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

To: MulhollandDrive who wrote (168771)	12/3/2008 5:06:12 PM
From: tejek	Respond to of 306849

i think this time it's different <g> seriously, from what i am reading and what i have witnessed firsthand, there is an out-migration of wealth happening in CA, which to be sure could be reversed with pro-growth tax policy....prices are still too high for 'median' income types, and those who are able and willing to bailout are doing so....my last trip to tahoe, the realtor said, the high end homes on the nevada side was really picking up, CASH buyers from CA.... MD, I lived through a bust and a boom in LA. The place went belly up in the early 90s because the defense industry went bust. Roughly 1 million jobs were lost and 1.5 million people left S. CA. They called it the second Great Diaspora. There were houses on the market for 2 years without an offer. And those houses were well priced.........there just were no buyers. There were so many foreclosures.......it became the norm. Nearly everyone was upside down in their mortgage. Housing prices dropped 50 percent or more from the late 1980s. It was a disaster. By 1998, housing prices had returned to their 1989 levels and then boomed higher until 2006 when a new bust......the 3rd in 25 years.....happened. And it will happen again.....there are very few houses being built in LA county and there are still people drawn to its climate and its image. Ditto for SFO. Some day it may end but I don't think its now.