john wrote on Feb 12, 2008 10:10 PM:When will a realtor ever figure out the simple fact that after this last price surge the have no customer base.
Sure we said how could anybody afford a home here so the funny financing was
developed, well that was it, it's over now, so if you don't qulify for a 500K
loan with 20% down see ya. So build them but who will buy?

Mary wrote on Feb 12, 2008 10:43 PM:Stop issuing building permits. Start issuing 50 year mortgages. The former will help the high inventory problem and the latter will enable more buyers to purchase. To qualify, I bought my first home with a 40 year mortgage. It lowered the mortgage enough so I could swing the deal.

Jack wrote on Feb 12, 2008 10:47 PM:who cares about what real estate agents say. They don't even need to graduate high school to get a certificate.

Floyd wrote on Feb 12, 2008 10:54 PM:Now would be a good time to survey all the Realtors to see how many think the real estate bubble is about to burst. The most likely responses will be "Bubble? What bubble?", "There is no bubble, real estate always goes up", and "Now is the time to buy!"

I've seen over 40 years wrote on Feb 12, 2008 11:01 PM:in construction, development and real estate, as well as being a California native. This is another cyclical event that's not going away any time soon. We forget so quickly when our wallets become swollen with the upsurge after a few years of being empty. If you knew the California real estate market, you'd know where this is going, and could have predicted where we are now.

Stan wrote on Feb 12, 2008 11:09 PM:Ten years ago, under traditional lending standards, only the richest could afford a $500,000 house. Now that banks are returning to stricter, more sane, lending standards, most people will only qualify for a $200,000 loan. Prices still have a long way to fall.

Bruce wrote on Feb 13, 2008 5:32 AM:It is amazing that the asking price on many homes remains the same for several months. It is as if the sellers and agents do not pay any attention to the very most basic economic rules "Suppy and Demand".

mercy wrote on Feb 13, 2008 6:20 AM:who is doing your graphics these days, some high school kid with an Etch-a-Sketch?

Better do something wrote on Feb 13, 2008 6:53 AM:the empty houses are being taken over by squatters.

Hal wrote on Feb 13, 2008 6:55 AM:I have looked at the median cost, on the attachment to the story for Poway. How can they say that the average cost is $730,000? My house is just reaching the 410 mark. Sounds like someone is padding numbers in the story.

Ask wrote on Feb 13, 2008 7:12 AM:Anybody got any more gas to throw on the fire?

NCT, I'll steal next months headlines from ya, SALES DOWN, PRICES SLASHED, FORECLOSURES UP.

Squatter wrote on Feb 13, 2008 7:32 AM:This is excellent news for me because I won't have to pay rent for years. I change address each night as I squat in one abandoned foreclosed home to the next. Try it, it's free rent while the greedy flippers and home debtors pay the mortgage!!!

Randy wrote on Feb 13, 2008 7:50 AM:The blame for the current economic collapse can be laid at the feet of the greedy moneylenders. The current administration's failure to properly regulate the mortgage industry will become a cornerstone of the Bush legacy.

Karl wrote on Feb 13, 2008 7:56 AM:Can you spell pile on? What a bunch of negative Nancy's. Of course this was bound to happen, it always does (sans crappy loans). The upswing we had was the longest I can remember.

Nick wrote on Feb 13, 2008 8:08 AM:I can't believe how many of you people have NO CLUE what you are talking about. Most of you know ABSOLUTELY NOTHING about this industry or have no insight. My wife has been in Real Estate here for over 20 years, and THE GREAT BUBBLE is actually just a cycle. Take a look back at the sales history in San Diego over the last 30 years and you would see that. The article states that inventory sky rocketed in January, but what it doesn't tell you is that there is NO inventory right now. People with the down payments and investors are buying property like crazy. As a matter of fact, she just closed 3 deals in the last 12 days, and it's not because she is a bad realtor. It is because she knows how to find fer clients the exact property that they are looking for and shw ONLY works with the best finance companies. Let's just say she hasn't used ANY of the finance companies who have more foreclosures than they know what to do with. If people recieved bad loans, it's because they didn't do their homework and went with some Realtor that fed them a lot of crap and weren't looking out for their best interests. The Realtors with honesty and integrity are out there, it's YOUR JOB to find them, and my wife is one of them. I am SICK AND TIRED of reading posts by some of you IDIOTS berating ALL AGENTS when you don't have a clue what you are talking about. You may not have to have a high school diploma, but you do have to pass a pretty hard test and a very thourough background check. CAR holds it's agents to a very high standard of ethics, and trust me, the majority of those agents adhere to that code of ethics, and those that don't have their licenses revoked. I know, I have seen the list of revoked licenses on a monthly basis for years. CAR takes breaches of trust and ethics very seriously, and if you don't follow them, you don't work. I suggest some of you actually do some research or keep your mouths shut unless you actually now what your talking about. I have yet to read any of your false accusations backed up with any facts!

