Comments on: A Sellers’ Market!?!

By: frank

frank — Sat, 27 Sep 2008 17:05:32 +0000

Everybody is waiting to see what is going to happen with the 700 billion bailout. Not to mention that foreclosures and notice of defaults are still increasing at a rapid pace however you should see a dip in foreclosures in sept. and oct. due to a bill that the governor passed that is slowing down the foreclosure process. Once things continue to flow normally we will continue to see inventory climbing. Lending is already tightening and the bottom line is that home prices are not sustainable at current levels. We are starting to see more defaults in option arms which will peak in a year and we are also seeing defaults in prime loans so i think we are all underestimating the size of the bubbled that popped. I expect home values to drop an aditional 10 to 20% across the board.

By: Rick Salmon

Rick Salmon — Thu, 25 Sep 2008 15:38:58 +0000

I think the worst is yet to come in the real estate market. But as the government is stepping in the “free market” economy who knows? I guess smoke and mirrors will continue and the next generation will pay the bills, until the house of cards collapses completely.

By: waitingforgodot

waitingforgodot — Thu, 18 Sep 2008 23:01:53 +0000

Thank you. We actually own right now in OC (I don’t know if people realize that La Palma = OC), but are looking to move to the South Bay for commute / family reasons. We bought early enough in 2001 so that there’s some equity left, so we’re not in any rush. That equity sure is dropping at a faster rate, based on what I can see from local comps.

I wish you and your partner continued success, and I appreciate your straightforward feedback.

By: Blair Newman and Dave Emerson

Blair Newman and Dave Emerson — Thu, 18 Sep 2008 17:05:04 +0000

Waiting,

Maybe I should rephrase it to “starter neighborhoods,” because what I really mean is neighborhoods with lots of foreclosures. That’s what forces prices to market. . . or below.

I don’t think there are any such neighborhoods in the South Bay, although there may be a few starter condo complexes.

When the economy goes down, the fed lowers rates and, more important, the market lowers rates, anticipating further slow-downs. So, to some extent, they do cancel each other out, or self-correct.

However, as I’ve been saying for a year now, we are in uncharted territory. Nobody really knows what’s next. But that doesn’t stop us from guessing!

Good luck for success. I wouldn’t be surprised to see Torrance continue to decline for a while. You might want to start writing offers–even lowballs–in November.

By: waitingforgodot

waitingforgodot — Thu, 18 Sep 2008 16:28:53 +0000

What exactly do you mean by starter homes. I’m keeping an eye on Torrance / South Bay, and it doesn’t seem like the bottom is near.

Do you really think the economy and interest rates will balance each other out? The employment reports / trends aren’t looking that pretty.

Have a good day.