Comments on: Alt-A, Option ARM, and Subprime Loans will Turn California into a Zombie Mortgage State. 28 Percent of Alt-A loans in California 60 Days Late. Alt-A Mortgages by California Region. 1.1 Million Alt-A and Subprime Mortgages Still Active.

By: Ashii

Ashii — Mon, 24 Aug 2009 02:21:26 +0000

@Tony
350-475 in the valley seems outrageous to me for a couple of reasons.
1. Big portion of valley residents are in the film and tv biz – below the line workers like gaffers and caterers. Friends of mine in this type of work are finding work hard to come by as more and more productions leave LA –
http://www.latimes.com/business/la-fi-ct-runaway-production-2009-gb,0,84237.graffitiboard?slice=2&limit=10
2. UE and outmigration in LA – I read somewhere that 40K people left LA in the last year. Small # for a city of 3 million but I see that trend continuing because of unemployment. Many of my friends (late 20′s to early 30′s) have left recently because they were laid off. My question is where will the next generation of buyers in the LA market come from?
3. Overall cost of living in LA and it’s satellite cities is REALLY high. I moved to LA six years ago and moved out one year ago because I couldn’t afford the 10% tax on internet access, the junk fees everywhere, the higher rates on all types of insurance there, higher gas prices than other cities in CA – each thing on its own was OK but in total, it was like a thief stealing money one dollar at a time – hard to save anything even when our income was close to 100K a year.
Prices will come down because incomes in LA because these factors will decrease demand for a long time. Wait, and you will reap the rewards.

By: RL

RL — Sun, 23 Aug 2009 05:43:33 +0000

GeekGirl – Thanks for the link. If only everyone would watch to know and understand the TRUTH!!

By: Bottom Feeder

Bottom Feeder — Sat, 22 Aug 2009 19:45:54 +0000

DR HBB really needs to start elaborating on why he sees the banks’ window is closing. I’m starting to get worried because I don’t see that it is. I think they are working out a way to keep the excess stock off the market indefinitely. There can be no doubt anymore that our “leaders”, and their bankster butt buddies, wish to keep the American people stuck with the 2 lousy choices indefinitely: A. being perpetual renters or B. debt-slaves. They can go f*** themselves.

By: Tony

Tony — Fri, 21 Aug 2009 15:24:38 +0000

Doc, first thanks for all the great info you supply. You have kept my sanity and me on the sidelines watching and waiting. I’m curious what the parameters are for low/mid-tier/high price. If as in this post Culver, Pasadena, Palms are mid-tier I’m wondering if areas in the better part of the valley might be low mid tier. I’m starting to wonder if good livable homes in those areas, priced in the 350k-475k range, are close to the bottom. I’m speaking of Lake Bal, Valley Glen, flat lands of Encino, etc.. I have access to a direct sale 2/2 1/2 townhome in Valley, so there won’t be no lunatic bidding war, but I’m not sure if it’s value is going to fall another 20%. Currently it’s 25% down from it’s peak. Current direct sale price is 320k.

Call me confused on what low / mid / high price range is in those areas.

Thanks

By: Steve

Steve — Fri, 21 Aug 2009 12:26:59 +0000

“That news is no surprise to Karen Weaver of Deutsche Bank. She startled everyone a few weeks ago when she predicted that, by 2011, nearly half of American mortgage holders would be underwater (meaning that they’ll owe more on their mortgages than their houses were worth).

Half of mortgage holders means about one-third of American households. Put another way, Weaver forecasts 25 million mortgage holders will be under water by 2011, up from an estimated 14 million currently.”

(GASP) My, my!! What a shocker. She’s predicting now what you’ve been saying for HOW LONG? Thank you for your site. It prevented me from making a costly mistake a couple of years ago.