Archive for February, 2011

Culver City real estate example of a mid-tier city tipping over into correction. Average income $77,000 yet most MLS listed homes selling for $700,000 or more. Few foreclosures selling for 33 percent below MLS non-distressed properties.


Down payments, stricter lending, stagnant wages, and massive pipeline of distressed inventory – 5 reasons why 2011 is not the time to buy real estate in California. Even FDIC Chairman Sheila Bair supports 20 percent down payments.


Home equity loans in California still over $600 billion. Pasadena and the mid-tier correction starting. Short sale for 50 percent off and HELOC machine being sold at auction for 70 percent below the outstanding loan debt.


Beverly Hills real estate selling for 1989 price levels – Southern California two bubbles. Home sold for $920,000 in June of 1989 and has a pending sale at $920,000 today. 1 MLS foreclosure versus 100 in the shadow inventory.


Southern California back into a year-over-year decline. Los Angeles median home price down over 10 percent in 4 months. Slowest housing sale month since March of 2008. 30 percent of buyers involved all cash and the median price for these homes was $190,000.


Nothing down and low down payment mortgages inflate housing prices and increase the rate of foreclosure – Financial reform starts with increasing the down payment amount. How FHA insured loans infiltrated and filled the gap of exotic mortgage financing.


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