Los Angeles

[Lizard]

Intersting article and even more interesting comments.

http://online.wsj.com/article/SB10001424052702303657404576363143130774406.html?mod=googlenews_wsj#ar...

[stop_bailouts]

Sounds like the same nonsense people were spewing in 2006 when they said the "good" areas would never fall.

[Ed_in_SoCal]

So where's the best place to find average local rental rates?

[2011correction]

We're nowhere near the bottom of the market in mid tier and high tier markets.  There is still too much market manipulation and ill-conceived government intervention (e.g. 729,000 gov't-backed loans).  There is still a lot more fluff in those prices ranges. 

By the way, 729,000 drops down to 625,000 in September.  I wonder how that will impact pricing?  Fairly certain it won't cause prices to go up !

[STARCHY]

I'm STILL shocked by the lack of quality inventory.

Anything decent is snapped up within days.

[junkturtle]

I agree Starchy, 

Not to toot my horn but our house is in a bit of a no man's land, on the outskirts of Hollywood, in the hills overlooking the Valley. Several houses on my street are for sale and have been for a while. Some priced less and some more. Our home went into contract a few days after it went to mkt. We feel fortunate but we also have a beautiful finished 'tasteful' house where we made intelligent choices. No granite, no 'upgrades'. It may not suit everyone but I think we filled a certain niche aesthetic. There certainly seems like there's an awful lot of garbage out there. I tend to blame HGTV!

[Lizard]

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2011correction wrote:

We're nowhere near the bottom of the market in mid tier and high tier markets.  There is still too much market manipulation and ill-conceived government intervention (e.g. 729,000 gov't-backed loans).  There is still a lot more fluff in those prices ranges. 

By the way, 729,000 drops down to 625,000 in September.  I wonder how that will impact pricing?  Fairly certain it won't cause prices to go up !

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@2011, fluff is the right word for it. The drop in govt backed will have a huge impact. The mid and high teir will have to pony up another $100k.

I am honestly starting to get more concerned at this juncture despite anticipating much of what has happened. I never expected it to happen so fast and so deep. I'm stunned. I've lost count of friend/coworkers who are underwater and living check to check, one pink slip from financial ruin. The longer the recession lasts the more danger to an already super fragile housing market.  I see no end game in sight, housing has no catalyst to reverse the decline. Smart money is waiting, nervous. Many who bought in bidding war frenzy back in 2009 and early 2010 to capitalize on housing credit are already in the negative. How valuable is the $8k credit now?

[Pasta]

Lizard, I'm surprised about how slow it is going....

[mnsweeps]

we are no where near the bottom especially in SO CA..Asking price should go down furthur by 25 % or so in desirable areas to be in line with the baseline.

[2011correction]

@lizard - agree with everything you wrote.  these here are scary, uncertain times.  unlike anything that anyone still alive has experienced.  the only people who remember something this bad are mostly gone -- from the Great Depression times.