Property's value.With the dramatic rise in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, real estate prices, many people bought homes with low down payments and adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. . Many refinanced and pulled cash out of their homes to buy cars or remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. their homes. Some of these people could face debt that's greater than their assets if housing prices drop significantly. Meanwhile, potential homebuyers are sitting on the sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. . So the Business Journal asks: If housing prices fall, will it affect you financially? Janice L. Cimbalo Director, Brokerage Department Cushman & Wakefield Inc. I'm not a homeowner, so I've actually been waiting for real estate prices to go down and to buy a house. So I would welcome that. I want to wait and try to gauge the velocity of market, which I've been trying to do for a year now. When they are trending downward and still going down, I will buy a house. The fall is partially going to be tied to increasing lack of affordability and the increasing rate of interest. I want to see prices go down at least 10 percent though about 30 percent would be ideal. Peter Garza Peter Garza (born August 6, 1960) is an acclaimed computer forensics expert and cybercrime investigator. As a Special Agent with the Naval Criminal Investigative Service, Peter Garza conducted the first court-ordered Internet wiretap in the United States while investigating President EvidentData Inc. A fall in housing prices wouldn't concern me much. I'm not in the market for one and also not looking to sell my home. If it were a sustained trend then that would worry me. A small dip would not bother me but I'd start getting worried if it sank by 10 or 15 percent. That could be an indicator of other trends in the economy. There are things that are dependent on real estate, like lending, building and sale of home products that might take a hit. But the market value has increased so much over the past three years that a relatively small dip wouldn't be worrisome. Ara Babaian Attorney Ervin Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. & Jessup LLP LLP - Lower Layer Protocol A fall in housing prices would not affect me. I have a fixed-rate loan Fixed-rate loan A loan whose rate is fixed for the life of the loan. for my home and even if prices fall, it wouldn't affect the interest rate. And with all the extra cash stashed aside, we are waiting for prices to fall so we can buy another property as well. I have no intention of getting rid of my house. First of all I don't think prices will fall that much. I live in Silverlake and that area is hot property. With all the immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , population growth and the lack of housing, there will always be a need for homes, so prices will not fall so much. But if it does, then people might actually start investing in traditional areas like stocks. The price of my property nearly doubled in three years, so I would worry about it only if prices fell by 30 or 40 percent. Josh Stephens Editor The Planning Report and Metro Investment Report If housing prices fell 10 or 20 percent, I would be thrilled like many other young professionals. The current market and limited supply forces first-time buyers to stretch their finances to the point of exhaustion. We're limited to marginal properties that simply cannot produce the returns on investment that have characterized the past few years. I feel like I missed a great opportunity to buy a condo years ago, but I refuse to let remorse force me into buying something now. But if more reasonable prices emerge, I'll be glad to reconsider. Chris Riles Senior Vice President and Director of Liability Management Union Bank of California Union Bank of California is one of the 30 largest commercial banks in the United States. It has 327 branches, the majority of which are in San Diego, Los Angeles and Orange Counties. I remain optimistic with regard to my outlook to California real estate. I don't see a housing bubble deterioration like in Texas, New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. or Denver because, in each of those scenarios, it was employment driven. I am less concerned personally because I sold my house a year ago and downsized. I had a lot of exposure and built up a fair amount of equity and thought it was time to take some chips off the table. I am still a homeowner, but with less risk; I exchanged a larger mortgage for a smaller mortgage so if the housing market goes down I lose less. |
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