Comments on: Real County of Genius: Los Angeles County Reaches Another Record: $540,000 Median Price. 3 Reasons why this Number is a Fabrication.

By: Anonymous

Anonymous — Tue, 17 Apr 2007 05:59:00 +0000

Sh1t, they are on to us in this market man. Let’s go inflate education loans instead: http://www.nytimes.com/2007/04/17/business/17sallie.html?ref=business

By: Corey

Corey — Mon, 16 Apr 2007 12:58:00 +0000

Tuesday's One-Two Punch at http://infohype.blogspot.com

By: Anonymous

Anonymous — Mon, 16 Apr 2007 04:44:00 +0000

Damn, Dr. HB, I like your site, but my browser blocked 100 cookies when hitting your page. I use the feature to block cookies from specific sites, such as adbrite.com, specificclick.net, etc.

By: Dave

Dave — Sun, 15 Apr 2007 21:15:00 +0000

Interesting statistic, and not a good sign for California's economy.

We all have heard reports of this anecdotally (for example, U-Haul reports more empty moving vans coming INTO California, and fully-loaded vans LEAVING California, charging an additional fee to LEAVE California, etc). Nice to see a figure from elsewhere that confirms this trend.

It's not just about first-time buyers leaving California, (since they were priced out, even as highly-trained professionals who've recently graduated and are starting a career). No doubt many people think "what a shame", and continue with their day.

You need to understand that it's also about people who've SOLD their homes at the peak in California (San Diego, etc), and are figuratively and literally CASHING OUT of California: they're taking their windfall capital gains from the sale of their house, and buying in another State that hasn't been equally run-up during the bubble.

Now you have a FB who moved IN to take their place, and a cash-laden buyer who's moving OUT to spend it elsewhere. That means all of that windfall cash WON'T be spent inside the local California economy, and that's a double-blow to these overpriced areas.

To demonstrate how crazy it's gotten: I know someone who owns a house with surrounding land out in Rosamond (past Lancaster/Palmdale, CA, in the Mojave Desert) who bought it for $100k about 5 years ago. He recently sold for $350k and moved out to Missouri, buying a much-bigger house for $100k. He's now got alot of cash in hand to start in a business, etc.

I've seen that story repeated many times, and I think many people don't see the long-term results of this.

Talk about unintended consequences, and the hidden costs and damages to this unfettered bubble. California is thus even more primed for a downfall, as a result.

By: Anonymous

Anonymous — Sun, 15 Apr 2007 16:53:00 +0000

It is worth noting that at the end of the second quarter of 2006, only 23% of all California families could afford a starter home, defined as one at 85% of the median price. That was using an ARM loan instead of a fixed-rate loan, and with only 10% down payment.
California’s Department of Finance recently indicated that in 2005, for the first time in a decade, the number of residents who left California for another state exceeded the number of newcomers who moved there. California recorded a domestic net loss of about 29,000 people in 2005—the first negative flow of residents since 1994 when the state’s weak economy precipitated an outflow of about 350,000 residents to other states. Anecdotal evidence suggests the high cost of housing was the primary reason people left
California.

http://www.fitchratings.com/corporate/reports/report_frame.cfm?rpt_id=322182