Archive for the ‘california foreclosure homes’ Category

The Reality is that the Inventory of Foreclosed Houses in California is Increasing and Prices are Tumbling

Friday, September 10th, 2010

There are many passionately nursing the hope that property value will recover in with the magic touch of a miracle. Late night information broadcast over the television is adding to this belief matched by willful thinking. But instead of calculating the macro trends of the economy the limited local data is used that fails to give the total picture of the trends that are emerging.

In reality the inventory of in California is increasing and prices are tumbling. The pipeline is still full of problematic loans. These are harsh persisting facts. In the backstage behind the wings a huge shadow inventory is waiting and artificial blockades placed by the interventions of the government is beginning to crack.

Beverly Hills has gone underwater calculating to a staggering $2.2 million. In many of the pricey areas the people have bought with full cash payment. It is nothing to be startled about – a rich person may buy a house worth million dollars with cash. This is common in a place like Beverly Hills. This is not the mid-tier section like Culver City or say . But even the housing market dealing with luxury houses is getting a battering.

This raises the issue of the health of the total housing sector. These luxury houses are deep underwater. It may not show up immediately on the listings of mega names like JP Morgan Chase, Mutual, Bank of New York as well as Wells Fargo. Their balance sheet is tottering. Right now the tactics is to pretend that these have not gone underwater.

Life seems to go on normally in these rich zones with few foreclosures with the driveways dotted with foreign cars. But the figures talk. The zone is underwater by over $1 million. No payment has come for over a year from a place that had and has an excellent view of Hollywood. It does not bode well for California.

A beauty in Santa Monica with 3 bed rooms and 2 baths covering 1,200 square feet constructed in 1953 is in . It has been listed for $636,000. Since it is where it is – Santa Monica, many will think the price is right. But on scrutiny it will be seen that after being listed for $722,900 in last April it has gone down rapidly by $1 million to touch $636,900 on 23rd June 2010! But even with this massive discount it is still hanging around for buyers.

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