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Old 10-20-2008, 12:00 PM
 
Location: West, Southwest, East & Northeast
3,463 posts, read 7,281,702 times
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I don't have a link but MSNBC just reported that medium real estate prices in Southern California have fallen from a high of $550,000 to $308,500. Wow! That's a 44% drop! And experts predict yet another 10% - 15% or greater decline. That just shows how inflated the So. CA housing market really was.
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Old 10-20-2008, 02:49 PM
 
Location: NC close to the MTs and near the lakes.
2,766 posts, read 5,506,519 times
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Quote:
Originally Posted by Kooter View Post
I don't have a link but MSNBC just reported that medium real estate prices in Southern California have fallen from a high of $550,000 to $308,500. Wow! That's a 44% drop! And experts predict yet another 10% - 15% or greater decline. That just shows how inflated the So. CA housing market really was.
Daughters house that was selling for a bit under $600,000 is now selling for a bit over $400,000 and two foreclosers just came on the market. She lives in the SF bay area so it is in many parts of CA. I did look up one of our old homes a town over from daughter and that is holding its own. The other two that we had bought have come down though.
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Old 10-20-2008, 03:13 PM
 
Location: Carlsbad
105 posts, read 681,410 times
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Default GREAT news!!

I hate to say it, because I do feel bad for those in the "seller" market.....but...this is perfect timing for me, as I would like to be buying in the next few years....so....YIPEE!!!!!

: )
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Old 10-21-2008, 07:38 AM
 
5,458 posts, read 6,693,734 times
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Here's the press release : http://www.dqnews.com/News/Californi...SCA081020.aspx

Interesting quote :

Quote:
Fifty percent of all existing homes that closed escrow in September had been foreclosed on at some point in the prior year. That's up from 45.5 percent in August and 12.6 percent in September last year.
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Old 10-22-2008, 12:57 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,221,675 times
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It may also be because the low end homes are selling and the higher end homes aren't which would lower the median price. I'm not a SoCal follower, so I am just posing a possible scenario.
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Old 10-22-2008, 05:22 PM
 
945 posts, read 1,981,417 times
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Quote:
Originally Posted by DMenscha View Post
It may also be because the low end homes are selling and the higher end homes aren't which would lower the median price. I'm not a SoCal follower, so I am just posing a possible scenario.

Nooooo, you're kidding, some rational possibility in someones opinion? It can't be, no good news or explanation allowed. But thanks for trying anyway. I, for one, appreciate it. I'm sure others do to. And don't worry about not living in SoCal- many feel they are experts in all areas of the U.S., no matter where they live, because they read ALLLL about it. Just ask North Carolina- KC. . Seriously, I hope California has better days ahead, they all deserve it. And lets hope some of them are getting that chance to buy a home again. It sounds like the "foreclosure" situation in their state has a life of its own. One man's misfortune is another's gain. But still the unknown question- are they at bottom? Who knows, at this point! For everyone's sake and the sake of the economy, We should all hope so. I think it's "fallen" enough. Seems the government does too as they propose to "stablize things" where real estate is concerned.
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Old 10-22-2008, 05:43 PM
 
Location: Mesa, Az
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Next door here in Arizona the market has imploded as well----------well over 25% down thus far.
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Old 10-22-2008, 06:37 PM
 
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Quote:
Originally Posted by ArizonaBear View Post
Next door here in Arizona the market has imploded as well----------well over 25% down thus far.

I know, and I wish you the same good luck(that the market starts the "upswing"). I hope it turns around for AZ too!! A beautiful place indeed. We love Scottsdale. Take care.
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Old 10-23-2008, 02:12 AM
 
Location: Los Angeles Area
3,306 posts, read 4,131,693 times
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Quote:
Originally Posted by DMenscha View Post
It may also be because the low end homes are selling and the higher end homes aren't which would lower the median price. I'm not a SoCal follower, so I am just posing a possible scenario.
This is true to a degree. The lower end houses have dropped in some cases around 40%, but the more higher end houses have only dropped around 20~25%. So the dramatic change in the median is partly caused by a change in the distribution of sales.

But, really the higher end houses aren't selling because they are too expensive. So in time they will come down too, these people just have a bit more staying power. Of course the coming increase in Alt-A resets will help prices in higher end houses come down too.

Quote:
Originally Posted by fairmarketvalue View Post
But still the unknown question- are they at bottom? Who knows, at this point! For everyone's sake and the sake of the economy, We should all hope so. I think it's "fallen" enough.
Under what standard has "fallen" enough? From where I'm sitting (you know...here in California) it hasn't fallen enough. Although, there are some areas that have already declined around 40% and therefore closer to being near bottom most areas are about mid-way threw their declines.

In most areas in California a family with a median income still can't afford a modest house. And here I mean a truly modest house, not a huge house in one of the nicer communities. Just a modest house in a relatively safe neighborhood. Where I am, the cheapest you can find a house is around $260,000 and that is run down foreclosure. So, unless half the population is going to start renting then prices in California have not "fallen enough".

Anyhow, prices have not bottomed in California. The decline is around 60% finished at this point, but that isn't accounting for the coming recession. If the recession is bad then prices will decline even more.

Last edited by Humanoid; 10-23-2008 at 02:28 AM..
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Old 10-23-2008, 06:59 AM
 
945 posts, read 1,981,417 times
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Quote:
Originally Posted by Humanoid View Post
This is true to a degree. The lower end houses have dropped in some cases around 40%, but the more higher end houses have only dropped around 20~25%. So the dramatic change in the median is partly caused by a change in the distribution of sales.

But, really the higher end houses aren't selling because they are too expensive. So in time they will come down too, these people just have a bit more staying power. Of course the coming increase in Alt-A resets will help prices in higher end houses come down too.


Under what standard has "fallen" enough? From where I'm sitting (you know...here in California) it hasn't fallen enough. Although, there are some areas that have already declined around 40% and therefore closer to being near bottom most areas are about mid-way threw their declines.

In most areas in California a family with a median income still can't afford a modest house. And here I mean a truly modest house, not a huge house in one of the nicer communities. Just a modest house in a relatively safe neighborhood. Where I am, the cheapest you can find a house is around $260,000 and that is run down foreclosure. So, unless half the population is going to start renting then prices in California have not "fallen enough".

Anyhow, prices have not bottomed in California. The decline is around 60% finished at this point, but that isn't accounting for the coming recession. If the recession is bad then prices will decline even more.
Hey Humanoid,

Do you know what the forcasted total % is expected in drops from peak prices in CA? I think they are down 25-40%, overall, depending on the area. For the ones that have fallen 40%, is it because they were that overprice to begin with? (I agree it probably was) and if so, do they have another 20-30% to go as predicted? If so, this would mean many homes at 70% off of peak by the time it's over. Is this realistic and were prices really 70% off from norms? I am honestly just curious, not argueing as I don't know. I only know that CA was way out of wack where prices were concerned so am wondering what you think.
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