Masterofdamoney_IHB
New member
http://www.thestreet.com/s/socal-home-prices-plunge-27-in-may/newsanalysis/realestate/10421605.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
Housing prices across Southern California plunged a record 27% in May, signaling that more trouble lies ahead for builders and lenders exposed to the region.
Sales volume in the market fell 15% from a year ago, marking the slowest May in more than 20 years, according to DataQuick Information Systems.
The median price fell to $370,000 from $505,000 in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura.
Sales of foreclosed homes repossessed by lenders continue to dominate many of the inland markets, such as Riverside County, where foreclosure sales totaled 57% of all home sales volume, DataQuick said.
As housing prices fall, the domino effect is that loan-to-value ratios are ballooning for many borrowers, which in turn creates more foreclosures as buyers find themselves unwilling to continue paying the mortgage on their houses.
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All of this is coming straight at the areas that haven't been 'hit' hard yet. Irvine is literally having spears thrust at it from every direction. When they find a kink in the armor, it's over.
This should be he beginning of a 2-3 year price collapse in Irvine, as people realize that a landlocked McMansion is NOT worth a million dollars.
Housing prices across Southern California plunged a record 27% in May, signaling that more trouble lies ahead for builders and lenders exposed to the region.
Sales volume in the market fell 15% from a year ago, marking the slowest May in more than 20 years, according to DataQuick Information Systems.
The median price fell to $370,000 from $505,000 in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura.
Sales of foreclosed homes repossessed by lenders continue to dominate many of the inland markets, such as Riverside County, where foreclosure sales totaled 57% of all home sales volume, DataQuick said.
As housing prices fall, the domino effect is that loan-to-value ratios are ballooning for many borrowers, which in turn creates more foreclosures as buyers find themselves unwilling to continue paying the mortgage on their houses.
---------------------------------------------------
All of this is coming straight at the areas that haven't been 'hit' hard yet. Irvine is literally having spears thrust at it from every direction. When they find a kink in the armor, it's over.
This should be he beginning of a 2-3 year price collapse in Irvine, as people realize that a landlocked McMansion is NOT worth a million dollars.
