It’s a choice many a SoCal home shopper has faced: O.C. condo or Riverside County single-family house. You know, the shot at that lawn and backyard. And that decision is tougher today.
Thanks to a sharp reversal of pricing in Riverside County — far worse than O.C.’s slide — the percentage-point savings for a typical buyer that chooses Riverside has reached a 9-year high, according to DataQuick. (Read my column on the trend HERE!)
It’s a curious pressure that could challenge any O.C. housing recovery. Let’s look at what I’ll call the “91 Commuter Discount” …
- In June, DataQuick says the median selling price of a Riverside detached house was at $275,000 — 28% cheaper ($81,000) than a typical O.C. condo at $366,000.
- Last time a higher percentage? January 1999.
- The 1988-2007 average discount between these two SoCal housing alternatives was 16.8%. So, in theory, an O.C. worker who moves east almost always gets a standalone house at a substantial savings by submitting to the daily grind on the 91 Freeway.
- Last month, the “91 Commuter Discount” remained high at 22.7%, or $76,500.
Why’s this happening? Largely because Riverside’s selling prices for houses have fallen 40% from their peak of $419,000 in June 2006. At that point, the “91 Commuter Discount” was just 8%. O.C. condo pricing is off 28% from a March ‘06 peak. Riverside’s market is flooded with foreclosures, as DataQuick noted that 64 percent of last month’s sales had been through foreclosure in the past year.It’s no anomaly. If you look at overall median pricing between the two counties, Riverside residences of all types — resales and new — last month sold 44% cheaper than O.C., the largest discount since 1998.
Read more about the housing market in SoCal and California:
- SoCal’s homebuying slump ends, too
- Long commute? Good-bye O.C.
- New Riverside tollway in the works?
- O.C.’s Q2 home price drop 5th worst in U.S.
- Calif. June home price plunge 28%, worst in U.S.
- 25% of O.C. homebuyers grab a foreclosure
- Calif. home prices down 27.3%, nation’s worst
- Calif. homebuying at 13-year low
- O.C. house supply down to 8 months
- BBQ-grill retailer files for bankruptcy
- Inland Empire house construction down 89% from ‘05
- Gas prices blamed for growing Calif. building slump
Find out more about: HOME PRICES | INVENTORY | RENTS | FED | MORTGAGE RATES | FORECLOSURES | OUR POLLS | GARDENS
If you have a home in Hell and a farm in Riverside County, sell the farm and go home.
Is there anyone on this blog or anywhere else in the world that wants to claim that we did not have a real estate bubble ? When you look at these curves of condo values, its pretty clear where we are headed……..median condo price will be < 200K in about 3 years.
The implication is pretty clear: OC home prices will continue to fall. The substitution effect will force value buyers to Riverside County. Once Riverside County prices stabilize — which from the chart doesn’t appear to be happening — OC prices will fall until the normal ratio is restored. Riverside County prices will be a good leading indicator of OC prices.
Last I heard, selling is brisk in Riverside. Even so, it is no substitute for Orange County. No way. No how.
…. OC should enter the olympics….
….. as a cliff diver…..
This should help stabilize Riverside.
…. jake great article, thanks….
….the consumer credit crash is going to crush the average american…
…when credit card debt starts defaulting at a record pace….
….consumer credit is going to come to a stand still….
… there is no way the average american…
…. with stagnant salaries, and ferociously increasing expenses…
…. will be able to keep up their life styles…
…. everything will sprial out of control…
….. less debt, less spending, less jobs, rinse and repeat…
…. the american economy has been a grand illusion….
… of debt and speding…
no offense but having visited riverside many times, the current 22% discount to buy there compared to OC should be more like 90%
What part of OC are you talking about :P
Good god! Bill, I guess you didn’t see where I proved that report it UTTERERLY WORTHLESS!
That dingbat (I am being kind) compared the entire amount of ALL foreclousure notices, including triplicates, to……mls inventory on a……SINGLE DAY!
Newsflash…….
Newsflash…….
Newsflash…….
