LOS ANGELES (AP) — Median home prices plunged in many of California's most populous counties in February, with Southern California leading the slide with an overall drop of 17.9 percent compared to a year earlier, according to new housing data released Thursday.

The drops reflect a deepening housing crisis in the state, which saw home values soar during the housing boom then decline sharply in most areas.
Median home prices fell this year in 15 major counties, DataQuick Information Systems said.

The median price in a six-county area of Southern California fell to $408,000 — the lowest level since October 2004, when it was $402,500. That median is 19.2 percent below the region's peak price of $505,000 last summer, and it's 1.7 percent below January's median, the firm said.

http://ap.google.com/article/ALeqM5gEw86y9UfttCi5fVcA0K4awUfqiQD8VCNPQ80

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The good news continues. :)

Yeah, great news Doug. It's really helping the country and economy.

What prospective buyers do not understand, is they will face harder and harder times qualifying for a loan. You still need $130K+ household to qualify for a mortgage on a decent single family home in a good neighborhood. The decline in values isn't helping the $40k millionaires. If people think making $60k annual is going to get them into a $300k house they are in for a big suprise. This mess will be turned out completely within 3 years imo, so buy now! Foreclosures can't hold their current %'s forever.

I am absolutely baffled at why you think the destruction of the economy is "good news".

While it's a great thing to be a home owner, it isn't the end of the world if you rent. Many stuck up asswipes that laughed at renters are now being evicted or have already been foreclosed on. I'll continue to rent until I see an opportunity that is favorable for me. I don't think that our economy failing is funny. I do find a certain amount of joy in seeing certain loudmouths struggling.

Do you know anyone who is? I don't...

Why of course......:)

In the club? Here? Just curious..

Most of the people I know have owned for years. I don't know anyone with ARM's or anything..

It is common knowledge that the housing market was/is a bubble. There is no disputing that. The economy is not destucting, it is correcting. There is a big difference.

When the economy is driven by false factors, it will have to correct itself. Over the last 5 years, the economy was pushed hard by RE. When the natural upcycle would have ended, it was kept going with creative lending practices (stated income loans. 5/1 ARMs, etc), and people who had no business purchasing half million dollar properties were doing just that.

Prospective buyers SHOULD face difficulties qualifying for a loan. The lack of scrutiny on behalf of the lenders is a major contributing factor as to why we are in this mess in the first place. If one makes $60k a year, they're renters for now. Tough.

Our economy was on herion for 5 years. We're now in rehab and going through withdrawls which will be painful for some, but it has to be done for the market to correct. There was no way the market could sustain a median housing price 10 times the average salary. No way.

What baffles me is you believe this was normal and acceptable.

I have always found this forum to be very informative. If nothing else it helps people understand the state of the real estate market.

I hate hearing the media say that people are "losing" their houses. The reality is they should have never bought a house and those are the people that are fucking up my comps! Why should my home value suffer just because they showed up late to the homeowner party? If they lived within their means most of the people that are "losing" their houses would still be homeowners.

What ever happened to a starter home? Every american wants to be on Cribs, even when they work at Walmart.

..and as you know Steve, Temecula is the best example of how people screwed up the market. We all saw it coming. You can't have 2 Hummers and a Benz in your garage, along with a mortgage, when you make 5 grand a month. At some point it will catch up to you. Unfortunately, people who didn;t do dumb crap like that have to suffer seeing their property values take a plunge.

I wouldn't consider it suffering, more like correcting.

If you bought your Temecula castle in '93 at $131k, having the comps correct from a high of $345k in 2005 to $160k in 2009 isn't exactly a bad thing. It will correct to the mean, unless the gov't attemps to fix it. We all know what happens when the gov't attempts to fix things.

I'm renting now and will continue to rent until the prices level out. Then I should have a nice pick of a good house.

Renting right now makes the best sense.

high of $345k in 2005 to $160k in 2009 isn't exactly a bad thing.

I think that's a little optimistic on your part...

160k, maybe bank selloffs.

Optimistic? You believe it will be lower than $160k?

With any rise or 'wave', the prices will dip below the mean before they correct back up. There is serious discussions about HUD having to buy up property and/or demolish it in some of the IE areas. That's scary.

That would be interesting. The IE is still a nicer place to live than many parts of SD county.

What prospective buyers do not understand, is they will face harder and harder times qualifying for a loan. You still need $130K+ household to qualify for a mortgage on a decent single family home in a good neighborhood. The decline in values isn't helping the $40k millionaires. If people think making $60k annual is going to get them into a $300k house they are in for a big suprise. This mess will be turned out completely within 3 years imo, so buy now! Foreclosures can't hold their current %'s forever.

What potential home sellers are still struggling to understand is that they overpaid for their house. Unfortunately for you, EvilC, median household income is LESS than $60k a year. So one of two things needs to happen to avoid housing prices collapsing another 30-40%:

1.) Wages increase
2.) Home prices fall

My guess is that number two is much more likely because it's already happening. I have no sympathy for idiots who didn't realize this in 2002-2006. I'm sure the nations top economists would love to hear your solution to the foreclosure 'problem'.

I am absolutely baffled at why you think the destruction of the economy is "good news".

I am absolutely baffled as to why you think half million dollar homes in crappy neighborhoods is a thing worth preserving.

What prospective buyers do not understand, is they will face harder and harder times qualifying for a loan

I do agree with you that credit standards need to tighten up a LOT. This is good news for buyers that have good credit and income. Who wants to compete with fools and their money, err, Option ARM loans...

