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Something Very Disturbing Is Happening In The California Housing Market

Tyler Durden's picture




 

Moments ago we showed that despite the rosy headline data reported by the NAR in tabulating its existing home sales, things below the surface for the US housing market were far worse than the soundbites indicate, as the only "stable" segment when it comes to existing home sales is that capturing transactions in the $1 million+ price bucket which corresponds to just 2.4% of all transactions.

Then, we decided to drill down a little more, because while the average number is certainly jarring, when it comes to housing, the US is hardly a homogeneous market, and where every region has its own supply and demand issues. And by and far, the one region that has always stood out the most when it comes to abnormalities in US housing was the "West", largely a name for the state of California: the same place where the housing bubble was spawned back in the early 2000s, and where it first popped some time around 2006.

What we found when looking at just the "West" was that the distribution of sales by price bucket is beyond ridiculous in this state. The table (from the NAR) below summarizes the results:

What stands out is that while California is by far the most vibrant market when it comes to the most expensive segment (at +6%, the highest in the nation), it is shambles when it also comes to the two lowest price buckets, both of which blow out any myth of a recovery for the "non-1%" out of the water, with a collapse of 40% in sales in the $0-100K range, and a 20% plunge in the prime $100-$250K market (the Median existing home price across the US in May was $213,400).

As usual the best way to get a sense of the surprising divergence in the Western housing market is visually. The following chart, shows the sales by bucket in the West, as well as across the US.

Clearly, something very disturbing is happening in the California housing market: on one hand the latest housing bubble for the bulk of the market has clearly burst, on the other, the bubble for the ultra-luxury segment keep soaring to new highs.

Sustainable? Or just more "noise?"

Source: NAR

 

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Mon, 06/23/2014 - 11:42 | 4885701 goatmug
goatmug's picture

Just noise.  

Mon, 06/23/2014 - 11:52 | 4885736 Pool Shark
Pool Shark's picture

 

 

I'm no housing expert; though I do think we're in a housing 'echo-bubble' which is overdue to pop, but couldn't the drop in sales of cheaper homes and increase of sales in more expensive homes be at least partly due to rising home prices?

 [PS: >$1-million in many parts of California is not 'ultra-luxury.']

Mon, 06/23/2014 - 11:54 | 4885765 Top Gear
Top Gear's picture

The competitive will always be better at competion as they concentrate wealth and power. "1%-er" is just another term for successful capitalist.

The rabble rousing populist attitudes of the non-competitive class here at Zero Hedge betray their envy.

 

"The masses do not like those who surpass them in any regard. The average man envies and hates those who are different." 

~Ludwig von Mises, The Ultimate Foundation of Economic Science (p. 123)

Mon, 06/23/2014 - 12:09 | 4885820 Tyler Durden
Mon, 06/23/2014 - 12:22 | 4885871 disabledvet
disabledvet's picture

There's an irreparable imbalance with the bulk if not totality of credit levered to an expansion.

We stopped growing a year ago and are not already in a major downturn. One default and we're looking at a negative 4-5% "shocker." More than sufficient to wipe Bank America of the face of the earth.

"Then things get interesting."

Mon, 06/23/2014 - 12:30 | 4885888 max2205
max2205's picture

Wow.  Losing 40k on a 100k house in commiefornia.....that's detroitish

And in one year on a leveraged loan.

Fucking Ouch!

 

 

....................../´¯/) 

....................,/¯../ 

.................../..../ 

............./´¯/'...'/´¯¯`·¸ 

........../'/.../..../......./¨¯\ 

........('(...´...´.... ¯~/'...') 

.........\.................'...../ 

..........''...\.......... _.·´ 

............\..............( 

..............\.............\...

 

 

Mon, 06/23/2014 - 12:37 | 4885912 max2205
max2205's picture

Sorry...sales dropped 40%...sure no one wants a 100k POS

Mon, 06/23/2014 - 12:47 | 4885963 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Right, there were 39% less sales at 0-100K. Now, I have to ask what the supply numbers were at that level. Let's say there had been 10,000 units sold at 0-100K the previous year. Now this year, only 6,100 units at 0-100K were sold, so yes a 39% decrease. But what is not clear is how many total homes 0-100K were on offer this year and last year. Were 10,000 units sold with a total pool of 11,000 on offer? Now are we saying this year that only 6,100 homes sold with a pool of 11,000 or something much lower, like 6,500? That's what I'd need to know.

Also, living in the Bay Area, 100K could only buy you something in the worst gun infested ghetto, and probably then you'd simply have an all cash buyer that's either a slumlord or a drug dealer.

Mon, 06/23/2014 - 13:05 | 4886034 Stackers
Stackers's picture

It's the drought ?

 

and are there even any homes priced under $100k in Calf. at all anymore ?

Mon, 06/23/2014 - 14:35 | 4886373 redpill
redpill's picture

"and a 20% plunge in the prime $100-$250K market (the Median existing home price across the US in May was $213,400)"

 

But it was ~$350k in California, so no, that's not the prime market in California.  Come on guys, don't replace real analysis with silly stuff like that just because you can get the national NAR data for free.  The California housing market certainly has its challenges, both new and existing home sales are down slightly compared to 2013, but at the same time bank sales are down 50% (the prices of which undercut the market), so prices are still higher than a year ago.


Mon, 06/23/2014 - 16:08 | 4886764 espirit
espirit's picture

Makes me wonder who can afford to drink the koolade.

 

Maybe NuKuFuKu radiation will be useful after all.

Mon, 06/23/2014 - 13:17 | 4886098 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

'Gun infested'?
Do you mean 'criminal infested'?

Mon, 06/23/2014 - 14:00 | 4886247 KidHorn
KidHorn's picture

I get where you're going, but the $100k homes last year didn't suddenly become $1mil homes this year. They would have been bumped to the next price segment which showed a 20% decline. If anything, I would guess that it's more likely homes became less expensive since if you can't sell at X, you need to reprice at X-Y.

Mon, 06/23/2014 - 15:46 | 4886668 Citxmech
Citxmech's picture

If you want to buy someplace in CA that: 1) has a house that is not a tear-down; 2) Is not located in some shithole area or way out in the boondocks; and 3) is near someplace that has actually has a job market, you are going to have to spend way more than $250k. 

Mon, 06/23/2014 - 12:31 | 4885893 CClarity
CClarity's picture

There are no homes in California that sell for less than $100K.  And, except for Modoc County or downtown Stockton, there aren't many homes under $250K.  So, those segments skew enormously.   However, it is true that the wealthy are buying like crazy.  The per square foot avg price for single family homes in nice parts of Marin County go for $1000.  On the Penninsula, heart of Silicon Valley, prices are $1,500 per square foot.  So, you get to $1mil for a cottage as small as 700 sf.  

