Comments on: When is the Bottom: Myth Debunking 2 http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html Southern California is Experiencing a Real Estate Bubble like never before Wed, 10 Mar 2010 19:44:54 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Brad Davidson http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html/comment-page-1#comment-92099 Brad Davidson Thu, 23 Jul 2009 21:39:27 +0000 http://www.socalbubble.com/?p=694#comment-92099 There are many all cash buyers out there. Right now the banks are turning down most all FHA offers on the REO's that are on the market. The appraisals just aren't matching the prices being bid and they would rather get the deals closed for a little less money with the cash buyers. I've got dozens of clients itching to buy that I can tell are tired of hearing me say that there is going to be more inventory come the Fall. There are only 325 REO's on the market in Orange County as of today but the foreclosure rates are as high as ever. I believe the deals will come but Realtors are out there saying we've hit bottom and you'd better buy. Hang in there Beachchic. Brad Davidson There are many all cash buyers out there. Right now the banks are turning down most all FHA offers on the REO’s that are on the market. The appraisals just aren’t matching the prices being bid and they would rather get the deals closed for a little less money with the cash buyers.

I’ve got dozens of clients itching to buy that I can tell are tired of hearing me say that there is going to be more inventory come the Fall. There are only 325 REO’s on the market in Orange County as of today but the foreclosure rates are as high as ever. I believe the deals will come but Realtors are out there saying we’ve hit bottom and you’d better buy.

Hang in there Beachchic.

Brad Davidson

]]> By: Beachchic http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html/comment-page-1#comment-92057 Beachchic Wed, 22 Jul 2009 21:10:50 +0000 http://www.socalbubble.com/?p=694#comment-92057 Thanks, Chuck. I agree that the economics of buying are bad. We still have increasing unemployment and the CA budget crisis which impact housing. I will wait in my leased condo for now and just enjoy my life. Thanks, Chuck. I agree that the economics of buying are bad. We still have increasing unemployment and the CA budget crisis which impact housing. I will wait in my leased condo for now and just enjoy my life.

]]> By: Chuck Ponzi http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html/comment-page-1#comment-92056 Chuck Ponzi Wed, 22 Jul 2009 20:51:20 +0000 http://www.socalbubble.com/?p=694#comment-92056 Beach, The current pace is actually more what I expected. Inexorable decreases, year after year. The fireworks that happened last year on the inland empire was not expected, and has not been observed in the coastal areas. The natural rate of decline happens slowly as those who can try to wait it out. Those who can't will sell into weakness. However, since buyers are largely dependent on reference value (what someone else paid for it) and not on fundamental value (rental value minus risk value), declines take a long time. I will have been a renter for 5 years on July 30th (one week). It's frustratingly slow, but unavoidable. The economics of buying are still quite bad, though not nearly as bad as 2005 to 2007. Patience is a virtue. Chuck Beach,

The current pace is actually more what I expected. Inexorable decreases, year after year.

The fireworks that happened last year on the inland empire was not expected, and has not been observed in the coastal areas.

The natural rate of decline happens slowly as those who can try to wait it out. Those who can’t will sell into weakness. However, since buyers are largely dependent on reference value (what someone else paid for it) and not on fundamental value (rental value minus risk value), declines take a long time. I will have been a renter for 5 years on July 30th (one week). It’s frustratingly slow, but unavoidable. The economics of buying are still quite bad, though not nearly as bad as 2005 to 2007.

Patience is a virtue.

Chuck

]]> By: Beachchic http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html/comment-page-1#comment-92023 Beachchic Tue, 21 Jul 2009 23:46:25 +0000 http://www.socalbubble.com/?p=694#comment-92023 I was told the flippers and investers are still out in OC and San Diego, at least for the lower end homes. I know of 2 first time buyers (I know, knife-catchers) who were up against other buyers and bidding wars ensued. Their competitors were investors, or so that's what the realtors told them. Is this true? This is getting discouraging. I've waited for 5 years and I will not fall into the "bidding war" trap. I know it's still too early to purchase, but I am getting fustrated at how slowly the prices are declining. I was told the flippers and investers are still out in OC and San Diego, at least for the lower end homes. I know of 2 first time buyers (I know, knife-catchers) who were up against other buyers and bidding wars ensued. Their competitors were investors, or so that’s what the realtors told them. Is this true?

This is getting discouraging. I’ve waited for 5 years and I will not fall into the “bidding war” trap. I know it’s still too early to purchase, but I am getting fustrated at how slowly the prices are declining.

]]> By: California Kid http://www.socalbubble.com/2009/07/when-is-the-bottom-myth-debunking-2.html/comment-page-1#comment-91906 California Kid Sun, 19 Jul 2009 20:04:28 +0000 http://www.socalbubble.com/?p=694#comment-91906 Good piece... I believe strongly that their will be continued pressure on maintaining home prices in S. California. Those with deep pockets will realize in the near future that they have overpaid and understand that median ties directly with income index. We were visiting Sacramento a few weeks back and looked at some new home developments to kill time... it was very surprising to see what you could purchase and the Agent's mood at a point where they asked me to make an offer...?? They had even noted that they were sure the current asking prices would not even appraise.... So lower the price and quit expecting those with deep pockets to rescue you. Reform and regulation are still making their way through the financial system and home prospecting as a financial investment will continue to decline. Good piece… I believe strongly that their will be continued pressure on maintaining home prices in S. California. Those with deep pockets will realize in the near future that they have overpaid and understand that median ties directly with income index. We were visiting Sacramento a few weeks back and looked at some new home developments to kill time… it was very surprising to see what you could purchase and the Agent’s mood at a point where they asked me to make an offer…?? They had even noted that they were sure the current asking prices would not even appraise…. So lower the price and quit expecting those with deep pockets to rescue you. Reform and regulation are still making their way through the financial system and home prospecting as a financial investment will continue to decline.

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