| Submit your comments on this article |
| Economy |
| S California home prices plunge |
| 2011-06-16 |
| [Iran Press TV] Recent housing figures show that home prices in Southern Caliphornia have plunged more than eight percent in May, realty company DataQuick reports. The Caliphornia-based company says sales have fallen by 17 percent from the same period last year, the 11th straight year-over-year decline, a Press TV correspondent reported on Wednesday. Some experts have cited consumers' weak confidence, low job creation and absence of government incentives among reasons behind the sale decline. The drop in southern Caliphornia home prices last month was the steepest since September 2009 and the number of new homes sold was the lowest recorded in the past two decades. Economists say this excess amount of distressed properties will draw out recovery in Caliphornia, predicting that the housing market will remain troubled until 2013. "We have got a lot of potential for closures. This is a default of countdown a little bit, but there is still very high level for closure activity," economist Edward Leamer said. DataQuick says this means Caliphornia lacks the fundamental driver of job growth required to increase the housing demand. Economists believe this would be troublesome for an area like Southern Caliphornia, which relies heavily on the real estate market. "The trouble, the lingering troubles and housing markets are going to limit the contribution that homes can make during the economic recovery this time," Leamer added. |
| Posted by:Fred |
| #6 I actually checked my home on Zillow. I don't have to slit my wrists anymore. I can just now lose a few fingers. |
| Posted by: anonymous2u 2011-06-16 13:52 |
| #5 Caliphornia lacks the fundamental driver of job growth required to increase the housing demand. That was true before, during, and after the Gollyvornia housing bubble expanded and then burst. It was also true for the rest of the USA, perhaps with the exception of North Dakota. But CA is the epicenter of wretched housing excess. The bubble was entirely based on excessive / too easy credit and the madness of crowds. 'Dream house' is a metaphor that cuts in different ways. Some people's housing dreams are now nightmares. |
| Posted by: Anguper Hupomosing9418 2011-06-16 12:50 |
| #4 Oh wow gee! I better get to buying some houses in California then! Why am I throwing away money in rent when I can own a depreciating and over taxed asset!?!?!?! /sarc |
| Posted by: DarthVader 2011-06-16 12:42 |
| #3 I bought the home of my dreams in Riverside for $675,000 in early 2006. By mid-2008, it was worth $329,000. It took the county until 2009 to revalue the house to $550,000. If my house has lost this much more value, my home worth less than $200K right now. Thank you Democratic congress, thank you Fannie, Freddie and Wall Street. The rape of the middle class continues. |
| Posted by: Bill Clinton 2011-06-16 10:34 |
| #2 When you have homes that are 7x more than real value, something's bound to give. |
| Posted by: Anonymoose 2011-06-16 09:51 |
| #1 Bets that the county assessors are updating the valuation of the properties to reflect the drops? /sarc |
| Posted by: Procopius2k 2011-06-16 08:49 |