Predictions on the housing market correction?? (Irvine, Orange: sale, crime, mortgages)

[JohnG72]

#1.) The only reason Lasner's blog gets so many comments is because Dumb Texan, whos on like her fifth aka, is either a troll, or is the completely delusional realtard the other posters there accuse her of being. If the only housing supporter was Pink Taco, there wouldn't be near the controversy. But Dumb Texan with her trollish "rodent renters" comments, stirs up peoples anger.

2.) The predictions on the first couple pages of this thread are LOL bad. Flat RE market after the biggest RE run up in history? Really?

[Vascodagama]

Reading Lansner is a big waste of time. About a helpful as lisening to the NRA or anyone in the real estate business.
I think we will still see significant price drops, especially in areas like OC. Prices won't start a real increase for many years.

[JohnG72]

Originally Posted by Don9

Reading Lansner is a big waste of time. About a helpful as lisening to the NRA or anyone in the real estate business.
I think we will still see significant price drops, especially in areas like OC. Prices won't start a real increase for many years.

I def tend to agree, but judging by the few sales still occuring in oc, theres still a small amount of pent up demand from desperate to buy types who are propping the market up a bit.

[rickc007]

Prices got so high due to record low interest rates, thus increasing buying power.

And really "intelligent" loan companies like Ameriquest, that would loan a Million Dollars
to anyone making minimum wage.

Prices got BEYOND what even decent salary earners could comfortably afford.
I wouldn't expect to see those high numbers again for some time.

[chispito]

Originally Posted by JohnG72

I def tend to agree, but judging by the few sales still occuring in oc, theres still a small amount of pent up demand from desperate to buy types who are propping the market up a bit.

I'm not sure how the high end market will hold up, but I can't imagine the county continuing to attract the middle or upper middle class if gas prices spike as has been predicted.

Edit: Let me clarify that. I can't imagine the vast, sprawling developments in the southern most areas continuing to attract the middle class.

[rickc007]

Originally Posted by Sir_Humpalot

So where are they going to move to instead of South Orange County? Santa Ana? A half a buck a gallon more isn't going to have that much effect on where people live.

Austin, Dallas, Houston, Atlanta .....

That way they can stay "middle/upper" class
Once they get into an OC mortgage, they would no longer be middle/upper class

When you have a million dollar mortgage, and your house appraises
for $600k, in most places you would be considered beyond broke

[chispito]

Originally Posted by Sir_Humpalot

So where are they going to move to instead of South Orange County? Santa Ana? A half a buck a gallon more isn't going to have that much effect on where people live.

Well, I guess it depends on where you work and how high gas prices actually are.

[denverian]

Originally Posted by rickc007

Prices got so high due to record low interest rates, thus increasing buying power.

And really "intelligent" loan companies like Ameriquest, that would loan a Million Dollars
to anyone making minimum wage.

Prices got BEYOND what even decent salary earners could comfortably afford.
I wouldn't expect to see those high numbers again for some time.

We sold our condo in Orange in 2005 for a record high in the complex. I knew something was wrong when the last couple years we lived there, illegals were coming in and paying over $350K for a 2 bdr. condo and had no furniture and a junker car. They've all been foreclosed by now, but it was banks' fault that prices went so high and then helped crash the entire economy.

It didn't take a rocket scientist to figure out that when banks started lending to "no credit score, cash-only income" buyers with nothing down ARM loans, it was all going to blow up.

[rickc007]

Originally Posted by denverian

We sold our condo in Orange in 2005 for a record high in the complex. I knew something was wrong when the last couple years we lived there, illegals were coming in and paying over $350K for a 2 bdr. condo and had no furniture and a junker car. They've all been foreclosed by now, but it was banks' fault that prices went so high and then helped crash the entire economy.

It didn't take a rocket scientist to figure out that when banks started lending to "no credit score, cash-only income" buyers with nothing down ARM loans, it was all going to blow up.

I remember realtors telling me ....
Put zero down ...
Don't make a single payment for 2 years ... (although, you kind of have to ...but)
Wait 2 years, flip it, pay your debt, walk away with a couple hundred grand profit,
after living 2 years for free...

In theory, if you purchased in 2001, 2002, 2003
You could have pulled this off easy
Not a bad idea

However ... when the wall came crumbling down
I knew "bright people" that got caught up in the 0 down, Low ARM
La Grande El Scewed

[denverian]

Originally Posted by rickc007

I remember realtors telling me ....
Put zero down ...
Don't make a single payment for 2 years ... (although, you kind of have to ...but)
Wait 2 years, flip it, pay your debt, walk away with a couple hundred grand profit,
after living 2 years for free...

In theory, if you purchased in 2001, 2002, 2003
You could have pulled this off easy
Not a bad idea

However ... when the wall came crumbling down
I knew "bright people" that got caught up in the 0 down, Low ARM
La Grande El Scewed

Yeah, it would have worked perfectly those years lol! We bought our condo in 1999 and sold in 2005. We practically paid cash for twice the space in Denver.