Real Estate collapses in California
I guess a lot of people would say that this is nothing more than someone being very negative about what the future has in store for our great state. However, I have seen the effects of the real estate collapse right here in Southern California, and I don’t know why anyone would call it anything else, I think some people are trying to remain optimistic about this especially those who could lose big.
Those who ventured in real estate for investment starting in 2002 to 2003, should have sold their investments prior to 2006 when the market peaked and began its decline. Obviously they would have sold these properties to people who probably could not afford conventional loans on these properties that during that time would have had an average cost of $520,000, so the problem was transferred from one owner to another and any family that bought a home at this price has now suffered a huge decline in value, what’s worse is if these families bought their homes at 100% financing under ARM loans or any other adjustable rate loan they’re going to end up surrendering their homes or in foreclosure.
It’s really tough to argue with this message and carry on the same way we have been for the last 5 years. If anyone reading and watching this feels optimistic about the current state of the market, please explain why.