Mon, 06/23/2014 - 13:14 | 4886078 thamnosma
thamnosma's picture

But Californians are not richer as a whole, which means more and more people are priced out of the market.  Your post effectively defines a gigantic and absurd bubble.

BTW, there are MANY homes for sale in the sub $250K bucket in California.  Vast tracts of condos, duplexes and homes in the "Inland Empire" of SoCal, the high desert sprawl of Victorville and beyond, the Central Valley, etc.   I imagine you are living in the heart of the bubble in which those $1 million shacks sold to programmers are.

I also would think that many of these lower valued homes are simply not for sale as the current residents/owners can't afford to "buy up" due to the bubble prices.  People with paid off mortgages are staying fucking put.

Mon, 06/23/2014 - 13:45 | 4886198 Poundsand
Poundsand's picture

Those homes under $250k are all inner city dumps, or in places so far from civilization that there aren't any jobs to be found to support their costs.  CClarity is right, a basic home (1000 sf) will easily run over that figure.

Mon, 06/23/2014 - 14:22 | 4886329 thamnosma
thamnosma's picture

Not true.  Many middle class people moved into the peripheries of major employment centers to afford a larger house, pool, non-urban schools, etc.  Unfortunately, they were buying into the previous bubble and overextended themselves with refi after refi to buy more expensive toys.   Lots of relatively "upscale" homes were foreclosed and were selling for under $250K.  No, they are not in the prime areas if you call living in Hollywood or Newport Beach or Silicon Valley prime, but there is much in between Malibu and Compton.

Mon, 06/23/2014 - 15:48 | 4886679 Citxmech
Citxmech's picture

Sure there are - charming places like friggen King City, Atascadero, or Lodi. . .  

Wed, 06/25/2014 - 07:23 | 4892435 o2sd
o2sd's picture

Sorry, but that just aint true. A quick Trulia search shows 286 homes in San Bernadino for less than 100K. Sure, some of them are crack houses, but plenty of livable homes in amongst it to.

For example:

http://www.trulia.com/property/3148881702-5958-Elmwood-Rd-San-Bernardino...

Not a mansion by any stretch, but who-the-fuck cannot afford $75 a month to buy a home. Assuming you can get a 30Y fixed mortgage on 15K.

(LOL, Australia you literally can't even buy a doghouse for 15K, and no bank would give you 30Y fixed on anything, much less a 15K house)

For some silicon valley tech star/aspiring slumlord, these look like a pretty good investment aside from the property taxes. (I assume property taxes in SoCal are high).Get the county/states greedy fingers out of the pot and these sub 100K properties will start selling like hot cakes.

Mon, 06/23/2014 - 12:34 | 4885907 BurningFuld
BurningFuld's picture

Ya, if you are king the only reason you would want to give the peasants a fair shake is so they don't rise up and kill you. Other than that small detail keep on stealing................

Mon, 06/23/2014 - 12:34 | 4885894 TBT or not TBT
TBT or not TBT's picture

One thing that distorts the single family housing market in the SF Bay Area is government intervention that restricts supply of new single family housing.   Which drives up prices of what is allowed to be built, increasing the size of the 1million+ bucket.  

There are political battles right here in my outlying bedroom community over competing development plans for big swaths of land that in Texas would be covered with half million dollar homes with a reasonable price per square foot, meeting the pent up demand of bay area middle manager types to raise families in good school systems and comfortable modern housing among their peers.   But supply is restricted by the central planners and ostensibly ecological groups, not to mention existing home owners who like to see new supply restricted.

 I guess I should be one of the latter motherfuckers, in my 1million plus house,  but I hate central planning too much and fear for the economic catastrophe to come.   The job market will not grow here, and might shrink, ala Detroit.  Detroit was the world's richest city in the 1950's.  What silicon valley does is being done well and sometimes better offshore now.   It is a horrendously pricey place.  

Mon, 06/23/2014 - 13:16 | 4886094 thamnosma
thamnosma's picture

Man, a +million dollar house buys you a ranch just about anywhere in the US.  Wish I were in your position.  The sale sign would be out tomorrow.

Mon, 06/23/2014 - 12:09 | 4885826 pods
pods's picture

Nice entrance and welcome to ZH.

The non-competative class?

You mean like Rockefeller?

"Competition is a sin."

We here are pissed not at success, but at what I have come to call "Nerf Capitalism" where everyone has fun but nobody gets hurt.

Most here and me on a normal day would consider them the skimmer class, parasites, etc.

pods

Mon, 06/23/2014 - 12:38 | 4885918 BlindMonkey
BlindMonkey's picture

Is "Nerf Capitalism" trademarked??? I intend to use it in conversation. In fact, I will endeavor to make it a daily part of my speech for the next 30 days just to make it sink in.

Mon, 06/23/2014 - 13:33 | 4886165 pods
pods's picture

I read it and ran with it. Saw it here (I think) circa 08.  

I would tread lightly around the Patent and trademark office at the moment, I think they have their hands full.

Rumors abound about the trademarking legalities of "The CRACKER Barrel" now.

pods

Mon, 06/23/2014 - 19:06 | 4887351 BlindMonkey
BlindMonkey's picture

If they get rid of "Cracker Barrel" where will the real rednecks register for their weddings?

Mon, 06/23/2014 - 12:39 | 4885919 Top Gear
Top Gear's picture

Nerf? Awe, that's cute. So you're with Rockerfeller?

Because, in competition, the losers do get hurt.

Mon, 06/23/2014 - 12:43 | 4885938 BlindMonkey
BlindMonkey's picture

I like your style so far son. Come to play and come strong. You seem to not be the same level of poo-flinging monkey that comes from the disinformation centers.

Mon, 06/23/2014 - 15:48 | 4886680 Bananamerican
Bananamerican's picture

Yea, I'd say he's more of a "monkey flinging SHIT"

Mon, 06/23/2014 - 13:32 | 4886161 The Most Intere...
The Most Interesting Frog in the World's picture

Loud Mouth = Big Pussy

I learned that in grade school...

Mon, 06/23/2014 - 13:39 | 4886178 pods
pods's picture

Hence why Rockefeller may (or may not have) said that quote.

Competition is for the plebes.  Why do you think the FED was introduced?  COMPETITION.  At the turn of the century, many companies were actually starting to self-finance expansion and bypassing banks.

Enter the Panic of 1907 and voila.

The 1% love competition.  That way they have an endless supply of dupes to work their asses off for them, just not competition AMONG themselves.

For the 1% and I argue most Capitalists, the most effective use of capital (ain't that the Capitalist mantra?) is to buy the government and protect or increase their market share.

