Home Prices Plunge by Most in 35 Years

[out of bounds]

The feds didn't I repet did not increase the rates and the bond market is still strong. we are still up on the equity in all of our homes. rates are in good shape for now.Now is a great time to be in the game and capitaliz on the market. If you no what you are looking for.hoses will sell every day of the week and people will always be moving that is life.

[djunkie]

So I shouldn't complain.
Sorry
I may know where you can buy the SAME house in San Bernardino for 320K.

Brian
But its San Bernadino. I work 10 minutes away from where this house is.

[wsuwrhr]

I have spent a day or two as a child in Harbor City.
Brian

[wsuwrhr]

But its San Bernadino. I work 10 minutes away from where this house is.
Yep.
Welcome to my world

[seanv]

i know since the california wave came thru the phx area we saw record increase in home value. now that all those out of state investors are selling, we are seeing houses sit empty waiting for buyers. my neighbor bought after me and had his house sit 3 mo before someone bought. he came 40k off his asking price so, yes the market is not that of a year ago. if you buy 350k+ homes i would expect some slight depresiation (sp?) but if you stick it out you will be fine.

[Jyruiz]

Sucks DJ, my neighbors put there house up for sale for 540k and had to settle for 500k. Prices are coming down, there just not coming down fast enough.

[djunkie]

Sucks DJ, my neighbors put there house up for sale for 540k and had to settle for 500k. Prices are coming down, there just not coming down fast enough.
I wish I could say the same around here. A 3 bed 2 bath house just sold down the strret from us for over $800k. And it was a dump.

[Cole]

I bought two home in Lake Elsinore 65% below market in June.
Sold one at FULL asking price and sitting on the other for a rental.
In Escrow on a third, bought 65% below market and will rent out. Prices might be adjusting, but money can still be made in the long haul and the short, if BOUGHT right!!!

[bigq]

I wish I could say the same around here. A 3 bed 2 bath house just sold down the strret from us for over $800k. And it was a dump.
Thats just stupid :yuk:

[Sportin' Wood]

That study is a play on percentage.
Yes it dropped a large percent, but as stated above we have seen a large spike in price.
Building permits have not seen the levels that we saw in 1986, nearly double what we saw at the top of the last boom and they have not dropped to the levels of 1992, which I worked construction in and let me tell you it was bad. We went from over 200,000 to under 50,000 permits in 6 years, that was a train wreck because we had over 16 months of standing inventory.( I have heard that if we stopped building today we would only have enough pads to last 3-6 months)
I wish I could post some of the data I recieve through my trade memberships but it is not nearly as bad as some might think based on Hanleywood market research.
Since the 1960's we have had a wave like housing market, you can watch it go up and down all along the history of California real estate. The problem right now is that too many people did.
A.) speculate on real estate(flippers) without a complete understanding of the market. Kinda like margin buyers of stock back in the 30's
B.) Steal all the equity out of there homes to live a fake lifestyle they could not afford.
C.) Get into a first time home that is overpriced for there income on a risky loan under the assumption that they could fix it with equity later.
In my Humble uneducated opinion this is a normal fact of our economy, learn from it and move on. Its not the end of the world and certainly not the end of a form of earnings for smart investors. In fact the smart guys are loving every minute of this. There are, and will be some great deals from people who have to sell. You can sell today if its priced right.
All this panic about standing inventory is dwarfed compaired to 1992. Builders learned alot from the 90's and they are controling there product to insure we do not head down that road again. This slow down is great to get a control on Labor and material, both where getting way out of hand.
Its just my opinion so don't consider it the gospel or anything. I could change my mind in an hour and scream the sky is falling, Manic depression is cool that way. :rollside: