Irvine Housing Blog

These owners sound like cash-strapped people who bought only for fear of “losing out” and being priced out of the rental market as housing prices continued to rise rapidly. It’s sad to take on a 2nd mortgage just for a tiny one-bed apt.

I hope they escape without too much damage. I’m seeing incredible drops in condo prices in my own neck of the woods, which is the most overbuilt condo market in the nation (Chicago), worse even than Las Vegas or Miami. They may not be making land anymore, but the only limitation on how many condos you could stuff onto a parcel of land was limited only by the local (corrupt as hell) zoning board.

I would have thought $1 million would buy you more in Abbottabad?

http://www.washingtonpost.com/blogs/blogpost/post/osama-bin-ladens-compound-after-attack-in-abbottabad-video/2011/05/02/AF3FcSYF_blog.html

Hey, PR, is Abbottabad the Irvine of Pakistan?

“I predicted that prices would fall between 2% and 5% this year. The consensus estimates are finally catching up to me. My detractors have inaccurately labled [sic] me as bearish.”

I’m sorry IR but 2-5% is not what I consider to be ‘bearish’. Try at least 20%.

As for your detractors calling you ‘bearish’, they might need to stop cultivating what they’re smoking cuz 2-5% drop ain’t that hard to reach after QE2 (well, there might be a QE3…4…5…and beyond).

Anyone have a notion of what rents are going to do in this downturn? I keep hearing that rents are going to go up here in San Diego, but I get the feeling it’s the same kind of bullshit rumor as “home prices always go up.”. The rents here are already too high, with a large share of renters paying 50% of their income to rent. Same unsustainable formula as housing costs?

I think it depends on where in San Diego you’re talking about.  I live in SD and as I’m sure you know, the market is really differentiated by area.  In the worst hit areas, it’s now cheaper to buy than to rent.

But I would say that the San Diego economy seems to be doing OK.  Not great, but it doesn’t feel like a recession any more, so I don’t imagine rents will be dropping.  Actually, it feels like rents have been pretty stable throughout the whole decade, even while home prices bubbled up and then crashed.

H

Ben Bernanke has done everything to keep rates low and he continues to do so until we clean up the banks and debt load. Keeping rates so low and prices stable forces many back into the markets.
While the banks continue to repair their books.

We are held captive to the debt because without our financal markets we are not the leaders in the world so it was do whatever it takes. And Bernanke did just that. We won’t see the last shoe to drop until oil and commodites get so high and the dollar drops so low that Bernanke has no choice but to raise short term interest rates. Which he just indicated is still in his control.

Housing will continue to meet the market in some areas where DTI and rents intersect. IN the high end where there is short supply and high demand will still hold a higher price tag. Those homes are usually cash buyers and with the stock market up so much there are plenty of those folks.

We will always have a prime area where folks want to live.

The largest problem is how long can we all hold out and wait, demand can out stip supply here in CA.  jmo

I live in Chicago as well and have been looking for a condo. I like my realtor, but I am sick to death of the propaganda of “now is a good time to buy” and “prices will rise”. I am a buyer this season, but I want straight talk not BS. There are real personal reasons to buy now til December because I will inhieret cash and there are tax benefits and the trustee is actually advising me to and will work out the tax benefit accordingly as we restructure the trust. I see the threshold. When a condo monthly cost is about half of rental comp it is a logical investment, many properties reach that threshold but most have a ways to go. I will likely negotiate a 35% rent comp deal and live there for over five years. Because when the real deals hit the market it goes in less than a week.

“When a condo monthly cost is about half of rental comp it is a logical investment ...”

Matthew: You might want to provide an example or re-check your math.

I don’t often see condo pricing at less than rent - the whole point of condos is to fleece the “owner.”

Massive student debt, lack of Rule of Law, rampant financial fraud, undealt-with war crimes, legislative corruption, legalized torture, dwindling Constitutional & Civil Rights, a pay-to-play judiciary system, an ineffectual & captured Executive Branch, institutionalized transfer of wealth from savers to speculators; the United States of America is a CLUSTERF@CK of IRRESOLVABLE problems that mutually impede & interfere with each other.

WHY the F@CK should I spend my hard-earned money to buy a property in this SINKING SHIP when I’ll most probably need it to EMIGRATE instead?

If you do not own a house, BUY one NOW.  I enjoy watching people become slaves to their debt, id10ts….