Here is investopedia's definition: 1. An economic cycle characterized by rapid expansion followed by a contraction. I believe buying 30 homes a year and now being foreclosed can comfortably be characterized by this definition...
Exactly. LTCM, '98 Asian Contagion, '94 Mexico Peso Crisis, '87 Crash - All past bogeymen that resulted in the utter annihilation of world markets. lol. Now we get subprime which was supposed to bring the apocalypse in the housing market yet for example SoCal home prices up 6.1% (5.9% in LA) yoy at a record. Wasn't SoCal a lock for all the doom and gloom?
Median price stubbornly high "Home sales across Southern California sank to a 12-year low for the month of April on sharp declines in two affordable markets, an industry tracker said Tuesday. But the median price in the six-county region increased an annual 6.1percent to $505,000, unchanged from the previous month and still a record, La Jolla-based DataQuick Information Systems said. And in the big L.A. County market, the median increased an annual 5.9percent to $540,000, also unchanged from March's record. The median price, the point at which half the homes cost more and half less, did fall from year-ago levels in four counties, but the declines only ranged from 0.2percent in Orange County to 3percent in San Diego County. " -------- Didn't someone post that half the homes in San Diego were in foreclosure?
http://www.dqnews.com/RRSCA0207.shtm http://www.latimes.com/business/la-fi-homes14dec14,1,4531088.story?coll=la-mininav-business And that's what people are willing to sell their houses for...this is only the beginning fo what most predict. Prices will either be falling further or....well, no one is still stupid enough to buy houses in So Cal at such inflated prices unless they're morons or they have a lot of money with very few exceptions.
Unfortunately, I don't think we'll run out of morons anytime soon, but I do think we'll run out of bankers with money to lend them as the foreclosures, auction sales, and losses on them mount.
well, before predicting a subprime blowout you have to find out what % of borrowers are subprime in the first place. I don't know the number is for SoCal. Anyway, a lot of these 'experts' on TV and in the paper are dumba**es. I've been on the record saying that most of LA Metro will not tank like places such as Vegas. So far, me 1, experts 0. Some of the deeper inland areas of So Cal (San Bernd county) may be at risk because there has been more development there and land is less desirable than coastal areas. The experts also predicted Nor Cal (SF and Silicon Valley) would tank. It's been an annual prediction since 2000. I just checked zillow and my house went up $80,000 in 2 months. Me 2, experts 0.
Bro, if you're using Zillow to gauge the value of your house I'm going to have to notch your score down about 4 points to -2!