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Old 03-04-2008, 06:09 PM
 
134 posts, read 562,410 times
Reputation: 63

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Do to the fact RE prices are down 20 to 50% in LA what are people going to do when they can no longer borrow against their homes to live ? How many people have their paymants double recently and have to sell the Hummer.Any RE people or MTG BRKRS care to tell how they are making their ends meet?
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Old 03-04-2008, 10:53 PM
 
Location: Santa Barbara
642 posts, read 3,073,179 times
Reputation: 454
Thumbs up Still Livin' the Good life

Share my story . . . well the most recent is that my neighbor one street over listed his home which he purchased I believe for $2.1 million last year. He had to go back up north for job reasons and needed to sell. 2 days after listing it sold for $2.25 million (asking).

Now I am no math genius per say but ain't nothing going down there except some serious fat cash down into his wallet.
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Old 03-04-2008, 10:56 PM
 
11,715 posts, read 40,455,391 times
Reputation: 7586
Quote:
Originally Posted by fairweathergolfer View Post
Share my story . . . well the most recent is that my neighbor one street over listed his home which he purchased I believe for $2.1 million last year. He had to go back up north for job reasons and needed to sell. 2 days after listing it sold for $2.25 million (asking).

Now I am no math genius per say but ain't nothing going down there except some serious fat cash down into his wallet.
After transaction costs, he probably lost money.
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Old 03-04-2008, 11:31 PM
 
105 posts, read 482,437 times
Reputation: 53
Quote:
Originally Posted by EscapeCalifornia View Post
After transaction costs, he probably lost money.
Can always count on you EscapeCalifornia to rain on somebodies parade. LOL Ur a riot though. Any luck on "escaping"?? I've been here (IE) for about a week now and aside from being bored I like it here.
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Old 03-04-2008, 11:36 PM
 
11,715 posts, read 40,455,391 times
Reputation: 7586
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Originally Posted by ChocolateTae View Post
Can always count on you EscapeCalifornia to rain on somebodies parade. LOL Ur a riot though. Any luck on "escaping"?? I've been here (IE) for about a week now and aside from being bored I like it here.
Tell me how my statement is wrong.

Wow a whole week. Well that really makes you an expert on Southern California.
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Old 03-04-2008, 11:43 PM
 
105 posts, read 482,437 times
Reputation: 53
Quote:
Originally Posted by EscapeCalifornia View Post
Tell me how my statement is wrong.

Wow a whole week. Well that really makes you an expert on Southern California.
Well I don't recall ever saying that your statement was wrong. I basically said we could always count on you to post something negative in a thread. Now tell me THAT statements wrong!

I was also just sharing the fact that I finally moved and that I'd been here for a week. I never said I was an expert on Southern California just because I'd been here a whole week either. You're such a mean miserable man but funny. Sharpen those reading comprehension skills too.
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Old 03-04-2008, 11:48 PM
 
11,715 posts, read 40,455,391 times
Reputation: 7586
Well if reality is negative, sorry, that's life in the real estate market right now. Your outlook on life in SoCal might change after you've been here a while.
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Old 03-05-2008, 01:52 AM
 
98 posts, read 325,512 times
Reputation: 34
Quote:
Originally Posted by fairweathergolfer View Post
Share my story . . . well the most recent is that my neighbor one street over listed his home which he purchased I believe for $2.1 million last year. He had to go back up north for job reasons and needed to sell. 2 days after listing it sold for $2.25 million (asking).

Now I am no math genius per say but ain't nothing going down there except some serious fat cash down into his wallet.
WOW i would guess youre in a beach area with those numbers!!

at any rate that is awesome!!!
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Old 03-05-2008, 07:55 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,771,454 times
Reputation: 17831
Quote:
Originally Posted by desertdawgx View Post
Do to the fact RE prices are down 20 to 50% in LA what are people going to do when they can no longer borrow against their homes to live ? How many people have their paymants double recently and have to sell the Hummer.Any RE people or MTG BRKRS care to tell how they are making their ends meet?
Back to the original post...

The figure below (from the Case Shiller Home price Index through 2/2008) shows a decline but not close to 50% for Los Angeles. Maybe some areas are appraching 50%, but man 50% is lot of loss.

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Old 03-05-2008, 09:04 AM
 
1,786 posts, read 6,900,343 times
Reputation: 1757
I was captivated by the title of this thread as I thought the OP was referring to crashes in the past. This one is different as it's been driven by greed. Greed on the part of those who had no business (or money) to purchase a home. And greed on the part of financial institutions who threw all sanity into the wind and handed mortgages to anyone who was breathing. Here's my historical perspective:

I purchased my home in 1991, with a jumbo mortgage (11%!) and private mortgage insurance since the proceeds from my prior home didn't quite address the 20% down. Within 2-years, my home was appraised at 30% less than the purchase price. Did I panic? No. Did I know that the values would, eventually, increase? Yes. Did I consider walking away? Never.

Fast forward 17-years. I now have $800K in equity. My current house payment for my 5BR/2-1/2BA is less than a 2BR/2BA rental in the nice areas of LA.

What's the point? There are historical swings in the real estate and mortgage markets. What's changed is attitude. An article in the LA Times, this past weekend, spoke of people not paying their mortgages but, instead, paying their minimum charges on their credit cards so that they would still be able to purchase "necessities."

Yes, there are many who are in a bad spot due to unforeseen circumstances. But there are many more who are in the same bad spot because they looked at a house as a short term investment that was going to turn a quick profit. So they made a brain-fog decision to throw all reasonable financial thought out of the window.

It's sad, but it's right in line with the thoughtless, "Me" times in which we live. Stepping off of the soap box now.
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