The Housing Bubble

Being in my early 30s, I’m starting to think about owning something — a house, a condo — something.

But prices are insane. I’m a SoCal native, and it saddens me that only the elite, or the gambling minded, can buy houses.

I stumbled upon this article:

Southern California is a beautiful place. The weather is perfect, there is a lot to do, and the people are generally friendly and keep out of your business. For those reasons and many others, I have chosen to make Southern California my home. However, Southern California is not perfect. The culture is infected with pathological beliefs that have led us to the huge problem with house affordability and the impending disaster in our real estate market.

It’s an amazing read. Goes into good detail about what we’re currently experiencing and why we’re only at the beginning.

Here’s another entry from the same blog:

Why do we get so much pleasure from failed flips? I can think of no other human endeavor which has engendered so much pleasure in the misfortune of others. In my opinion, the outpouring of schadenfreude we are seeing as the housing bubble deflates is a mixture of Greek tragedy and bad karma. In short, bubble participants should have seen it coming, and they are getting what they deserve.

And some more bad news about the general housing climate here.

Seems like it’s only going to get bleaker for the housing market here.

Anyone out there buying or selling? What’s it like on the front lines?

8 Replies to “The Housing Bubble”

  1. Yup its insane. The links made for interesting reading. The one thing people still can’t get through their heads is that those “gains” as the market rose are just monopoly money, no value unless you sold. If you sold…then you have to buy a new house and you are money behind. I’ll stay here until they drag me out feet first to avoid the new mortgage on a higher priced place.

    In answer to your question things haven’t slowed down for the house priced right in my neighborhood this year. The turn on my immediate street has been about 60 days from being put on the market to being sold. The one house that hasn’t moved is about 100K over market and the owners are back east so who knows where their heads are at.

    Happy house hunting and check with your realator to see what sort of city backed affordable home stock is available in the area you want to move.

  2. anyone have links to where we can get (at least) weekly information on this bubble and los angeles?

  3. Just take the plunge. Buy a house and you won’t regret it. There are still great deals out there.

    Or you can just keep sitting there clicking refresh on the internet hoping the market has come down a litle more.

  4. Housing is regional.. plus, housing won’t truly ‘crash’ until we get a recession that affects LA.

  5. You can’t time the market (stock of real estate) so why fight it? If you have a steady job, 20% for the downstroke and can get approved for a LONG TERM FIXED mortgage AND you find a house you like and can afford in a neighborhgood that you think is headed in the right direction then go for it. (Otherwise continue to rent).

    and note I said HOUSE not CONDO..

    Buy it. pay the mortgage. fix it up a bit and live your life. when you need/want to buy a new house then sell the old one and roll it over. repeat.

    rememeber its “time IN” the market, not “timing” the market that leads to real estate success.

  6. The article wasn’t really that great. I think this guy has been reading too much “Rich Dad, Poor Dad.” It’s just silly for him to divide the world between rich people and poor people, and imply that the difference between the two is that the former understand savings better.

    It would have made much more sense to make the distinction between knowledgeable people and ignorant people. I know plenty of poor people who are poor because they lacked opportunity and their jobs don’t pay them shit, but what they own they own outright and they wouldn’t dream of taking out a ridiculous loan for a house they couldn’t afford.

  7. The L.A. Times (online version) actually has a good blog called “L.A. Land”, which posts some insightful observations on the housing market. If you’re looking to buy soon, San Bernardino and the Inland Empire are good spots to consider. Forget the westside, Studio City, and other obvious pricier spots–owners here are generally wealthier and are in no hurry to sell in a cooling market. But the IE and SB are getting hit by some massive foreclosures, with more on the way this fall as the next batch of ARMs reset.

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