What’s that popping sound I hear?

Instant schadenfreude for the renters among us: check out Zillow’s mess of charts and graphs that document the bursting of the LA real estate bubble.¬†Feeling bad about your lack of equity, my non-homeowning friends? Click through for the bar graph of the upside-down homeowners.


(HT: LA Times)

3 Replies to “What’s that popping sound I hear?”

  1. I’m lucky that I am in a corner of LA that has pretty much escaped the bubble. Our single family homes have lost 5% so far, and by the time the bottom arrives late 09 we may drop another 5%. For us there our value is kept bouyed as we are a desirable community with little foreclosure action and very few homes on the market.

    My wife works at HSBC in their foreclosure liquidation area. The big losers are the IE and up in the Stockton area, but even they they are quick turns and selling at least 80% of market value. They see those areas flattening shortly after the rest of us in mid-2010.

    Their best guess on flat realestate is murky. Some depends on who becomes president and how they deal with the economy which will affect the middle income groups. Different models but they expect flat for just a year or so before prices start nudging upwards in the best case. 2-3 years in a more moderate projection.

    We bought our house in ’94 which was the bottom of the last value deflation. My suggestion to anyone seriously considering buying is to scrape cash up for the down however and try to buy once more of the so called experts start claiming the bottom has been reached or in sight.

  2. Dude, no disrespect to you your wife, she’s probably a very nice lady.

    ARE YOU HIGH? HSBC has written down how many billions in bad loans? How many “loan modifications” have they done and just back loaded the problem so that it won’t show up for a year or two? How much CC debt do they hold that is going bad? I think she meant to say “Stockton and IE are the EARLY losers and the first of the many areas that will implode.” Next up it’s ALT-A and PRIME N.O.D time.

    If those morons at HSBC (not your wife) were unable to recognize a bubble filling and bursting what makes them think they can predict when it will fully deflate. I find their credentials sorely lacking in the prediction department. You want to know when the market will hit bottom? Look at the housing futures market. 2011 will be the low and it’ll be a flat market for a good 5-10 years after that. Once again, anyone who says different wants to sell you a overpriced house with a loan you can’t afford.

    Phew, rant over now…… Bully for you, you bought in 1994 when it was a smart time to buy. Lucky for you your wife is in the foreclosure department, they’ll be busy for a good couple of years and suffer no layoffs!

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