Housing Tracker update – prices about to go over the cliff in San Diego

[Huckleberry]

Excellent post SDEngineer!

I would agree that the run-up was more based on speculation than fundamentals such as taxes…

[peterb]

If you track the last couple of CA real estate climbs, they tend to really ramp up hard the last couple of years before they burst. Having lived through them, I can tell you that it’s mostly everyone wanting to get in on the appreciation. It’s all everyone talks about at party’s and work. This one was really different in that the loan business started to give anyone that could fog a mirror a “no money down” loan. So everyone got into the game.
Having gone to Houston and Dallas on work related trips, I’ve seen new developments selling houses at very low prices. They just keep moving the housing developments further out from the city centers. But land is dirt cheap there. In 2004 I saw new 3/2 SFR’s going for $180K that were about 30 minutes from Houstons’ city center. But the very swanky Galleria area had many homes for $1M.

[peterb]

If you track the last couple of CA real estate climbs, they tend to really ramp up hard the last couple of years before they burst. Having lived through them, I can tell you that it’s mostly everyone wanting to get in on the appreciation. It’s all everyone talks about at party’s and work. This one was really different in that the loan business started to give anyone that could fog a mirror a “no money down” loan. So everyone got into the game.
Having gone to Houston and Dallas on work related trips, I’ve seen new developments selling houses at very low prices. They just keep moving the housing developments further out from the city centers. But land is dirt cheap there. In 2004 I saw new 3/2 SFR’s going for $180K that were about 30 minutes from Houstons’ city center. But the very swanky Galleria area had many homes for $1M.

[peterb]

If you track the last couple of CA real estate climbs, they tend to really ramp up hard the last couple of years before they burst. Having lived through them, I can tell you that it’s mostly everyone wanting to get in on the appreciation. It’s all everyone talks about at party’s and work. This one was really different in that the loan business started to give anyone that could fog a mirror a “no money down” loan. So everyone got into the game.
Having gone to Houston and Dallas on work related trips, I’ve seen new developments selling houses at very low prices. They just keep moving the housing developments further out from the city centers. But land is dirt cheap there. In 2004 I saw new 3/2 SFR’s going for $180K that were about 30 minutes from Houstons’ city center. But the very swanky Galleria area had many homes for $1M.

[peterb]

If you track the last couple of CA real estate climbs, they tend to really ramp up hard the last couple of years before they burst. Having lived through them, I can tell you that it’s mostly everyone wanting to get in on the appreciation. It’s all everyone talks about at party’s and work. This one was really different in that the loan business started to give anyone that could fog a mirror a “no money down” loan. So everyone got into the game.
Having gone to Houston and Dallas on work related trips, I’ve seen new developments selling houses at very low prices. They just keep moving the housing developments further out from the city centers. But land is dirt cheap there. In 2004 I saw new 3/2 SFR’s going for $180K that were about 30 minutes from Houstons’ city center. But the very swanky Galleria area had many homes for $1M.

[peterb]

If you track the last couple of CA real estate climbs, they tend to really ramp up hard the last couple of years before they burst. Having lived through them, I can tell you that it’s mostly everyone wanting to get in on the appreciation. It’s all everyone talks about at party’s and work. This one was really different in that the loan business started to give anyone that could fog a mirror a “no money down” loan. So everyone got into the game.
Having gone to Houston and Dallas on work related trips, I’ve seen new developments selling houses at very low prices. They just keep moving the housing developments further out from the city centers. But land is dirt cheap there. In 2004 I saw new 3/2 SFR’s going for $180K that were about 30 minutes from Houstons’ city center. But the very swanky Galleria area had many homes for $1M.

[yogamom]

Hello, I have lived in several different regions and the reality is California is different. There are several reasons for this. First, low property taxes make owning real estate to use as a rental property very attractive. The high real estate taxes in many other areas of the country discourage investors. I know there will be some disagreement on this point but it is a reality. The behavior of both investors and home owners here is in my opinion far from the norm in other areas. I have lived in the midwest and on the east coast. In those areas of the country people are more likely to not leverage property like the homeowners in California. The mortgage industry is less likely to be involved in making loans that people cannot afford and homeowners are more likely to be conservative in taking on debt. I will happily admit these are just some observations and no random sampling was done to produce this information.

I currently live in a neighborhood where a realtor bought a home, took out all the equity, moved out when the house was sent notice of default and is now renting the home to far more people than the house can accomodate to squeeze more money from the house while the bank tries to finish the foreclosure process. In another community this would be remembered and this realtor would not be able to find clients ever. In California this realtor will move and start over somewhere else with a some poor lenders money in her pocket and taxpayers footing the bill. While this could happen anywhere, in California we are no longer surprised. In many parts of the country this would be considered outrageous. We need to start considering that too much unethical behavior is overlooked here.