I mean, if the best use of your surplus capital is to protect your market share by limiting competition, you would be a fool not to undertake it.

pods

Wed, 06/25/2014 - 08:02 | 4892491 o2sd
o2sd's picture

Almost.

For the 1% and I argue most Capitalists, the most effective use of capital (ain't that the Capitalist mantra?) is to buy the government and protect or increase their market share.

Actually, the "most effective use of capital" is NOT the Capitalist mantra. The capitalist mantra is to preserve and extend capital. In that order. To preserve capital, you must defend your current market share/value against competion. To extend capital, you must increase your market share/value through competition. Therefore, a small or medium size company agressively seeks to compete, and a large entrenched company aggressively seeks to restrict or repress potential competition. In the short run, the latter is a lot less risky than the former. In the long run, it is the inverse.

Because large corporations whose strategy is to preserve rather than extend capital represent lower risk in the short run, conservative capital will flow towards large corporations, and risk capital will flow towards small/medium size corporations.  

As a general rule, people are risk averse (as opposed to profit seeking), so conservative capital tends to outstrip risk capital by a large margin. Ironically, it is large, risk averse, capital preserving corporations that have the least productive use for the capital they have access to. They perform relatively little R&D, have little room to expand market share (because they are a monopoly or part of an oligopoly), employ middle of the road mediocre employees and push risk-takers out.

So, what to do with all this conservative capital, with no desire to take any risk? Go into politics of course! Demand stringent and expensive safety regulations that your products have already passed. Lobby for regulation and licensing to increase the barriers to entry.

Capitalism's greatest weakness is its spectacular success. Capitalism rewards the winners, but it disproportionately punishes the losers. So the winners (large successful corporations) become increasing conservative as their access to capital improves (the paradox of capitalism).

Eventually, however, some highly disruptive science or technology breaks everything. It unleashes an unstoppable force that no amount of cronyism, nepotism, corruption or stagnation can dissuade or prevent. Then the cycle starts over with a new cohort of capitalists and former revolutionaries. (Well, that is how it has played out so far in capitalism's admittedly short history.)

Mon, 06/23/2014 - 14:23 | 4886334 thamnosma
thamnosma's picture

Thanks for that response pods.  Nope, not jealous of the crony capitalist class and its government collaborators.  Free market would have flushed a lot of them down the drain a few years ago and new competitors wouldn't be stymied by regulations written by the cronies.

Mon, 06/23/2014 - 12:10 | 4885828 LawsofPhysics
LawsofPhysics's picture

Indeed, glad I went long black markets and sharecropping already.

Remember, that which cannot be sustained, won't be.

Trust me, the "competitive class" has already hedged accordingly.  Let the "culling" begin!!

Mon, 06/23/2014 - 12:23 | 4885870 nmewn
nmewn's picture

Competitive meaning, trying to outrun dollar destruction by being hooked into the statist-crony class? Kinda like a mini-me or wanna-be oligarch then...lol.

"Saved capital" to put at risk falls into this equation, where exactly? And when its just handed to you on a silver platter and you fail, you just go back to Uncle Sugar?

Is that how it works?

Mon, 06/23/2014 - 12:33 | 4885898 orangegeek
orangegeek's picture

in a keynesian world, don't quote von mises - you butcher von mises - it makes you sound stupid

 

government and big money create a system to lock out the rest - europe has this, asia has this - the lands of communism and socialism (same thing actually)

 

the good news is that when wealth concentrates, depressions occur short thereafter and big wealth transfers

 

so your successful capitalist (ask how many aren't doing business with the gewbermint) will get fed to the dogs eventually

 

and when it all collapses and keynes is recognized as dogshit, then you can start quoting von mises, but not before

 

get it?

Mon, 06/23/2014 - 12:40 | 4885922 BlindMonkey
BlindMonkey's picture

Envy from the ZH crowd? Sorry son. Wrong blog. This ain't HuffPo...

Mon, 06/23/2014 - 12:50 | 4885970 MarsInScorpio
MarsInScorpio's picture

Top Gear:

 

Pretty foolish on your part. You act as if the opportunities are equally open to all, with everyone given an equal chance to win the race.

 

The truth is that while the 99% run a 50-yard dash, the 1% write the rules through their control of the rule-writers to make their course only 40-yards.

 

In addition, they get a 2-second head start, and are not weighted down with burdensome luggage (such as paying taxes like the rest of the 99%).

 

They have spent their lives in training at the finest networked academies - educated up , not dumbed down - and  know the course well, with sycophants all along to coach them every step.

 

So yes they are different – but not for any morally defensible reasons.

 

They lie, they steal, they cheat . . . they are “Too Big To Prosecute,” or are able to get law enforcement agencies to buy the lie that some lone, rouge, executive committed all the crimes singlehandedly, with no supervision over him or her making them accountable throughout their career.

 

The LEOs buy it, because those corporate institutions are their next stop after they start dipping into the federal retirement fund. No use making enemies with your future employer – just ask Eric Holder and his white-collar defense firm.

 

Sorry, but when I hear or read something like what you posted, I know you are living in a Fantasy Land totally disconnected from the Real World of today.

-30-

 

Mon, 06/23/2014 - 13:54 | 4886226 First There Is ...
First There Is A Mountain's picture

This turd is none other than Million Dollar Bonus. I'd bet on it....

Mon, 06/23/2014 - 14:34 | 4886367 FLHRS
FLHRS's picture

Tell that to my educated (no tuition loans) kids who (husband and wife) work at least 40 hours a week and make just enough to pay over 25% of their pay to the federal government.  Their country is now $17,000,000,000,00.00 in debt.  The federal reserve had decimated their currency.  Their 401K's don't have enough value to take advantage of the stock market surge.  Stagflation is hitting them harder then ever and they barely make enough in wages to live a descent life.  We won't even address the other byproducts of your 'successful capitalist' system like the fact that the incentive scale has tipped towards the non productive part of society, porous borders, inept education system, lawless government, spying, ..........   give me a break.  Don't get me wrong.  I'm for free enterprise but government, PC, cronyism and society overall needs to get the hell out of these peoples way.

Mon, 06/23/2014 - 12:04 | 4885795 sleigher
sleigher's picture

3 bedroom 2 bath in 1159 sq feet, 1950's built, leaky windows, roof leaks on 5k sq foot lot.  Price reduced to $750k.  Contact blowme@imouttahere.com  (boy am I glad I left that place)

Mon, 06/23/2014 - 12:41 | 4885911 John Law Lives
John Law Lives's picture

If you want to see another remarkable example of pricing in housing these days, check this one out:

 

http://www.lambertgrouprealestate.com/listing/700761-46-tupelo-st-santa-...

