11-21-2008, 03:22 AM
GGD wrote:
The one part of the whole subprime equation that I never really understood, is where is Joe going to live after he walks away from the underwater loan/house? Shouldn't we be seeing an upswing in the demand for rentals, and then possibly demand for those foreclosed houses by those that want to become landlords to cash in on the increasing rental market?
Or are we going to see Joe going out and buying a cheap foreclosed house (possibly the one he just lost) at the new reduced prices? This is assuming that he can somehow get a loan.
This may answer part or some of your questions.....
California median home price drops 34 percent
http://www.businessweek.com/ap/financial...J0C901.htm
...Contra Costa County saw the steepest drop in price, with the median tumbling more than 46 percent to $285,000 from a year ago. Sales in the county soared by nearly 87 percent.
Meanwhile, a six-county region of Southern California also saw a sharp jump in home sales and a decline in median price last month.
Sales in the region rose by 67 percent, while the median home price fell 33 percent to $300,000, MDA DataQuick reported Tuesday.
Foreclosure resales amounted to 51 percent of all transactions in the region.
Just make sure you read the whole article to get a fair picture.