I saw this this morning and was planning on posting it here myself. Interesting thing happened while I was looking at it. I had it up on a computer in a conference room during an OB clinic, approximately 6 people in the room, 1 Nurse Practitioner, 2 RN’s, a Nurse Practitioner student and a couple of Medical Assistants. When I commented on it one of the RN’s said “God, they have to do something to stop these foreclosures!” It was then that I realized we are still deep in the denial phase of this correction. I calmly explained to those in the room that no, that’s the worst thing we could do, as it would just prolong the pain and house prices would remain artificially high. I asked those present what they thought the median income was, and when they answered I explained the multiple of 3 rule for a safe mortgage. The Nurse Practitioner said ” no way will we see $200-300K medians again”.
Kool aid still flowing freely in South Bay LA. I guess this explains why there has been so little price reduction lately. And is it my imagination, or has there been a huge increase in the number of houses removed from the market the past few weeks? Are these pending foerclosures/REO’s?
At least for me and my wife, unless there are some massive price reductions this Winter, I think we’ll put off buying for a while. Rentals on Craigs List seem to be proliferating. There is also a lingering possibility I will get shipped off to Bethesda next Summer. Will likely still be circling for a bit.