Features (as per listings):

854 sq. foot unit built in 1992 that sits on a lot that is listed at 59 feet x 51 feet.

There is no garage or covered parking (you are allotted 2 parking spaces outside along the street).

You pay an annual HOA fee of $3,850.

All this can be yours for the (recently reduced) price of...  $899,900.

Mon, 06/23/2014 - 12:47 | 4885962 BlindMonkey
BlindMonkey's picture

WTF?? I am guessing that anything sub-100k at this point in California is not habitable. That could explain why the drop in prices.

That does beg a question though: where, exactly, do the illegal infants that are currently invading our border expect to live? Hard to earn enough to pay a 900k mortgage when you are still in diapers.

Mon, 06/23/2014 - 13:20 | 4886074 John Law Lives
John Law Lives's picture

"WTF?? I am guessing that anything sub-100k at this point in California is not habitable."

I can't imagine what sub-100k would get you in California.  I wouldn't live in it in California if someone gave it to me.  BTW, the listing I referenced was in Florida (in case you didn't have a chance to click on the link).

"That does beg a question though: where, exactly, do the illegal infants that are currently invading our border expect to live?"

Wherever they can find a place to crash.  I don't begrudge people wanting a better life for themselves, but it is beneath contempt that our Federal government refuses to crack down on the invasion.  It seems obvious that corporations are behind this (i.e. they want more consumers and cheap labor), and corporate lobbyists will lobby Republicans and Democrats alike in their pursuit of more consumers and cheap labor.

Mon, 06/23/2014 - 12:41 | 4885930 DeadFred
DeadFred's picture

LOL the article talks about California houses below 100K. You can find them in the classifieds right next to "unicorns for sale". The Cali market is booming because the floods of fiat money is moving into equities and much of it comes to roost in LA and the Bay Area. My daughter just gave up on looking for a house after offering the ask price and getting out bid by 100K on a 500K as is house that never even had an open house. No froth here. A 100K house in California is a one bedroom cabin on a postage stamp lot somewhere in the outback on an unpaved road. Hope I don't sound bitter.

Mon, 06/23/2014 - 13:14 | 4886081 malek
malek's picture

Ahem - unless it's in tear-down state, you never offer the ask price on the left coast.

Mon, 06/23/2014 - 13:51 | 4886214 RobD
RobD's picture

Lol, my neighbors cabin is exactly what you describe and he is asking $190k and you don't even own the land. It's on a Forest Service Recreational lease in Lassen National Forest.

Mon, 06/23/2014 - 14:27 | 4886351 Hydesrevenge
Hydesrevenge's picture

I think the consideration of Value needs to be looked at, with the devaluation of the US Dollar, Quantative Easing and rampant inflation in sectors the FED considers as " Noise"... I would not classify housing prices as an increase, the fact of the matter is you get less with the dollar. We couldnt have deflation... so we've printed the middle class into poverty.

 

Mon, 06/23/2014 - 11:54 | 4885763 SuperRay
SuperRay's picture

The $1+ million home have built-in radiation protection. Worth it at twice the price...

Mon, 06/23/2014 - 14:01 | 4886254 doctor10
doctor10's picture

willing to bet that ObamaCare is flushing out the undocumented who are auto-deporting themselves

Mon, 06/23/2014 - 14:40 | 4886390 venturen
venturen's picture

Never a better time to be very rich. The government is literally printing money for you and allowing crooks on wall street to literally buy people's homes with unlimited money. Wall Street also is allowed to manipulate every commodity higher...all the while knowing it will be given a blank check if things fall apart just like last time. The people that should have gone to jail are instead rewarded as never before!

Mon, 06/23/2014 - 11:42 | 4885702 ENTP
ENTP's picture

Looks like Belgium needs another $10 billion to purchase some middle class California homes.

Mon, 06/23/2014 - 11:42 | 4885703 buzzsaw99
buzzsaw99's picture

dirty hippies. the drought should help. [/sarc]

Mon, 06/23/2014 - 11:45 | 4885706 Dr. Engali
Dr. Engali's picture

No worries, the influx of migrant workers will be incentived to pick up the slack and fill the bottom tier housing with multiple families. See, it all works out. Problem/ solution.

Mon, 06/23/2014 - 12:05 | 4885791 FeralSerf
FeralSerf's picture

Lack of water causing many farms to not plant row crops. No row crops means no need for migrant workers to pick vegetables. No jobs for migrants means no migrants or money to buy food for their families. Mexican welfare is not very generous for Central American immigrants.

Starving Central Americans means sending their children (who they cannot feed) north. American government has no choice but to feed and care for them.

It doesn't look too good on TV when the Americans starve immigrant children. The Owners of Americans are very concerned about how they appear on TV.

Mon, 06/23/2014 - 11:44 | 4885708 pods
pods's picture

Can you even buy a house in CA for under $100k?

pods

Mon, 06/23/2014 - 11:55 | 4885747 tarsubil
tarsubil's picture

Wouldn't you expect these results with housing getting more expensive and sales going down slightly? There's got to be a way to correct for that to get a clearer picture.

Edit: Additional info below from tyler pretty much clears this up. Market is up for rich, bad for middle class/poor.

Mon, 06/23/2014 - 11:57 | 4885774 Platinum
Platinum's picture

$100K gets you a van down by the river.

Mon, 06/23/2014 - 12:37 | 4885914 BurningFuld
BurningFuld's picture

Isn't that a Neil Young song?

Mon, 06/23/2014 - 12:14 | 4885841 pods
pods's picture

Wow, one of the first ones is a 1 bed 1 bath upgraded condo that has a whopping..........wait for it.........

378 square feet of space.  

Another has those cute bars on the windows.  Must be fun in a fire.

pods

Mon, 06/23/2014 - 12:14 | 4885842 FeralSerf
FeralSerf's picture

They're mostly mobile homes. Many of these trailer parks are increasing their rents.

Mon, 06/23/2014 - 16:42 | 4886923 combatsnoopy
combatsnoopy's picture

You might as well spend a good chunk of money on a mobile trailer to resell in the future.  it's got much more retention power than these so called houses(aka. mini McMansions)

The "land" rental is expensive.  but hey, if you want to live in Mexico, at least owning a trailer home won't get you stuck when the Mexican government demand it's land back.

 

 

Mon, 06/23/2014 - 12:19 | 4885847 pkea
pkea's picture

I would say there were no houses under 100k in ca for over a decade on average so any collapse in that range isn't surprising

In worst of 2008-2012 the " dirt cheap" was 200-400k range...