[yogamom]

Hello, I have lived in several different regions and the reality is California is different. There are several reasons for this. First, low property taxes make owning real estate to use as a rental property very attractive. The high real estate taxes in many other areas of the country discourage investors. I know there will be some disagreement on this point but it is a reality. The behavior of both investors and home owners here is in my opinion far from the norm in other areas. I have lived in the midwest and on the east coast. In those areas of the country people are more likely to not leverage property like the homeowners in California. The mortgage industry is less likely to be involved in making loans that people cannot afford and homeowners are more likely to be conservative in taking on debt. I will happily admit these are just some observations and no random sampling was done to produce this information.

I currently live in a neighborhood where a realtor bought a home, took out all the equity, moved out when the house was sent notice of default and is now renting the home to far more people than the house can accomodate to squeeze more money from the house while the bank tries to finish the foreclosure process. In another community this would be remembered and this realtor would not be able to find clients ever. In California this realtor will move and start over somewhere else with a some poor lenders money in her pocket and taxpayers footing the bill. While this could happen anywhere, in California we are no longer surprised. In many parts of the country this would be considered outrageous. We need to start considering that too much unethical behavior is overlooked here.

[yogamom]

Hello, I have lived in several different regions and the reality is California is different. There are several reasons for this. First, low property taxes make owning real estate to use as a rental property very attractive. The high real estate taxes in many other areas of the country discourage investors. I know there will be some disagreement on this point but it is a reality. The behavior of both investors and home owners here is in my opinion far from the norm in other areas. I have lived in the midwest and on the east coast. In those areas of the country people are more likely to not leverage property like the homeowners in California. The mortgage industry is less likely to be involved in making loans that people cannot afford and homeowners are more likely to be conservative in taking on debt. I will happily admit these are just some observations and no random sampling was done to produce this information.

I currently live in a neighborhood where a realtor bought a home, took out all the equity, moved out when the house was sent notice of default and is now renting the home to far more people than the house can accomodate to squeeze more money from the house while the bank tries to finish the foreclosure process. In another community this would be remembered and this realtor would not be able to find clients ever. In California this realtor will move and start over somewhere else with a some poor lenders money in her pocket and taxpayers footing the bill. While this could happen anywhere, in California we are no longer surprised. In many parts of the country this would be considered outrageous. We need to start considering that too much unethical behavior is overlooked here.

[yogamom]

Hello, I have lived in several different regions and the reality is California is different. There are several reasons for this. First, low property taxes make owning real estate to use as a rental property very attractive. The high real estate taxes in many other areas of the country discourage investors. I know there will be some disagreement on this point but it is a reality. The behavior of both investors and home owners here is in my opinion far from the norm in other areas. I have lived in the midwest and on the east coast. In those areas of the country people are more likely to not leverage property like the homeowners in California. The mortgage industry is less likely to be involved in making loans that people cannot afford and homeowners are more likely to be conservative in taking on debt. I will happily admit these are just some observations and no random sampling was done to produce this information.

I currently live in a neighborhood where a realtor bought a home, took out all the equity, moved out when the house was sent notice of default and is now renting the home to far more people than the house can accomodate to squeeze more money from the house while the bank tries to finish the foreclosure process. In another community this would be remembered and this realtor would not be able to find clients ever. In California this realtor will move and start over somewhere else with a some poor lenders money in her pocket and taxpayers footing the bill. While this could happen anywhere, in California we are no longer surprised. In many parts of the country this would be considered outrageous. We need to start considering that too much unethical behavior is overlooked here.

[yogamom]

Hello, I have lived in several different regions and the reality is California is different. There are several reasons for this. First, low property taxes make owning real estate to use as a rental property very attractive. The high real estate taxes in many other areas of the country discourage investors. I know there will be some disagreement on this point but it is a reality. The behavior of both investors and home owners here is in my opinion far from the norm in other areas. I have lived in the midwest and on the east coast. In those areas of the country people are more likely to not leverage property like the homeowners in California. The mortgage industry is less likely to be involved in making loans that people cannot afford and homeowners are more likely to be conservative in taking on debt. I will happily admit these are just some observations and no random sampling was done to produce this information.

I currently live in a neighborhood where a realtor bought a home, took out all the equity, moved out when the house was sent notice of default and is now renting the home to far more people than the house can accomodate to squeeze more money from the house while the bank tries to finish the foreclosure process. In another community this would be remembered and this realtor would not be able to find clients ever. In California this realtor will move and start over somewhere else with a some poor lenders money in her pocket and taxpayers footing the bill. While this could happen anywhere, in California we are no longer surprised. In many parts of the country this would be considered outrageous. We need to start considering that too much unethical behavior is overlooked here.

[Author]

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