Dr. Housing Bubble 09/03/2014

[Crewleader]

Underwater in Southern California and trend reversals: 10 percent of SoCal homeowners remain underwater despite recent increase in home prices.

You would think that the recent rise in home prices across Southern California would be enough to bring most homeowners into a positive equity position. However, we still have 1 out of 10 homeowners in a negative equity position. The total number of homes underwater in SoCal is estimated to be at 288,000 according to CoreLogic. This is a far cry from the 1.1 million underwater homes going back to 2009. Since that time many foreclosures have occurred and many homes have now shifted into the hands of investors. 288,000 is a large number of homes especially in a market with limited inventory. Now that we are entering into the slower fall selling season, you will likely see inventory pullback and buying demand slow down. Investor demand has pulled back dramatically already. Buying a home is a big deal and running the numbers on a crap shack is important in making sure you are seeing the bigger picture. There still seems to be this amnesia as to what happened only a few years ago. Millions of homeowners lost out in the supposedly safe investment vehicle of housing. Why? Because they took on too much debt and paid too much for a property. As prices soared in the last year, we are starting to see a deeper questioning of current values now that investors are pulling back and foreclosure resales make up a small portion of the market. Regular buyers did not push this market up. It was investors. Many regular households have been pushed into renting.

Trend shift

http://www.doctorhousingbubble.com/underwater-southern-califoria-real-estate-negative-equity-sales-trends/

[Tikki]

1. What I've noticed about this 'bubble guy', he shows a prejudice toward smaller sq ft housing.

It is now and forever will be about location. Even when natural disasters and man made disaster hit..
the location seems to hold or bounce back.

For most of us here...we know that special 'location or locations' where we live or have lived.
Some will happily live in a location under 1,200 sq ft.

Developers take a chance, sometimes, and hope the new housing tracts or land tracts will work out
in other locations.

What's the old saying..."If you have it, flaunt it!!!" If I was living in most parts of Pasadena or Santa Monica
or Malibu or Santa Barbara, I'd flaunt it..


Tikki

[Crewleader]

2. Location, location is the Selling no matter the price indeed Tikki for those who can afford it.:)

Dr. Housing Bubble does read and did post awhile back, maybe he'll see this and answer you.