Some homes in the deep Mohave desert would go for still over 100k...
Death Valley
Right now I see people in the bidding wars for over1 m homes... All us citizens no foreigners... The inventory is low. Most cashing out of the market

IBM and the rest of tech are doing well Nasdaq sp all time highs

Mon, 06/23/2014 - 16:25 | 4886853 Blankenstein
Blankenstein's picture

 

" dirt cheap" was 200-400k range...

You realize that requires a $66,000 to $133,000 household income at minimum right?  And that the median household income in California is $61,000?  Three times income is not what the NAR tells the herd, but this had been the long-standing rule of thumb that allows one to be able to eat something besides Ramen for dinner and not to have to get furniture off the curb the night before trash day to fill that McMansion.

Mon, 06/23/2014 - 12:30 | 4885848 pkea
pkea's picture

M

Mon, 06/23/2014 - 13:02 | 4886025 waterhorse
waterhorse's picture

Yes, but its likely to be in rough shape or in a bad neighborhood.  Mine:  Bought 2012, very rural but 40 minute commute to Sacramento (largest metro area), it has paved roads (unlike the comment above saying "no paved roads"), 4 acres, 1950 sqft, built in 1970s, paid 115K.  Spent 50K on remodel.  Only 8 years left on loan, then its all mine.  Bargains are out there.  You just have to look hard and not turn your nose up at cosmetic fixes.  Big "stink" problem in mine from prior tenants (this house a rental for a year).  Their dogs shit/pissed everywhere.  Ripped up most of the subfloor and Kilz'd the rest.  Good as new now.  Even my pets don't mark.

Mon, 06/23/2014 - 13:19 | 4886106 F0ster
F0ster's picture

The Sub $100k in CA are either lots or inter-family tax avoidance schemes.

Mon, 06/23/2014 - 13:34 | 4886159 island
island's picture

Hey - that is the GOOD NEWS.  The SILVER LINING.   It suggests the prices of all homes have increased!!  Yea!  Everyone with a home  is richer!!  This is exactly what we need to get the economy moving.  Those $100K homes are now worth $500K.  Who cares if Jack and Jill Workerbee can't buy them?  Our leaders in D.C and The Fed will figure this out.  They are smart!

/sarc off/

Mon, 06/23/2014 - 11:45 | 4885711 carbonmutant
carbonmutant's picture

Asians moving capital out of home markets...

Mon, 06/23/2014 - 11:54 | 4885762 kchrisc
kchrisc's picture

Asians buying THE American country.

When the revolution comes the American people will have to fight both the DC US and those that they sold the American country too.

Mon, 06/23/2014 - 12:47 | 4885960 Chewybunny
Chewybunny's picture

I'd like to know where exactly the highest prices and biggest booming area would be. Methinks it's near Silicon Valley and Bay Area - if that's the case I'd like to know how much of that is being fueled by the new-rich working at these tech-firms. 

Mon, 06/23/2014 - 11:46 | 4885727 starman
starman's picture

Short and preamarket sales are popping up here in Commifornia. 

Sales down 10% invenrory up 20%. 

Mon, 06/23/2014 - 11:47 | 4885729 stateside
stateside's picture

It's hard to believe there were many houses in California under $100,000 or even $100,000 - $250,000.  If I had to guess, I would say most of these "cheap" homes were purchased for cash last year and the supply of "cheap" homes has now dried up - hence the drop in sales.  The Wall Street hedge funds who own these "cheap" properties now will have to drop their price (I'm sure they were hoping for a double) so these sales may pick up later in the year.

 

stateside

Mon, 06/23/2014 - 11:49 | 4885737 Tyler Durden
Tyler Durden's picture

 

Mon, 06/23/2014 - 11:53 | 4885749 CrashisOptimistic
CrashisOptimistic's picture

That's a good reply, and I have hammered Tyler enough to feel safe from a brown nose label.

If most sales are in that price range and sales of that price range are getting slammed, then you can't make a case that nothing in Calif is priced in that range, and the whole scenario of the article is valid.

Mon, 06/23/2014 - 11:53 | 4885758 tarsubil
tarsubil's picture

Do you have these numbers for last year?

Mon, 06/23/2014 - 11:54 | 4885764 CrashisOptimistic
CrashisOptimistic's picture

Should be able to derive it.

Mon, 06/23/2014 - 12:32 | 4885897 Strom
Strom's picture

Isn't this the national chart? Do you have these numbers for California or "West"?

Mon, 06/23/2014 - 12:34 | 4885903 pkea
pkea's picture

it's national sale prices not ca I believe
The data is from the nar...

Mon, 06/23/2014 - 14:00 | 4886243 Strom
Strom's picture

If you look at numbers from CAR, which are only from April at this point, some interesting things stick out. They group the categories differently, so it's a bit difficuly to do a direct comparison, but here goes:

 

- $0-300k SFH sales down 21.7% YoY (April '13-April '14)

- $300-500k SFH sales down 0.3% YoY

- $500-750k SFH sales up 5.8% YoY

- $750k-1,000k SFH sales up 4.5% YoY

- >$1,000k SFH sales up 14.2% YoY

- Overall sales down 5.8% YoY.

 

While May could be significantly different, I think this is indicative of the lack of reasonable housing options in the $300k and under segment. There are 6,550 homes in Southern California listed for sale under $300k, out of 36,000 total. In Orange County (population over 3 million), there are exactly 10 listings for SFHs under $300k. Eight of the ten listings are actually mis-listed as they are condos or trailers (not SFH). That includes gems like these:

http://www.redfin.com/CA/Aliso-Viejo/23351-Via-San-Martine-92656/home/48...

http://www.redfin.com/CA/Huntington-Beach/19772-Coventry-Ln-92646/home/3...

http://www.redfin.com/CA/Santa-Ana/619-N-Bristol-St-92703/unit-20/home/5...

 

The other two that are not mis-listed are log cabins, built in the '20s, with lots of less than 1,000 sf:

http://www.redfin.com/CA/San-Juan-Capistrano/16-HOT-SPRINGS-Cyn-92674/ho...

http://www.redfin.com/CA/San-Juan-Capistrano/6-HOT-SPRINGS-CANYON-Rd-926...

 

So now you know why there aren't any SFH sales under $300k in the livable places in California. They don't exist in that price range any more.

 

If you drop the range to $100k and under (per the distribution bucket above), there were 252 sales in all of Southern California in the last month. There are currently 380 SFHs listed in Southern California under $100k, so that's about 1.5 months of supply. Almost anything reasonable that is listed is sold. There's just nothing in that price range.

Mon, 06/23/2014 - 17:28 | 4887089 btdt
btdt's picture

Even he slices aren't really that helpful  Tyler.

To see much, you would have to split the $100 - $250 up more. A distribution around the mdian for instance or a bracket in the hedge fund rental portfolio sweet spot is a) going to show a hot market and b) is quite large relative to the rest of the country.

