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Realistbear

California, The World's Bellweather Bubble, Sinks 1.8% July

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http://www.signonsandiego.com/news/busines...b12housing.html

For 2nd month, county home prices drop from year ago

By Roger M. Showley

UNION-TRIBUNE STAFF WRITER

August 12, 2006
San Diego County's housing market weathered its second straight month of price declines in July, when overall prices dropped 1.8 percent from a year ago to $487,000, DataQuick Information Systems reported yesterday.
Coupled with a slide in sales activity, the decline in median prices followed a 1 percent year-over-year reduction recorded for June. Taken together, the two summer months showed the first back-to-back downturn in prices here since May and June of 1995......../
“It's kind of spread like fire,” he said. “All your buddies you work with are not feeling good. It creates a wave opposite from when people said, “Get out of the stock market and get into real estate.' ”

CRRRAAAAAAAAAAAAAAAAAAAAAAAASH!

Its going to get ugly in San Diego this Autumn as thousands of cheap into loans get reset to today's IR. In many cases thats 2% to 7%--overnight. :o

In the last two years of the bubble over 80% of loans were IO or other forms of dubious creative lending. We are in the same boat and my bet is that we will follow San Diego down with a 6 month lag. IN the Great Crash the UK and Southern CA both tanked around 35% and the market remained depressed from 1989-1996. The irrational exhubrance began at the end of 1996 and caused infaltion in house prices of the order of 135%. Sounds about where we are--a massive, unsustainable bubble, built on debt and irresponsible lending. The pain this time around will be intense and a nasty recession is guaranteed to add to the woe.

Edited by Realistbear

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Guest grumpy-old-man

http://www.signonsandiego.com/news/busines...b12housing.html

For 2nd month, county home prices drop from year ago

By Roger M. Showley

UNION-TRIBUNE STAFF WRITER

August 12, 2006
San Diego County's housing market weathered its second straight month of price declines in July, when overall prices dropped 1.8 percent from a year ago to $487,000, DataQuick Information Systems reported yesterday.
Coupled with a slide in sales activity, the decline in median prices followed a 1 percent year-over-year reduction recorded for June. Taken together, the two summer months showed the first back-to-back downturn in prices here since May and June of 1995......../
“It's kind of spread like fire,” he said. “All your buddies you work with are not feeling good. It creates a wave opposite from when people said, “Get out of the stock market and get into real estate.' ”

CRRRAAAAAAAAAAAAAAAAAAAAAAAASH!

Its going to get ugly in San Diego this Autumn as thousands of cheap into loans get reset to today's IR. In many cases thats 2% to 7%--overnight. :o

In the last two years of the bubble over 80% of loans were IO or other forms of dubious creative lending. We are in the same boat and my bet is that we will follow San Diego down with a 6 month lag. IN the Great Crash the UK and Southern CA both tanked around 35% and the market remained depressed from 1989-1996. The irrational exhubrance began at the end of 1996 and caused infaltion in house prices of the order of 135%. Sounds about where we are--a massive, unsustainable bubble, built on debt and irresponsible lending. The pain this time around will be intense and a nasty recession is guaranteed to add to the woe.

I think statements like this are very important even if it's in the USA. Other words I have heard in the last few months around the world a lot are: UNPRECEDENTED & PEAK :ph34r:

edited as I couldn't spell unprecIdented :rolleyes:

Edited by grumpy-old-man

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I think statements like this are very important even if it's in the USA. Other words I have heard in the last few months around the world a lot are: UNPRECEDENTED & PEAK :ph34r:

edited as I couldn't spell unprecIdented :rolleyes:

The conditioning lingo has already started by the establisment. The forces are already at work to soften us up and make us believe that it is purely our fault for bringing the country to its knees !!! I hope I live long enough to see a sale notice in one of our banks !!

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YES.

The market has reached Crash Cruise Speed in the USA

Yep.

I always love the cruise control on US cars; you can just sit there at a constant speed until you hit something and become a wreck. Just like the property market.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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