Los Angeles, San Diego Luxury-Home Prices Fall Most in Decade

[LA_Renter]

Here is an excellent post from Mr Mortgage about the Jumbo-Prime Universe

“Jumbo-Prime Under Attack by the Raters – Big Banks Beware
Posted on August 28th, 2008 in Uncategorized

More news for you on the Jumbo-Prime and Alt-A front. The recent flurry of action by the raters is almost too much to keep up with. In the past month, all three primary ratings agencies have torn apart the Jumbo Prime and Alt-A RMBS market. Now Moody’s is going one step further by stepping up scrutiny, which means more downgrades shortly, on ALL Jumbo Prime deals from 2006-2007.”

http://mrmortgage.ml-implode.com/2008/08/28/jumbo-prime-under-attack-by-the-raters-big-banks-beware/

Also, I posted about this on the Pain in La Jolla thread from Manhattan Beach Confidential, it is a recent Karate chop sale in exclusive Manhattan Beach

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

Home
“decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End…”

List Price $2.3 M

Sold $1.7 M

Last sale 2002 $1.37 M

Keep in mind the increase in the median price in MB (nominal) was 161% from 2000-2008, and beach-adjacent properties usually outperform the median.

This was not a tear down and according to the comments the seller was a successful RE Investor (commercial) and moved into a $6 M home (point being this was an educated seller). So this is what it looks like when sellers in the high end markets don’t cancel the listing and make the sale at what the market will bear. This one got people’s attention around here. The data is suggesting with each passing day that the high end is cracking.

[peterb]

I agree with LA_Renter.For all those people on this site that have been wondering about why the better areas have not experienced much trouble yet, check out Mr Mortgage’s web site. The Pain Train will be pulling into their station soon. The big money loans made in the last 3 years are starting to crack in a serious way now. So check you local listings for any properties that were purchased in this time frame. Could be some opportuities there.

And in today’s new: RE investors that want to purchase homes and then rent them out are running into a wall for financing. Turns out banks now have no stomach for making loans to people who have two or more outstanding mortgages. So, you better have cash. Oh, this puts more downward pressure on prices, incidentally.

[peterb]

I agree with LA_Renter.For all those people on this site that have been wondering about why the better areas have not experienced much trouble yet, check out Mr Mortgage’s web site. The Pain Train will be pulling into their station soon. The big money loans made in the last 3 years are starting to crack in a serious way now. So check you local listings for any properties that were purchased in this time frame. Could be some opportuities there.

And in today’s new: RE investors that want to purchase homes and then rent them out are running into a wall for financing. Turns out banks now have no stomach for making loans to people who have two or more outstanding mortgages. So, you better have cash. Oh, this puts more downward pressure on prices, incidentally.

[peterb]

I agree with LA_Renter.For all those people on this site that have been wondering about why the better areas have not experienced much trouble yet, check out Mr Mortgage’s web site. The Pain Train will be pulling into their station soon. The big money loans made in the last 3 years are starting to crack in a serious way now. So check you local listings for any properties that were purchased in this time frame. Could be some opportuities there.

And in today’s new: RE investors that want to purchase homes and then rent them out are running into a wall for financing. Turns out banks now have no stomach for making loans to people who have two or more outstanding mortgages. So, you better have cash. Oh, this puts more downward pressure on prices, incidentally.

[peterb]

I agree with LA_Renter.For all those people on this site that have been wondering about why the better areas have not experienced much trouble yet, check out Mr Mortgage’s web site. The Pain Train will be pulling into their station soon. The big money loans made in the last 3 years are starting to crack in a serious way now. So check you local listings for any properties that were purchased in this time frame. Could be some opportuities there.

And in today’s new: RE investors that want to purchase homes and then rent them out are running into a wall for financing. Turns out banks now have no stomach for making loans to people who have two or more outstanding mortgages. So, you better have cash. Oh, this puts more downward pressure on prices, incidentally.

[peterb]

I agree with LA_Renter.For all those people on this site that have been wondering about why the better areas have not experienced much trouble yet, check out Mr Mortgage’s web site. The Pain Train will be pulling into their station soon. The big money loans made in the last 3 years are starting to crack in a serious way now. So check you local listings for any properties that were purchased in this time frame. Could be some opportuities there.

And in today’s new: RE investors that want to purchase homes and then rent them out are running into a wall for financing. Turns out banks now have no stomach for making loans to people who have two or more outstanding mortgages. So, you better have cash. Oh, this puts more downward pressure on prices, incidentally.

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[cr]

Tanta at calculated risk said it well:

“Alt-A is sort of a weird mirror-image of subprime lending. If subprime was traditionally about borrowers with good capacity and collateral but bad credit history, Alt-A was about borrowers with a good credit history but pretty iffy capacity and collateral. That is to say, while subprime makes some amount of sense, Alt-A never made any sense. It is a child of the bubble.”

As a result fraud was rampant and it turns out, Prime, really isn’t.

http://www.housingwire.com/2008/08/28/prime-foreclosure-starts-surge-past-subprime-in-july/

[Author]

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