When is the Next CA Housing Price Collapse Supposed to Happen? (San Diego: appraiser, bars)

[looker009]

Originally Posted by Gaylord_Focker

What was the drop like in 2008? I think the one drawback of waiting is you’re likely dumping 20-30k in rent for another year. Can there be a ten percent drop? I assume interest rates will rise once things pick back up so the time to buy may be sooner than we think

Home prices drop between 30-35 %

[Gaylord_Focker]

Originally Posted by looker009

Home prices drop between 30-35 %

That would be nice, not sure that will happen this round though.

[looker009]

Originally Posted by Gaylord_Focker

That would be nice, not sure that will happen this round though.

This round will probably be much worse. It's like this was gradual slowdown of economy. We slammed on the brakes and many even turned their engines off. I expect 50%+ drop in price, i also expect many not being able to afford rent etc. I would love to be told you were wrong by people here, but i am not seeing that not happening.

[aslowdodge]

A lot of people think they are in a position to scoop up properties on the cheap. I don’t think many are in as good as a position as they think. If the economy tanks so badly that houses drop as much as they think, theres a good chance their financial position will take a bad hit where buying the house for cash may not be a safe move.
People seem to think the world will crash around them but they will be in the same financial position they are in now. A lot of people will have lost their jobs or their cash, just look at the stock market now. no cash no house. Banks will be very reluctant to loan.

[JGC97]

The difference between then and now is that now people who are already in the foreclosure process will get a reprieve and for those who face the possibility of foreclosure because they lost their job will also get a reprieve. This administration ordered banks NOT to foreclose which is much different than last time. The RE market might may take a slight dip but it won't crash like last time.

[looker009]

Originally Posted by HereOnMars

The difference between then and now is that now people who are already in the foreclosure process will get a reprieve and for those who face the possibility of foreclosure because they lost their job will also get a reprieve. This administration ordered banks NOT to foreclose which is much different than last time. The RE market might may take a slight dip but it won't crash like last time.

Please provide link, I only seen one article on it from npr

[aslowdodge]

I will add it also depends on how confident the banks are that the government will bail them out again and they will come out unscathed. They handled it badly last time but still come out okay while many homeowners got hosed. If they aren’t going to get bailed out I think they will work a lot harder to keep homeowners in their homes.

[Rkstar71]

Originally Posted by aslowdodge

I will add it also depends on how confident the banks are that the government will bail them out again and they will come out unscathed. They handled it badly last time but still come out okay while many homeowners got hosed. If they aren’t going to get bailed out I think they will work a lot harder to keep homeowners in their homes.

Regular monthly payments are a financial institutions bread and butter. One time cash infusions only do so much. I think if this thing goes on long enough, the standards for lending for a property will take somewhat of a dip and get those who previously couldn't have a house into one.

Let's be honest here. There's no such thing as home ownership. The government owns your property while you pay rent to the financial institution or if you don't owe the financial institution anymore you're paying property tax which basically means you're renting from the government.

[cruitr]

This house in San Diego has a great view. However, it's noisy. There's a fwy, major hwy, and 3 pairs of active railroad tracks right below it. Also, the lot is shoe-horned into a cul-de-sac on 1/8 of a acre. You better like your neighbors.

It sold on Sunday. It was on the market for less than 24 hours.

https://www.redfin.com/CA/San-Diego/...7/home/5203033

[aslowdodge]

Originally Posted by Rkstar71

Regular monthly payments are a financial institutions bread and butter. One time cash infusions only do so much. I think if this thing goes on long enough, the standards for lending for a property will take somewhat of a dip and get those who previously couldn't have a house into one.

Let's be honest here. There's no such thing as home ownership. The government owns your property while you pay rent to the financial institution or if you don't owe the financial institution anymore you're paying property tax which basically means you're renting from the government.

The last crisis we had was caused because banks lowered their standards as you are predicting. While a bank makes money on making loans, making loans that will fail that cost them more than what they will potentially make doesn't make sense.