What potential home sellers are still struggling to understand is that they overpaid for their house. Unfortunately for you, EvilC, median household income is LESS than $60k a year. So one of two things needs to happen to avoid housing prices collapsing another 30-40%:

1.) Wages increase
2.) Home prices fall

My guess is that number two is much more likely because it's already happening. I have no sympathy for idiots who didn't realize this in 2002-2006. I'm sure the nations top economists would love to hear your solution to the foreclosure 'problem'.




Did they overpay? Did I overpay, buying in January 2005? How to you quantify "overpaying"? Historically, downturns happen and *always* recover. I know, this time they won't, and my house we be worth $50,000 in 15 years. We wanted a house. We paid a good price per current conditions back then. No one had a crystal ball,( except a sheer genius like yourself ) and we didn't want to "wait". We wanted a house, plain and simple. We had the money, the credit, and the 30 year fixed loan. The only way to start is to buy, not "sit and wait" for years and years. What if the current downswing didn't hit till 2010? We should have "guessed" and waited an additional 5 years to start our life/family? I guess I am just an "idiot" to you since I was done renting and wanted a house I could start building up. When we bought, I told my wife I probably wouldn't want to move again for at least 10 years. By the time I move, the sale price will be > purchase price in my opinion. If it isn't, I'll let you know so you can insult and laugh at me some more.

Pure arrogance. Can I get stock tips from you? Superbowl picks? Lotto #'s?

Did they overpay? Did I overpay, buying in January 2005?

I was watching the market it 2005 and realized that I could rent twice the house for half the monthly nut. For me, it didn't make much sense to buy. You can do your own math, look at your neighborhood, the schools, the community and decide for yourself whether you paid market value.

Pure arrogance, by the way, is running around bragging about your credit score and denying the shit that is hitting fans all around you. I may be arrogant, but at least I'm not stupid.

Pure arrogance. Can I get stock tips from you? Superbowl picks? Lotto #'s?

Yeah, Bear Stearns. I hear it never goes down.

I was watching the market it 2005 and realized that I could rent twice the house for half the monthly nut. For me, it didn't make much sense to buy. You can do your own math, look at your neighborhood, the schools, the community and decide for yourself whether you paid market value.

Pure arrogance, by the way, is running around bragging about your credit score and denying the shizzle that is hitting fans all around you. I may be arrogant, but at least I'm not stupid.

Pfft...

So far all the doom and gloom you spew has had this effect on me:

1. I argue with you about it on the Internet.


Everything else is better for me personally, at least in my line of work.

BTW, sorry I "ran around" bragging about my credit score. What's the real cause of your bitterness?

Doom and gloom:

What prospective buyers do not understand, is they will face harder and harder times qualifying for a loan. You still need $130K+ household to qualify for a mortgage on a decent single family home in a good neighborhood. The decline in values isn't helping the $40k millionaires. If people think making $60k annual is going to get them into a $300k house they are in for a big suprise.

Now compare your doom and gloom to what I've been saying all along, supported by FACTS: Housing prices need to correct another 30-50% so that people can actually afford them instead of getting foreclosed on.

You're right that the financial meltdown triggered by overpriced housing hasn't touched the job market yet. Last month's unemployment figures were just a hint of things to come...

I'm not bitter. It's business and it's cyclical, so this downturn is to be expected.

*Another* 50%? We're already at what, 25... so you think a $500k house of 2005 needs to be $125k? What percentage of 2005 buyers would you say are facing foreclosure?

Agree that building/banking and similar industries are in deep shit. 80% of our business is long term contracts which are paid through 2011, all government luckily.

Banks need to go back to the good ol' 28% of gross rule as far as what they'll lend. It's never failed them. ARM's should flat out be pulled off the sheet.

I agree. Banks need to perform due diligence again. Why should people that bust their tails, build their credit have to complete with idiots and option ARMs? Perhaps calling them idiots is harsh, but if these people haven't considered any kind of worst case scenario... Then what? Guys like us have to complete with them because banks tilt the table in their favor?

BTW, I'm not calling all homebuyers idiots. I should have said that a few posts ago... Just the ones that had no business trying to buy anything at all -- especially $700,000 palaces in Eastlake.

For instance, people that can afford homes (you, me) have to fight these people when buying because of their crazy loans and then again when selling a house because they got foreclosed.

I don't have perfect credit. I went through a nasty divorce that cost me thousands of dollars. If any of you want to brag because you have that, kudos to you. I hope you never go through what I did. The effect on your life, credit etc is not easy to go through. It doesn't make me less of a person than any of you. I make the same if not more money than a lot of people who are/have owned homes. I can be happy with my fiancee without saying we own our own place. There are many places in this county I would never live in. They just aren't my kind of neighborhoods. I will continue to rent in a nice area, rather than buy in a place I dislike. 80% of this county is overpriced/over rated. It's finally coming back to earth.

It doesn't make me less of a person than any of you. I make the same if not more money than a lot of people who are/have owned homes.

Of course it doesn't. I think the point I'm trying to make is that banks need to go back to checking out the 'credit worthiness' of their customers. Credit scores alone is not an accurate assessment of someone's ability to repay and/or a measure of their integrity, nor are life events like a divorce, medical, etc... Credit worthiness to me means that you look at the overall history of income, employment, credit cards, etc and determine whether or not it's abuse.

People tell me all the time that renting is just throwing my money away -- I beg to differ. I'm paying a fair price for a roof over my head and I can walk anytime that deal is no longer viable.

Yeah, Bear Stearns. I hear it never goes down.

lol

:flame:

Renting works for me, y0!!