Unless you live in SoCal I don't think the reality is the same. Here's a few links for those who are interested:

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Recorded sale in late 2006 for $288,000. Currently listed at $74,900. Taxed at 2006 sale value.

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Sold in early 2007 for $310,000. Currently listed at $74,100. Taxed at $306,000.

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Recorded sale in Nov 2008 for $62,000. 20 years ago it sold for $48,000.

First one looks like it had been abused by inconsiderate tenants. There appears to be factories and apartment houses just past the east end of the cul-de-sac, with train tracks adjacent.

On the second one, note the bars on the windows and doors - ghetto? "Property will need a cosmetic rehab."

All three are also in Santa Ana. Not the pinnacle of the Southern California lifestyle by any means.

I purchased my house in 2000 in a similar market environment --- and I have no regrets

I think Sally hit it on the head. Those units are disgusting.

I would still characterize the market in general as bad since a "good" market would never allow itself to be as fraught with corruption and speculation as the one exemplified by the above listings. The prices have descended back to earth, but the market has proven its susceptibility to "badness".

I'm still puzzled as to why someone would make the decision to buy these condos at their peak prices when cheaper rents must have been available. Sure, everyone was caught up in the spirit of the bubble, but 300,000 for these hovels? Do fast food employees make $70,000 out in SoCal?

ajohnamous said:I would still characterize the market in general as bad since a "good" market would never allow itself to be as fraught with corruption and speculation as the one exemplified by the above listings. The prices have descended back to earth, but the market has proven its susceptibility to "badness".

I'm still puzzled as to why someone would make the decision to buy these condos at their peak prices when cheaper rents must have been available. Sure, everyone was caught up in the spirit of the bubble, but 300,000 for these hovels? Do fast food employees make $70,000 out in SoCal?

Its called a no-doc loan. Income was stated and never verified.

mdg1977 said:All three are also in Santa Ana. Not the pinnacle of the Southern California lifestyle by any means.[/Q

But San Diego is. My brother in law bought a 3 br home in San Diego for $677000 about 3 1/2 years ago. He just sold it(got transferred) for $405,000 and considered himself very lucky. He had put in a pretty nice pool after buying it also. I live in central Cal and prices are almost 50% less than the high a few years ago. Main reason is the glut of foreclosing and short sales driving down the market.

Mickie3 said:CptSavAHo said:mdg1977 said:All three are also in Santa Ana. Not the pinnacle of the Southern California lifestyle by any means.

Exactly the point. Roughly averaging $300k for a condo in the ghetto. Another unit from the same complex sold for $60k in 2000 then for $280k in 2006. Predatory lending at its finest. These locations haven't changed much in demographics either, these condos have been ghetto for the last 20 years.

Say what? Predatory lending is responsible for people paying way more than what something is worth? Please explain just how that takes place?

Like I said if you don't live here...

That neighborhood of Santa Ana probably has about 10% literacy rate and about 3% of the population that can speak english. Tons of lenders went around telling people just sign here and own your dream home...

ghetto homes appreciated to unrealistic levels , largely not because of predatory loans on poor unsuspecting people, but because of investors and speculators, who could buy, hold 90 days and make 30-40k selling. It was not the poor, illiterate people doing this.

Sometime in 2007, the last speculator in line got caught with the steaming bag of poop these properties are when they could not flip again. Thats when many stopped paying the mortgages.