How much further would the housing prices in...
 

How much further would the housing prices in SOCAL drop over the next year - year and half???


Need some inputs!

California, Florida, and a few other places are likely to see some pretty major drops. Keep your eyes on the numbers of foreclosures and that will give you a good indication of what is about to happen.

Too many people bought too much house with too little income, and they are facing increased mortgage rates with absolutely no way to pay them. They are the ones initially pushing the market down, as they sell out low trying to get out with their asses intact. At a certain point, the foreclosures will start, and that will push the market down even further.

The only saving grace is that with all these sub-prime loans, the anks are on the hook for some pretty high property valuations, which means they are less likely to firesale properties off at 70-75% of market to recoup losses, and they are on the hook for something closer to 90-95%.

It will become interesting when the banks realize that they too are underwater on these properties.

I agree with most of what you said. But people did not buy too much house, the houses were WAY over priced. And its not just the intrest rates that are killing them, it is the taxes that go up every year.

The biggest problem is that the people BUILDING the houses can not afford to live in them. The shrinking middle class will force the price of houses to go way down. I see the market going down for the next 5 years or more. :2 cents:

We're on our way to go look at some open houses as we speak here in So-Cal. I can tell you firsthand that we're seeing alot more 'price reduced', 'motivated seller' and 'short sales' on the listings we get every day, let alone a big increase in inventory over the last couple of months. If that's any indication of things to come, it's going to become more and more of a forthcoming buyer's market.

The sub-prime loan market is dead, I believe New Century bank, a leader in the sub-prime market filed chapter 7 not too long ago if I'm not mistaken. All signs point to a down cycle and a 'bursting of the bubble' so to speak. However, I wouldn't go as far as calling it a 'crash', it will be more of a pricing adjustment.

Fuck I hope it's making a downswing... most of SoCal has become downright ridiculous with costs...

Yeah subprime is gone. The loans were there but the payments were not. many others have went under also.

Bottom line is: you're fucked.

Not sure where in Southern California you live but where I live most SFR prices have hardly gone down at all and now they are actually rising again. Activity is really picking up and prices seem to going up as well. Prices on condos and townhomes are still weak though.

yeah, don't see much in the decrease of cost around here.

Neighbors are selling their house for about $150k more than they paid for it a year ago. They did a little work, but not $150k worth

An 8-10% drop is a huge thing in residential markets. So if history repeats which it does. You will see the drop mentioned and then 3-5 years of a flat market. Letting prices catch up to peoples pocket books.