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Old 05-10-2011, 06:26 AM
 
5,113 posts, read 4,943,283 times
Reputation: 1728

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Zillow released its Q1 2011 Real Estate Market Report

First Quarter Home Value Declines Match Worst of Housing Recession; Bottom Unlikely to Appear Before 2012

Home Values Show Sharpest Quarterly Decline Since 2008; Negative Equity Rises to 28.4% According to Q1 2011 Zillow® Real Estate Market Reports

Key facts:

- U.S. home values posted their largest quarter-over-quarter decline since Q42008, falling 3 percent. Home values have fallen 29.5 percent from their peak in June 2006.

- Negative equity reached a new high with 28.4 percent of all single-family homes with mortgages underwater, up from 27 percent in Q4 2010, due to accelerating home value declines.

5 California cities are listed
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Old 05-10-2011, 08:29 AM
 
2,311 posts, read 2,883,136 times
Reputation: 1217
Quote:
Originally Posted by Don9 View Post
Zillow released its Q1 2011 Real Estate Market Report

First Quarter Home Value Declines Match Worst of Housing Recession; Bottom Unlikely to Appear Before 2012

Home Values Show Sharpest Quarterly Decline Since 2008; Negative Equity Rises to 28.4% According to Q1 2011 Zillow® Real Estate Market Reports

Key facts:

- U.S. home values posted their largest quarter-over-quarter decline since Q42008, falling 3 percent. Home values have fallen 29.5 percent from their peak in June 2006.

- Negative equity reached a new high with 28.4 percent of all single-family homes with mortgages underwater, up from 27 percent in Q4 2010, due to accelerating home value declines.

5 California cities are listed
Affordable is affordable .. I'm not even considering buying a house until its a decent multiple of my income... funny how prices normalize when you don't have myriad monkeys running around w/ credit/financing they dont deserve.
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Old 05-10-2011, 09:51 AM
 
Location: Monterey County, CA
5,481 posts, read 12,323,976 times
Reputation: 5812
Quote:
Originally Posted by yeahthatguy View Post
Affordable is affordable .. I'm not even considering buying a house until its a decent multiple of my income... funny how prices normalize when you don't have myriad monkeys running around w/ credit/financing they dont deserve.
Yeah, but the definition of affordability is different for many in CA. Many people are still deciding to buy 40-50+ year old smallish, broken down homes for $500K+ on middle class incomes. Then turning around and spending $1000s more in attempts to repair, update/modernize these poorly designed homes. I see my coworkers doing this left and right. Every week there is a new story of fixing broken pipes, replacing the roof, tearing out the old kitchen to modernize it, taking out a wall to increase living space, etc...

As a native after moving out of state to CO, buying a nice, newer home for a reasonable price, then moving back to CA I still can't get myself to buy here. It's a tough pill to swallow.

I'm not complaining in that I knew exactly what moving back to CA meant in terms of Real Estate prices. It's has been and still is ridiculously overpriced for what I would get for my hard earned $. It's real estate 101 - location, location, location. Unfortunately or fortunately, depending on how one looks at it, the prices are still dropping.

For now we're enjoying leasing a home in a great location for a fraction of the mortgage while not having to pay for all the repairs the homes needs on a regular basis. I rarely visit Home Depot since sellling our home in CO and moving back here.

I still agree with Patrick.net for our family: Housing Market News


http://www.irvinehousingblog.com/images/uploads/01%202011%2002%20Posts/pot%20of%20crap.jpg (broken link)

Derek

Last edited by MtnSurfer; 05-10-2011 at 10:18 AM..
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Old 05-10-2011, 10:26 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 19,136,126 times
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And we all know how accurate the "zestimates" are.

"(2) The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level is calculated using a weighted average of the median home value for each county and includes data from 440 metropolitan statistical areas. It is expressed in dollars and is for a particular geographic region."
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Old 05-10-2011, 10:48 AM
 
Location: Monterey County, CA
5,481 posts, read 12,323,976 times
Reputation: 5812
Quote:
Originally Posted by DMenscha View Post
And we all know how accurate the "zestimates" are.

"(2) The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level is calculated using a weighted average of the median home value for each county and includes data from 440 metropolitan statistical areas. It is expressed in dollars and is for a particular geographic region."
Agreed, Zillow is typically a day late and a dollar short with regards to their zestimates. As a former Real Estate Appraiser I found zestimates to be a joke. No one in the industry takes these seriously.

However this a quarterly market report looking at general market trends and statistics from existing data. There have been other indicators showing similar trends state and nation wide.

