No Money wrote on Dec 26, 2007 11:27 PM:People can't buy something they can't afford. Either wages need to go up or house prices need to come down. Presently wages are increasing 4-5%, but between the cost of health Insurance, gasoline, food etc, family wealth has been going down for years and years. You think you are richer until you go to buy a house or car and find out you are poorer. There are people in this country that have gotten very rich and they can afford any home they like. Most other working stiffs have been led to believe that everything is great, but guess what - you are finally beginning to understand that you are becoming poor.

Nadine wrote on Dec 27, 2007 3:03 AM:People refuse to face that fact that we are in the throes of a depression. They refuse to call the current economic downturn a recession. This stubborn denial of the double whammy of housing prices and overcharged credit cards will haunt us through 2008 and beyond.

Jan wrote on Dec 27, 2007 6:12 AM:Go back about 6 months and Realtors were telling you that there was no bubble and it was a great time to buy. That pretty much sums up what Realtors are worth. People are responsible for their own actions. Do not trust your money to some bozo Realtor. Many Realtors don't even have high school degrees.

Mary wrote on Dec 27, 2007 6:14 AM:The housing crisis is the result of overbuilding by developers which was a response to stimulated demand by artificially cheap money - price is the result of supply vs demand. Developers have cheap labor in the form of the endless supply of illegal immigrants and cheap money in the form of teaser rates for buyers. This is a disaster that will ulitmately lie at the foot of the Republican philosophy not regulating financial markets and not enforcing immigration laws. Everyone thought as long as I have a job who cares - guess what every home owner now knows that real estate historically grows at 4 percent annually across the country and at 6 perecent annually in California. Until we get to that base line, there will be more pain that will spread to the rest of the economy. We are now beginning to see the true Bush legacy - he will be known as the worst President we have ever had since Hoover.

...Good News.... wrote on Dec 27, 2007 6:22 AM:Wow - this will make homes much more affordable. Good news for us.
.

Smithers wrote on Dec 27, 2007 7:37 AM:I hope the home prices continue to fall so that normal people can afford them. To all of those who bought the overpriced homes, shame on you. Could you not see that the cheaply built, cookie-cutter homes were not worth $400k, $500k, $600k, etc.? You deserve to experience the result of your ridiculous decision because it was you folks who contributed to driving up artificially the prices. The more people are willing to pay overinflated prices, the higher the prices will go. You reap what you sow. Maybe next time you'll make a better decision than plunking down $600k for a home that's only worth $300k. There's a price to be paid for greed. In this case, homebuyers were greedy in that they decided to buy an overpriced home hoping that it would appreciate in value (and totally disregarding common sense or economic indicators), and they're taking it in the shorts now. Home prices are simply readjusting to what their true value is. That is, a home that is "worth" $300k might finally adjust to a market price of somewhere near $300k instead of $600k. Bottom line: don't pay $600k for a home that's only worth $300k. As you can see, it just isn't worth it.

Impact to local revenues? wrote on Dec 27, 2007 7:43 AM:We know you don't read the Paper Mayor Wood, but maybe someone will be kind enough to tell you that Oceanside has a problem on the horizon. Time to figure out how to pay for the enhanced retirement benefits with reduced revenues Mayor.

Roberto1 wrote on Dec 27, 2007 7:51 AM:I guess the time to buy more real estate is upon as as sometimes opportunity only knocks once in a lifetime...

Dummy wrote on Dec 27, 2007 8:23 AM:...Good News....[+] wrote on Dec 27, 2007 6:22 AM:
" Wow - this will make homes much more affordable. Good news for us.
. "

A little short sighted there, and much more to it. Even with lower home prices, during a slow economy income will cease to rise, personal credit will not be as readily available to first time or low income scale buyers. The typical American worker does not have enough savings to off set that for a discount purchase. Only ones benefiting from the situation would be hedge investors, the same ones that created the mess in the first place, and others that depend on investments for an income. They are still out there waiting for you hard earned money.

Concerned-1 wrote on Dec 27, 2007 8:32 AM:Of course, there are a lot of arm chair quarterbacks out there lobbing in their two cents. I don't agree with those who blame the realtors and developers. I do agree that home prices compared to wages went way beyond the breaking point. Bottom line: it's the market folks. Good time to buy, bad time to sell.

Vista Granny wrote on Dec 27, 2007 8:43 AM:At one time there was a rule of thumb on buying a home. It was -- do not pay more than 2 1/2 times your annual income, so if you wanted to buy a $500,000 home, you had to earn $200,000 per year! Well, folks, not many of you make $200,000 per year, do you? The whole housing market is sick -- the hills are covered with ticky, tacky tract houses that no one can afford!! Then, there are those of you who borrowed against an almost paid for ticky tacky -- got 2 new cars, took a cruise, maybe invested in the stock market -- Bon chance mes amis.

They are still wrote on Dec 27, 2007 9:00 AM:way over priced. All those greedy FLIPPERS are going down.

esteban wrote on Dec 27, 2007 9:01 AM:Sounds like some people are jealous they couldn't afford a home the last few years. This is a common cycle in real estate, so don't panic. Same thing happened in the 80's and 90's.