To Nick wrote on Feb 13, 2008 8:29 AM:your wife is the exception then, not the rule. and, btw, the real estate test is not hard at all. its a joke.

Olaf wrote on Feb 13, 2008 8:41 AM:HAHAHAHA!!! wow haven't had a laugh like that in a long time ...whew!!!! (gasp) NICK ... you crack me up.... sure there might be some nice realtors out there, as a matter of fact my mother in law is one but she doesnt make a living at it. She isn't cut throat enough. Realtors (most of them that make money) are used home sales persons. In other words car salesmen. They have been telling me and every other guy on the street for the last 8 years that the market will double in no time. "Now is the best time to get in", and my favorite "you better get in the market before you miss your boat, the market will only go up"...

So proof... hmmm how about all those poor people out there grasping at life with a foreclosure hanging over them. I am sure your wife has none of those. Her broker had a conscience and didn't sell any ARM loans to people who couldn't afford them. I am sure she and the brokers passed up all that commission money and told the couples who wanted to buy their dream home that they really couldn't afford it only making 70,000 between the two of them. I am not picking on your wife just the realtors who have been picking the bones of people for too long. Sorry Nick Realtors deserve it right now. So do the predetory lenders and developers. Lucky for me I didn't jump in when they told me too. I just couldn't figure out how I was going to make that large balloon payment when it adjusted. I am just one of the stupid renters who are waiting for your wifes clients houses to foreclose then I can jump in. Sorry.

John E wrote on Feb 13, 2008 9:27 AM:First everyone complains that high housing prices are destroying the area, then they complain when the market finally goes into a simple long-overdue natural correction.

Reardon wrote on Feb 13, 2008 9:38 AM:Judging all Realtors as "know-nothings" is beyond stupid. I have been a Realtor for 30 years, and I have a graduate degree, have been a college prof., and know a bit about "business." I was the CEO of a $100 million Los Angeles media corporation, chairman of a broadcasting system, and did successful turnaround management for the bankruptcy court in the computer field. I suppose there may be some agent without a high school diploma or GED, but I never met them. Real estate is a business, and successful business people come in all sizes, and with differing educational backgrounds. Bill Gates dropped out of college! Judge people on their individual traits, not as a group!

Karl wrote on Feb 13, 2008 9:52 AM:To "Hey skip
[-] wrote on Feb 12, 2008 4:27 PM:" And what is wrong with car salesmen?

Nick wrote on Feb 13, 2008 9:55 AM:"Reardon", thank you for a little back up. As usual, you are a voice of reason on these blogs no matter your stance on the issues and others opinions. I am just completley fed up with all the blanket statements about Realtors on these blogs. I feel the same way when people start calling a Contractors thieves and weasels. Being a Contractor and my wife being a Realtor, things are tight these days, but we are making it and still sticking to our morals and sense of ethics. There are many more out there just like us, we are the norm, not the exception. Thanks again.
Cheers, Nick.

JC wrote on Feb 13, 2008 9:56 AM:Actually, you DO have to have a high school degree AND multiple college courses to get your license. Then you are required to continue your education every 4 years to renew your license. Check the State website...it's better to actually DO your homework before you state yet another inaccuracy.

Optimist wrote on Feb 13, 2008 9:58 AM:Shame on the North County Times for an inflammatory title on this story. Why not: "It's a good time to buy. Prices and Interest Rates are lower than ever." Instead the NC Times is irresponsible and beats the drum of pessimism and defeat. Shame!!!

JJ wrote on Feb 13, 2008 9:59 AM:I wounder from whom did Jack bought his home? Any home buyers that thinks Real Estate Agents is not needed by taking a short-cut when buying a home by simply buying directly from the seller is a money saver deal....! They are Wrong. Good Real-Estate Agent will work for YOU and not for themselves...

Bubblebuster wrote on Feb 13, 2008 10:48 AM:The RE agent is going the way of the travel agent (see zillow, zip realty, et al). This latest bubble has been the biggest case of tulip mania in our modern era. Anyone attempting to dismiss its consequences is fool.

