Aguho, I completely agree that the ethnic market will take the biggest hit. I’ve watched the demographics in Temecula change a lot over the last couple of years. I wouldn’t really have major concerns about that except that a lot of the new home debtors don’t appear to have jobs that pay anywhere near enough to buy houses at the prices they paid unless they’re using extremely risky loans. They probably barely qualify at the initial teaser rate. Downpayments appear to be a thing of the past and debt/income ratios are going to get really ugly once the loans reset to higher rates. On top of that, you’ve got 1.6%-2% tax rates plus HOA’s! I’ve also heard of a number of cases where people of roughly median income own multiple “investment” properties, all bought near the peak of the market. Yikes! I think a lot of these have nothing to do with the Stonewood scam but the owners are still stuck with huge debt on deflating assets.
