djc – PB is not LJ. LJ is sterile. No homeless. No college kids partying and trashing the place. LJ is a status city. PB does have older people living there. These are some of the old houses being sold that have not been upgraded for 50 years. Obviously family selling them.
Some of these houses have been purchased by investors. How do you suppose the investors purchased them? Would they not do the 5yr I/0 ARMs? Won’t those be resetting? I’m more amazed that higher priced places are still selling now.
I would think PB would eventually see price declines. PB is not in a vacuum. It is not a seperate economy from the US or the world. How can it not be affected evenutally? I’ve seen prices of median homes in PB more than double from 2000 to 2008. Is that normal appreciation? While I don’t expect to see a 50% or 40% drop, I was still thinking there will be price declines.
I also thought that the weak fall first. Condos are declining. Won’t they be a drag on the SFH later?
And I understand that PB is attractive for investment rentals, but wouldn’t the numbers have to add up and make sense as a rental, if not a profitable rental, at least breaking even? Some of these places seem to be taking a loss. That’s why I was perplexed by the high-priced sales.