Also, to treat CA as a single entity for housing doesn't make much more sense than looking at the entire country.

CA is a land of deep contrasts, especially in property. Compare Palo Alto to the better burbs of Fresno and to be polite you would be mixing apples and marbles. There are rural communities in the Central Valley that might as well be in Hondaraus.

Mon, 06/23/2014 - 11:58 | 4885779 mmanvil74
mmanvil74's picture

Precisely correct stateside.  Most of the sub-$100k foreclosures are gone now, and with prices moving up as fast as they have, there is less inventory at the low end.

However I don't see the hedge funds exiting the market en masse in a way that will kill the housing "recovery" (scary to use the R word on ZH I know, but let's face it, US real estate has recovered from the epic levels of foreclosures and downward price spiral.  Sure it is hotter in some places, dead in others, but US housing is finding a balance like any market would after a massive crash).  

More likely those hedge funds invested in housing will try to offload their portfolios in some form of synthetic security to pension funds once they show how good they have performed over the last few years (in terms of yeild and capital gains).

And so the cycle continues once again, pension funds buy at the top, and they along with Fannie, Freddie (ie. Joe Taxpayer) will be left holding the bag, while Wall Street make out like bandits.

Mon, 06/23/2014 - 13:56 | 4886233 waterhorse
waterhorse's picture

And so the cycle continues once again, pension funds buy at the top, and they along with Fannie, Freddie (ie. Joe Taxpayer) will be left holding the bag, while Wall Street make out like bandits."

Exactly that.  And while Smithers' like entities (who shall not be named here) cheer "free capitalism" on and tell the rest of us we're just "envious" of our "betters."

Mon, 06/23/2014 - 14:36 | 4886377 crazybob369
crazybob369's picture

You're right on target stateside. Can't speak for Cal, but in Arizona, where I've invested in RE for years, I've had to compete with large money that could buy up multiple properties in the 75 to 150k range for cash.  Lately that money seems to have gone away (not sure why because there are still plenty available). The RE agent I work with told me that about 80% of her sales the last couple of years have been cash deals. Most were done through lawyers and she never even dealt with the actual buyers. I'm guessing Chinese money, or REIT money.

Mon, 06/23/2014 - 11:52 | 4885751 auntiesocial
auntiesocial's picture

the numbers have been fudged for decades. still selling Ken and Barbie on the beach and beach blanket bong out wet dreams. The reality is- people can't afford to buy and the banks won't let all of the REO's out coz they will get slaughtered. Property values should be no where near what they are. If I was still in the game, I would be buying cheap rentals, coz you will always be able to find tenants. 

Insert mile long rant here.

Mon, 06/23/2014 - 11:55 | 4885768 stutes33
stutes33's picture

Location, location, location. 

Mon, 06/23/2014 - 12:06 | 4885804 Crawdaddy
Mon, 06/23/2014 - 11:56 | 4885773 The Most Intere...
The Most Interesting Frog in the World's picture

Live outside Washington DC.  Get around the beltway a lot.  I don't know what the percentage is, but Washington DC market must be a huge percentage of sales in the "South".  An enormous amount of new construction came on in the last 6 months or so, both apartments and single family.

BUT....  recently....  something has started to happen....  In the last 30 days or so, when things should be ramping up even more, things appear to be slowing dramatically...

This is only anecdotle, but houses aren't selling as quickly, construction has slowed.  Some spec building, but coming to a halt.  It appears waiting for buyers of homes built before proceeding with more construction.  Also, rental units by the tens of thousands have been built - but appearing VERY empty!

If anyone has the time and data to drill down on DC, Tyler?, would love to see what is really playing out.

 

Mon, 06/23/2014 - 12:52 | 4885982 BlindMonkey
BlindMonkey's picture

It is about fucking time that the DC bandits experience a down turn.

Mon, 06/23/2014 - 14:26 | 4886346 crazybob369
crazybob369's picture

You might be on to something. A couple of years ago I invested in a company called Government Properties Income Trust (no brainer investment, 8% yield, they rent properties to government agencies). Anyway, the company has done really well, but in the last month or so it started showing some real weakness for no apparent reason. I don't think this stock is going to tank any time soon, but there does seem to be something weird happening in the DC market.

Mon, 06/23/2014 - 12:10 | 4885781 Kaiser Sousa
Kaiser Sousa's picture

trust me...

its a fucking joke out here...

mother fuckers r doing, saying, and believing the same shit they did in 2007...

try to tell a dumb ass, lamestream media propagandized Californian that another bubble in housing has been purposely created by the FED (which most dont even no what is) and they will swear ur a "DOOMER"...

i cant wait til it all blows....

keep stackin.

Mon, 06/23/2014 - 13:12 | 4886072 pashley1411
pashley1411's picture

Having 2 family members who did CA RE purchases in the +$1m bucket last year, they are totally into the "real estate always goes up" cult.   

If you think you are going to sit down with anyone and explain that Silcon Valley money, and so real estate prices, are just farts coming out of Yellen's ass, you are going nowhere.   

Mon, 06/23/2014 - 13:17 | 4886096 TVP
TVP's picture

Tell me about it.  Fricking retards cannot even comprehend the history of the last 15 - 20 years.  

I know a young couple in their 20's, first time homebuyers (they've both had service sector jobs since high school).  They bought a little single family home for like $450k or something ridiculous.  Now it's worth more like half a mil, and they're euphoric becaue they think they're getting rich.

I know someone who bought a doll house in San Diego for about $500k.  That should work out well, seeing as he bought when interest rates were at the bottom.  Not like they will ever go up, and prices never go down.  Welcome to wonderland.  

 

Mon, 06/23/2014 - 16:12 | 4886792 combatsnoopy
combatsnoopy's picture

These houses used to sell for under $200 in the 90's.  And the NICE "boring" neighborhoods were trampled by blockbusting mortgage brokers.  People are also "buying" South of the Border and commuting through the border everyday for their whopping $12/hour salary they knived someone for.

Except that you can't own land in Mexico unless you're born a native Mexican.  

Mon, 06/23/2014 - 12:03 | 4885790 bigkansas
bigkansas's picture

Straight outta Compton!

Mon, 06/23/2014 - 12:08 | 4885808 SethDealer
SethDealer's picture

the $100k house doesnt have granite.

California housing makes me think of porn

Mon, 06/23/2014 - 12:12 | 4885830 Emergency Ward
Emergency Ward's picture

There are only four or five houses in the entire state that sell for less than $100k.  And none of those shacks are anywhere near a metro area.

Mon, 06/23/2014 - 12:55 | 4885992 BlindMonkey
BlindMonkey's picture

If you buy one of those properties do you have to pay a vacation Randy Quaid lookalike to move??

