Here is her reply (as you can see I prety much cutnpasted the two suggestions from this blog. I nly added in the “babies dont buy houses” part to a section of what powayseller wrote. She did not respond to the links at the bottom):
From 2000-2004, LA County experienced annual average -22% domestic migration. Natural increase played a greater part in population growth in the coastal counties, whereas domestic migration was the main cause in the Inland Empire. Since 2000, Orange County experienced 14,000 net domestic outmigration. Domestic migrants to the Inland Empire came primarily from Los Angeles. Government Study[
Diane’s response ***** I get my census information directly from the U.S. Census Bureau and our census expert at the paper analyzes the data. We’re correct. ******
“Most of have these shaky loans can sell their homes”.
1) Why do we have record foreclosures? It is up 60% in California versus last year? Couldn’t these people sell?
***** I don’t know why they’re starting the foreclosure process–they should be able to sell and come out OK. No matter, demand for homes still far outstrips supply. *****
2) Most people with “shaky loans” don’t even know they have them, think they’ll be able to pay the higher payments somehow, or don’t realize the market is going down and they will be upside down when it’s time to sell
***** I agree with you—and have written about this. Most people who got their interest-only loans—or worse, negative-amortization–don’t know what they’re in for. And economists worry about this. The market is still doing OK–it’s normal, in fact. The 20% appreciation was abnormal. *****
3) House prices have fallen 5-10% already, so anyone who bought in the last 2 years, has a high probability of being upside down on their mortgage. The shaky loans have prepayment penalties, and I know several people who are not refinancing from their ARM into a fixed rate mortgage because they don’t want to pay the 3 months interest that is the penalty.
***** Prices are still rising in the SoCal counties (year-over-year, which is what counts). They sometimes fall a bit for seasonal reasons. Appreciation is not in the double-digits anymore, but homes still are appreciating in the 7% range or so nearly everywhere (not everywhere, of course). Even those who bought two years ago should have equity gains, although you’re very right about pre-payment penalties with some loans. *****
4) The term “population stampede” is erroneous reporting. Births do not affect housing since babies do not stampede to buy homes. Please show your sources for this claim.
***** International immigration accounts for about 1.5 million per year. call it what you will. *****
5) Which economists have you spent “weeks talking to”?
***** I do my reporting well. I have for 30 years now (and have won numerous awards for it). I talk to the most widely respected economists in the country–every week. *****
***** This is my last response to your angry e-mails. We simply do not agree. You view journalists as people who tell “half-truths.” I respectfully beg to differ.
Diane Wedner *****
People can still sell their house in So California?
Ok what happened here?
Here
And Here
and here this ones for sale exact same list price as paid for it 09/14/2005: $325,000:
And Here
