Rents on the rise as home prices slip - La Times Article (Los Angeles: section 8, sales)

[Atlantasfinest]

Very interesting article in the LaTimes... As a condo owner (Fox Hills/Culver City, purchased in the early 90's & deeded to me) who's not looking to sell I don't mind the housing slump because I have a plethora of renters and can charge what I want. But to others who are looking to rent and people who are lookign to seel in overbuilt places like the IE and other outyling areas I'm sure they are hurting.

Rents on the rise as home prices slip - Los Angeles Times

[sabungero]

If one can afford a high rent...then he or she can afford a mortgage

[LaoTzuMindFu]

Originally Posted by sabungero

If one can afford a high rent...then he or she can afford a mortgage

Your absolutely right. Ive been renting out my Sherman Oaks condo for a while and make a fairly nice profit on it each month. It amazes me that people are willing to pay me what really is a high rental rate just so they can say "I live in Sherman Oaks". I guess some people really arent financially savvy. They are sooooo concerned with "status" and/or materialistic things and "short term" thinking that they would rather pay more to rent, than less to own.

I'll never understand it. But then again, these are the same geniuses who are sooo concerned with how they look they tend to wear their sunglasses INDOORS!!!

[desertdawgx]

Buying RE now in LA is the worst investment possible, prices are now in free fall and will drop 50% over the next few years so maybe they are very smart.

[JackSparrow]

Buying RE now in LA is the best investment possible, prices are now in a holding pattern in the nice areas and won't drop over the next few years- so maybe they aren't very smart.

[LaoTzuMindFu]

Originally Posted by JackSparrow

Buying RE now in LA is the best investment possible, prices are now in a holding pattern in the nice areas and won't drop over the next few years- so maybe they aren't very smart.

The only places that are good to buy right now are Downtown LA lofts and Woodland Hills. Downtown is definately up and coming and Woodland Hills will soon have a Grove type outdoor mall/shopping that will connect Westfield in Canoga Park with the Woodland Hills plaza along Topanga Canyon.

[desertdawgx]

Those downtown lofts will all be section 8 housing in a few years.Sales are down more than 50% in LA and prices are falling and will for many years.

[UB50]

I see falling prices for a lot of years too. Sorry.

All you have to look at is the average household income and the average house price. Household income X3 = house price. Until the two match up, prices will fall and salaries will go up.

[greggd]

I cant speak for low mid class areas and below. But, in nicer parts of town Apartment Construction is big right now and has been over the past few years as builders have slowed down on condo development.

There is much demand, especially in areas where real estate is expensive.

If you cant own in west la the alternative is to rent there. Inventory sits longer but is still selling.

[sponger42]

The sales rate in the SFV is in free-fall. It's down 70% below the historical average. Just before the crash of the early 90's, sales rates bottomed out at 64% below the historical average.

Reality has been denied as long as it can be. These next few years will be catastrophic for anyone who bought or leveraged their property after 2003. This real-estate crash will be the worst ever seen in living memory.