe he's living in it. Some things are more important than money.
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aztecnology
O Rly?
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join:2003-02-12
Murrieta, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc For $300k-$400k in my pocket, i'd live/rent somewhere else... | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
1 edit | said by aztecnology : If the realtor wants to buy it for $850k( $150k over comps), why aren't you selling...? The property tax is ~ 850 a year....and association dues are 0.
The first house I had was in 1992...in 1998 the ex got it...this house is a keeper. | |
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bobrk
You kids get offa my lawn
Premium
join:2000-02-02
San Jose, CA
·SONIC.NET
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by Kibbles :said by aztecnology : If the realtor wants to buy it for $850k( $150k over comps), why aren't you selling...? Property tax is ~ 850 a year....and association dues are 0. 850 sounds low. It'll go up when the county reappraises based on your sale.
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by bobrk :850 sounds low. It'll go up when the county reappraises based on your sale. Nope... »www.oc.ca.gov/assessor/TaxSavePPCinfo.asp | |
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bobrk
You kids get offa my lawn
Premium
join:2000-02-02
San Jose, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Ah, ok. Cool. My taxes are over $8k, thanks to prop 13. | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by bobrk :Ah, ok. Cool. My taxes are over $8k, thanks to prop 13. The house my ex has the taxes are 20k a year  | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Ah yes, I forgot that your situation was intra-family...
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aztecnology
O Rly?
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join:2003-02-12
Murrieta, CA | Interest rates have really shot up over the last several weeks..
»www.hsh.com/mtghst.html
30-yr FRM 6.91%
15-yr FRM 6.60%
1-yr ARM 6.27% | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Stocks tumbled today, and everyday I think were getting closer and closer to an official recession (were probably already in it).
Bond yields are up, likewise are mortgage rates
Oil is shooting back up
General slow down with most major retailers and their earnings
»www.cnbc.com/id/19318530
And the biggest news of yesterday was the shake out of the Bear Stearns Hedge funds (CDO's,collateralized debt obligations - Mortgages), where JP Morgan and Merrill are about to start auctioning assets to cover the billions in losses...
»www.cnbc.com/id/19330015
"At least a third of what is being shown is pretty esoteric stuff," said [Mark Adelson, managing director of fixed income research at Nomura Securities.] The bulk of collateral appearing on the bid lists are CDOs that are backed by a pool of mortgage bonds, and CDO squareds, which are CDOs of CDOs, similar in concept to a fund of funds, market participants said.
»calculatedrisk.blogspot.com/2007···ale.html
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Kibbles
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Mission Viejo, CA
1 edit | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Well since the Democrats are sort of in power now in DC....and we more than likely will have a Democrat President...what are the possibilities that the Democrats will escape being blamed for the recession? | |
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No_Strings
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| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by Kibbles :Well since the Democrats are sort of in power now in DC....and we more than likely will have a Democrat President...what are the possibilities that the Democrats will escape being blamed for the recession? What are the possibilities we could escape a recession with Democrats in power? Slim to none, in my view. | |
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aztecnology
O Rly?
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join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by No_Strings :said by Kibbles :Well since the Democrats are sort of in power now in DC....and we more than likely will have a Democrat President...what are the possibilities that the Democrats will escape being blamed for the recession? What are the possibilities we could escape a recession with Democrats in power? Slim to none, in my view. said by No_Strings :said by Kibbles :Well since the Democrats are sort of in power now in DC....and we more than likely will have a Democrat President...what are the possibilities that the Democrats will escape being blamed for the recession? What are the possibilities we could escape a recession with Democrats in power? Slim to none, in my view. I agree. I think at this point recession is inevitable...
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dogma
Premium
join:2002-08-15
Boulder City, NV
| The housing crisis spreads to middle-class buyers ^ bumpity bump ^
From today's L.A. Times:
Foreclosures in state hit record high
The housing crisis spreads to middle-class buyers.
The economic outlook ranges from a slowdown to recession.
said by Selected snippets/L.A.Times: »www.latimes.com/news/printeditio···rontpage :
Foreclosures soared to 17,408 for the three months ended June 30, an increase of 799% from the same period last year.
Countrywide Financial Corp...reported a sharp rise in delinquencies, even among customers with good credit.
"All the artificial stimulus housing gave the economy is going to go away,"
"In the beginning, we were thinking the foreclosures were going to be limited to low-income, high-minority neighborhoods targeted by predatory lenders," Cadavid said. "Now we're seeing a shift to the middle class."
Among the hardest-hit areas are Riverside and San Bernardino counties.
...underscored the different fates of the inland communities and coastal cities.
