California Home Prices Drop Record 41% in August Amid Defaults

[hipmatt]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSU7cx2EXfPQ&refer=home

By Dan Levy

Sept. 25 (Bloomberg) — California home prices tumbled a record 41 percent in August from a year earlier as foreclosure sales pushed down values in the biggest U.S. state.

The median price of an existing, single-family detached home fell to $350,140 and will likely fall further, the Los Angeles- based California Association of Realtors said today in a report. Sales increased 56.7 percent from August 2007 and 1.8 percent from July.

“While sales appear to have turned the corner, the median will experience additional downward pressure as we move into the off-peak season in the coming months, and will continue to face pressure from distressed sales,” Leslie Appleton-Young, vice president and chief economist of the association, said in a statement.

More than 101,000 California households received a default notice, were warned of a pending auction or foreclosed on last month, RealtyTrac Inc., a seller of default data, said on Sept. 12. That was a third of the nation’s total and represented one in 130 homes in the state.

Eight of the 10 metropolitan areas with the highest foreclosure rates are in California, led by Stockton in first place, according to RealtyTrac. Merced, Modesto, Vallejo-Fairfield and Riverside-San Bernardino ranked second through fifth. Bakersfield, Salinas-Monterey and Sacramento ranked eighth through tenth.

[snail]

They have to stop making depressing news like this, who will go out and buy a house now? The bailout package for home owner will start in October and we will have another 700 Billion to spend on the bad loans. Come on cheer up people…

[snail]

They have to stop making depressing news like this, who will go out and buy a house now? The bailout package for home owner will start in October and we will have another 700 Billion to spend on the bad loans. Come on cheer up people…

[snail]

They have to stop making depressing news like this, who will go out and buy a house now? The bailout package for home owner will start in October and we will have another 700 Billion to spend on the bad loans. Come on cheer up people…

[snail]

They have to stop making depressing news like this, who will go out and buy a house now? The bailout package for home owner will start in October and we will have another 700 Billion to spend on the bad loans. Come on cheer up people…

[snail]

They have to stop making depressing news like this, who will go out and buy a house now? The bailout package for home owner will start in October and we will have another 700 Billion to spend on the bad loans. Come on cheer up people…

[cr]

[quote=The author]”While sales appear to have turned the corner…[/quote]

Though he goes on to say why prices will continue to decline I don’t agree that we’ve even turned the corner yet.

Sales have only picked up because the prices dropped. Most them are REOs, and some were bought by people defaulting on their former property, down-sizing to something affordable and claiming rental income on the previous house before the foreclosure process starts.

Not exactly signs of a turn-around IMO.

[cr]

[quote=The author]”While sales appear to have turned the corner…[/quote]

Though he goes on to say why prices will continue to decline I don’t agree that we’ve even turned the corner yet.

Sales have only picked up because the prices dropped. Most them are REOs, and some were bought by people defaulting on their former property, down-sizing to something affordable and claiming rental income on the previous house before the foreclosure process starts.

Not exactly signs of a turn-around IMO.

[cr]

[quote=The author]”While sales appear to have turned the corner…[/quote]

Though he goes on to say why prices will continue to decline I don’t agree that we’ve even turned the corner yet.

Sales have only picked up because the prices dropped. Most them are REOs, and some were bought by people defaulting on their former property, down-sizing to something affordable and claiming rental income on the previous house before the foreclosure process starts.

Not exactly signs of a turn-around IMO.

[cr]

[quote=The author]”While sales appear to have turned the corner…[/quote]

Though he goes on to say why prices will continue to decline I don’t agree that we’ve even turned the corner yet.

Sales have only picked up because the prices dropped. Most them are REOs, and some were bought by people defaulting on their former property, down-sizing to something affordable and claiming rental income on the previous house before the foreclosure process starts.

Not exactly signs of a turn-around IMO.

[cr]

[quote=The author]”While sales appear to have turned the corner…[/quote]

Though he goes on to say why prices will continue to decline I don’t agree that we’ve even turned the corner yet.

Sales have only picked up because the prices dropped. Most them are REOs, and some were bought by people defaulting on their former property, down-sizing to something affordable and claiming rental income on the previous house before the foreclosure process starts.

Not exactly signs of a turn-around IMO.

[peterb]

I cannot wait to see the numbers in December!! Surely some kind of record will have been achieved!
I see more and more stories of people walking away just because dropping values have made them upside down. And we still have not seen the brunt of Alt A, prime/jumbo prime hit the fan yet. What a show!!

[peterb]

I cannot wait to see the numbers in December!! Surely some kind of record will have been achieved!
I see more and more stories of people walking away just because dropping values have made them upside down. And we still have not seen the brunt of Alt A, prime/jumbo prime hit the fan yet. What a show!!

[peterb]

I cannot wait to see the numbers in December!! Surely some kind of record will have been achieved!
I see more and more stories of people walking away just because dropping values have made them upside down. And we still have not seen the brunt of Alt A, prime/jumbo prime hit the fan yet. What a show!!

[peterb]

I cannot wait to see the numbers in December!! Surely some kind of record will have been achieved!
I see more and more stories of people walking away just because dropping values have made them upside down. And we still have not seen the brunt of Alt A, prime/jumbo prime hit the fan yet. What a show!!

[Author]

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