Housing Bubble Update--West

[unlawflcombatnt]

The Housing Bubble is deflating rapidly in most large Western markets. All major markets in Southern California, except for Riverside, have shown significant declines in the last 6 months. (Riverside has had a 0.0% increase in prices over the last 12 months.) Median home prices over the last 12 months have declined 6.2% in Los Angeles County and 5.5% in San Diego County. In Orange County, CA, prices have declined 0.8% over the last 6 months (12-month figures are not available.)

The 2 biggest non-California markets, Phoenix and Las Vegas, have experienced similar declines. Over the last 12 months, Phoenix home prices have declined 10.5% while Las Vegas prices have declined 4.0%.



The above information can be found at http://www.benengebreth.org/housingtracker/">Housing Tracker

Inventories are rising even faster than prices are dropping. Home inventories have increased 100% in Los Angeles County, 181% in Riverside, California, and a whopping 267% in Phoenix. As inventories continue to rise, prices can be expected to decline even further.

unlawflcombatnt

EconomicPopulistCommentary

EconomicPatriotForum

___________
The economy needs balance between the "means of production" & "means of consumption."

[The_Casual_Observer]

1. In my neighborhood none of the house that were on the market

in the last year sold. The old owners are still in them. They were too late to cash in on the bubble.

[sentelle]

2. West Coast != California

Seattle, WA
Trend 08/14/2006 1 month 3 month 6 month 12 month
Median Price $439,900 -0.0% +1.1% +10.7% +14.6%
Inventory 4,642 +6.7% +22.8% +35.1% +21.9%

Portland OR
Trend 08/14/2006 1 month 3 month 6 month 12 month
Median Price $365,000 0.0% +0.3% +10.3% +10.6%
Inventory 7,604 +12.2% +54.2% +79.3% +79.3%


These #'s from your URL....

[unlawflcombatnt]

4. "West," not "West Coast"

The point was that home prices are declining in the major Western markets, which is why Phoenix and Las Vegas were included.

The total number of homes and people included in the 6 markets listed is huge. They make up a major part of the housing market in the Western United States. Neither Seattle or Portland are even in a league with the size of Los Angeles County, which has over 10 million people.

The point is that most major Western housing markets are rapidly deflating. And that deflation is picking up speed.

unlawflcombatnt

EconomicPopulistCommentary

EconomicPatriotForum

___________
The economy needs balance between the "means of production" & "means of consumption."

[KKKarl is an idiot]

3. This is like a stock market crash

It may not seem as severe. But housing is supposed to be a safe investment just like bonds. But when it goes down it has to be a very bad thing because houses generally do not loose value. Maybe this is a prelude to a huge stock market crash. I am no financial expert but this is my 2 cents from the way I interpret markets. Correct me if I am wrong.

[unlawflcombatnt]

5. Maybe Worse

Many economists say this will be much worse, since a much larger fraction of Americans have large investments in real estate. 16% of jobs created under the Bush dictatorship have been due to the housing bubble.

unlawflcombatnt

EconomicPopulistCommentary

EconomicPatriotForum

___________
The economy needs balance between the "means of production" & "means of consumption."

[primative1]

9. Big Problems Lurking ...

Whatever kind of economy we are wittnessing outside of defense contracts is entirely consumer driven. But where has the consumer found the funding for their continued appetite for shopping?
MANY have used home equity loans. Others have refied into adjustable rate mortgages to get at that last scrap of equity.
Now along comes the punchline we were warned about.
When prices fall, no more equity to withdraw.
People now have to rely on wages to pay for their binge shopping. But wait wages are stagnant or falling and the consumer now needs what little they can scrape up to pay the mortgage payments that are RISNING along with interest rates.
On top of that a lot of home "owners" now find that falling prices are leaving them with NEGATIVE equity. When do they walk away leaving the shaky banking system holding the bag? What becomes of Mao Mart when the shoppers stay away? And how will BushCo spin these minor details into more rosy economic numbers? ... Hmm.
For these and other exciting stories stay tuned to FAUX news at 11

[enid602]

6. too bad

Damn. And I was just gettin' used to feeling rich. Guess I can start parking my car in the front yard again, and I'll put the foil back on the big pitcher winda in the 'front room.'

[chaumont58]

7. Its still crazy. I bought a home in 1972 and paid $29,250.

It was in Ventura Co, California. I lived in that house for 25 years and sold in 1997 for $175,000. I recently used a site to supposedly provides current market value by address. The house I bought in 1972 is listed as being worth $696,000. I would love to waited to sell last year, but the whole thing is insane.

[high density]

8. I'm kind of surprised anybody is buying a house in this market

It seems to be about the worst time ever to be purchasing property.

[unlawflcombatnt]

10. Worst Time

I have to agree with you about this being about the worst time to purchase property. But I think it will get even worse.

unlawflcombatnt

EconomicPopulistCommentary

EconomicPatriotForum

___________
The economy needs balance between the "means of production" & "means of consumption."

[nolabels]

11. Eff them speculators anyway

The value of our property in Riverside is not an issue for us at this time so much. The bubble did help us get a lower interest rate and borrow for improvements. We could have always afforded the improvements but the bubble just made it that much affordable. The housing market might be going kind of even or deflating a little here but in many places they are still building like madmen especially at commercial building side of the market. I also have never seen jobs so plentiful around the county. We moved out of Orange County twenty years ago and just about never looked back