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propertylender.c
1338 Posts |
 Posted - 05/02/2008 : 10:38:53 PM
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in medium prices in Calif.
The California Association of Realtors is forecasting that the median price of a California house will fall 24% this year to $424,000 — a price not seen since 2003
http://lansner.freedomblogging.com/2008/05/02/realtors-forecast-24-price-drop-for-california-houses/#comments |
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UPINARMS
112 Posts |
Posted - 05/02/2008 : 10:50:15 PM
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| I knew half off would be the mean for Calif. Remeber all those "there aint no bubble" guys in 05-06? |
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propertylender.c
1338 Posts |
Posted - 05/02/2008 : 10:52:11 PM
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quote:
Originally posted by UPINARMS
I knew half off would be the mean for Calif. Remeber all those "there aint no bubble" guys in 05-06?
The best one was:
"Get in now before you are priced out."
Oh, and forgot paste this part on:
“This 24% decline just has no precedent,” said CAR Deputy Chief Economist Robert Kleinhenz, who delivered CAR’s latest forecast today at the annual expo at the Disney Hotel by the Pacific West Association of Realtors. He said afterward that association economists still are unsure how much the median home price will fall this year. The 24% drop is CAR’s best figure at this point, he said.
You mean it could actually go lower?
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rtrefflich
3892 Posts |
Posted - 05/02/2008 : 11:43:29 PM
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What are they talking about, the 24% decline happened in the early 90's as well. Homes bought at the top of the bubble in 1988 were selling for half of what they were paid for in 1994. Some people in the high desert in Palmdale were walking away from their home and the bank was giving them away for under $30,000. These are homes that sold for $100,000 in 1988 brand new.
I guess the 24% drop that time was only in So Cal as No Cal only had a 10% drop or so. we were hit real bad when they closed the bases and cut military spending.
quote:
Originally posted by propertylender.com
quote:
Originally posted by UPINARMS
I knew half off would be the mean for Calif. Remeber all those "there aint no bubble" guys in 05-06?
The best one was:
"Get in now before you are priced out."
Oh, and forgot paste this part on:
“This 24% decline just has no precedent,” said CAR Deputy Chief Economist Robert Kleinhenz, who delivered CAR’s latest forecast today at the annual expo at the Disney Hotel by the Pacific West Association of Realtors. He said afterward that association economists still are unsure how much the median home price will fall this year. The 24% drop is CAR’s best figure at this point, he said.
You mean it could actually go lower?
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propertylender.c
1338 Posts |
Posted - 05/03/2008 : 8:31:17 PM
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Know a guy with $850,000 loan and houses about a mile away selling for about $400,000.00.
Palmdale |
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dtabar
814 Posts |
Posted - 05/03/2008 : 9:10:07 PM
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It is probably going to keep dropping until it catches up with income. Which is a good thing. With gas and food high, you can cut hundreds from your mortgage payment!
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loancloser1342
496 Posts |
Posted - 05/03/2008 : 9:24:33 PM
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quote:
Originally posted by propertylender.com
Know a guy with $850,000 loan and houses about a mile away selling for about $400,000.00.
Palmdale
Time for him to walk away. |
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peter
4936 Posts |
Posted - 05/03/2008 : 10:18:09 PM
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My customer is making an offer on a 5 bedroom 3 bath home in Temecula, Riverside,
which is a Countrywide REO for $300,000 while the counter was $499,000. The
house was bought brand new for $672,000 from a builder and owner had put in
$40,000 for landscapes and modelling. According to my customer, it's a georgeous
house that she wants but she won't pay more than $300,000 as she expects prices
to come down. Now, they are $100,000 apart, but by end of this year as more and
more new homes went into foreclosures, she might get her buy price for an equivalent
home.
I wouldn't be surprised that prices could drop by as much as 40% into 2009.
as more and more foreclosures are flooding the market and the financial market
that buys MBS and CDOs backed by residential mortgages still have not shown any sign
of life.
