Comments on: Real Homes of Genius: Today we Salute you Compton. Once, Twice, Three times a Short Sale.

By: doug r

doug r — Fri, 16 May 2008 01:30:03 +0000

Rising rents are a natural part of the cycle, as people who didn’t buy AND those squeezed out are in the market simultaneously. Soon a lot of places that aren’t appreciating will turn over to rentals to generate some cash and rents will plummet as well.

By: CompaJD

CompaJD — Thu, 15 May 2008 16:29:53 +0000

Even Johnny Cash would be afraid to do a show up at that place. This place shouldn’t be worth more than 100,000$ due to the area it is in. Compton is on the depreciation fast lane and quickly turning into Detroit.

By: Scott

Scott — Thu, 15 May 2008 09:43:30 +0000

Indeed that a very modest architecturally undistinguished home in Compton can be offered at $175,000 owes much to the Community Reinvestment Act that requires banks to make financing available to sellers and buyers in such neighborhoods. Absent that mandated financing no sane lender is going to make a loan on such properties. This CRA mandated financing has, ironically, pushed up the value on properties that otherwise would have little or no value at all. Absent such financing a seller would have to self finance or a buyer would have to come up with cash either of which would cause such property to sink to its true market value. This has actually caused the speculative subprime boom in slum housing in such cities as Cleveland that has now turned to bust. See the BBC article here: http://news.bbc.co.uk/2/hi/business/7070935.stm

By: Matt

Matt — Thu, 15 May 2008 01:45:04 +0000

Um, yeah - one important detail: unless you are a Blood or a Crip and plan on dealing crack through a hole in the back door you probably don’t WANT TO LIVE IN COMPTON!!!!

By: blackbox

blackbox — Thu, 15 May 2008 01:39:12 +0000

I’d pay a $100K to allow me to get the hell out of Compton!