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The OC Scam.
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October 17, 2007 at 12:00 PM #10652October 17, 2007 at 12:21 PM #89632
vizcaya
ParticipantThe IE is taking a huge hit.
I sold my small 1064sqft foot Riverside home back in April for 368k. There is a house right now thats the same size same model is being offered at $268K.The Riverside house that we ended up moving up into was purchased for $560K back in early 2006. I purchased it for $420K.(This was a bank owned, and our offer was made at $20K below market at the time).
Due to the amount of inventory the IE will see some overcorrecting. This will be when I will jump in and pick up some investment properties.
October 17, 2007 at 12:21 PM #89640ParticipantThe IE is taking a huge hit.
I sold my small 1064sqft foot Riverside home back in April for 368k. There is a house right now thats the same size same model is being offered at $268K.The Riverside house that we ended up moving up into was purchased for $560K back in early 2006. I purchased it for $420K.(This was a bank owned, and our offer was made at $20K below market at the time).
Due to the amount of inventory the IE will see some overcorrecting. This will be when I will jump in and pick up some investment properties.
October 17, 2007 at 1:05 PM #89649golfproz
ParticipantYes, the IE is getting a real estate enima. That guy in MoVal has ZERO chance of selling that home. There’s something like 4 years worth of inventory in MoVal. I’ve seen REO’s selling for $325k that are twice the size of that guys house and much newer. Leo Nordine (foreclosure guru) predicts 65% fall in the IE in the LA Times blog today. I’ve already seen some prices very close to 50% off and this thing is just getting started. The IE did not start imploding until earlier this year. To see prices falling that far that fast is a little frightning. Gonna buy me a castle in Riverside next year if this keeps up!
October 17, 2007 at 1:05 PM #89657ParticipantYes, the IE is getting a real estate enima. That guy in MoVal has ZERO chance of selling that home. There’s something like 4 years worth of inventory in MoVal. I’ve seen REO’s selling for $325k that are twice the size of that guys house and much newer. Leo Nordine (foreclosure guru) predicts 65% fall in the IE in the LA Times blog today. I’ve already seen some prices very close to 50% off and this thing is just getting started. The IE did not start imploding until earlier this year. To see prices falling that far that fast is a little frightning. Gonna buy me a castle in Riverside next year if this keeps up!
October 17, 2007 at 1:23 PM #89650bsrsharma
ParticipantI have a feeling that now onwards, it may be difficult for most IE homes to cross the $300K barrier. This is due to the combination of excess inventory, difficulty of getting mortgages and not enough income support to justify a $300K+ home using traditional guidelines (like, 3X annual income). Anyone who can afford to buy now and is brave enough to buy now will probably buy a coastal area home for a good price. The demand for IE from those priced out from coastal areas was temporary and has no reason to exist, post burst. That basically sends demand to zero and prices will slowly glide towards $200K or below with some exceptional properties touching $300K.
October 17, 2007 at 1:23 PM #89659ParticipantI have a feeling that now onwards, it may be difficult for most IE homes to cross the $300K barrier. This is due to the combination of excess inventory, difficulty of getting mortgages and not enough income support to justify a $300K+ home using traditional guidelines (like, 3X annual income). Anyone who can afford to buy now and is brave enough to buy now will probably buy a coastal area home for a good price. The demand for IE from those priced out from coastal areas was temporary and has no reason to exist, post burst. That basically sends demand to zero and prices will slowly glide towards $200K or below with some exceptional properties touching $300K.
October 17, 2007 at 5:19 PM #89734gold_dredger_phd
ParticipantI remember driving through that area on my way up to Barstow from San Diego for some drywashing back in 2000 and 2001. They were advertising new houses in the high 100’s back then. I thought that was cheap since I lived in San Diego, but the area was too far from where I worked.
With gas at $6 per gallon a few years from now, who is going to be able to commute from there? Why does all the employment have to be along the coast anyway? Stupid.
The dollar is going to zero, Peak Oil is real, and oil will be $200 per barrel in 10 years in today’s dollars!
October 17, 2007 at 5:19 PM #89743ParticipantI remember driving through that area on my way up to Barstow from San Diego for some drywashing back in 2000 and 2001. They were advertising new houses in the high 100’s back then. I thought that was cheap since I lived in San Diego, but the area was too far from where I worked.