Mon, 06/23/2014 - 18:50 | 4887305 FeralSerf
FeralSerf's picture

Not true.  There's lots of houses in the central valley that sell for less than $100K, most near metro areas.  They're not mansions and most don't have granite countertops.  Example:

 

http://www.pmz.com/propDetails/fullScreenMLS.asp?mlid=s14036697&id=&ref=...

Mon, 06/23/2014 - 12:09 | 4885819 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

Might want to take a look at the possibility that global drug money is being laundered with high end purchases and selling to other "investors" similar as the way QE debt creation is being laundered through the banks.

 

 

Mon, 06/23/2014 - 12:18 | 4885858 FeralSerf
FeralSerf's picture

Real estate is one of the best money laundering methods available thanks to the NAR and their lobby.

Mon, 06/23/2014 - 12:12 | 4885832 Ariadne
Ariadne's picture

slaves on, middle class off.

Mon, 06/23/2014 - 12:14 | 4885845 ghostzapper
ghostzapper's picture

but, but, but they have that show on TV where the younger couple flip homes all over SoCal.  Doesn't that mean "everything is fine"?

 

I'm confused - can we get an "expert analysis" from Cramer and/or Gartman please?

Mon, 06/23/2014 - 12:19 | 4885862 BobTheSlob
BobTheSlob's picture

If you are buying a home in the LA area for under $500,000 I recommend the following housewarming gifts:
A pit bull.
Bars for the doors/windows.
A mossberg 500.
And a 9mm that can shoot sideways.

Mon, 06/23/2014 - 12:29 | 4885867 Emergency Ward
Emergency Ward's picture

I'll gift you that plus a four-foot chain link fence around the front yard, to keep the pit bull in and uninvited guests out.  (This is the combat zone for USPS, UPS, FedEx and utility workers.)

Mon, 06/23/2014 - 12:42 | 4885929 johnjkiii
johnjkiii's picture

Not really hard to figure out. CA is 2 states: The wealthy coastal area, Silicon Valley, SF, LA, SD etc. and the poor farming communities in the San Joaquin valley. There are no houses in the bottom two categories (0-250k) on the coast and the SJ Valley residents are primarily lower income types where the Fed money rarely reaches.

Mon, 06/23/2014 - 13:07 | 4886044 Robocop
Robocop's picture

Are there any homes in California for $100k or less? Median sales price was $378k Mar-Jun 2014

Mon, 06/23/2014 - 13:13 | 4886076 TVP
TVP's picture

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity"

- Tale of Two Cities

Mon, 06/23/2014 - 13:18 | 4886099 bankonzhongguo
bankonzhongguo's picture

Have a friend that is an independent mortgage broker in the Central Valley.

Rates are still pretty down, people are getting their credit repaired, but he is going down the tubes.

Between the crazy cash offers and in-house refinances, the number of new mortgages just does not jive with the historic low rates.

Shadow inventories have not changed whatsoever. There is still years' worth of inventory in many markets.

Rents are up.  Household incomes are down.  Inventory is sideways.

There are still to many insiders that are picking off good prospects before the OREO departments release their inventory.

Local inventories are being artificially held to 21 DAYS in order to keep the appearance of stable prices.  Someday this will all adjust with real incomes, but letting in more illegals depresses wages and energy inflation will just eat a greater portion of everyone's take home pay.  Never mind Obamacare insurance premiums taking 16% of your gross pay in a few years.  Good luck covering those payments after your job gets replaced by a computer in Shanghai-Pudong.

The good people swinging hammers could not afford the very houses they build, not unlike the burrito folders at Chipoltle who could not feed their families with a day's worth of that labor.

People and the kids are just going to move into their Boomers parents' homes.

Mon, 06/23/2014 - 14:04 | 4886265 I Write Code
I Write Code's picture

As others have said, there is no real market in the populated coastal zones in the bottom two buckets, the numbers were temporarily high during the crash because of foreclosure sales and subsequent flips, and the banksters have been managing the flow of distressed properties into and out of foreclosure since 2008, at Treasury (not Fed)(well maybe both) guidance, also now even some of those foreclosure/flips are more than $250k.  So those bottom buckets mean nada.

Mon, 06/23/2014 - 14:05 | 4886270 Solarman
Solarman's picture

I am in this space.  There is simply no inventory available.  It is sold out, and held by cash buyers or hedge company entities.  Incredibly misleading story.

Mon, 06/23/2014 - 14:26 | 4886344 the grateful un...
the grateful unemployed's picture

this is simple fed-e-nomics. if the 500K and up bracket is selling better than lower priced houses flippers will grab the 250K house and upgrade. (whether this is cause or effect i leave it to you) in a normal RE price correction you should expect reversion to the mean. this is fed bubble blowing. and the price difference west to other than west, is even more shocking when you consider that most other than western home builders consider the standard california home not much more than a cardboard shack.

the economic goal of fed and government policy to place a premium on EXISTING homes, relative to new homes (so new homes sell). home manufacturing is americas largest industry (you can have any size key ring you want)

250 K homes are being taken off the market. and to be fair there are a lot them built in 70s and earlier that simply don't deserve the sort of valuation they get, even with granite counter tops and ss appliances. our house is at or slightly above the 250K range, with another 100K it could be worth 1/2M, but if a full mil is what is selling then someone would need to add another 200K (or more), depending on the neighborhood.

the buyer is being pushed toward new housing because its cheaper. the best idea (in CA) is to sell your existing older home and buy new (especially if your house needs upgrades) and pocket the difference, but its not that easy. the buyers at the high end are fewer and they have more choices. you could put a 100K in a reno and not be able to get the money out, so its a paper game (what isn't). it works on paper but not in reality. but is taking older homes off the market faster than the tight money lending policies and QE which subsidizes stock market investments not home loans.

Mon, 06/23/2014 - 15:48 | 4886678 BooMushroom
BooMushroom's picture

They are cardboard shacks here! Use a box cutter to cut through the vinyl siding, kick out the paper-thin stucco over chicken-wire, thin plywood, fiberglass, and then drywall. No point having an alarm system on just the doors: thieves can walk through the walls if you have what they want.

Mon, 06/23/2014 - 14:26 | 4886348 Jack Burton
Jack Burton's picture

California, taken by itself, is one of the world's leading economies. As a place of riches, California is near the top. There is so much wealth sloshing around in the hands of their 10% and up. Also, foreign cash is running into the upper end markets looking to lock in safe havens for foreign wealth. Both as an RE cash investment, and as a safe house to run to when their home countires begin to burn down. China as one example, their elites have agents prowling the high end market looking for safe houses. When possible, the rich Chinese send one or more kid or older relative over to take possession of the house and establish family immigration rights by going the legal immigration path. Lots of cash can smooth the process.

