Orange County Register

The median statewide SFR (NOT overall property) is a tad over $400,000. The median income in the state is $64,563. The statewide ratio of the two is 6.19. Your figure is overstated by over 60%.

Par for the course here.

Greg in OC says:

I thought the Nick Cage property was the bottom……

Evidently not.

I’m sure this one is the ACTUAL bottom, the other was just a fake.

Bruce says:

I still can’t get over people being able to pay $600,000.00 cash for a REO. But they are doing it. By the way, I circulate in a small world of professionals. In the last three months six of them have bought houses. Five of them were less than forty years old.

Thoughtful says:

Thanks for the real life info, Bruce.

Mulliganville says:

Bruce…tons of cash on the sidelines here itching to get in the game…everyone is so worked up over timing the bottom. You cannot do it…but you will know when it passed you by, and then those folks can join the fray and select more with the masses as people are sheeple.

VoiceofReason says:

Wow, Lansner in rare faux-bull form!!
There may soon be a lot of bears with caviar on their snouts.

Mulliganville says:

VOR…i keep seeing the bears say we are calling the bottom, yet i never see you, myself, thoughtful, etc. implying such. What a bunch of mambi pambis.

The Money Pit says:

Bulldung!! You can time the bottom!! I personally called the top. When Katrina hit, I said, “That’s it. That’s the top of the housing market.” In retrospect late 05 was probably the top. Same thing in 2000 with internet stocks. March was clearly the top and I called it.

This is just psychology. Bubbles this big take the same form over and over throughout history. You CAN call the bottom. It is when the level of despair reaches the same intensity that the level of euphoria reached in 05. Compare the bottom of the stock market in 02. When the S&P 500 was down 50% at 760, you just knew that was it.

The despair is building, but we are not there yet. What is required is CATHARSIS. Then we will be at the bottom, and I, Mr. Mulligan, will call it for you. You are welcome.

Price of Bad Tidings says:

Mulliganville Says:
May 13th, 2008 at 7:33 pm
“Bruce…tons of cash on the sidelines here itching to get in the game…everyone is so worked up over timing the bottom. You cannot do it…but you will know when it passed you by”

You mean the momentum of prices will turn on a dime like stocks do?

“and then those folks can join the fray and select more with the masses as people are sheeple.”

You mean rush towards another bubble?

The Money Pit says:

Darn Mulligan. When we are down 50% and the bears finally say, “This is it.” You and VOR will say, we agreed with you all along. Then how can you call yourself a bull? If you think a 50% decline is coming, YOU ARE A BEAR IN BULL’s CLOTHING!!!

Thoughtful says:

You can “call it ” all right. Profiting from it is another matter altogether. Most of THAT wil likely pass you by.

Yogi says:

Actually, Thoughtless called bottom as January 2008.

Mulliganville says:

Couple of things: the last bust here was due to aerospace leaving the area…mass job exodus. I am talking droves…nothing like the piddly numbers we are seeing today. If you couple that with the fact that there was TONS of land here back then, it is not too hard to see why it took so long to get over the flatness…lots of new choices!

This time? Where is the plethora of building? Nowhere. SFR existing is what you get. BTW, OC population is expected to increase 9% by 2020 with no new homes to accomodate these people…hmmmm, where will they all go I wonder?

Yogi says:

Ah, the old “they aren’t making any more land” argument. Heard that before. No offense Mulli, but, Next!

Thoughtful says:

“Actually, Thoughtless called bottom as January 2008.”

Uh, on March 24th. I stand by it today. The turning of the year will have made a profound difference.

Thoughtful says:

Every year the remaining land becomes more and more…and more valuable. And this is why we’re all here.

Mulliganville says:

NO problem yogi…its simple supply and demand…like pricing now…low demand = low sales…enjoy while the getting is good…or wait…like i mentioned, i do not care if you buy or not…its a personal decision. But, the reason pricing continues to escalate quicker here than other places is due to the fact that THERE IS NO MORE LAND LEFT. Sorry bearsoup…it is what it is.

Yogi says:

In the end, it’s all about incomes. Unless they rise considereably here in O.C., prices will continue to free-fall, buildable land or not.

Price of Bad Tidings says:

Mulliganville Says:
May 13th, 2008 at 8:43 pm

“its simple supply and demand…like pricing now…low demand = low sales…enjoy while the getting is good…or wait…like i mentioned, i do not care if you buy or not…its a personal decision. But, the reason pricing continues to escalate quicker here than other places is due to the fact that THERE IS NO MORE LAND LEFT. Sorry bearsoup…it is what it is.”

