Inquiring minds are reading my good friend, Dr. Housing Bubble and looking at the rising foreclosure rates in Newport Coast where prices have collapsed 43% year-over-year:
The fuel that inflated the California housing market for a decade is now largely consumed. The myth that toxic mortgages only infiltrated lower income communities is now a thing of the past as we now see elite communities taking it on the chin in terms of price cuts and rising foreclosures. The obvious answer to all of this is that incomes never justified housing prices. Even today, many cities in California are largely in housing bubbles. What this means is that a multi-million dollar home is now a few million dollars cheaper but still too expensive for the average Joe. Yet price cuts are here. Only a few years ago people with modest incomes were able to purchase majestic palaces with incomes that clearly did not support the home’s value. Today we are seeing that last holdout of the market collapsing. Southern California home sales had their second worst month in the decade for October and we enter the weakest part of the selling season. Today we are going to examine a home in Newport Coast and show how the bubble is already bursting in prime markets.
This is the ‘second’ hump of the two-humped camel we have been writing about. The foreclosureman cometh.
The good Dr. does such a wonderful job, please click on the link and read the entire post. He is so good at communicating very important statistics.
Filed under: Uncategorized |