Mon, 06/23/2014 - 16:29 | 4886866 combatsnoopy
combatsnoopy's picture

That's only because the EB5 only allows for Real Estate and construction investments instead of anything else.  The Chinese ARE looking for more, say in the fields of oil and exploration.  

And of course stupid Obama and his ghettofabulous Wall Street and &lobbyist friends "citizens of the world" failed to get China to remove their barrier to the US financial sector.

They invest so much which is probably why they fell into ASEAN crisis in the first place.  They're investing in walnuts and the kitchen sink, not just real estate.

Houses don't do shit to create buyer value, they're just inventory.  We NEED Asia Pacific and Rim to buy into American stocks.  You have to note the red tape and everything set up because the boomer trash IS threatened.

The US would do well to invest the citizen's purchasing power in Macau's casinos to hedge against the trade/INVESTMENT deficit in the US or we can hedge in OPEC's basket of currencies.

 

The foreign financed US Treasury funded grossly paid politicrats totally fucked things up and they're too stupid to repair any of it.  This is far from a success story or a bragging point.  As a matter of fact, it's a complete embarrassment and a nasty tragedy.

 

 

 

Tue, 06/24/2014 - 03:36 | 4888453 IronForge
IronForge's picture

The People's Republic of California may be ranked well by itself; but if one takes out Chevron and UnoCal, the State GDP Numbers do change alot.

I've been stuck in LA for the past 14 years.  Outside of the Entertainment, Legal, Medical, and Hospitality Industries, the Region is being hollowed out.

As a matter of fact, the "Job Growth Projections" are only looking for Service Related Positions to be of any substance - with "Lawyers" being the only White Collar Position listed in the top 50 Vocations with # of Projected Vacancies.

Mon, 06/23/2014 - 14:53 | 4886440 First There Is ...
First There Is A Mountain's picture

I'm giving serious consideration to unloading my home in Denver suburbs (near DTC for those familiar with area) for a hefty premium. I could easily ask $100K above purchase price and walk away with that and nearly 40% equity in home. Problem is, if I opt to stay in Denver, I have rental market to contend with and the air gets even more rarified yet.

I would say Denver has recuperated all 2006 peak loses entirely and has now gone with throttle up for full on irrational exuberance. Prices in most areas exceeding by a good margin what they were at top. Anything under $350K here and you're basically looking at a superfund site, i.e. a fucking dump.

I've added 1500 square feet of garden (mixture of raised beds and converted lawn - great soil and VERY productive) and made some minor improvements inside and out which translate into high asking price. Lots of "Oh I so wanna have a garden" types around here with no fucking clue or inclination to do the heavy lifiting (which I've done for them) so all they have to do is sow some seeds and stick transplants into the dirt. 

I'd hate to wake up tomorrow to a 35% price drop but I'm afraid that's coming....

Mon, 06/23/2014 - 16:23 | 4886847 combatsnoopy
combatsnoopy's picture

Good luck, potheads are typically cheep.

Mon, 06/23/2014 - 16:22 | 4886841 combatsnoopy
combatsnoopy's picture

California's market is made up of two groups of people;
1.the boomers and their allies (beaners, Jewish, politicrats).
2. The rest of us are dealing with the repercussions because we couldn't afford to escape.  

Mind you, the enforced segregation that enables the boomers to hog and ruin this state does not take IQ, hard work or anything of substance into consideration.

The overpriced CA school systems and it's dysfunctional student base have an easy time getting "A"s but can't get over a 40 on the ASVAB.   They're too stupid to understand why a $12/hour job can't afford them a $500,000 house and a gas guzzling SUV with the equity line that will also be supporting property and price inelastic taxes.  

This is why socialism is bad.  Socialism under ANY form is horrible.  California USED TO BE the 8th largest economy IN THE WORLD.  It's not anymore.  

People act as if people are "entitled" because we dont' want to live in a dangerous neighborhood.  The reason why Asians in Asia can live humbly (on a low salary) is because IT IS NOT DANGEROUS TO BE POOR IN ASIA. 

Mon, 06/23/2014 - 16:34 | 4886889 combatsnoopy
combatsnoopy's picture

Listen to the radio in LaLai California anytime you're stuck in traffic there.  There's this ad for an instructor to teach you how to flip houses WITH "OTHER PEOPLE'S MONEY!".  (direct quote from the radio ad)

Back in the day, it was "OPP".  Today it's OPM.

Mon, 06/23/2014 - 16:35 | 4886891 combatsnoopy
combatsnoopy's picture

Listen to the radio in LaLai California anytime you're stuck in traffic there.  There's this ad for an instructor to teach you how to flip houses WITH "OTHER PEOPLE'S MONEY!".  (direct quote from the radio ad)

Back in the day, it was "OPP".  Today it's OPM.

Mon, 06/23/2014 - 18:01 | 4887174 the grateful un...
the grateful unemployed's picture

become a FLIPPOAR!

Mon, 06/23/2014 - 16:51 | 4886955 combatsnoopy
combatsnoopy's picture

The state is a hole anymore.  Even santa barabara has turned into a trash yard full of the origional beatniks.  Criminals have more rights than anyone else, the gas prices are REDICULOUS and employers are either not paying or not retaining. 

EVERYBODY (literally)- politicrats, delegates, political theater, universities, the parking stasi, the grocier, the gas station owners....EVERYBODY "surviving" in socal outside of the few industries left- they expect everyone else here to be rappers and techie billionaires. 

 

The young adult population has thinned out to just tweaker trash, criminals, and the rest are subsidized, narcissistic ideologue boomer thieves, their border buddies and a few jews.  If I have to see yet ANOTHER origional beatnik or real estate flipper- UGH!  We NATIVES of Socal don't care about that hippie shit. 

Californians more than anything else LOVES money.  We're materialistic.  We like the 80's with the brightly colored convertibles and hot people with the collars popped wearing sunglasses.  With LOTS of GOOD PAYING jobs.   We are fine if the military is treated well. We have friends and family that served in the Armed Fordes.  We're also tolerant.  

Not anymore.  I gotta be honest with you, the origional beatniks who chased everyone else out of this state with tha tkrap real estate ponzi scheme have much to be desired as far as looks are concerned... even with the facial paralysis (botox).

 

 

Mon, 06/23/2014 - 17:50 | 4887144 Evil Bugeyes
Evil Bugeyes's picture

The reason that sales are down in the under-250K range is that THERE ARE NO MORE HOMES FOR SALE for less than 250K in CA. They have all been purchased for cash by foreign investors that consider $250K to be chump-change.

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