The first "saw housing appreciation due to smoke and mirrors, the other was built on true wealth growth," Davin said. "Business is good on the upper end and bad [for homes] under $700,000, especially in the Inland Empire and Orange County. I expect to see a lot of homeowners in trouble soon."
Aztec & I have been Prophesizing this collapse, and its effect on the economy as a whole for a while, but it seems nobody really cares. | |
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No_Strings
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| Re: The housing crisis spreads to middle-class buyers I care. Not as if I had behaved like my paper profits were real and taken out a second or third mortgage for home improvements or cars or appliances instead of paying cash.
That doesn't mean that I'm immune. It only means I have less to fret over. I still think a soft recovery is possible ... maybe probable. There's still a strong need for housing and the overall economy is in good shape. It's not all doom & gloom.
For some, though, it's time to pay the piper. | |
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CurtesyFlush
Bababooey, fafafooey, tatatoothy.
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join:2002-08-23
Fontana, CA
| said by dogma :Aztec & I have been Prophesizing this collapse, and its effect on the economy as a whole for a while, but it seems nobody really cares. Maybe you're misinterpreting the acceptance of something completely out of Mr. Everyman's hands and sphere of influence for lack of care.
I sure as hell didn't force all those dumbasses into bad loans.
And, as usual, I'm just along for the ride on the economic rollercoaster. I'm neither a mover or a shaker. I simply buy low and hold.
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Re: The housing crisis spreads to middle-class buyers said by CurtesyFlush :said by dogma :Aztec & I have been Prophesizing this collapse, and its effect on the economy as a whole for a while, but it seems nobody really cares. Maybe you're misinterpreting the acceptance of something completely out of Mr. Everyman's hands and sphere of influence for lack of care. I kind of feel that way a lot of the time, but everyone is feeling the effects of the economy or will be. Prices on just about everything are going up and it seems like inflation is just out of control. Hell, I practically dread buying a gallon of milk vs a gallon of gasoline these days...
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jinjimbob
Troy Mcclure
join:2001-11-13 | Democrat almost equals republican in the US, both right of the middle.
You guys in the forum have been saying 'housing bubble pop' for the last two years. | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by jinjimbob :Democrat almost equals republican in the US, both right of the middle. You guys in the forum have been saying 'housing bubble pop' for the last two years. said by jinjimbob :Democrat almost equals republican in the US, both right of the middle. You guys in the forum have been saying 'housing bubble pop' for the last two years. Well, it should have started 2 years ago, but easy credit has extended it for 2 years, which unfortunately means that housing has that much more to fall.
In many cases/neighborhoods in SoCal, housing is already back to 2005 prices...
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aztecnology
O Rly?
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Murrieta, CA | What's everyone's thoughts on the possible grocery workers strike...? | |
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nightdesigns
Gone missing, back soon
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AZ
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| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by aztecnology :What's everyone's thoughts on the possible grocery workers strike...? Not again.
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Stiofan
join:2000-08-21
Post Falls, ID
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by nightdesigns :said by aztecnology :What's everyone's thoughts on the possible grocery workers strike...? Not again. Afterwards can we talk about earthquakes, or maybe how to get out of valid traffic infractions?
I know, I'm bored but at least I didn't mention railroads. | |
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No_Strings
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| Union workers never learn and union leaders never tire of lining their pockets with the blood of the people they purport to represent.
Companies will always look for ways to improve their results by adding top-line revenue (new products or services, new markets, raising prices) or through cutting costs (negotiating favorable tax treatment, lower rents, wage or benefit cuts) while still maintaining an acceptable level of customer satisfaction and employee retention. It's their fiduciary responsibility to do so.
Unions, in an effort to preserve the status quo, create a deliberately hostile environment between companies and their employees. They position themselves as the only alternative for improving wages, benefits or conditions. They take their cut, regardless of the outcome.
Employees in low-skilled jobs will always be at risk. It's ludicrous to think that I should get $50K, medical and 4 weeks vacation scanning bar codes because I've been there for 10 years when the company can train a kid to do it for $10K in a week. Hell, they could train a chimp for that job.
If wages and benefits are not allowed to adjust to market rates, eventually, it collapses. Outsourcing or Wal-Marting or some other phenomenon comes in to fill the gap. Look to Detroit for a wonderful example of what happens when labor unions are empowered.
A strike will result in the same thing it always does - lost revenue, lost wages, lost customers and hard feelings all around. The only winners are the union management. | |
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CurtesyFlush
Bababooey, fafafooey, tatatoothy.