Derek
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Old 05-10-2011, 11:12 AM
 
2,311 posts, read 2,883,136 times
Reputation: 1217
Quote:
Originally Posted by MtnSurfer View Post
Yeah, but the definition of affordability is different for many in CA. Many people are still deciding to buy 40-50+ year old smallish, broken down homes for $500K+ on middle class incomes. Then turning around and spending $1000s more in attempts to repair, update/modernize these poorly designed homes. I see my coworkers doing this left and right. Every week there is a new story of fixing broken pipes, replacing the roof, tearing out the old kitchen to modernize it, taking out a wall to increase living space, etc...

As a native after moving out of state to CO, buying a nice, newer home for a reasonable price, then moving back to CA I still can't get myself to buy here. It's a tough pill to swallow.

I'm not complaining in that I knew exactly what moving back to CA meant in terms of Real Estate prices. It's has been and still is ridiculously overpriced for what I would get for my hard earned $. It's real estate 101 - location, location, location. Unfortunately or fortunately, depending on how one looks at it, the prices are still dropping.

For now we're enjoying leasing a home in a great location for a fraction of the mortgage while not having to pay for all the repairs the homes needs on a regular basis. I rarely visit Home Depot since sellling our home in CO and moving back here.

I still agree with Patrick.net for our family: Housing Market News




Derek
Agree 100% w/ you Dereck. I refuse to buy something that isn't a specific multiple of my income and I'm not going to work 12-14 hour days in order to make that income.... Thus, if that principal requires me to move, so be it. Having grown up outside of CA and having had a wonderful childhood, education, and experiences, I think my kids/family will be just fine if I decide to locate elsewhere...
And I observe the same thing amongst co-workers.. Namely immigrants who don't know any better and are used to struggling to have a good life...
I think its laughable but hey .. they're happy ... Seeing a guy in his late 40s w/ two kids and a wife .. who both make six figures a year have to take out an arm mortgage to afford a home.. I think that's just sad and am not foolish enough to follow down that path.
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Old 05-10-2011, 12:26 PM
 
833 posts, read 954,507 times
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On the other side of the coin, I was watching the news last night and there was a report on how experts are expecting double digit % increases in rents in the bay area this coming year. This due to the improved job market, tight lending standards, people opting to rent vs buy due to the recession etc. Its being compared to the 1999-2000 tech boom, when the rental market was redhot. If you're a renter in the bay area hang on tight, looks like a helluva ride.
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Old 05-10-2011, 12:44 PM
 
Location: Monterey County, CA
5,481 posts, read 12,323,976 times
Reputation: 5812
Quote:
Originally Posted by RCLL View Post
On the other side of the coin, I was watching the news last night and there was a report on how experts are expecting double digit % increases in rents in the bay area this coming year. This due to the improved job market, tight lending standards, people opting to rent vs buy due to the recession etc. Its being compared to the 1999-2000 tech boom, when the rental market was redhot. If you're a renter in the bay area hang on tight, looks like a helluva ride.
It's going to be a hellava ride for everyone including home owners with dropping home values. There have been forecasts of a second mortgage crash/meltdown this year with ever increasing foreclosures already happening.

Derek
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Old 05-10-2011, 12:54 PM
 
5,113 posts, read 4,943,283 times
Reputation: 1728
Quote:
Originally Posted by RCLL View Post
On the other side of the coin, I was watching the news last night and there was a report on how experts are expecting double digit % increases in rents in the bay area this coming year. This due to the improved job market, tight lending standards, people opting to rent vs buy due to the recession etc. Its being compared to the 1999-2000 tech boom, when the rental market was redhot. If you're a renter in the bay area hang on tight, looks like a helluva ride.
In the bay area I can believe it but not in other metro areas of CA. Here in OC the rents are heading south, has been for a few years, and still we have high vacancies. The real estate sector has been using these scare tactics forever and continue to this day. I also sold my house, cashed out, in early 2007 and don't plan on buying any time soon. I probably won't buy in CA again. I also rent a house close to the ocean at a fraction of the cost if I purchased. House prices in CA have a long way to go and with the growing foreclosures and rotting economy the values/prices will continue to fall.
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Old 05-10-2011, 01:19 PM
 
2,093 posts, read 3,927,886 times
Reputation: 1094
I'm not surprised at the latest development and I'm not fazed either. When I bought my new construction home almost a year ago, I made sure that the final sales price and the mortgage loan was well within my budget as a single homeowner. I had realistic expectations about my purchase. Not being underwater in mortgage in 5 years was much more realistic than trying making profit from the home purchase.

We live in a society when Americans are confusing with home ownership as primary investments -- when education and jobs are much more valuable in the long term.
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