Fascinating example of how a house price "correction" works– California

pamaris

I found this table while doing some research:

http://www.dqnews.com/ZIPCAR.shtm

It shows house price change between Oct 2006 and Oct 2007. All counties but two are negative, and most have dropped. While some areas show 40- 50% drops in one year, you have Beverly Hills increasing by 76%. So there are really big drops coexisting with really big gains. Most areas are negative though. I reckon CA still has a ways to go, because houses are still really expensive with 20-40% drops.

It won't happen in the UK. Supply and demand, strong fundamentals, etc. etc.

Woby_Tide

pamaris wrote: »

It won't happen in the UK. Supply and demand, strong fundamentals, etc. etc.

repetitive posters, labouring same point etc. etc.

pamaris

Woby_Tide wrote: »

repetitive posters, labouring same point etc. etc.

I realised after I posted that I should have put this on the sticky. Too late now, don't know how to change it. I thought it was interesting anyway.

Gorgeous_George

I'm not sure that it is that interesting. America would be too far for me to commute to work.

GG

chriz1000

That is honestly one of the worst reports I have ever seen.
Only in America could they come up with something like this.
The categories aren’t broken down whatsoever, so last year they may have sold mainly 6 bedroom detached homes, this year they could have been 1 bedroom apartments. The numbers are all over the place and as to be expected if there not broken down into proper categories.

pamaris

chriz1000 wrote: »

That is honestly one of the worst reports I have ever seen.
Only in America could they come up with something like this.
The categories aren’t broken down whatsoever, so last year they may have sold mainly 6 bedroom detached homes, this year they could have been 1 bedroom apartments. The numbers are all over the place and as to be expected if there not broken down into proper categories.

We don't get proper categories in many of our reports, such as Rightmove, but we still use them to tell the temperature of the market.

eta: Most of the numbers will be for detached homes, because that is the type of housing most prevalent. Hardly anyone buys a 1 BR apt in the USA, as most of those are owned by management companies.

chriz1000

If you look at the statistics in most areas they have sold less than 100 properties, how can you get a realistic median when this is the case? Fair enough when you’re talking well over 1000+ you can do these kinds of averages, but in many of the areas they have only sold 2 houses in 2 years! If you look at the County averages they are a bit more realistic.

HugoSP

No disrespect to the OP but this is yet another example of how the same news is repackaged and served up cold several months later.

pamaris

HugoSP wrote: »

No disrespect to the OP but this is yet another example of how the same news is repackaged and served up cold several months later.

Sorry, hopefully no one else will reply now and the thread will die. Didn't mean to bore anyone.

cafenervosa_2

pamaris wrote: »

It won't happen in the UK. Supply and demand, strong fundamentals, etc. etc.

After hearing a lot about the last housing crash in 1989 - 1995, I only just found out that the same thing happened in the USA from 1989. Here in the UK we work off pretty much the same banking system so if the market is crashing now in the USA, for me anyway it has to follow in the UK.

http://www.youtube.com/watch?v=uyOWuczlJCA&feature=related

Gorgeous_George

pamaris wrote: »

Sorry, hopefully no one else will reply now and the thread will die. Didn't mean to bore anyone.

Just woken up and I see that this thread hasn't died yet.

I'll check again later.



GG