Why high-end homes will continue to go down in value
California Housing Crash, The Economy, Real Estate June 16th, 2009
This article on Bloomberg shows you how this is just the beginning in declines for the 1 million plus homes.
June 16 (Bloomberg) — Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts.
“Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.
“California is probably worse than other states, but higher-priced homes in general are going to be a problem,”
We have seen this here in Southern California where the more expensive homes for sale are just sitting. Sellers are slowly but surely realizing that the high end buyers are not coming back anytime soon and they are starting to lower prices. Here at National Bubble, we expect these home to drop another 30% in the next couple of years. Let’s not forget that all the Obama bailout plans are only helping the lower end of the market. Apparently, there are no bailouts for rich people.
June 16th, 2009 at 4:11 pm
are you ever going to report any positive news
blah, blah, blah
June 16th, 2009 at 5:27 pm
oc owner… as soon as realtors start advising, in bubbles, to their clients not to buy because prices are ridiculous and can not be sustained, and to save their hard earned down payment and mobility until the market returns to historic price/income, price/rent ratios.
June 16th, 2009 at 6:11 pm
san andreas, you are right on.
oc owner must be a realtor himself