HLS, are you trying to say that “Carmel Valley” and “West of 5” residential property owners are immune from foreclosure? I’m not sure exactly what you mean, but I don’t think boats getting lifted in La Jolla helps homeowners in Lemon Grove one iota.
I saw the article and agree with it but also realize it applies to residential markets where Fannie, Freddie and FHA/VA mortgages are utilized in the majority of closings AND there are enough current (last few years) resale comps which sold under the above terms.
How much is “enough” resales in a given micro-market? I think at least 10% per year of total parcels successfully being transferred at arm’s length.
I don’t believe neighborhoods situated in CA coastal counties which have had historically very little turnover are in danger of becoming distressed and it doesn’t matter their median value. It could be $250K or $1M+.
Remember, we have Prop 13 and its progeny, Props 58 and 193 on the books of this wonderful state. Millions of people living in paid-for and nearly paid-for properties are NOT going to be selling anytime soon. Taking title to a property through an intrafamily transfer deed pursuant to Props 58 and 193 is not a “sale,” per se.
Some well-established areas within CA (and often the best micro-areas within those areas) currently have hundreds, if not thousands of properties taking advantage of Props 58 and 193.
These affected properties aren’t going anywhere, nor are their owners and/or their owners’ heirs. The vast majority of these properties will never be in foreclosure and there are millions of them in CA.
