Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California home prices dive 38%
AP ^ | 19 Dec 2008 | AP

Posted on 12/19/2008 9:32:16 AM PST by BGHater

Edited on 12/19/2008 9:35:08 AM PST by Admin Moderator. [history]

The median price drops to $258,000 in November from $414,000 a year earlier as foreclosures prop up sales but erode prices.

The median home price in California dived 38% in November from a year earlier as foreclosures propped up sales but eroded prices, a real estate tracking firm said Thursday.


(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: california; economy; home

1 posted on 12/19/2008 9:32:16 AM PST by BGHater
[ Post Reply | Private Reply | View Replies]

To: BGHater

The market in action. Now middle class Californians may actually be able to afford a home.


2 posted on 12/19/2008 9:34:22 AM PST by Opinionated Blowhard
[ Post Reply | Private Reply | To 1 | View Replies]

To: Opinionated Blowhard

‘Zactly.


3 posted on 12/19/2008 9:55:32 AM PST by Eagles6 ( Typical White Guy: Christian, Constitutionalist, Heterosexual, Redneck)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BGHater

In other news today, it has been discovered that water is wet.

Bubbles have to burst eventually. They can’t keep expanding forever.


4 posted on 12/19/2008 9:57:44 AM PST by webstersII
[ Post Reply | Private Reply | To 1 | View Replies]

To: Opinionated Blowhard

Wonder what effect they will adjust property taxes?


5 posted on 12/19/2008 10:07:54 AM PST by mmanager (It is time to prune the tree.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Opinionated Blowhard

I went to an open house across the street from my house and was chatting with the agent. She said that the banks are going to send out a whole bunch of default/foreclosure notices after the holidays, which will put a whole bunch more property onto the market and further erode prices.


6 posted on 12/19/2008 10:10:47 AM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Opinionated Blowhard

yeah but who wants to live in california anymore?


7 posted on 12/19/2008 10:18:12 AM PST by ari-freedom (Conservatives solve problems. Libertarians ignore problems. Liberals create problems.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BGHater

This is just the tip of the iceberg. The Northeast is next in line. New York City prices have a long way to fall.


8 posted on 12/19/2008 10:32:12 AM PST by Zhang Fei
[ Post Reply | Private Reply | To 1 | View Replies]

To: BGHater

Hindsight is always 20/20. We should’ve sold at what we now know were peak prices. sigh. We’re stuck...upside down. We. Want. Out. Of. California.


9 posted on 12/19/2008 10:35:39 AM PST by mrs tiggywinkle
[ Post Reply | Private Reply | To 1 | View Replies]

To: mmanager

adjust property taxes?! surely you jest. ;o)


10 posted on 12/19/2008 10:36:29 AM PST by mrs tiggywinkle
[ Post Reply | Private Reply | To 5 | View Replies]

To: mmanager

None. Prop 13 in action.
Your property taxes are set at the value of the time of sale and stay there forever. The exception being structural improvements you make to the property that may increase the valuee. The gvt finds that out because you need a permit to do almost anything to your proprty...decks, outbuildings, patio’s, drainage, etc.


11 posted on 12/19/2008 10:38:06 AM PST by Ribeye (Protective head wear courtesy of Reynolds Aluminum Products- Extracranial RF Suppression Division)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Opinionated Blowhard

The lesson here is never take out a second mortgage for a boob job.....


12 posted on 12/19/2008 10:38:29 AM PST by Badeye (There are no 'great moments' in Moderate Political History. Only losses.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Ribeye; mmanager
Not true at all....hell, here in Riverside County the assessor mailed EVERYONE a notice, even if not requested, stating that reassessments would be done if in order.

In my case, it's not in order because I paid less than 100K in 1987, and although I maybe could have fetched 500K four years ago, it's now probably saleable for less than 3....so a long way to go.

13 posted on 12/19/2008 10:42:34 AM PST by ErnBatavia ("Zero"..STILL using that stupid "Office of The President Elect" podium....)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Badeye

or a sex change


14 posted on 12/19/2008 10:44:51 AM PST by MrB (The 0bamanation: Marxism, Infanticide, Appeasement, Depression, Thuggery, and Censorship)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Ribeye

yep.


15 posted on 12/19/2008 10:49:32 AM PST by mrs tiggywinkle
[ Post Reply | Private Reply | To 11 | View Replies]

To: Zhang Fei

There is almost no more place to build in NYC. This constrains supplies, which helps keep home prices high.


16 posted on 12/19/2008 11:17:16 AM PST by winner3000
[ Post Reply | Private Reply | To 8 | View Replies]

To: Ribeye; mmanager
Your statement “Your property taxes are set at the value of the time of sale and stay there forever.” cannot be further from the truth. The structural improvement comments are accurate. Although I believe everytime a permit is pulled you can be reassessed by the state. Thus, you may have to pay for your own assessment and fight the state on the assessed value.

Prop 13 allows a 1% increase per annum of your property tax if the current assessed value of your home is greater than the purchase price. Furthermore, they have back-doored about 20 additional FEES onto a California property owners tax bill since Proposition 13 passed.

Now, the falling prices of homes will allow one to submit an application for reduction of your property tax.

