Here's recent history of the Fed’s policy committee and its Fed Funds rate. Next Fed decision is June 24/25.
Only 4 O.C. ZIPs see home sales gains in late Feb.
March 7th, 2008, 12:00 am · 186 Comments · posted by Jon Lansner/O.C. Register columnist
Latest home-selling stats from DataQuick for 22 business days ended Feb. 22 show that only four O.C. ZIPs out of 83 with buying activity above the year-ago period: Orange 92867; Villa Park 92861; Huntington Beach 92647 and Dana Point 92624. All told, those four ZIPs had just 65 sales. (More ZIP info is HERE!)
Overall, countywide sales in this most current period were 45% below a year ago. No doubt February was the 29th straight month with sales below the year-ago mark. And pricing is still weak; off 16% from a year ago and down 20% from last June’s peak.
Here’s how the key slices are faring …
| Slice | Price | Vs. ‘07 | Sales | Vs. ‘07 |
|---|---|---|---|---|
| House | $575,000 | -14.2% | 916 | -42.7% |
| Condo | $369,000 | -18.9% | 351 | -44.5% |
| New* | $562,000 | -2.0% | 175 | -56.0% |
| All | $515,000 | -16.3% | 1,442 | -45.2% |
* Includes single-family homes, condos and recently converted apartments
• COMPARE: CLICK HERE to see how other home-price indexes see O.C.
March 7th, 2008 at 6:19 am
Per DataQuick, Single Family Median Home Price:
2007
06/26= $735,000
06/30= $734,000
07/12= $725,000
07/17= $725,000
07/25= $720,000
07/31= $718,000
08/07= $719,000
08/15= $712,750
08/22= $710,000
08/30= $710,000
09/11= $700,000
09/14= $689,000
09/21= $675,000
09/26= $670,000
09/30= $655,000
10/12= $655,000
10/16= $660,000
10/23= $655,000
10/31= $650,000
11/08= $645,000
11/14= $645,000
11/20= $645,250
11/27= $649,000
11/30= $655,000
12/10= $640,000
12/14= $634,000
12/27= $610,000
12/31= $600,000
2008
01/07= $600,000
01/15= $595,000
01/23= $595,000
01/31= $583,250
02/07= $585,000
02/13= $575,000
02/22= $575,000
March 7th, 2008 at 6:31 am
The Commerce just reported the U.S. LOST 63,000 last month and the revised down the previous 2 months.
The U.S. economy needs at least 125,000 new jobs every single month just to keep up with population growth. Instead it lost 63,000.
I guess some of us bears (realistic) have been right.
But, don’t worry. Orange County is inmune to all this (according to the permabulls).
Yeah, right
http://www.nationalbubble.com/the-us-lost-63000-jobs-in-february/
March 7th, 2008 at 6:41 am
Things are really starting to pick up?
Hurry up and buy so you can get priced IN !
Lock in that purchase price HIGH baby HIGH !!
Be 20% underwater in 2 years, BUY NOW !!!
March 7th, 2008 at 6:45 am
Holy Crap, Fraudera Ranch took an absolute beating:
Ladera Ranch $500,000 -27.0% YOY
March 7th, 2008 at 6:46 am
Is the foreclosure “CRISIS overblown? Here’s a link to an MSN Money article that would suggest so.:
http://articles.moneycentral.msn.com/Banking/HomeFinancing/ForeclosureCrisisIsOverblown.aspx
Strangely different numbers than we’ve been seeing here - for one BIG reason. In the US 30% of ALL houses are owned free and clear - that means no mortgage to you youngsters.
The 2% of all US houses in foreclosure stat that has been promoted heavily here by the bad news bears, is ACTUALLY less than 1%. ( The 2% figure was based only upon the houses that have a mortgage.)
Anyway, it’s an eye-opening article, especially in view of the steady barrage of negativity wrought by the “bubble” heads who occupy the majority of space on this blog, at least until I got here, LOL.
