10 Markets set for steep loss

[irvinehousingblog_IHB]

<a href="http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/">http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/</a>





I am suprised Orange County in general or Irvine is not included considered we have the biggest inflated market.

 

[IrvineRenter_IHB]

[quote author="irvinehousingblog" date=1210460655]<a href="http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/">http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/</a>





I am suprised Orange County in general or Irvine is not included considered we have the biggest inflated market.</blockquote>


In percentage terms, the fringe markets profiled in that article will fall the most. In real dollar terms, the most inflated markets like ours will fall the most.

 

[irvinehousingblog_IHB]

[quote author="IrvineRenter" date=1210461844][quote author="irvinehousingblog" date=1210460655]<a href="http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/">http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/</a>





I am suprised Orange County in general or Irvine is not included considered we have the biggest inflated market.</blockquote>


In percentage terms, the fringe markets profiled in that article will fall the most. In real dollar terms, the most inflated markets like ours will fall the most.</blockquote>


% wise, OC areas have higher demand.

 

[IrvineRenter_IHB]

[quote author="irvinehousingblog" date=1210461943][quote author="IrvineRenter" date=1210461844][quote author="irvinehousingblog" date=1210460655]<a href="http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/">http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_losers.moneymag/</a>





I am suprised Orange County in general or Irvine is not included considered we have the biggest inflated market.</blockquote>


In percentage terms, the fringe markets profiled in that article will fall the most. In real dollar terms, the most inflated markets like ours will fall the most.</blockquote>


% wise, OC areas have higher demand.</blockquote>


Ordinarily the most desirable neighborhoods fall less on a % basis. That may not be true this time around for some of the beach towns. When an area is very desirable it takes on an aura of price decline immunity that causes people to bid prices up beyond WTF status. When these markets crash, they crash very, very hard. On a percentage decline basis, I think Irvine will fare better than most other locations, although the price decline in Irvine will still be very steep.

 

[Hormiguero_IHB]

Riverside, to a significant degree, is an extension of the OC market.



I would guess that much of the demand for those places as the bubble was inflating a few years ago was based on commuters to OC jobs who wanted their own backyard for under 600K. It's a hell of a triple whammy - if the job involved finance and/or real estate, it's probably gone, the house has already lost at least 1/3 from the peak, and the already-high gas bill to get back over the hills every day has probably doubled in the past couple of years.