Reality wrote on Dec 27, 2007 9:04 AM:has seet in. Even the experts quoted in this article that make their money off of unsuspecting home purchasers can't sustain the lies they have been telling us for years. The Real Estate agents have probably returned to their previous careers as burger flippers.

John E wrote on Dec 27, 2007 9:25 AM:I have been watching the southern California housing market for more than 3 decades. Prices rose rapidly during the last half of the 1970s, sagged well into the 1980s, took off again during the last half of the 1980s, sagged again through the early 1990s, and then rose for an unusually long time, until the last year of so. We are getting a very belated correction in the market, and this time we have much farther to fall. I shall be watching for a trade-up opportunity, but I am going to wait for further correction through most of 2008. If my predictions are correct, this time next year may be a great buying opportunity.

Stephen wrote on Dec 27, 2007 9:37 AM:Dummy and Roberto should open their own real estate business and buy all the homes that are out there for sale. Those guys are really smart dudes!!!

Concerned-1 wrote on Dec 27, 2007 9:38 AM:V-Granny is on the mark again. Although in today's reality, that mark is extremely difficult. I came close when I bought in '02. I went by another old mark my dad taught me: do not pay more for rent/mortgage per month than you make in a week's wages. They may be a bit outdated, but they are both sound economic principles.

Penny Pincher wrote on Dec 27, 2007 9:44 AM:True, Vista Granny. This is a nation built on debt -- both at the Federal and consumer level. The unwinding of this unprecedented credit bubble is a good thing for this country. Maybe people will actually start saving again.

Concerned wrote on Dec 27, 2007 10:09 AM:I have noted from past experience that houses in San Diego County usually begin selling after a downturn some where around the 18% affordability range. Presently, San Diego is at about the 12% affordability range. Still have a ways to go either by increased personal wealth or lower house prices. I wonder though, when property owners start shelling out many thousands of dollars for property taxes, how will this impact those that are just barely making their house payments. Considering the price of a house, taxes, personal living costs, educating your children etc., how can anybody think that things are going to be coming up roses in the short term without some major changes in the economics of this country.

Perspective wrote on Dec 27, 2007 10:13 AM:Remember to put things in perspective. Home prices shattered all previous records going into last year. Yes, they are down a "record" amount, but that is because they are down from a record high. Its like LT running for 3,000 yards in a season, absolutely shattering the old record, then the next year, he "only" rushes for 1,800 yards. Its still at an awesome level. But, technically, it was a large drop in yardage from the record. My estimated house price "dropped" about 100,000, but its still valued at twice what I paid for it in 2001. All in all, it is absolutely meaningless until you decide to sell.

A renter wrote on Dec 27, 2007 10:43 AM:I moved to SoCal a few years ago--I'd had a nice house and got a good price for it, but it wasn't enough for a single-family house in a safe neighborhood here, so I rent. You'd think the housing market problems wouldn't matter to renters, but unfortunately all those folks who bought second houses with the goal of getting rich of the rent are finding they can't handle the adjustable rates. My landlord is in this situation, and he's a realtor. Both the rental property that I live in and his own house are being foreclosed on. It's a nightmare for him and, since I'd planned to stay in that house for a few years, a lot of trouble and unplanned disruption for my family. I'm sure there are lots of renters like us who are going to lose their homes like this--through absolutely no wrongdoing on our parts.

Karl wrote on Dec 27, 2007 10:52 AM:This down turn is long overdue. I expected it about 3 or 4 years ago. Housing will always go in cycles. When I asked my Dad what his house payment was many, many years ago I was very envious. He said my children would feel the same. My house payment and my monthly dues at the Country Club are lower than my son can rent a 1 bedroom apartment for. He is envious and I passed along the message from my father.

Mimi wrote on Dec 27, 2007 11:57 AM:North County was at a stand still until 2000 and has been going up since, had to stop somewhere and it may take years to happen again. I bought a house for 295,000 in Spring 2000 and sold in Fall 2003 for 525,000, that will NEVER happen to me again but I wish...........!

No Fair wrote on Dec 27, 2007 12:04 PM:I want my home re-assesed, I paid 3.5 million. Now it is worth 1.5 million!

Alf wrote on Dec 27, 2007 12:19 PM:Any system that has at its heart the requirement for expansion in order to survive, is doomed to failure from before the beginning. As in "the first law of driving physics - "You can go faster the person in fromt of you - for only so long! Regards, Alf.

hmmmm wrote on Dec 27, 2007 12:20 PM:The bottom of the bucket had to fall out sometime.

Mike wrote on Dec 27, 2007 2:39 PM:Prices decline and foreclosure increase. I say goooood! I have been saying for two years that you must be a fool to buy in CA especially in places like San Diego and Inland Empire. When prices decrease another 20% "blood will be in the street". While I eat popcorn and enjoy the view.

People should only buy a home for a monthly payment, after resets, of 30% of their income. San Diego is full of fools. To many of you have washed House Hunters or Flip this House on TV.

Stupid fools. All of you.