All optimistic vested interests in real estate often forecast that the market
will turn around next year. How can that be with this great magnitude of the
housing problem and the same for the secondary market that backs it up? It will
be at least several years -- into 2010 or even beyond before we see the market
stabilizes. We may not even gain the peak value of 2005 until the next 7 years or
so!
Peter
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monarchdad
1811 Posts |
Posted - 05/03/2008 : 10:35:22 PM
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| On a side note, I saw in the paper this morning that someone comitted suicide by jumping from one of the top floors of the Disneyland Hotel yesterday. The article stated the man was there on business. Now that I have been told there is a Realtor convention there it is starting to make sense. |
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NegAm
562 Posts |
Posted - 05/03/2008 : 11:45:25 PM
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No surprise.
Just a few months ago everyone would be calling you "doom and gloom". Apparently they finally stopped drinking the kool-aid and read the writing on the wall.
Amazing how one minute they claim we've hit bottom and now it's 24% more to go. Brutal.
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cincyloanguy
135 Posts |
Posted - 05/04/2008 : 05:21:01 AM
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| the nar could not have believed home prices could sustain the rate they were on the high appreciating areas. There is no way ever that any commodity such as home, car, food can go up on a long term basis higher than the median income. At some point most people are priced out of the market. The nar is the reason for this monumental collapse. If i were a realtor in florida or california telling people you better buy now before you are priced out of the market i would be in church right now begging god. These people are all greedy fools. There is no housing market that can sustain pricing 80% of the population out of being able to afford housing period. So i will just end in the people losing there housing should not go after a bank or a mortgage broker for the loss of there "home" (I use quotes because if you put nothing down is it really yours?) they should go after the schlep realtor that told them you better take this deal now or in 15 minutes there will be other offers. They new it couldnt last. Any fool knows the rate of appreciation cannot price majority of consumers out of the market and last. |
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CoolMtgGuy
4099 Posts |
Posted - 05/04/2008 : 07:25:03 AM
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"The nar is the reason for this monumental collapse."
This truly is one of the most ignorant statement that I have ever seen on BO.
When buyers are willing to pay the price, and lenders, many through mortgage brokers/originators, are willing to provide the money to fund the deals, you blame the NAR. To my knowledge, a real estate salesperson can never MAKE a buyer agree to buy something they don't want to buy. How about the incompentent and greedy mortgage broker/originator who CHOSE to provide overpriced financing simply to fill their own pockets. I'm sure you are not one of those!
You obviously think otherwise.
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clarenceworley
4358 Posts |
Posted - 05/04/2008 : 07:30:48 AM
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| Time for Lex Luthor to blow the whole left coast up. |
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cincyloanguy
135 Posts |
Posted - 05/05/2008 : 09:44:32 AM
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quote:
Originally posted by CoolMtgGuy
"The nar is the reason for this monumental collapse."
This truly is one of the most ignorant statement that I have ever seen on BO.
When buyers are willing to pay the price, and lenders, many through mortgage brokers/originators, are willing to provide the money to fund the deals, you blame the NAR. To my knowledge, a real estate salesperson can never MAKE a buyer agree to buy something they don't want to buy. How about the incompentent and greedy mortgage broker/originator who CHOSE to provide overpriced financing simply to fill their own pockets. I'm sure you are not one of those!
You obviously think otherwise.
Ok so if the realtors and there associations where realistic and said to buyers the market has seen huge unsustainable appreciation that cannot and will not continue into the near future the many homeowners that rushed to buy before the market "priced them out" (that quote has been used by many realtors) You really think the housing gold rush would have continued? People were buying to cash in and make a windfall. The NAR told buyers buy buy buy it is a hot market and if you dont make a strong offer now there will be 5 others by 5 pm. How can that sustain? lets be realistic. Greed is apart of every field in the world from plumbing to mortgages. But greed from the nar is ridiculous. Want to talk about greedy brokers getting origination fees how bout the 6% tacked on to the sale of real estate. Thats greedy. |
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