Orange County (for instance) has seen roughly 24,000 sales in the past 12 months. A good 10,000 of them were…….REOs and distressed properties!!!!!!!
So, listen carefully:
Sacramento’s “14,913″ MLS inventory figure needs to be ADDED (yes, don’t fight it) to the thousands upon thousands of properties from the RealtyTrac “31,219″ units that have…………ALREADY SOLD!!!!!!!!!!
Bejesus! Call in Graphrix asap! He’s the ONLY person here other than me who has the horsepower to understand this!
THIS is your media in action. God help us all.
Lansner, do YOU see the absurdity of that story? Then friggin cover it!
Liar Loan,
I know it’s difficult to keep track of all your names but when rants asked provider a question you need to remember to switch your name back.
provider Says:
August 21st, 2008 at 11:07 am
The evolution of Rants…………
rants Says:
August 21st, 2008 at 12:30 pm
whats your next stupid point?
Liar Loan Says:
August 21st, 2008 at 12:53 pm
Haha… I don’t know.
You fool no one.
Anyone that keeps a 3 year running log of everything that everyone says on this blog is beyond a nutcase.
It’s bad enough that you track IP addresses on your website, now you’re keeping personal files on blog entries.
You are one weird, obsessed physico.
You of all people, with close to 50 name changes on here, are complaining about the same?
LOL. I can remember when very few employees working in the South Bay, wanted to live in the OC. “Who would want to live out in the sticks?” “I would never move behind the Orange Curtain” were typical when referring south OC. Don’t take offense, but many would choose Corona/Temecula over the majority of the OC neighborhoods.
Oh yea, there is that pesky item called a commute nightmare on the 91.
Bill, some people invented something very cool. They called it the internet. Then they invented something to make the internet really powerful. They called it a search engine. Now, I know it’s freaky and everything, but now you can use that search engine to find all kinds of useful information instantly! You don’t have to have the contents of the New York Public Library in your office anymore. Isn’t that amazing? Next week, I’ll teach you about the horseless carriage.
Using Jon’s internet archiving to find a particular post in here from years back takes quite a long time.
For you to spend hours on here searching for a single post only proves you fit the classic psychotic profile to a tee.
I know what your next response will be so before you incriminate yourself you might want to think twice.
You looked it up on Google or Yahoo right?
No, not Jon’s. Jon doesn’t run the internet. Try this:
1. Go to Google, Yahoo, or your search engine of choice
2, Type in: Lansner “Bill says” 2008
3. Press enter
4. Behold all the stupid things you had to say in 2008!
Bill, helloooooo it was me who posted the rants mega-story. Not liar loan, me. As me. Get your conspiracy theories straight.
Bill, make sure you click on:
“repeat the search with the omitted results included”
Otherwise, you’ll only find a fraction of the stupid things you said in 2008!
YOUR BLOGGER: Folks, keep the debate on topic — not on other commenter’s personality!!!
The little rat took the cheese.
Anyone can type in Google: Lansner “rants says” 2006
Nowhere will it come up with any other aliases for rants or anyone else, yet you say you found his many “other” names using Google.
No, you really didn’t.
You didn’t use Google.
You have been posting on here for years using “other” names and you know exactly who everyone is and you didn’t have use any type of search engine to figure it out.
The problem is you actually think you’re smart.
Let me see…
A piece of $hit 1200 sq ft stucco condo shack in Irvine living next to a bunch of diaper heads that stink like a black prostitutes unwashed crack for 380k
or….
A 3000 sqft foreclosed home with all the trimmings and a humongous back yard with attached backyard oasis courtesy of the tards that sucked the HELOC for…300k.
I’ll take #2 anyday.
Did you know RIVERSIDE in Spanglish means WHITE TRASH
Damn, provider is still here :(
Provider - you’re actually asking someone to defend your arse that your accused of stalking you…. go away.
“Nowhere will it come up with any other aliases for rants or anyone else, yet you say you found his many “other” names using Google.”
No, you butchered that. I found his other names in my memory bank in my head! I found the original conversations on the internet to corroborate what I remembered. And this is confusing how? And this is proves what? Geez, your comments smack of desperation.
