Prime Areas Collapse

[CAwireman]

Seem to be a number of similar articles like this popping up:

http://www.dailyfinance.com/2009/10/12/home-foreclosures-move-up-market-as-discounting-pushes-prices-do/

Foreclosures are no longer a primarily subprime problem. While in 2006 about 55 percent of foreclosures came on subprime loans, in 2009 subprimes represent just 35 percent of foreclosures, another 35 percent are in the middle tier and 30 percent are in the top tier. The primary contributing factor is higher delinquency rates in Prime, Alt-A and Option ARM mortgage products.

According to the Amherst Security Group, this problem won’t go away any time soon, because:

• Loans are transitioning into delinquency/foreclosure at a rapid pace, but moving out at a slow pace;

• Cure rates are low. In other words, fewer people are paying their past-due amounts and getting back on track.

• Loans are taking longer to liquidate. In other words, the length of time between the start of the foreclosure process and the point when the lender gets control of the property is growing.

http://www.dailydemocrat.com/news/ci_13532775

“Housing in California has become a tale of two markets,” Association President James Liptak said in a written statement. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their
concerns about where prices are headed.”
There is also another reason why high-end homes are not selling. Move-up buyers have seen their home values fall and are unable to sell their homes at the price level needed to help finance the purchase of a more expensive home, said Mark Hanson, head of Menlo Park-based Field Check Group, an independent real estate research firm.

“Our move-up buyer is long gone in California. In the mid- to high-end market … people can’t sell their property,” he said.

“In the low-end market, sales are going to drop,”
_________________________

Heard as much on the radio today while driving into work. High end jobs being lost along with those at the mid and low end.

Will continue to keep a close eye on this…..

[sdrealtor]

I was agreeing but I guess thats not allowed by Der Rt 66

[sdrealtor]

I was agreeing but I guess thats not allowed by Der Rt 66

[sdrealtor]

I was agreeing but I guess thats not allowed by Der Rt 66

[sdrealtor]

I was agreeing but I guess thats not allowed by Der Rt 66

[sdrealtor]

I was agreeing but I guess thats not allowed by Der Rt 66

[jameswenn]

What’s considered a high end job in San Diego? I’m not a local.

[jameswenn]

What’s considered a high end job in San Diego? I’m not a local.

[jameswenn]

What’s considered a high end job in San Diego? I’m not a local.

[jameswenn]

What’s considered a high end job in San Diego? I’m not a local.

[jameswenn]

What’s considered a high end job in San Diego? I’m not a local.

[SD Realtor]

I think a job of over 175k is a high end job.

James I think high end/prmime areas is kind of subjective. To me high end and desireable are used in an interchangeable manner but I am not so sure they should be. For instance Rancho Penasquitos is desired by alot of people but by no means should be considered high end. Single family homes are in the 500k and up range out there although there are some twin homes cheaper out there. Also 4S Ranch is desireable and has single family homes in the 600k and up range. Encinitas is very desireable and has older home stock but also in that price range and up.

To me, high end is in the 7 figures and up range. I think that there is a very probable that high end will continue to collapse. As far as other non high end places that are desireable… well that is a trickier one. There is no doubt alot of foreclosures out there, alot of shadow inventory as well and more coming. Lots of unemployment as well. This is countered with a lack of inventory and a government that will throw the baby out with the bathwater in terms of trying to reinflate the market. How the inventory is disposed will be an interesting scenario.

[SD Realtor]

I think a job of over 175k is a high end job.

James I think high end/prmime areas is kind of subjective. To me high end and desireable are used in an interchangeable manner but I am not so sure they should be. For instance Rancho Penasquitos is desired by alot of people but by no means should be considered high end. Single family homes are in the 500k and up range out there although there are some twin homes cheaper out there. Also 4S Ranch is desireable and has single family homes in the 600k and up range. Encinitas is very desireable and has older home stock but also in that price range and up.

To me, high end is in the 7 figures and up range. I think that there is a very probable that high end will continue to collapse. As far as other non high end places that are desireable… well that is a trickier one. There is no doubt alot of foreclosures out there, alot of shadow inventory as well and more coming. Lots of unemployment as well. This is countered with a lack of inventory and a government that will throw the baby out with the bathwater in terms of trying to reinflate the market. How the inventory is disposed will be an interesting scenario.

[SD Realtor]

I think a job of over 175k is a high end job.

James I think high end/prmime areas is kind of subjective. To me high end and desireable are used in an interchangeable manner but I am not so sure they should be. For instance Rancho Penasquitos is desired by alot of people but by no means should be considered high end. Single family homes are in the 500k and up range out there although there are some twin homes cheaper out there. Also 4S Ranch is desireable and has single family homes in the 600k and up range. Encinitas is very desireable and has older home stock but also in that price range and up.

To me, high end is in the 7 figures and up range. I think that there is a very probable that high end will continue to collapse. As far as other non high end places that are desireable… well that is a trickier one. There is no doubt alot of foreclosures out there, alot of shadow inventory as well and more coming. Lots of unemployment as well. This is countered with a lack of inventory and a government that will throw the baby out with the bathwater in terms of trying to reinflate the market. How the inventory is disposed will be an interesting scenario.

[SD Realtor]

I think a job of over 175k is a high end job.

James I think high end/prmime areas is kind of subjective. To me high end and desireable are used in an interchangeable manner but I am not so sure they should be. For instance Rancho Penasquitos is desired by alot of people but by no means should be considered high end. Single family homes are in the 500k and up range out there although there are some twin homes cheaper out there. Also 4S Ranch is desireable and has single family homes in the 600k and up range. Encinitas is very desireable and has older home stock but also in that price range and up.

To me, high end is in the 7 figures and up range. I think that there is a very probable that high end will continue to collapse. As far as other non high end places that are desireable… well that is a trickier one. There is no doubt alot of foreclosures out there, alot of shadow inventory as well and more coming. Lots of unemployment as well. This is countered with a lack of inventory and a government that will throw the baby out with the bathwater in terms of trying to reinflate the market. How the inventory is disposed will be an interesting scenario.

[Author]

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