March 7th, 2008 at 6:47 am
A lot of Bears post negative article after negative article, as links to bubble reports dot com, and the like. Here’s a positive article from an unexpected source. Sorry, the link required a password, so I cut and pasted this recent article from Time Magazine:
“Ignore the Headlines! Except this one. Sure, housing’s in a hole. But there’s a potent case for buying now, whether it’s real estate or stocks
By Dan Kadlec February 14, 2008
Famed Money Manager Peter Lynch is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.
That’s no easy thing. How do you tune out all the chatter and ink on recession,housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It’s enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?
There has rarely been a moment in history when you couldn’t scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, “in spite of all the great and minor calamities that have occurred … all the thousands of reasons that the world might be coming to an end–owning stocks has continued to be twice as rewarding as owning bonds.”
A top reason to not buy stocks, in Lynch’s view, is if you don’t already own a home–in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me–housing debacle and all.
When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, “The way to make money is to buy when blood is running in the streets.”
And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already–or we may avoid one altogether. You just never know.
As for housing, certainly some skepticism is in order. Formerly sizzling markets in
Florida, Nevada, Arizona and California probably haven’t seen the worst headlines just yet, though they may well be close. And “jumbo” mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.
But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.
It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever–and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers.
But that’s exactly when you should think long term–and get off your thumbs.” End of article.
March 7th, 2008 at 6:54 am
Wow, things are reeeally picking up out there. I’m sure the NAR would tell you so…
March 7th, 2008 at 6:58 am
Foreclosures that I am familar with either have “investors” that removed “equity” from their houses. Or, have had a divorce. Tell me, when are the “investors” going to be held held accountable for sticking banks with hundreds of thousands of dollars per house in bad debt? Of course, the “investors” are giggling because so many of them did it that nothing can be done about it.
March 7th, 2008 at 6:59 am
I’d rather have a lower principal with higher interest than the other way around if the payment was the same. That way if you decide to overpay you have less of a principal to pay down.
March 7th, 2008 at 6:59 am
Dood,
“You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage.”
That inevitable rise in interest will actually serve as an advantage in the future.
Home prices will drop further due to rising interest rates. Monthly payments might be the same due to higher interest rates but property taxes will be lower for the length of ownership and the tax deduction will be greater for the same monthly payment level.
Furthermore if you buy now before interest rates go up, the house will become a ball and chain to your life style. You will be locked into the home when the inevitable home price drops continue as interest rates go up.
Interest rates in 2 years are going to absolutely shock the current bulls on this board.
March 7th, 2008 at 7:20 am
“But what, exactly, are you waiting for?”
Well, how about waiting for any meaningful signs that the economy is stabilizing before jumping into a declining housing market?
Obviously, the US losing 65,000 jobs in just one month is not really encouraging. The record foreclosures reported yesterday doesn’t help either.
You got to be out of your mind to jump in now when every single economic indicator out there is pointing negative. This is not the time to be a hero. The people who have waited to buy during the past couple of years have been rewarded. As an example, there was NOT one single listing for a SFR 3bed 3bath in Huntington Beach for less than 600K in September 2005. Now there are 57 listings. You probably say: “well, that is a sign to buy now”. No, because all economic indicator are telling me that they will most likely be 100 listings or more for under 600K by the end of the summer.
If you wait, what is the worst thing that can happen? You miss the exact bottom. So, what? Prices are not going to go up like they did during the boom for several years. So if you miss the exact bottom, maybe you’ll pay 5% more. Big deal. You’ll see plenty of sign sthat the market is stabilizing when we get there.
The people who followed your advice back in 2005 of “always a great time to buy” are now underwater. You and the other realtors only care about keeping the market overpriced. Real people are losing their homes in record numbers and that is not gloom and doom. That is just reality. Go to Santa Ana and Westminster and see all the REOs and tell the former owner that it is always a great time to buy.
There will be a good time to buy but not for another year or two.
March 7th, 2008 at 7:51 am
Looks like that “uptick in sales” that the bulls wishfully reference as evidence of a bottom is doing nothing but lowering the comps. Classic dead cat bounce. This train wreck will continue unabated for at least two more years.
Question to the bulls: has there ever been a time when it was not a “great time to buy”?