Premium
join:2002-08-23
Fontana, CA
| said by aztecnology :What's everyone's thoughts on the possible grocery workers strike...? The same they were the last time. I'll be crossing the lines to shop if it suits my own interest. I won't do it just to do it, but if I need something from Ralphs that Stater Bros doesn't have, there I'll be. It's the Retail Clerk's fight, not mine. Although, last time I crossed an Albertson's line a couple times just to see what they'd do.
Last time I made some extra dough backing semi trucks up to the docks at a couple of South ORCO supermarkets. The drivers were showing typical mindless union "solidarity" with the RCU strikers, and wouldn't cross the lines to deliver. At the time I still held a valid Class A commercial driving license, so I put it to use.
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HappyBunny
Hi. Cram It.
Premium
join:2001-06-23
Long Beach, CA
·Charter Pipeline
| said by aztecnology :What's everyone's thoughts on the possible grocery workers strike...? My thought is... they apparently didn't learn the first time that their union is not looking out for them. I read an article in the LA Times about a meat cutter for Von's who is *bitching* about his $17.00 an hour job. Um, MSWs (Clinical Social Workers) with a Master's Degree often earn in the $20-22 an hour range.
What part of "you are damn lucky to be earning $17.00 per hour with NO degree or skills" do you not understand, Mr. Meat Cutter?
No sympathy from me--I worked damn hard to get to my not-much-more-money-than-you career. And my job is a damn sight more demanding and difficult, so I will be sure and give you a "friendly gesture" as I cross your picket line. | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| I used to be a member of the UFCW and worked for Ralphs while I was going to school. The only contract that came up during my tenure was negotiated successfully. During the strike a couple years ago I crossed the lines as I needed to at the time and the stores were like ghost towns, but the deals were a plenty. I'm sure I'll be doing the same this time around if they do indeed call for a strike...
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aztecnology
O Rly?
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join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Interesting commentary from Professor Roubini, on the statements made by Bill Gross the head man at Pimco Bonds (the biggest bond fund in the world),on the state of the CDO/Bear Sterns hedge fund shakeout:
“AAA? You were wooed Mr. Moody’s and Mr. Poor’s, by the makeup, those six-inch hooker heels, and a “tramp stamp.” Many of these good looking girls are not high-class assets worth 100 cents on the dollar. .
And sorry Ben, but derivatives are a two-edged sword. Yes, they diversify risk and direct it away from the banking system into the eventual hands of unknown buyers, but they multiply leverage like the Andromeda strain. When interest rates go up, the Petri dish turns from a benign experiment in financial engineering to a destructive virus because the cost of that leverage ultimately reduces the price of assets. Houses anyone?…
»www.rgemonitor.com/blog/roubini/202280
»www.pimco.com/LeftNav/Featured+M···2007.htm
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No_Strings
Premium,Mod
join:2001-11-22
The OC | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Just you wait ... some day I'll be smart enough to understand all that.
You'll see. | |
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CurtesyFlush
Bababooey, fafafooey, tatatoothy.
Premium
join:2002-08-23
Fontana, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc When that happens, I hope you don't mind kicking some of that knowledge down here into the groundlings pit. I have no f'in clue what he's talking about.
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No_Strings
Premium,Mod
join:2001-11-22
The OC | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc First you want chocolate. Now, knowledge. Where does it end?! Wisdom? | |
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CurtesyFlush
Bababooey, fafafooey, tatatoothy.
Premium
join:2002-08-23
Fontana, CA | Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc It never ends. | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| I have not updated this thread in awhile, so some thoughts...
Housing ~
Well, we've hit the all time high for foreclosures recently, with San Berdoo leading the way with 1000% increase from last year.
Gas/Oil ~
This is an interesting one, from my casual observation of my last several fill-ups, prices seem to be holding steady around $2.89 -$2.95, while US reserves are up and the price per barrel is now in the mid $70's and will probably be heading north of $80 in short order.
Financial Markets ~
For every good earnings report, there seems to be two bad ones. The dollar is suffering against the yen and the euro. Subprime woes have spread across to prime, with the major lenders and home builders continuing to suffer. All the while the market just keeps brushing things off and the bulls keep running...
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aztecnology
O Rly?
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Murrieta, CA
·Verizon FIOS
| Did the market tank today or what? Down 500+ points the last two days. It's almost uncanny to read the CNBC blurb today, compared to my initial post yesterday...
"Thursday's sharp decline was sparked by concerns about weak housing, financing for corporate deals, higher oil and unwinding of the Japanese carry trade, a popular financing tool for hedge funds".
