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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (11476)	7/4/2003 5:07:18 PM
From: JF Quinnelly	Respond to of 306849

Likewise they did not experience the 50% decline in property values that Southern California did post-1989. I suspect we are going to see a replay of this in SoCal. Maybe the trigger will be when the state finally declares that it can't pay its bills and can't borrow one more dollar, which could happen any day now.

To: Elroy Jetson who wrote (11476)	7/4/2003 5:50:22 PM
From: jaypope	Read Replies (1) \| Respond to of 306849

Real Estate in Southern California, and certain other markets, is highly leveraged especially in comparison with income. A loss of jobs will have a big impact here. Maybe that's the difference between SoCal and the Bay Area. There's been HUGE job loss up here, but very little impact on housing prices - maybe people aren't as leveraged up here (?). There seem to be three basic groups of homeowners up here: those who have owned a long time (and, thanks to Prop 13, get to pay very low prop taxes), those who made enough money one way or another to buy outright, and those who struggle to get into a $500K fixer-upper and then need two incomes to pay the mortage/taxes/etc. The rest of us are enjoying the low rents right now, but aren't sure if we'll be here long-term. Not having made a big pot of cash during the bubble, starting a family in this area seems like it would be quite a struggle.