March 7th, 2008 at 7:59 am
there were many times in the past when the peak of the housebubble was called only to be proven false. so now the bottom will also be called many times until in retrospect, it is finally confirmed. but there is one simple rule to follow that will tell you where the bottom is; it’s the 7-10 years rule. peak in 2005, so bottom is in 2012-2015.
March 7th, 2008 at 8:02 am
dood & crew,
It’s astonishing that these articles make it through and that some people just don’t get it. Some bullish folks try to imply bloggers pressed for a bubble and are causing it or extending it… the bubble is what it is, just accept it.
The article is a complete mess, trying to equate buying some equities on the way down with buying a house. Guess what, I have put about $5K to work in the stock market in the last two weeks, adding little bits at a time (and yes, most are down). So what, now I’m supposed to go do the same with a house with $500 or $600 or $700K??? Childish and uneducated argument. Just because prices are falling does not make them a good deal or a good time to buy. Typewriter prices started falling with the computer coming out, but so what? Buy a whole bunch b/c they’re half price? The vast majority of folks buy homes with loans/credit, and therefore have to make payments on that credit. If prices are still to high to prudently make those payments, I don’t care if prices have fallen 75%, it’s still a terrible time to buy! It’s not like a stock, when you can throw a small amount at it, then wait, then throw a little more in, over and over. It similarly is not a stock or fund that you can sell at a moments notice if you want to stop the bleeding or if you need funds elsewhere. Wouldn’t it be nice if I didn’t have to worry about monthly payments, or about my credit and going upsidedown on a depreciating house? Also, I’d actually own the stock; I wouldn’t own the house… I’d be renting from the lender until it is paid off, or at least until I had some significant equity. (then there’s the whole idea of being able to pay cash, and watching your asset decline for years b/c no one else can… but that’s another post I won’t bother with)
The real problem with the bullish folks is that they have just lost complete perspective… they have become completely jaded as a result of the 5 year boom. They forget completely what it was like before, or how markets work at a fundamental level. The excess was so great, it’s made them lose their mind and ability to think clearly and evaluate facts. If bulls had left the country on a 5-7 job assignment and read nothing about RE and came home in another year or two, prices could fall another 20%+, get back in line with historical and supportable norms, and they would think nothing of it. It’s b/c they got so caught up in the rush up… that’s exactly what a bubble is all about. Get over it.
March 7th, 2008 at 8:02 am
Reading this NYTimes article reminded me of many permabulls in this blog who are in complete denial.
http://www.nytimes.com/2008/03/05/opinion/05roach.html?scp=1&sq=roach&st=nyt
March 7th, 2008 at 8:11 am
“When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset.”
So true. Thanks for the very interesting article, Sighburrdood. It looks like some of the new escrows are starting to close. Too bad that sales in the really distressed areas are making the medians look deceptively low. We should look at medians by area for a more accurate picture. I’d like to see what sales took place in Anaheim, Santa Ana and the rest as a percentage of the whole.
March 7th, 2008 at 8:12 am
Employers slashed jobs by 63,000 in February 2008, the most in five years, the starkest sign yet the country is dangerously in recession.
March 7th, 2008 at 8:19 am
I HOPE ALL OF YOU HAVE FIGURED OUT THAT
THOUTFUL
SIGHBUR GOO GOO
SCOTT A
VOICE OF RECKONING
AND SEVERAL OTHERS
ARE ALL THE SAME PERSON TRYING TO COMPLIMENT THE OTHERS COMMENT
DOESNT ANYONE NOTICE THAT LOOK BACK LOOK AT THE WRITINGS AND THE COMMENTS THEY ALL WRITTEN AND VOCABULARY THE SAME
I WENT BACK AND LOOKED THROUGH AND ITS SO OBVIOUS
NATIONAL BUBBLE U CANT TALK TO BRICK WALLS LET THEM FALL APART BY THEMSELVES
WE KNOW U ARE RIGHT BUT SAVE UR ENERGY JUST
KEEP SHORTING THIS MARKET AND SMILE ALL THE WAY TO THE BANK I PROLLY RUN INTO U THERE
WE WILL BE THE 2 GUYS DONE AT 1 PM AND AT THE BANK WI TH SMILES
SEE YOU SOON AND SMILE AND SHORT AWAY….LOLLLL
March 7th, 2008 at 8:26 am
There are tons of negative indicators that show we are already in a national recession.
