Comments on: A City in L.A. County with a $55,000 Median Price? The Housing Market in Los Angeles County: Looking Deep into the Home Sales Data for 88 Cities. Lower Priced Areas Taking Brunt of Price Declines but Medium to Higher Priced Areas Stubborn in Price Movements. http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: martin http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/#comment-35487 martin Tue, 07 Apr 2009 13:23:50 +0000 http://www.doctorhousingbubble.com/?p=1651#comment-35487 socalrealtor I tend to agree with your assesment that it is a "sellers" market in many of the decent areas, at least in San Diego. My only question is, don't you think the government is responsible for that? After all, it is trying with all of its might to reflate the bubble. Forclosure modifications Sub 5.75 interest rates are due to the Fed 10,000 credits from Ca. 8000 credits from the Feds And on and on and on. What happens when it all ends? socalrealtor

I tend to agree with your assesment that it is a “sellers” market in many of the decent areas, at least in San Diego.

My only question is, don’t you think the government is responsible for that? After all, it is trying with all of its might to reflate the bubble.

Forclosure modifications
Sub 5.75 interest rates are due to the Fed
10,000 credits from Ca.
8000 credits from the Feds
And on and on and on.

What happens when it all ends?

]]> By: socalrealtor http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/#comment-35479 socalrealtor Tue, 07 Apr 2009 06:33:51 +0000 http://www.doctorhousingbubble.com/?p=1651#comment-35479 I am a realtor in socal and I don't believe prices are going to move downward by any significant amounts. A couple of reasons-- 1. Many first time home buyers have saved up their funds and have been waiting for the right time to wade into the market. Many of them were not able to get in the last go-round (lucky for them as it turns out), but they are determined to not miss the boat this time. 2.There are a tremendous number of investors with tons of money in the market. California is on sale, and investors are licking their chops and behaving like kids in a candy store. Cash is king, and the banks that own these properties love them. Many investors are quietly negotiating with various banks and buying up prime properties that will never hit the market. Well priced houses in decent locations are attracting a minimum of five offers. I have clients that have great credit and have been offering $20 to $30k over asking price, and are still getting out bid! In my humble opinion, I think prices should fall a bit more, because they are still out of line with most incomes. That being said, low interest rates, pent-up demand from renters, and the fact that regardless of an unemployment rate of 10.3 %, there are still 89.7% of Californians employed somewhere, mid-range houses will continue to move at a pretty good pace. If you want to prove this, just ask anyone you know who is actively seeking to buy a home in a desirable area how their search is going and how many offers they have had rejected. Low ball offers need not apply. Last, to those market observers that say they see so many for sale signs, those are most likely short sales that have not yet been approved. In most areas, if you took the short sales off of the market, the supply would shrink dramatically and it would truly be a seller's market, which in some areas, it already is. I am a realtor in socal and I don’t believe prices are going to move downward by any significant amounts.
A couple of reasons–
1. Many first time home buyers have saved up their funds and have been waiting for the right time to wade into the market. Many of them were not able to get in the last go-round (lucky for them as it turns out), but they are determined to not miss the boat this time.
2.There are a tremendous number of investors with tons of money in the market. California is on sale, and investors are licking their chops and behaving like kids in a candy store. Cash is king, and the banks that own these properties love them. Many investors are quietly negotiating with various banks and buying up prime properties that will never hit the market.

Well priced houses in decent locations are attracting a minimum of five offers. I have clients that have great credit and have been offering $20 to $30k over asking price, and are still getting out bid! In my humble opinion, I think prices should fall a bit more, because they are still out of line with most incomes.

That being said, low interest rates, pent-up demand from renters, and the fact that regardless of an unemployment rate of 10.3 %, there are still 89.7% of Californians employed somewhere, mid-range houses will continue to move at a pretty good pace. If you want to prove this, just ask anyone you know who is actively seeking to buy a home in a desirable area how their search is going and how many offers they have had rejected. Low ball offers need not apply.

Last, to those market observers that say they see so many for sale signs, those are most likely short sales that have not yet been approved. In most areas, if you took the short sales off of the market, the supply would shrink dramatically and it would truly be a seller’s market, which in some areas, it already is.

]]> By: kihei http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/#comment-35478 kihei Tue, 07 Apr 2009 05:35:19 +0000 http://www.doctorhousingbubble.com/?p=1651#comment-35478 Re: 75th percentile question by VDog Those are asking prices. It simply means more higher priced homes are coming on the market. Maybe people were waiting a couple of years before trying to sell their expensive home, or maybe they are finally feeling the strains of paying for an expensive home and now putting it on the market. Notice 3 years ago the 75% percentile was about $800k and now it's $670k. As the Dr has said many times, prices will keep falling until they go back to historical norms with wages. Re: 75th percentile question by VDog
Those are asking prices. It simply means more higher priced homes are coming on the market. Maybe people were waiting a couple of years before trying to sell their expensive home, or maybe they are finally feeling the strains of paying for an expensive home and now putting it on the market. Notice 3 years ago the 75% percentile was about $800k and now it’s $670k.

As the Dr has said many times, prices will keep falling until they go back to historical norms with wages.

]]> By: Polo http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/#comment-35477 Polo Tue, 07 Apr 2009 05:05:51 +0000 http://www.doctorhousingbubble.com/?p=1651#comment-35477 Sometimes the simplest answer is the most obvious. I think there are just THAT many people with a lot of money, STILL, with enough to keep the upper houses in the same price range from sinking. I still see millions going to work each day. The 405 and the 101 still is a nightmare, no signs of recession with the volume of traffic. Many of these folks have high paying jobs and have not been hurt at all by the recession. Maybe some are on the sidelines waiting, or maybe some have owned their homes for many years. Before the bubble. This bubble didn't hit everyone. I venture to say a good percentage felt no pain at all. So it might just be that there are THAT MANY people out there with a ton of money to keep the upper-end sustained. Sometimes the simplest answer is the most obvious.
I think there are just THAT many people with a lot of money, STILL, with enough to keep the upper houses in the same price range from sinking.
I still see millions going to work each day. The 405 and the 101 still is a nightmare, no signs of recession with the volume of traffic.
Many of these folks have high paying jobs and have not been hurt at all by the recession. Maybe some are on the sidelines waiting, or maybe some have owned their homes for many years. Before the bubble.
This bubble didn’t hit everyone. I venture to say a good percentage felt no pain at all. So it might just be that there are THAT MANY people out there with a ton of money to keep the upper-end sustained.

]]> By: RL http://www.doctorhousingbubble.com/la-real-estate-5000-median-price-the-housing-market-in-los-angeles-county-looking-deep-into-the-home-sales-data-for-88-cities-lower-priced-areas-taking-brunt-of-price-declines-b/#comment-35476 RL Tue, 07 Apr 2009 04:24:13 +0000 http://www.doctorhousingbubble.com/?p=1651#comment-35476 Singhace, I know plenty of architects, engineers & teachers all with degrees many of them with masters degrees (of course along with some property managers and some who work in the financial sector) who have lost their jobs. Some have been lucky to keep their jobs with a reduced salary. Most of my friends and family live in LA or OC. From my rough estimation about 20 - 25% of my friends and family have lost there jobs. I wish it was closer to only 10% !! Singhace,
I know plenty of architects, engineers & teachers all with degrees many of them with masters degrees (of course along with some property managers and some who work in the financial sector) who have lost their jobs. Some have been lucky to keep their jobs with a reduced salary. Most of my friends and family live in LA or OC. From my rough estimation about 20 – 25% of my friends and family have lost there jobs. I wish it was closer to only 10% !!

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