Karl wrote on Dec 27, 2007 2:39 PM:As always a pearl of wisdom from Alf at 12:19pm. Alf, can I buy stock in your book "Pearls of Wisdom"?

Karl wrote on Dec 27, 2007 2:43 PM:Michael, where is Old Grove Road?

Paul wrote on Dec 27, 2007 2:43 PM:Alf, also like musical chairs... The music stopped! Happy New Year, Paul

Michael wrote on Dec 27, 2007 2:45 PM:Karl, in Oceanside. They've been doing constuction on Old Grove and College for awhile, even though the road has been done since 2006.

Karl wrote on Dec 27, 2007 3:28 PM:Michael, I feel sorry for you, there is no way a project should go on for this long. Have you complained enough?

Appraiser... wrote on Dec 27, 2007 4:15 PM:When you have homes that are overvalued by 33 to 40 per cent a 11.8% drop is nothing. It's just part of living the "big lie" here in California.

Michael wrote on Dec 27, 2007 4:37 PM:I think they just are delaying the opening to allow the construction workers to make more money. They move very slow. The roads are complete, they are just making excuses to keep them closed for some reason.

No problem wrote on Dec 27, 2007 5:26 PM:I feel sorry for people like Mike who are so bitter that they can't afford a home, they call those who choose to buy "fools". Keep in mind that the vast majority of the people who bought homes are still in them and don't have any trouble making the payment. We will just hold onto them and live in them until the market turns around like it always does and your rent will continue to rise.

David with experiance wrote on Dec 27, 2007 6:52 PM:I had great experiance with I Short Sale Inc. The market will go south!!! I take Tene words!!!

Get what you deserve... wrote on Dec 27, 2007 7:10 PM:As usual, those that thought the situation through and didn't get overly greedy did just fine in this market, and those that did not think things through and did get over greedy will get caught with their pants down. Not everyone is in debt over their head, flipping houses, buying for way more than they can afford, or trying to live in a 5000 square foot house. Some of us are doing JUST FINE. And when this is all over, WE will be here to pick up the pieces and make some good, smart investments.

hAPPY rENTER wrote on Dec 27, 2007 9:05 PM:Sounds like esteban and Roberto1 might be realtors. They always interview these realt - ... that say "This is a great time to buy" Yeah, and would you like to upgrade to first class on the Titanic? Wake up folks, it's gonna be a hard ride for overextended homeowners that used their houses as ATM's these past few years and another year or two before you should even think about buying. And Mary, you are right, Bush is the worst president in modern times, just look at the ridiculous deficit he has run up. So much for being fiscally conservative. Let's see if the NCT posts this one.

KEEP DROPPIN wrote on Dec 27, 2007 10:05 PM:LET THOSE PRICES KEEP FALLIN. LET THE GREEDY REALTORS AND GREEDY INVESTORS LOSE THOSE HOMES. THAT IS WHO OWNS ALOT OF THEM. THEY WHO JUST WANT A PLACE THAT THEY CAN AFFORD AND STAY LIVING IN ,SHOULD JUST WAIT A LITTLE LONGER AND THEY WILL BE ABLE TO BUY ONE.WE ARE IN THE START OF A DEPRESSION. THERE ARE JOBS, BUT WAGES ARE BY AND LARGE LOW.

CAPITAL LETTERS! wrote on Dec 28, 2007 8:51 AM:I WANT TO WRITE IN CAPITAL LETTERS SO EVERYONE KNOWS I AM REALLY SERIOUS ABOUT WHAT I AM SAYING!!!

EscondidoAl wrote on Dec 28, 2007 10:00 AM:In 2005 a nice foreign couple and their 4 kids moved into the house across the street from me. The first thing they did was pave over the entire front lawn. Soon there were 10 to 15 people living there. Zillow showed this nice couple had purchased the home for $495,000. Two months ago, all the cars that had parked on the concrete yard were just gone! Someone had tacked up foreclosure papers on the front door. A few days later, the front window was broken out. A realty company put a sign out front and boarded up the windows. A week later someone torched the living room and had tore out Plumbing(?). (I peeked). Now it sits empty, burned and abandoned. This is what our liberal credit policies have done to us on a local level. Good luck to the bank on ever recouping the losses from that loan.

Stephen wrote on Dec 28, 2007 11:07 AM:The real estate industry has plundered and pillaged at will, this time causing world-wide destruction.

When will we learn?

World-wide destruction wrote on Dec 28, 2007 2:52 PM:That's a little dramatic, don't you think? My parents live in the midwest, and they saw almost no effects of the housing bust whatsoever. Prices here are just so high, it seems large in comparison. Plus, I don't think you can really blame the "real estate industry." They are just people selling products to people, like any other business. The culprits are the lenders and brokers who knowingly lent money to people who couldn't afford it in the long run. Real estate agents can't help that. Relax dude.

Dumb questions wrote on Dec 28, 2007 8:13 PM:Question: Would you ask a car salesman if now is a good time to buy a car? So why in god's name would anyone ask a realtor if now is a good time to buy a house? Of course now is a GREAT time to buy...I need my commision!!!