Several economic sources have announced that Orange County is already in a local recession.
Since the bulls look for positive news….. how about a positive sign we are in a recession:
The fact that Warren Buffet just moved up to become the richest man is a good indicator pointing to a recession.
Buffet tends to prosper most when times are bad.
http://www.huffingtonpost.com/2008/03/05/warren-buffett-the-world_n_90135.html
March 7th, 2008 at 8:27 am
After looking through the charts it looks like a solid 30%-35% of sales were from the extremely distressed areas. There were 31 sales in Newport Beach, 22 sales in Laguna Beach and 106 in Santa Ana.
March 7th, 2008 at 8:31 am
Thoughtful, watch what happens to Newport and Laguna when the stock market tanks, I can tell you it won’t be pretty in those rich areas.
March 7th, 2008 at 8:33 am
Houses Going Up in the OC
Not all is gloom, prices rise in the OC
Orange 92867; Villa Park 92861; Huntington Beach 92647 and Dana Point 92624
March 7th, 2008 at 8:33 am
I say the bottom will come faster this cycle.
This will happen for the same reason that home prices rose as fast as they did:
Rapid communication and information availability.
There was no internet during the last cycles. We had to rely on realtors and the slow national news media to tell us what was happening.
The national news media is only starting to notice what was obvious over a year ago - they will now drive the market down further.
Also, there are a lot more losers this time around, and the market is already falling hard.
I sold early on the upswing in 2004 (still hard to believe prices rose in 2005) and will probably buy late on the down slope (2010). Perhaps I will be surprised that prices fall further in 2011, but I can live with this level of risk.
March 7th, 2008 at 8:36 am
I would rather have people buying toasters right now then buy a house. We need to improve consumer spending before I give a care about house values
March 7th, 2008 at 8:41 am
I live in 92647 (Huntington Beach). I think the reason that this area has seen a small gain in sales from a year ago is because the prices have dropped dramatically, but are nowhere as low as they should be. The house I rent has seen a $160k drop in the fair market value in the past year and is currently “worth” about $520k. Ten years ago, this house was worth $180k. Since we’ve lived here, there have been no improvements and much deterioration. That’s what happens when the owner refuses to correct termite damage, water damage from old pipes, and cosmetic damage from high winds. Because of all the work this particular house needs, there is no way it is worth more than about $300k. But, there are those that believe that this is a great time to buy! Are they insane? If the landlord would sell to us at a fair price (no more than $350k per an appraiser friend), we’d buy it. But, last year, he took this totally paid-off house and re-mortgaged it for $640k with an ARM. Stupid man.
March 7th, 2008 at 8:41 am
Let’s see …… the previous Global Insight (economic consultants) affordability analyses released on this blog earlier this week stated that during the 4th-Q 07, the median OC home price (then listed at $548K) was only 7% above the “affordable” norm based on prices, wages, etc.
Doing a quick calc.: $548K x 93% = $509.6K. So that’s the magic “affordable” real estate median - $509.6K.
Today’s DataQuick RE info states that the median single family dwelling (resale, new & condos combined) is $515K, which is a measly $5.4K (1%) away from being “affordable” for the great OC masses, at least based on Global Insight’s figuring.
All I can say is ….. “boy, did Global Insight BET ON THE WRONG HORSE” in their OC affordability calculations and/or assumptions.
Orange County median home prices will likely decline another $100K before affordability (based on long term “responsible” lending standards) is ever reached. And I wouldn’t term this upcoming price decline an “over-correction” either. Rather, when it occurs, it will be a normal correction. Maybe when a 3 bedroom fixer-upper starter home (priced less than the median) can be purchased for $250K to $325K, can a first time buyer family rejoing the ranks of OC home owners. In the long run, without the first time buyers (the plankton in the food chain) the OC real estate prices will collapse. OC is not Hawii where the well-off from all over the world migrate. ( PS - I won’t be posting anymore today - taxes to do).