»www.cnbc.com/id/19973151
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"Independent thinkers tend to ALWAYS have someone not agreeing with them. It's The non-thinkers that always come in legions." John Callari .:|:. Say no to the IRS Yes to the Fair Tax | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| Yay...more good news 
»www.bloomberg.com/apps/news?pid=···CBB5fqZQ
I also read Countrywide may have a few problems next year....today I read that a large mortgage company is closing tomorrow...and another may in a few days.
Who should I believe....by Monday I have to decide if I want to buy my sisters portions of the house we inherited.
With my current savings I could support myself financially for a year without working....but from several articles I have read...if we did go into a recession...it could be 2+ years before we come out of it. | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| It's been an interesting recent two weeks. The price of a barrel of oil is at all time high's and gas prices at the pump went down 10 cents. The DJIA has given back most of the gains for the year. 2 Bear Sterns hedge funds have officially imploded, and more mortgage lenders are going extinct - »ml-implode.com/
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No_Strings
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| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc Interestingly, most of the employees at AHM didn't see it coming. From the NYT:
Among the 1,400 or so people who lost their jobs here Friday, there were undoubtedly some who understood the macro and micro factors that led American Home Mortgage Investment Corporation, one of the largest and fastest-growing mortgage companies in the country, to crash in a heap this week, even as it was hiring employees by the dozen.
But most of the workers carrying rubber plants and boxes of family photos out of the company’s headquarters were account clerks, appraisers, computer technicians and loan brokers who said they were stunned to find themselves, some after years of employment, on the street with virtually no notice.
»www.nytimes.com/2007/08/04/nyreg···ffs.html
If only they'd been smart enough to read this forum, huh? | |
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| | Lovehound
join:2005-08-18
Northridge, CA
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc "And what makes you think an ant can't,
move a rubber tree plant?
Because they've got high hopes,
High hopes,
They've got high in the
Apple sky high hopes!
They've got high hopes!..."
People are such 'tards... | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA | Cramer " i sold all my real estate"
I wonder if the feds dropped the prime...would there really be a rebound in the real estate/mortgage market? | |
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aztecnology
O Rly?
Premium
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Murrieta, CA
·Verizon FIOS
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by Kibbles :Cramer " i sold all my real estate" I wonder if the feds dropped the prime...would there really be a rebound in the real estate/mortgage market? Nope. Credit has already tightened, and interest rates I think are heading higher regardless of what the fed does.
If you watch the Shiff video above, Bernanke himself says that housing needs to be supported by income, which use to be the standard and will need to be again.
Median incomes do not support median house prices...
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"Independent thinkers tend to ALWAYS have someone not agreeing with them. It's The non-thinkers that always come in legions." John Callari .:|:. Say no to the IRS Yes to the Fair Tax | |
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dogma
Premium
join:2002-08-15
Boulder City, NV
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc
Cheapest house for sale in LA/OC counties - 660 s.f.-borders Compton & Watts - Asking $321K |
said by aztecnology :...Bernanke himself says that housing needs to be supported by income, which use to be the standard and will need to be again. Median incomes do not support median house prices... April 2006 * Median home price in CA increased 13% to $561,350 in March 2006 when compared to a year ago.
From--> »www.empirefresno.com/2006-califo···rice.htm
Median CA Home income April 2006: $49,894
From--> »en.wikipedia.org/wiki/Household_···d_States
The "average" California Household can afford a $182K House per "normal" underwriting guidelines. (This is what aztecnology is talking about). When I searched for a $182K home in L.A. & O.C., this is what i got back from ziprealty:
"Your search didn't find any results.
Please return to the search page and broaden your search criteria." Cheapest I found is pictured above (Didn't search condo's or manufactured homes).
If a household had a $150,000 per year income with no debts, The most house they could afford is $513K, which isn't quite the "median". Below are the calculations on a straight 6% fixed 30-year using the "reality" guidelines of Affordability, with a $50K cash downstroke.
Affordability Calculator Results
From--> »www.homefair.com/mortgage_and_fi···ults.asp
We must use the 30% amount of 3,750.00 for PITI* - because this value is lower than the amount 4,875.00 calculated using the 39% monthly debt value.
*PITI=Principal + Interest + Property Tax + Homeowner’s Insurance
Your interest rate of 6.00% over 30 years means every dollar you pay each month buys you $166.79 of loan.
You stated that Tax and Insurance would total 1.5% of the home value and you will have $50,000.00 to cover your down payment.
Unfortunately your down payment is less than 20% so you must pay Private Mortgage Insurance (PMI). That's an extra 0.78% of your loan each year.
House value: $512,921.61
Loan value: $462,921.61
Monthly Principal+Interest: $2,775.45
Monthly Prop Tax+Insurance: $760.15
Monthly PMI: $300.90
Down Payment: 9.75%
Total in payments per Month: $3,835.00
Closing costs are not included in this calculation.