With gas at $6 per gallon a few years from now, who is going to be able to commute from there? Why does all the employment have to be along the coast anyway? Stupid.
The dollar is going to zero, Peak Oil is real, and oil will be $200 per barrel in 10 years in today’s dollars!
October 17, 2007 at 5:58 PM #89754rocket science
ParticipantThis isn't in San Diego but want to see something funny?
Thousand Oaks CA. Which is considered a pretty good area.
Group of about 12 houses built in 2005Originally listed for close to ~$1M I think
I looked at these when they were being built. Not bad houses except that they all back up to busy streets.
Currently 4 of the 12 on the market……
Now for the funny part.
3556 WHITMAN CT Thousand Oaks, CA $1,299,000
Beds: 4 Baths: 4
Sq. Ft.: 2,914
On Market: 83 days
3477 WHITMAN CT Thousand Oaks, CA $1,399,000
Beds: 5 Baths: 4
Sq. Ft.: 3,138
On Market: 83 days
……And then the ones that appear to have suffered some poor fate (re-set?) and are listed as Lender owned…….
3449 WHITMAN CT Thousand Oaks, CA $869,000
Beds: 4 Baths: 4
Sq. Ft.: 2,816
On Market: 55 days
3420 WHITMAN COURT Thousand Oaks, CA $899,900
Identical to #1 above………only $400K less
Beds: 4 Baths: 4
Sq. Ft.: 2,914
On Market: 8 days
These last 2 have got to kill the comps for the first two. LOL.
Also if ZipRealty is correct, #3 has been on the market at the 'discounted price' for almost 2 months.
rs
October 17, 2007 at 5:58 PM #89763ParticipantThis isn't in San Diego but want to see something funny?
Thousand Oaks CA. Which is considered a pretty good area.
Group of about 12 houses built in 2005Originally listed for close to ~$1M I think
I looked at these when they were being built. Not bad houses except that they all back up to busy streets.
Currently 4 of the 12 on the market……
Now for the funny part.
3556 WHITMAN CT Thousand Oaks, CA $1,299,000
Beds: 4 Baths: 4
Sq. Ft.: 2,914
On Market: 83 days
3477 WHITMAN CT Thousand Oaks, CA $1,399,000
Beds: 5 Baths: 4
Sq. Ft.: 3,138
On Market: 83 days
……And then the ones that appear to have suffered some poor fate (re-set?) and are listed as Lender owned…….
3449 WHITMAN CT Thousand Oaks, CA $869,000
Beds: 4 Baths: 4
Sq. Ft.: 2,816
On Market: 55 days
3420 WHITMAN COURT Thousand Oaks, CA $899,900
Identical to #1 above………only $400K less
Beds: 4 Baths: 4
Sq. Ft.: 2,914
On Market: 8 days
These last 2 have got to kill the comps for the first two. LOL.
Also if ZipRealty is correct, #3 has been on the market at the 'discounted price' for almost 2 months.
rs
October 17, 2007 at 6:06 PM #89758ParticipantThere are still new homes from the high $200s, well townhomes. The amazing thing is the Pinnacle Tract that starts in the Mid 600’s and goes to over $700k. I laugh out loud every time I drive past it and think of some poor schmuck paying that for a house in MoVal. MoVal is not a terrible city, in fact of all the way inland cities ( Moval, Perris, Hemet, San Jacinto ect) it’s probably the best but there is no way any home is worth that there.
October 17, 2007 at 6:06 PM #89766ParticipantThere are still new homes from the high $200s, well townhomes. The amazing thing is the Pinnacle Tract that starts in the Mid 600’s and goes to over $700k. I laugh out loud every time I drive past it and think of some poor schmuck paying that for a house in MoVal. MoVal is not a terrible city, in fact of all the way inland cities ( Moval, Perris, Hemet, San Jacinto ect) it’s probably the best but there is no way any home is worth that there.
October 17, 2007 at 6:13 PM #89760
barnaby33Participantgolgproz, sure there is a way, hyper inflation!
Josh
October 17, 2007 at 6:13 PM #89768barnaby33Participantgolgproz, sure there is a way, hyper inflation!
Josh
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