Concerned-1 wrote on Feb 13, 2008 10:55 AM:Empty house and low priced rentals are going to be a problem. We must prepare and be aware. The market is what it is.

SmartMoney wrote on Feb 13, 2008 11:00 AM:The smart money will begin buying up the affected properties sooner or later, and take the ride back up the value market when this is all over. It is how money is made in real estate, of course.

Goatskull wrote on Feb 13, 2008 11:08 AM:"Randy
wrote on Feb 13, 2008 7:50 AM:
The blame for the current economic collapse can be laid at the feet of the greedy moneylenders. The current administration's failure to properly regulate the mortgage industry will become a cornerstone of the Bush legacy."

While I don't disagree, it's also the fault of the buyers. Here in SD county they should have just accepted the fact they home ownership was not in the cards for them. But no, they let themselves get suckered into a "great deal". They accepted an adujustible rate and assumed thing would always be on the up and up. If one cant afford a fixed rate then one shouldn't buy. Everyone does NOT get to have a home of their own.

Laughing wrote on Feb 13, 2008 11:13 AM:Real Estate agents ALWAYS work for the seller, whether they are showing you the house or not. After all, the seller pays them, not the buyer.

Reardon wrote on Feb 13, 2008 11:19 AM:To Smartmoney: Yes, there was a brief movement last summer as investors came in the Rancho Bernardo market, but it didn't last. Investors will be the canary -- they know they can't pick the bottom of the market or the top, they just try to get somewhere near it. Just as in the stock market, "Bulls make money, bears make money, but pigs don't make money." Investors are sitting on their cash today, but no one knows when they will step into a low price, high inventory market. Real people should not care -- a home is NOT an investment. It is a place to be warm, dry, and comfortable. The only time real people should care about the “market” is the day they first buy, and the day they last sell. In between, the “loss” they make on their sale, they gain in their buy.

Who are you kidding? wrote on Feb 13, 2008 11:33 AM:The reason real estate agents get a bad rap is because there are very low barriers to entry. Come on, the test is moronically easy compared to other professional licenses and degrees. Once you have that paper, it's ridiculously easy to get "a job". Most brokers will accept you as long as yo can fog a mirror. Why? Because they aren't paying you! It's sink or swim! On the other hand, if you have business or sales experience, or if you have an extensive social network, or if you're willing to work very hard, and you have 6 months of savings, you will probably do well in any market. The cream rises. Frankly, how hard is it to close a deal. You hand hold your client and make sure they show up for inspections and closing, and they sign what they're supposed to sign. The more sophisticated the buyer or seller, the less the agent is involved. With very sophisticated buyers, the agent gets paid to find the property, and then gets the hell out of there. What I'm sick of are the Nicks of the world who whine incessantly about how real estate agents are not taken seriously. Get over it. People hate attorneys, until they need one.

Reardon wrote on Feb 13, 2008 11:59 AM:The screed from “Jack” lets me rant on my favorite subject – accountability in real estate. Who selects their Realtor? The Buyer, or Seller! They trust $1 million of their hard-earned money to “Suzy” next door who got her license last month, or “John,” the guy at the front desk when they enter the real state office! (The person at the desk is there by rotation, to keep agents happy – not to serve the best interest of the public!)

In my four years of running an office, (many years ago), no one ever asked of me, or my staff, “Who the hell are you and what makes you think you can properly handle $1 million of MY money?” Buyers and Sellers just took the first real estate person they thought of, and none did any investigation – something they would not do if they were taking $1 million into an investment office! SOMEONE is using bad real estate agents, and that feeds still more bad real estate agents, but who is to blame?

Peter wrote on Feb 13, 2008 12:28 PM:Who's going to buy the new homes being built on Valley Parkway across from Barnes & Nobles? Aren't there enough homes to choose from on the market? Oh yeah I forgot it's about "LOCATION, LOCATION".

Jaime wrote on Feb 13, 2008 12:30 PM:Who signed the papers from the lender? Why not read the fine print for a change? Whenever you sign any papers, you are responsible. Don't blame Bush, the realtor, the economy, your mother. Do the math. I owned 7 rentals and felt this coming in 2004, was told I had a high "debt ratio" even though we had a good income per month. There is a tomorrow so prepare. Get out of debt even if you have to walk away.

Lucy wrote on Feb 13, 2008 12:59 PM:When was the last time you've seen or heard of a real estate agent standing over the buyer or seller with a gun forcing them into either buying or selling? Never. So quit blaming realtors for the housing mess and the bum loans. A good realtor will give the prospective buyers their estimated monthly payment and then tell the buyer to speak with their trusted banking or mortgage institution to look at loan options. A realtor DOES NOT issue the loan or coerce the first time buyer into going with some of those crazy loan schemes. In fact, a realtor is cautioned against giving financial advice.