Also, when the last big earthquake hit and depressed homes prices as a result, I filed and received an assessment revaluation without having to actually have the property assessed by a professional. Most homeowners were able to take advantage of that to get their property taxes reduced. I’m not sure if something special was coded into law to allow this or is this was part of Prop. 13 to begin with.

In conclusion, my property tax has moved all over the place and presently stands at over 3.5k a year. I bought my home originally for 220k. Thus, if the tax stayed fixed to 1% of your purchase price, I'd be paying 2.2k a year and not 3.5k.

17 posted on 12/19/2008 11:19:02 AM PST by Diplomat
[ Post Reply | Private Reply | To 11 | View Replies]

To: BGHater

This should restart the market in Kali.


18 posted on 12/19/2008 11:19:57 AM PST by TexanToTheCore
[ Post Reply | Private Reply | To 1 | View Replies]

To: Opinionated Blowhard

They probably were 50% overvalued before the drop.


19 posted on 12/19/2008 11:22:02 AM PST by TruthWillWin
[ Post Reply | Private Reply | To 2 | View Replies]

To: BGHater
California home prices dive 38%

That's a good start...

A free market is great, but not when addressing a basic life necessity: shelter.
Prices have been artificially high since "flipping" became the lazy man's get-rich-quick alternative to work.

20 posted on 12/19/2008 11:25:58 AM PST by Publius6961 (Change is not a plan; Hope is not a strategy.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Publius6961

Don’t paint with too broad of a brush there.

Rehabbers would probably be called “flippers” because they don’t hold the property long, but they sure and take some dumps and turn them into nice domiciles for folks who need a house.


21 posted on 12/19/2008 11:29:46 AM PST by MrB (The 0bamanation: Marxism, Infanticide, Appeasement, Depression, Thuggery, and Censorship)
[ Post Reply | Private Reply | To 20 | View Replies]

To: MrB
Rehabbers would probably be called “flippers” because they don’t hold the property long, but they sure and take some dumps and turn them into nice domiciles for folks who need a house.

You're right, of course, but in the last 5 to 10 years, that hasn't helped most buyers who both need a house and can afford it.
The snowball effect of real estate fees and increased tax assesment is a fatal flaw in that argument. The get rich quick folk artificially increase the price of all available housing. Else how do you explain the outrageous prices of falling apart non-rehabs?

22 posted on 12/19/2008 11:40:16 AM PST by Publius6961 (Change is not a plan; Hope is not a strategy.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Publius6961

I’d say most of it was supply and demand.

When the demand was “normal”, ie, not propped up by people who have no business getting a home loan chasing properties,

you didn’t see the outrageous “appreciation” of property values.


23 posted on 12/19/2008 11:42:25 AM PST by MrB (The 0bamanation: Marxism, Infanticide, Appeasement, Depression, Thuggery, and Censorship)
[ Post Reply | Private Reply | To 22 | View Replies]

To: winner3000
There is almost no more place to build in NYC. This constrains supplies, which helps keep home prices high.

That only works if people have jobs to go to. Once the jobs go out the window, people double up - take on roommates or move in with family and friends. Or they move out of the city. Hong Kong also has a huge supply constraint. Its real estate is down 40% vs 10 years ago.

24 posted on 12/19/2008 11:46:17 AM PST by Zhang Fei
[ Post Reply | Private Reply | To 16 | View Replies]

To: Opinionated Blowhard

Yep, from 2000-2003 we saw our house appreciate 58%. The following couple of years (we sold and left the state in 2003) it continued to skyrocket.

Reality is reentering the price scene. There was no way a middle class family could afford to buy a house there, without using one of the stoopid mortgage schemes like interest only.


25 posted on 12/19/2008 11:53:44 AM PST by edge10 (Obama lied, babies died!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BGHater

A loss of 38% on the way down negates a rise of 61% on the way up.

A $100,000 home that lost 38% or $38,000, is worth only $62,000.

A gain of $38,000 on a $62,000 house is 61%.

So you just lost 61% of appreciation. That’s a chunk.

And that 38% drop is just for year over year from November 2007. There are many homes in the Sacramento area near me that have lost over 50% of value from peak, wiping out fully 100% of the houses appreciation! Half-price sale, anyone?

That is great for home affordability in California. Of course, dang painful for anybody who bought at the peak or anybody stupid enough to have refinanced and wasted the appreciation. Welcome to foreclosure. But somebody is going to get a fair price on your home.

The point is, a 38% drop negates a 61% rise. That is a VERY significant increase in affordability.


26 posted on 12/19/2008 5:18:45 PM PST by Freedom_Is_Not_Free
[ Post Reply | Private Reply | To 1 | View Replies]

To: Publius6961

I bought in February of this year. In 2007 the new home My wife an I fell in love with was $307,000.00. I’m glad we waited. We pulled the trigger at $261,000.00. We knew the value would diminish some, but I’m still very comfortable with our purchase. I’ll probably see my final days in this house. Ah, yes, Bakersfield, Ca.


27 posted on 12/19/2008 6:25:13 PM PST by jamndad5 ("I ask, sir, what is the militia? It is the whole people, except for a few public officials.")
[ Post Reply | Private Reply | To 20 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson