Correct me if I’m wrong but I calculate a 1.062% decrease in price for LA from July 2007 (260.84) to August (258.07).
For YOY (September 2006 to August 2007) a 5.973% decrease. Ratios of 273.94 and 258.07 respectively. 11 consecutive months of price drops since October ’06 for LA.
I’m noticing more and more foreclosures all the time. I hope and expect the rate of price drops to accelerate through the slow season and continue for several years, but I too wish it would happen faster. Though relatively, 5/9% decline YOY is pretty significant considering real estate prices “never go down.”
If you add 6% a year to homes that were bought in 1998 @ 300k they
You cannot add 6% a yr, how did you arrive at the conclusion that it is the right amount of sustainable appreciation? Prices follow income fundamentals, and income has not risen very much at all since 2000. At least in my line of work (IT) companies are still offering hte same salaries they were offering in 2000.
Infact if inflation of essential commodities, oil, food, energy etc. is high then affordability will decline further.
If you add 6% a year to homes that were bought in 1998 @ 300k they
You cannot add 6% a yr, how did you arrive at the conclusion that it is the right amount of sustainable appreciation? Prices follow income fundamentals, and income has not risen very much at all since 2000. At least in my line of work (IT) companies are still offering hte same salaries they were offering in 2000.
Infact if inflation of essential commodities, oil, food, energy etc. is high then affordability will decline further.
If you add 6% a year to homes that were bought in 1998 @ 300k they
You cannot add 6% a yr, how did you arrive at the conclusion that it is the right amount of sustainable appreciation? Prices follow income fundamentals, and income has not risen very much at all since 2000. At least in my line of work (IT) companies are still offering hte same salaries they were offering in 2000.
Infact if inflation of essential commodities, oil, food, energy etc. is high then affordability will decline further.
“San Diego was down 1.28% and LA was down 1.06% for the month. YOY, San Diego is down 8.32%, while LA is down 5.75%.”
You’re right I did, and your post today had the same numbers as I came up with. Nearly 6% in 1 year, the first year of declines in LA. With the amount foreclosures showing up and loans sitll to reset I expect to surpass that.
“San Diego was down 1.28% and LA was down 1.06% for the month. YOY, San Diego is down 8.32%, while LA is down 5.75%.”
You’re right I did, and your post today had the same numbers as I came up with. Nearly 6% in 1 year, the first year of declines in LA. With the amount foreclosures showing up and loans sitll to reset I expect to surpass that.
“San Diego was down 1.28% and LA was down 1.06% for the month. YOY, San Diego is down 8.32%, while LA is down 5.75%.”
You’re right I did, and your post today had the same numbers as I came up with. Nearly 6% in 1 year, the first year of declines in LA. With the amount foreclosures showing up and loans sitll to reset I expect to surpass that.