JJ wrote on Feb 13, 2008 1:11 PM:"a blog war is never a good thing" Exactly this is not about REALTORS ..., Specially for all those who lied about their stated Income, avoid Bad Loans was long a WARNING ... ..!

Nick wrote on Feb 13, 2008 2:12 PM:To Who are you Kidding: "I'm sick of are the Nicks of the world who whine incessantly". Maybe you should go back to school and work on your reading comprehension and retention skills. Your obviously not that bright to read a blog and not tell the difference between "whining" and "being pissed off". I"M PISSED OFF! I'm sick and tired of all the armchair quaterbacks like you who think Realtors don't work hard for their money. My wife works her butt off for every dollar she makes. I know, I have been watching her for many, many years. What is it you do for a living that is so prestiged, you can sit on your duff and cast stones at those you don't know? Let me quess, you don't actually work hard for a living. Figures!

Bill wrote on Feb 13, 2008 2:18 PM:NEVER believe a realtor!! They don't care about you --only your $$$$

To Nick wrote on Feb 13, 2008 3:19 PM:Nick; seriously mate, you need to calm down. I'm not sure why you're so bothered about what people say about the Real-Estate profession as a whole; I've not read a single negative comment about realtors that was directed at "Nick's Wife the Relator". You seem to be the one with the issue here and are turning general (and I'd argue not unfounded) comments about realtors into something personal. Why are you so uptight?

Carlsbad wrote on Feb 13, 2008 3:24 PM:The dirty secret is that this is not just about subprime. Prime borrowers are walking away because they are upside down in their home and don't want to put good money after bad. This is a vicious cycle that feeds upon itself and it has just begun.

RE: Nick wrote on Feb 13, 2008 3:37 PM:Real estate agents are the most notoriously unehtical sales-people there are! I was told that by the agent who got me into my currecnt home, and its true. They'll do or say ANYthing for the $$$.

MIKE wrote on Feb 13, 2008 3:41 PM:ONE SIMPLE WORD LADIES AND GENTS! EDUCATION! IN LIFE YOU PAY FOR WHAT YOU DON'T KNOW! THAT'S CONSERVATIVE DEMOCRACY.....LIBERALLY!

JJ wrote on Feb 13, 2008 3:47 PM:If you think Real estate agents are the most notoriously unehtical sales-people, well look at the bright side, now with a mortgage you wan't have time to do much cooking nor spent time at home..!

It is suprising wrote on Feb 13, 2008 3:59 PM:that with home owners fire insurance more of these homes haven't gone up.

local wrote on Feb 13, 2008 5:24 PM:Well, the simple fact is, most people don't make enough money to buy a house here--or lots of other places. Now that all the wives are working, the powers that be better start pondering legalizing polygamy. Or 50 year mortgages as someone here suggested. Esco in particular is in deep doo doo. The population the Mayor and the others in charge in Esco wanted to come here so bad are the first ones losing their places and for the most part have not been and will never be legitimately qualified buyers. Plus they cause nice people not to want to live here. The city drove the decent people with decent middle incomes out of town. Even if we started right now, which we are not, it would take 20 or 30 years to repair the damage to Esco.

Craig wrote on Feb 13, 2008 6:37 PM:I moved to Coeur d' Alene Idaho one year ago. I would never move back to Cali. Folks you are chasing dream that is now ruined by greed, traffic, illegal immigrants, what a mess.

Meanwhile I've got a nice home, ski three times aweek, no traffic, very cosmo downtown, lake and all. The beauty is breathtaking. Lucky, smart me.

Stan wrote on Feb 13, 2008 7:40 PM:JJ, for every "notoriously unehtical sales-people (sic). "there was one "notoriously unehtical stupid buyer."

Realist wrote on Feb 13, 2008 7:48 PM:Hey Optimist...prices are not lower than ever. The average wage is just over $50,000/year, yet asking prices are still 10 times the average wage. Historically, prices have been 3 to 4 times average earnings. It is a terrible time to buy, because prices are going much, much lower. Too many people have followed blind optimists like you off the financial cliff.