I promise you: I am not saving your comments….or anyone else’s.
Screw you, Melody. Mind your own business.
“I found his other names in my memory bank in my head”
So you admit you’ve been posting on here for years, which means you have been weaseling (lurking) around using false names to push an agenda to help your own business at the public’s expense.
Thanks for admitting you’re a fraud.
No sh!t sherlock! Get with the program.
No, not for business reasons. Just for the personal challenge and the fulfillment of proving people like you and Melody are every bit the idiots you appear to be.
But you’re missing the most important part.
Your stupidity has followed you around with every name you used.
Example #1
If I write ‘Please turn over’ on both sides of a piece of paper, you would be amused for hours.
Provider Says:
June 18th, 2008 at 6:54 pm
All I know is I got beat out on over a dozen offers recently.
Provider Says:
June 19th, 2008 at 12:41 pm
All I know is I have had over a dozen offers rejected.
Provider Says:
June 20th, 2008 at 11:10 am
All I know is I can’t get an offer accepted. Where are these deals?
Provider Says:
June 20th, 2008 at 12:04 pm
We’ll see. For now, even some full price offers are being rejected. Maybe fall will be different.
Bill Says:
June 20th, 2008 at 1:09 pm
I was wondering when the damage control would kick in.
The news today painted a very bleak picture for our housing market’s future.
So how do the realtors respond?
They not only make up a fictitious character (Provider), but a home buyer of course.
You know how hard it is to find a home buyer in today’s market?
It’s like finding a needle in a hay stack.
Remember when they used sighburrdud to purchase a “great deal” that’s been losing $1 every 3 minutes.
The funniest part of this mirage is that their new creation is in bidding wars, to boot.
That was a realtor’s very weak attempt to try and sway public opinion, but it is quite humorous.
My advice to Provider is, if you want to keep on providing you better wait because we’re headed for another 25+% drop.
Provider Says:
June 20th, 2008 at 1:14 pm
I don’t know you, Bill, and you don’t know me. But you are wrong about buyer action. This article shows we’re at pre meltdown sales levels. Not sure why you are being so rude.
Yeah, you really fooled us.
doublechin - that would be “basura blanca.” just so you know.
Hey, you just found “the internet”. Congratulations.
Bill,
Rants was losing an argument yesterday, so he pulled out the only ammo he had left… accusing me of posting under multiple aliases. See, he can’t debate the merits of real estate economics. He only knows how to post negative articles and predict financial armageddon. If you question anything he ever says, he won’t respond with an intelligent answer, but instead call you a name like dodohead, peabrain, shutupface, etc….
The only reason I went into the archive was to show that his accusation of me switching aliases is ironic, since he’s guilty of the “crime” himself.
Now, for your education. Look at the right side of the page where Lansner posts links to all kinds of sites. Towards the bottom of that area, you’ll see a section called Past Entries with a dropdown menu that says Select Month. You can find any Lansner post since the beginning of ‘06.
See… no psychotic behavior on my part. I don’t keep archives or search for people’s past comments on google. I was aware of rants’ multiple aliases from reading past blog entries before this argument began.
liar loan aka girlie man aka stuck on stupid
hey einstein when are you going be a real man
and fess up to having been so damn wrong
from the get go? prices dropped just like
i predicted they would –
bottom line — I was right and you were wrong
PERIOD
Bill Says:
August 21st, 2008 at 6:57 pm
“Using Jon’s internet archiving to find a particular post in here from years back takes quite a long time”
Liar Loan Says:
August 22nd, 2008 at 8:34 am
Now, for your education. Look at the right side of the page where Lansner posts links to all kinds of sites. Now for your education, you’re telling me something I already posted a day earlier. Hey poop head, learn how to read before you write.
YOUR BLOGGER: Folks, keep the debate on topic — not on other commenter’s personality!!!
You couldn’t pay me enough to drive the 91 every day.
If ‘Riverside’ means white trash, the I guess OC means really stupid. Why pay 500k for 50k worth of construction ? Sounds like a bubble to me. In Riverside 500k equals 600k worth of construction., now thats thinking!!