I used to work at Highland and Wilshire...this was waaay before Korea Town came so far west. To get a god damn bagel I had to walk to almost all the way to the Beverly Center. You ain't tell me nothing holmes. However...my point was as the econometric sphincter tightens...more and more motivated sellers emerge. And true...I gots my eyes on the outskirts too.
Very easy answer. He is obviously a republican nutcase(Kudlow "Hard" as opposed to "Lite") so he probably does not believe in global warming.
2.7% increase in :NEW HOME SALES 5.5% in pre-existing Home sales These numbers in the last week. So, what do you think? Maybe the SKY IS FALLING HYPE because the Liberal Media and idiots want to re-distribute wealth? Wake up....we are in a recession but the sky is not falling and there will not be 10000000000000 homeless. Ask yourself who FNM/FRE targeted? Income wise.
You forget to subtract CA high ass property taxes of 1.25%. On a million dollar property, thats a little over 1k per month. Subtract another 3k per year for vacancy, dont forget to add in repairs. Most of those million dollars homes in Sherman oaks are 50+ years old (more than 65% of them) They say that 1% the value of your home is about what you will average on repairs per year, so thats another 10k right there. You quickly learn that the 5k per month is not really 5k per month, but really maybe 3k per month give or take. Unless you were going to live in the house, I cant see why anyone would buy a million dollar property as a rental especially when you know that prices cant possibly get much higher. There are so many better deals out there. Take Little Rock, AK for instance. You can pick up a house for 60k, (a nice one) and rent it out for 900 per month. At that rate you could buy 16 homes, and gross 172k per year vs that measly 60k per year in CA. I think most of these people with millions to spare, did not make their money in real estate, but want to "look" like they did by buying million dollar properties.
Dont forget that those are the numbers for the whole U.S. Just the west coast, the numbers are 23% increase in new homes sales. Its those jokers in the northeast that have kept the numbers down with their 21% decline in home sales. So yeah its cloudy skies in New York, but here in Sunny California, its...well...sunny!!
Little Rock AK has been overrun with gangs. Even the police won't patrol certain areas. Might as well throw inner city Detroit or Camden NJ on your list too. You can get houses there for $100. P.S.-- I think your numbers are way off. Why would anyone pay $900 a month to rent if they could buy the place for 60k?
New home sales and existing home sales are picking up, against everything the economists were saying... it's the vast right wing conspiracy trying to swerve the election results folks!! http://www.ft.com/cms/s/0/eebff832-a43e-11dd-8104-000077b07658.html Unexpected rise in new US home sales By James Politi in Washington Published: October 27 2008 16:25 | Last updated: October 27 2008 16:25 The pace of new home sales in the US rose by 2.7 per cent last month â a much better figure than forecast by economists - as low prices fostered a flurry of activity in the stricken US housing market amid an intensifying financial crisis. New home sales rose to an annualised rate of 464,000 units after dropping by a steep 12.3 per cent in August, the US commerce department said on Monday. The inventory of unsold homes also dropped, from 11.4 monthsâ supply in August to 10.4 monthsâ supply last month. The median sale price for a new home fell to $218,400, its lowest level in four years. The data roughly trace encouraging figures on sales of previously owned homes, released last Friday, indicating that a bottoming in home sales might be taking hold and that could pave the way for an eventual rebound in the US housing market â the root of the global financial turmoil. But economists have cautioned that the stabilisation of home sales reflected buying conditions in July and August, and could be threatened by the deeper economic woes in late September and October. âThere is a sense that home sales may have started September stronger but ended weaker and continued much softer in the current month,â said Alan Ruskin of RBS Global Banking & Markets in Greenwich, Connecticut. A key monthly measure of US home prices â the Case-Shiller index â will be released on Tuesday, providing further direction about the fate of the US housing market. On Friday, the National Association of Realtors said the pace of previously owned home sales rose to a rate of 5.18m annualised units last month â the highest level since the middle of last year. That was sharply higher than the 4.9m annualised unit rate expected by economists. In addition, for the first time in three years the pace of existing home sales rose on an annual basis â by 1.4 per cent compared with September 2007. The median price for previously owned homes was $191,600 last month - the lowest level since April 2004 and a 9 per cent fall compared with September 2007. Copyright The Financial Times Limited 2008
what is not be told by the numbers is that the houses being sold have brought down the median sales prices by 40% (at least based on the trend in recent data- I did not click on you links because I create my own analysis for San Diego. The median price dropped very quickly because the lower end of the market is being supported by fha 3% down loans.