Nick wrote on Feb 13, 2008 8:09 PM:Come on now "Craig", Couer D'Alene is great but there is plenty of traffic. 95 is a traffic jam from I-90 to Lancaster Rd and the 53 most of the day and even worse in the morning, evening, and the weekends. I do enjoy the sounds of rifles in the air during hunting season though. People here would freak out if they heard that much gunfire all time.

Chris Bagley, staff writer wrote on Feb 13, 2008 10:38 PM:On Realist's comment: One economist recently cited a rule of thumb that mid-market homes fluctuate around 4 times the median family income. By that rule, you'd expect San Diego County's median price to be close to $300,000, based on median family income of about $70,000. Instead, the median home price here is about 6 times median family income. Most economists who have spoken to me have said that the high quality of life here and currently low interest rates probably don't account for all of that variation, and that the ratio needs to fall back closer to 4:1. The big question is whether housing prices will keep falling until they're back in line with income or whether they'll level off for two or three years while incomes catch up.

tony wrote on Feb 13, 2008 11:08 PM:Nick, when you say that there is no bubble even when anyone capable of doing a realtor.com search, and find houses 30 percent off, you lose any credebilty you have.
I am currently looking in south orange county and looked at a 3/2 short sale that sold for 645 in 2005, now the bank will accept 417 and im sure I can get it down to 400 for a loss of almost 250 grand in about 24 months, and it gets worse on monday theres another home that is in the same neighborhood, only 2 blocks over listed for 350 grand.
I will be looking at it on sunday, the one for 417 backs to a noisy street, but the one for 350 is more quiter with a house instead of a street in back.
This is a classic bubble, and you dont even want to know about the condo market!
My best friend is a Realtor, he is helping me out, and doesnt want to keep the 3 percent commission he is entitled to, about 12 grand, but even so I think most Realtors are snakes, they lied, and continue to lie about houses never going down, and kept saying, bubble? what bubble.
If your wife is honest, than thats good, but your wife wouldnt be represenative of the RE profession

To Karl @ 9;52AM wrote on Feb 14, 2008 3:46 AM:Your ? to Skip made me laugh. Several years ago my divorce lawyer made a crack comparing lawyers and used car salesmen, aka my ex. I told her that to be truthful she would have to include real estate salesmen in the mix. Thanks for the memories! LOL.

Karl wrote on Feb 14, 2008 5:31 AM:It amazes me that we as a nation continue to promote everyone as a victim if their circumstances don't work out. While it takes two to tango (three in this case) I lay the blame squarely at the feet of the buyer. The Real Estates Agents and the Mortgage Industry simply provided the rope.

Dave wrote on Feb 14, 2008 10:10 AM:Now is a great time to buy as i have just done! Home prices are low, and forclosure propertys are 15% less than low. Intrest rates are also low, and Realitors are hungry!!! You can shop on line ... , find a place on your own. Make an offer without a realtor for 3%less (their commission) or after finding a place shop for a realtor that will do it for 1%. Realtors say they wont do ir for less but they are hungry and have paments as well. Or advertise on craigslist for a 1% realtor you will gets many calls. On the price of homes They ultimately have to go back up, It costs $180 to $300 per square foot to bild one 2000sqft home=360k to $600k Plus the land and City,water & electricity fees.

Eyes wide open wrote on Feb 16, 2008 8:08 AM:To Nick: The cycle??? Ha ha ha ha haha!! Throw out your history books friend!! This ride will be like no other before it...watch and see.

jsc wrote on Feb 17, 2008 2:13 PM:I have bought and sold 7 times in SoCal. I currently only buy in Riverside County where it's not overpriced. I can honestly say of every real estate purchase/sale, that every realtor, every lender, most escrow companies made errors on their paperwork. Some outright lied about conditions, repairs not made, fees charged, financing info. I always read evey word of every document I sign, so I catch the errors. But the fraud and deceit of realtors in particular has cost me a lot of money over the years. Trust no one: sellers, buyers, agents, escrow companies, lenders, etc.

Karen wrote on Feb 17, 2008 4:35 PM:Let's face it. Buying a home is the biggest investment you can make. That means that you need to do your homework and research. If people put more effort into their "largest investment" and read their contracts, they wouldn't be in a bad postion. Also, who thought 3 years ago that the market was still increasing in double digits? Oh well, you learned a valuable lesson - didn't you?

steve wrote on Feb 18, 2008 3:55 AM:I love the way people blame the real estate agent when the price doesnt go down. The one who decides when to lower the price is the homeowner. You can only beg the owner so long before you have to give up and wait for them to decide.Most of the time they start the price to high to begin with . But they wont listen, and that is the real estate agents fault right? wake up people