JayB Posted March 29, 2007 Posted March 29, 2007 http://online.wsj.com/public/resources/documents/info-subprimemap07-sort2.html And from the too little, too late files: Quote
AlpineK Posted March 29, 2007 Posted March 29, 2007 The bankers around LA must be in a bad mood. Quote
JayB Posted March 29, 2007 Author Posted March 29, 2007 At least in Orange County/Irvine 'bad' may be a bit of an understatement: http://ml-implode.com/ Quote
fenderfour Posted March 29, 2007 Posted March 29, 2007 In the end, we are left with the typical reaction - more regulation. I get tired of hearing stories about people who were pressured into buying homes that they couldn't afford and how the government should have stepped in to educate them or bail them out. Aren't people embarassed that they can't take care of themselves and make smart informed decisions? You probably need more than one consultation and an afternoon to review the situation before signing your name to a $250,000 loan. Then again, maybe I'm just overly cautious about these things. Quote
Peter_Puget Posted March 29, 2007 Posted March 29, 2007 Jayb - How does this differ from other boom and bust cycles? nice link Quote
archenemy Posted March 29, 2007 Posted March 29, 2007 In the end, we are left with the typical reaction - more regulation. I get tired of hearing stories about people who were pressured into buying homes that they couldn't afford and how the government should have stepped in to educate them or bail them out. Aren't people embarassed that they can't take care of themselves and make smart informed decisions? You probably need more than one consultation and an afternoon to review the situation before signing your name to a $250,000 loan. Then again, maybe I'm just overly cautious about these things. I sooooo agree with this. Quote
Jim Posted March 29, 2007 Posted March 29, 2007 Maybe deferred gratification is a thing of the past. I want, I want, and I want it now. I think if more folks budgeted as if they could loose their job next month things would be a bit different. Including the McMansion and McSUV syndrome. Quote
ZimZam Posted March 29, 2007 Posted March 29, 2007 Million $ homes caught in the mix. The horror. http://news.yahoo.com/s/nm/20070329/us_nm/usa_subprime_foreclosure_dc Quote
cj001f Posted March 29, 2007 Posted March 29, 2007 Jayb - How does this differ from other boom and bust cycles? nice link The important way - it's impacting "the people". LA proper is still sitting relatively pretty - the shitholes of the Inland Empire are hurting. Good riddance. Quote
archenemy Posted March 29, 2007 Posted March 29, 2007 Million $ homes caught in the mix. The horror. http://news.yahoo.com/s/nm/20070329/us_nm/usa_subprime_foreclosure_dc I would think that losing your home would be horrible no matter what tax bracket you are in. Your kids lives' get disrupted, your life gets crazy, etc. Quote
JayB Posted March 29, 2007 Author Posted March 29, 2007 Jayb - How does this differ from other boom and bust cycles? nice link The important way - it's impacting "the people". LA proper is still sitting relatively pretty - the shitholes of the Inland Empire are hurting. Good riddance. It's early yet. I'll be surprised if the credit tightening leaves LA proper unscathed. How many folks there could have bought their home with conventional financing? Toss in some dwindling appreciation and ARM resets, the challenges that will confront first time buyers in a more restrictive lending environment, etc and it's far from clear that the inland empire will suffer alone. Quote
KaskadskyjKozak Posted March 29, 2007 Posted March 29, 2007 In the end, we are left with the typical reaction - more regulation. I get tired of hearing stories about people who were pressured into buying homes that they couldn't afford and how the government should have stepped in to educate them or bail them out. Aren't people embarassed that they can't take care of themselves and make smart informed decisions? You probably need more than one consultation and an afternoon to review the situation before signing your name to a $250,000 loan. Then again, maybe I'm just overly cautious about these things. I sooooo agree with this. We need nanny government to take care of us from cradle to grave and save us from hurting ourselves. Quote
cj001f Posted March 29, 2007 Posted March 29, 2007 Million $ homes caught in the mix. The horror. http://news.yahoo.com/s/nm/20070329/us_nm/usa_subprime_foreclosure_dc I would think that losing your home would be horrible no matter what tax bracket you are in. Your kids lives' get disrupted, your life gets crazy, etc. Except if your rich you can go out and buy a Mercedes to salve the paing, whereas if you are poor you might be able to buy a Happy Meal. I'll be surprised if the credit tightening leaves LA proper unscathed. How many folks there could have bought their home with conventional financing? Toss in some dwindling appreciation and ARM resets, the challenges that will confront first time buyers in a more restrictive lending environment, etc and it's far from clear that the inland empire will suffer alone. I think it depends where you are defining as LA. I believe much of the unconventional financing for primary residences was the Inland Empire and Orange County. Speculators getting burned are getting their just desserts. Quote
KaskadskyjKozak Posted March 29, 2007 Posted March 29, 2007 Except if your rich you can go out and buy a Mercedes to salve the paing, whereas if you are poor you might be able to buy a Happy Meal. I define rich as being able to take expensive, lengthy vacations around the world for luxury activities including adventure sports. Quote
underworld Posted March 29, 2007 Posted March 29, 2007 i define rich as being happy.... i define having lots of money as having lots of money... not the same thing Quote