March 7th, 2008 at 8:50 am
Numbers are reported down for another month. Gee, what a surprise (to the bulls anyway), but not to everyone else. The truth is the truth, no matter how hard you try to warp it.
March 7th, 2008 at 8:51 am
Nothing wrong with plankton, but plankton won’t be getting into sfr’s for $250,000-$325,000. When I was a plankton, I was realistic, and didn’t demand everyone accomodate my every wish.
March 7th, 2008 at 8:58 am
Although it is not as fresh as the data above … this link does show price-per-square-foot for OC for each city:
http://www.dqnews.com/ZIPLAT.shtm
Yep Jeff - I’m surprised so many sheeple bought into the “we can synthesize an arbitrary threshold of affordability just by drawing a line in the middle here” argument. (Global Insight Rent-a-consultant. Experts in all subjects; just give us a moment to change our hats and pad our resumes.) I really don’t fault the appearance of such flimsy stories … it keeps the bulls in a froth, and keeps them here on this blog for our enjoyment.
March 7th, 2008 at 9:00 am
Hi ya doin Thoughtful (hope all is well),
I’m not speaking about one individual plankton. I’m talking about tens of thousands of plankton. This is Econ 100. Who will buy the homes of the existing OC property owners when they die ? Based on responsible lending practices, first time buyers can BARELY afford 3 bedroom homes at $250K to $325K. The laws of economics can not be denied indefinitely, though the toxic subprime loans certainly tried.
(now that was really my last post today)
March 7th, 2008 at 9:02 am
here are the details on the loan changes…..
http://calculatedrisk.blogspot.com/2008/03/jumbo-conforming-loan-guidelines.html
ScottA you may not like # 4:
4. For second homes and investment properties, the maximum LTV/CLTV is 60% in all cases for purchases and no-cash-out refis.
also many home debtors in the OC may not like:
3. For principal residences, fixed-rate loans are limited to 90% LTV/CLTV for a purchase, and 75% LTV/95% CLTV for a no-cash-out refi. ARMs are limited to 80%/80% on a purchase and 75%/90% on a no-cash-out refi. CASH OUT REFIS ARE NOT ALLOWED.
March 7th, 2008 at 9:03 am
“I say the bottom will come faster this cycle. This will happen for the same reason that home prices rose as fast as they did: Rapid communication and information availability.”
Law - I am very interested to see how this does in fact play out. But, from what I’ve seen, I don’t think the bottom will come significantly faster (though it’s possible). I do think it should come at least a bit faster, though. While much more info is now available to everyone, I would contend that still it’s a small percentage of people who actually will utilize it to the full extent. The rest won’t put in enough work to make sense of it, so I don’t know how much of an effect it really will have. The power to look at online listings is huge, though.
Most people are content to take what the MSM says at face value - and, as you said, the MSM has been slow to the story (I agree with this also). I’ve also noticed the general attitude is for people to see that either prices are rising or they’re falling and go from there without looking much deeper into the fundamentals.
March 7th, 2008 at 9:04 am
Nothing wrong with someone needing to buy for $250K to $325K. What IS wrong is expecting it to be a three bedroom sfr in the neighborhood of your choosing.
March 7th, 2008 at 9:10 am
Hey Jeffery’
While all you White Punks on Dope are sitting around waiting for everybody to admire what a genius you are Hundreds of Thousand of people from around the world are coming here with money and they don’ read your junk ecnomic BS. They are going to be buying and you’re going to get the short end of the stick again. Maybe Mom will give you your old room back.
March 7th, 2008 at 9:13 am
Oh lets be real - adding “in the neighborhood of your choosing” is a bit of a straw-man move. He didn’t claim it would develop in the flowery center of Anytown.
Play nice now.
March 7th, 2008 at 9:15 am
“The way to make money is to buy when blood is running in the streets.”
CAUTION - ” Do not get on the street if flow of blood is at very high speed, you will also be running with the blood”
WAIT - “Until the blood flow slows down a little bit”.
