Hard landing in Orange County: The Economic Downturd Continues

Distressed properties are a huge part of the real estate game. As a percent of all listed homes for sale, distressed properties were 40.1% of the market last week vs. 39.6% two weeks earlier.

Note the scary number in that table for the < $500K houses.

10 thoughts on “Hard landing in Orange County: The Economic Downturd Continues

  1. Distressed. Gotta love those RealtorTM euphemisms.
    I know the bursting of the housing bubble has economic consequences across the board, but I find it hard to muster up too much sympathy for people who bet the farm on the sustainability of double-digit per annum appreciation on SoCal McMansions. Of course it hits hardest at the bottom at first (oh! for a < $500K house in my shire!), but I imagine those prices will also stabilize sooner, once people stop buying zillion dollar energy-sinks at all. (It’s already happening here, I think.)

    1. More than a few of these people were victims of straight-out commercial fraud. But the speculating “flippers” are just getting what they gave.

      1. There was definitely some advantage-of being taken, you are right. Countrywide/casino. Tomayto/tomahtoe.

    2. Realtor™
      “MOTHERFUCKER I WILL CALL YOU ‘REALTOR™’ WHEN YOU CAN SHOW ME HOW TO REALT.  WHAT?  YES, I’LL HOLD.”

    1. I’m no expert
      Well, maybe not. I don’t think it is uncommon for folks to strip everything from lighting and plumbing fixtures to copper pipes from their house during the course of a foreclosure.
      I think banks may even offer payment in some cases as an incentive to keep the home clean/intact.

      1. Re: I’m no expert
        Right…my only point was that the distressed loan/foreclosure could be the factor that motivates someone to pillage their home, leading to a physically distressed property.

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