JayB Posted March 29, 2007 Author Posted March 29, 2007 Million $ homes caught in the mix. The horror. http://news.yahoo.com/s/nm/20070329/us_nm/usa_subprime_foreclosure_dc I would think that losing your home would be horrible no matter what tax bracket you are in. Your kids lives' get disrupted, your life gets crazy, etc. Except if your rich you can go out and buy a Mercedes to salve the paing, whereas if you are poor you might be able to buy a Happy Meal. I'll be surprised if the credit tightening leaves LA proper unscathed. How many folks there could have bought their home with conventional financing? Toss in some dwindling appreciation and ARM resets, the challenges that will confront first time buyers in a more restrictive lending environment, etc and it's far from clear that the inland empire will suffer alone. I think it depends where you are defining as LA. I believe much of the unconventional financing for primary residences was the Inland Empire and Orange County. Speculators getting burned are getting their just desserts. I'd be mighty surprised if the current valuation metrics are sustainable in a more restrictive lending environment and/or in the absence of hefty downpayments generated by rapid appreciation. Some LA Metrics: http://www.housingtracker.net/affordability/california/los-angeles When the first time buyer actually has to qualify for the fully-indexed payments instead of the I/O, payment-option, ARM-teaser rate and actually accumulate a down payment in the $50-$100K range through savings generated via earned income - everyone above them on the real estate food chain is going to feel it. First time buyers = the plankton of the real-estate ecosystem. Quote
KaskadskyjKozak Posted March 29, 2007 Posted March 29, 2007 i define rich as being happy.... i define having lots of money as having lots of money... not the same thing cool, you can play semantic games I'm talking about disposable income and how it can be used, and how certain people like to constantly play the class warfare card and harp on "the rich". Usually, said individuals define rich this way: "someone who makes more money than ME" I'm not sure there's much difference between a middle class guy with a house in Marysville tied to a mortgage that is killing him and a "rich" guy in Queen Anne with a similarly oppressive mortgage. If you make more money and sink proportionately more into your mortgage the net effect is to be in the same boat. And the quality of life/house itself often is not that much better or different. Quote
powderhound Posted March 29, 2007 Posted March 29, 2007 (edited) I am stoked. I thought that the housing market would never go down. I am just graduating from college and hope that within two years a bunch of this bullshit inflation leaves the housing market. I will be living in the South Bay area, so hopefully I can find some poor smuck that thought just because he was going to buy a house that it would appreciate faster then the rate at which the interest increased. Furthermore, with rates so low lots of people took out a second mortgage which is increasing the probability of foreclosure. This is a big plus for any college grads right now because within two to three years they will be in the position to take advantage of this fall. Edited March 29, 2007 by powderhound Quote
Jim Posted March 29, 2007 Posted March 29, 2007 (edited) I don't think the Bay area is ever going back to any reasonable definition of affordable. And up here in Seattle: Seattle's housing prices aren't falling like those in much of the country, but the supercharged increases of two years ago have definitely slowed. The latest figures, from Standard & Poor's S&P/Case-Shiller Home Price Indices, show Seattle-area house prices were up 11 percent in January from the same month in 2006. That was the largest increase among the indices' 20 cities -- 11 of which posted year-to-year declines http://seattlepi.nwsource.com/local/309149_housing28.html?source=mypi Edited March 29, 2007 by Jim Quote
sexual_chocolate Posted March 29, 2007 Posted March 29, 2007 Meanwhile.... Seattle's appreciation for the last calendar year: 11%. I thought Seattle would be slowing down more, but I keep hearing: "Seattle's a bargain." Considering the strength of the local economy, the influx of humanoids with money, and its increasing appeal as a destination, the argument certainly carries weight. Quote
cj001f Posted March 29, 2007 Posted March 29, 2007 I define rich as being able to take expensive, lengthy vacations around the world for luxury activities including adventure sports. yeah, the $8 a night palaces in India really break the bank Quote
JayB Posted March 29, 2007 Author Posted March 29, 2007 Meanwhile.... Seattle's appreciation for the last calendar year: 11%. I thought Seattle would be slowing down more, but I keep hearing: "Seattle's a bargain." Considering the strength of the local economy, the influx of humanoids with money, and its increasing appeal as a destination, the argument certainly carries weight. Counterargument: http://seattlebubble.blogspot.com/2007/03/spot-fundamentals.html The real-estate markets are local, but credit markets are global, so it's hard to forsee a scenario in which any particular metro-market is not impacted by the global appetite for Alt-A and sub-prime MBS. The psychology of market participants is one thing, their access to credit is another. It'll be interesting to see how those two variables influence one another over the course of the next couple of years. Quote
Jim Posted March 29, 2007 Posted March 29, 2007 You can never discount the possibility, but given the latest stats and what I've seen what houses are going for there seems to be no slowdown lately. Quote
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