All Indicators - ” Pointing blood flow is increasing at this time”
March 7th, 2008 at 9:16 am
SHORT THE MARKET SHORT THE MARKET
THIS IS MY LAST REPORT TO
LATER
THIS IS SO MUCH FUN SEE U AT THE BANK TODAY NATIONAL BUBBLE
SHORT AWAY
SHORT AWAY
LOLLLLL
March 7th, 2008 at 9:21 am
So, we sold in Ladera on 6/26/07 in 18 hours for $850k for a 2450sq ft home and moved to Atlanta where I WISH, WISH, WISH we would have heeded advice and rented. But NO we bought…we bought a nice house for $565k in a new neighborhood where, since we moved here, only 1 home has sold leaving 7 open homes and probably 15 vacant lots. Pricing has dropped ~$30k so for our home that is, what?, 7%? I expect that to sell the homes and based on what I see around us, here in Atlanta homes will have to drop another $30k, so that’s ~11%?
I’m happy we sold in Ladera when we did as I would rather be in a home (since we were scmucks and didn’t rent) with an 11% drop vs. staying in Ladera with whatever %age the drop is there.
BUT, I would be curious if any of you have a national picture of the declining market. We want to move back to OC in a couple of years so we’re ones that are watching the market closely and comparing Atlanta “bottom” to “OC” bottom. I’m thinking it would be great to go BACK to Ladera and buy an equivalent to our $850k home for $650k….wonder if prices will actually go down that low.
And what cracks me up (and I have been a lifelong republican) is Bush saying a week or so back “We’re not in a recession or headed there!”. I am on the fence now of voting for a democrat instead.
March 7th, 2008 at 9:24 am
Daddy Warbucks,
Didn’t there used to be a gay bar in Cathedral City, CA called Daddy Warbucks …but the local residences re-named it “Daddy Sore Butts”. I got nothing whatsoever against gays, but everytime I’ve seen your posts I think about that name and giggle. Maybe other bloggers can share in this laugh in the future.
Also in the future, maybe consider using economic facts to back your arguments instead of simply calling others “poo-poo heads”. I thank you for the memory of the “White Punks on Dope’ song. I completely forgot about that good old radio tune. I’ll have to look it up on You Tube. Thanks Daddy Sore Butt.
March 7th, 2008 at 9:32 am
want to know what will happen to home prices?
Read this.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/06/AR2008030603745.html
March 7th, 2008 at 9:33 am
“Daddy Warbucks Says:
March 7th, 2008 at 9:10 am
Hey Jeffery’
While all you White Punks on Dope are sitting around waiting for everybody to admire what a genius you are Hundreds of Thousand of people from around the world are coming here with money and they don’ read your junk ecnomic BS. They are going to be buying and you’re going to get the short end of the stick again. Maybe Mom will give you your old room back.”
Bull talking point #41: people from all across the world will buy up OC properties with cash.
Rebuke: If this is such a significant phenomenon, why are sales and prices decreasing? And are foreign buyers that much ill informed to not realize RE’s instability?
March 7th, 2008 at 9:34 am
Jeffery
Typing with your left hand and remembering old times in Cathedral City huh?
March 7th, 2008 at 9:36 am
So Thruthi actually admits that prices could come down to a reasonable level.. $250K-325K. Let’s explore that shall we? Say that this value represents the not-so-desirable neighborhoods and then tack on a premium of say 25% for the better neighborhoods. What we get is 360K if take the average price now then lets say that another 25% for the next level up and what do we have 450K. Well, folks, you heard it from Truthi herself…houses in Santa Ana, GG, BP etc are goinf for $250-325K, Irvine, Tustin, HB, West CM, MV, LF are 360K and then the nice parts of Tustin Ranch, TRock, Eastside CM and other big houses etc are at 450K…..sounds like its right on…
March 7th, 2008 at 9:39 am
I dont know if hundreds and thousands are coming here to buy. I have no evidence. Maybe they are.
If they are here, they aren’t buying, thats for sure.
Read the headline above. Sales are down.
March 7th, 2008 at 9:48 am
Eat it, how about you address me correctly? Anyway, I said no such thing. Let’s be clear: NO cities in Orange