So the average California household can reasonably afford a home that simply doesn't exist in California - California math. | |
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| | | Lovehound
join:2005-08-18
Northridge, CA
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by dogma :So the average California household can reasonably afford a home that simply doesn't exist in California - California math. And that says it all. If average people can't afford to buy houses then homeowners won't be able to sell them, and if not then supply and demand will cause house prices to drop. Only when houses reach prices that average people can afford will house prices stabilize.
I think that lower rates would help stabilize prices, but that is just not a realistic possibility in my opinion. At least for the short term interest is headed up.
The tightening of lending qualifications make this even more certain, restricting the market to people who can really make the payments instead of the smoke and mirrors lending of the last few years (coupled with very low interest rates).
Interest rates are going up and housing prices are going to continue dropping. It's an inevitable cycle.
BTW that hovel for $321K is a real mind blower! | |
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dogma
Premium
join:2002-08-15
Boulder City, NV
| Re: SoCal & The Economy ~ Financial Markets ~ Housing ~ Etc said by Lovehound :And that says it all. If average people can't afford to buy houses then homeowners won't be able to sell them, and if not then supply and demand will cause house prices to drop. Only when houses reach prices that average people can afford will house prices stabilize. I think that lower rates would help stabilize prices, but that is just not a realistic possibility in my opinion. At least for the short term interest is headed up. The tightening of lending qualifications make this even more certain, restricting the market to people who can really make the payments instead of the smoke and mirrors lending of the last few years (coupled with very low interest rates). Interest rates are going up and housing prices are going to continue dropping. It's an inevitable cycle. BTW that hovel for $321K is a real mind blower! It seems the prime rates will remain the same, we will see tomorrow if the Fed makes any adjustments. Like you say, it's the lending qualifications that turn the lights out on this party we have been having over the past 5 years.
I am guessing this "hovel" (and that's exactly what it is) is priced where it's at because that may be whats owed on it. A neighbor of my mom's, inherited his house when his mother past a few years ago. At that time it was free and clear. This is a guy I grew up with, a confirmed crack head who hasn't had a job in 20 years, was able to borrow $361K against that house.
It is scheduled for foreclosure auction Aug 8. | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| = dogma House value: $512,921.61 Loan value: $462,921.61 Monthly Principal+Interest: $2,775.45 Monthly Prop Tax+Insurance: $760.15 Monthly PMI: $300.90 Down Payment: 9.75% Total in payments per Month: $3,835.00Closing costs are not included in this calculation.
Unfortunately that couple would have qualified for that loan on Friday...but not today. | |
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Kibbles
Premium
join:1999-07-31
Mission Viejo, CA
| Did I mention according to the Chapman Report,it was on a local OC channel this past weekend,that foreclosures in OC are up 90% compared to last year.
BTW there is affordable aka low income housing being built near me.. Aliso Ridge...a 1 bedroom house is 375k...but it is being pushed back 2+ years do to lawsuits by people who do not want it built.
For those who live in OC..."low income" is a family of 1-2 that makes less than 70k a year. | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA | Wow another dramatic down day ~ Down 387!
"Stocks ended sharply lower on renewed fears about credit markets and global liquidity".
»www.cnbc.com/id/20185535 | |
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aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
·Verizon FIOS
| Barometers of the economy:
Wal-Mart Profit Falls Short of Expectations, Slashes Forecast -
Wal-Mart Stores Tuesday posted quarterly sales and profit that fell short of expectations, and lowered its earnings forecast, saying that customers remain under economic pressure.
"It is no secret that many customers are running out of money toward the end of the month," Scott said on a recorded conference call, citing consumer pressures ranging from high gas prices to the U.S. housing slump.
»www.cnbc.com/id/20257856
Home Depot Profit Falls 15% on Weak Housing Market -
Home improvement retailer Home Depot said second-quarter net income fell 15% as sales suffered amid the weak U.S. housing market.
»www.cnbc.com/id/20258230
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"Independent thinkers tend to ALWAYS have someone not agreeing with them. It's The non-thinkers that always come in legions." John Callari .:|:. Say no to the IRS Yes to the Fair Tax | |
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jig
join:2001-01-05
Hacienda Heights, CA
| i was wondering...
i heard the other day that hedge funds are what's loaned the money out to the sub prime borrowers, through banks.
so if someone defaults, do both the borrowers and the hedge funds lose out to the banks? who owns the title after a default, the bank or the hedge fund? does the bank just charge fees both ways and walk away?
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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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