Just to clarify what is going on in MM right now. I am helping a colleague sell a lower end SFR property there. It’s a short sale (aren’t they all down there?) and he asked me to help him with it so I have seen all the offers. The property generated at least 20 offers in a week. He stopped accepting offers as the sellers were tired of having 10 showings a day. Most of the offers were Asian buyers for primary residences (not investors unless they are lying which I wouldnt know) and most had very significant (i.e. most had no problem coming up with $50,000, $100,000 and even $150,000). There seem to be an endless supply of these buyers for properties under $350,000.
Based upon what I saw with my own eyes, I have a hard time believing prices have much room to fall there. Most of the loans were about $200,000 or less so even rising interest rates wont drive the payments too high on these relatively low loan amounts.