As long as the combination of high inventory and low affordability is a major player, I’m confident that “lack of land” will remain a weak component. That argument certainly did not stop the RE debacle. What I do see is existing land being redeveloped into RE (i.e. shopping centers turning into neighborhoods).

Mulliganville says:

In parts of the OC i agree with you yogi…

Mulliganville says:

idk price…maybe that happens in 2015-2020.

mav says:

Bill, LOL, what about Tokyo? The island of Japan? they had that nasty lost decade of depreciating asset prices….LMAO….. realtor BS…..”run out land”…LOL….do you people live in the US? anyone ever fly over this country?……maybe you have looked out the window of a trans domestic flight……. i’m thinking 3020 we will run out of land, but by then robots will run the earth and they won’t need houses

The Money Pit says:

May 13, 2008 at 10 pm

Thoughtless, you will continue to make a complete fool of yourself on this blog until the absolute bottom is reached.

I made money on tech on the way up and made money shorting tech on the way down. I made money in RE on the way up and will make even more on the way down. You are just another idiot who hasn’t studied history, knows nothing, and is now massively underwater on a piece o’ garbage that isn’t worth the $400 a square foot you paid for it.

We are right and you are wrong. Now please go away!!

The Money Pit says:

May 13, 2008 at 10 pm

Mulli, you are too bearish on price. The crash is happening faster than we could have imagined. The foreclosures now will crash the market and the bottom will be 2012 at the latest. Then we’ll get inflation gains at least.

See, you really are a bear. But I think that other parts of the country are fungible with OC, I mean the incomes here aren’t that great apart from the high end.

In Houston, you can buy a 2500 s.f. home for $150,000. Arbitrage doesn’t require everyone to move, just enough people so that everything evens out.

Mulliganville says:

May 13, 2008 at 10 pm

Bill, I never quoted anything regarding credit to my recollection. Perhaps you have me confused with someone else.

Troy says:

May 14, 2008 at 1 am

A thousand foreclosures per day. That’s simply amazing. And a literal Tsunami of foreclosures still headed our way with tens of thousands of NOD’s racking up in April alone.

It’s all simply unprecedented in the modern history of homeownership. And the worst of it has yet to hit us. Check back in September when it’s gotten much worse.

VoiceofReason says:

Bill,
Foreclosures in Kentucky have little to nothing to do with SoCal.

Mulliganville says:

Bill,

I do not care how many foreclosures are in riverside or chino…or stockton or sacramento…or any other poster child for “hideous weather and over-speculation.”

Show me the % of foreclosures in South county…if you take Anaheim, Garbage Grove, and Santa Ana out of the mix…our over-speculation areas here in OC, you are left with paltry numbers of foreclosures for the county as a whole. Are their more than historical trends? Of course…there has to be as volume for a few years obliterated those same trends…it has to happen. Posting statewide and national figures is meaningless as noted by OC pricing which has not corrected to near the lengths it has in aforementioned locations.

Go sell the doom and gloom and crazy somewhere else.

Mulliganville says:

My apologies for the improper use of “their”…the brain is waking up.

VoiceofReason says:

thanks, I feel better now.

Mulliganville says:

How long do you think realty-trac has been “tracking” foreclosures? If you guessed 3 years…you are correct. Gee, do you think the year over year numbers will increase? What a genius organization.

Hey national number gurus…since you all post the daylights out of national figures: less than 2% of all homes in the country are in foreclosure…and CA you ask? 1 out of 140. According to CNBC and aforementioned realty-trac.

Thoughtful says:

Mulli, you are right, as usual. Foreclosures are negligable in most good areas. Didn’t we hear just yesterday from someone who has numerous friends who have bought in South County since the beginning of the year? Like I have ALWAYS said: there will be a great divide, a flight to quality. It’s also clear since we saw NO SPRING INVENTORY JUMP, that most decent cities will see their inventory dropping like a rock from here on out. They could have 5 years of inventory in Anaheim, and it won’t amount to a hill of beans elsewhere. Alfalfa, your story made my day!

The Money Pit says:

It deoesn’t require every home to be foreclosed on for the price to crash. It only requires a supply demand imbalance. There is very little demand relative to the supply that is coming on. That will be sufficient to push prices much lower.

Thoughtful says:

Demand in the two cheapest categories is right around six months.

Mulliganville says:

MP–if you are wanting to own in Laguna Niguel, are you worried about foreclosure activity in GG or anaheim? The two are irrelevant to one another.

Sighburrdood says: