Obviously these people need to live somewhere. My prediction - in these kinds of areas the rental market is going to soar. As always there there will be a premium to pay for being "poor". If the gov forces changes standards for loan qualifications in a way that makes it harder for subprime lenders to take on more risks then the risk will migrate to individual landlords. Landlords will charge a risk premium and rents will go up. That tells me REITs, pawnshops, and those companies offering loan shark rates on discounted pay check advances are going to be good investments for a long time to come. What a country! The more government forces incompetent legislation on the masses the more the wealthy will continue to reap windfalls. I don't know when the bourgeois will wisen up and stop insisting on government help that will always make them worse off... TS
At the peak of the bubble (1990), prime real estate in the business district of Tokyo was valued at $100,000 per 8 1/2" by 11". That's 8.5 inches by 11 inches for $100,000. Aloha.
The same could have been said at the beginning of the last real estate crash here, except they didnt have record inventories like we do now, and real estate grinded down for 7 years in a row. Also, there are plenty of places to live. Take a look at my previous charts. The san diego population has been going straight down for several years in a row now. Its gotten way too expensive and people are moving away. The median detached home is 13x the gross salary of the median family pay. We have a record over supply of homes/condo's and they are still building condo's like crazy. I ended my lease, because I see far too many better deals out there these days.
TS, Actually, The migration to other lower cost states could be a prediction too...Your thoughts? I find you an interesting read....thanks. Michael B.
Its already been happening. People in washington, oregon, nevada, have been complaining about all the californians moving in and driving their traffic, smog and real estate prices up.
add yet another one.... amazing http://www.signonsandiego.com/news/metro/20070205-9999-1m5crime.html :eek: :eek:
Its happened elsewhere, lets see if the same happens in san diego. I just saw a house in del mar sell for less than its 2003 price, almost 50% below the Zillow zestimate :eek:
Holy crap, the rate of "actual foreclosures" in san diego is up 600% :eek: http://voiceofsandiego.org/articles/2007/01/25/survival/861foreclosure.txt