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alstry (35.69)

Housing Prices Set to CRASH!!!!!

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April 08, 2009 – Comments (11)

Apartment rents are falling across most of Southern California as unemployed tenants double up with friends or family and the affordability of foreclosed homes makes some renters into buyers, a new survey has found.

The average rent in Los Angeles County fell almost 4% in 2008 as apartment occupancy rates dropped and new units came online. The decline should continue this year as more renters lose their jobs, according to the annual USC Casden Forecast expected to be released by the university today.

http://www.latimes.com/business/la-fi-apts8-2009apr08,0,4736812.story

As wages continue to fall, jobs get eliminated.....fewer and fewer will be able to afford to live on their own.  More and more will be forced to double up on housing.....a trend that very few professionals even factor into their forecasts.....even those CAPS players that analyze housing 24/7....but practioners of Alstrynomics know reality and how it applies to realty.

Until we restructure debt...expect the trend of distressed housing supply to only increase as we move forward.  Right now debt is suffocating America and robbing our ability to spend on much of anything.  I have been warning you about this for over a year...day after day, week after week, month after month.....

America is running out of money....debt is consuming a greater and greater percentage of income as we try to think of new ways to infect more with toxic borrower syndrome.  Debt payments are suffocating Hospital revenue streams taking money away from important patient expenses.  Few want to accept that Americans have too much debt and too little cash.  Until we restructure debt to more managable levels...our ship will take on more water.

You can live in reality.....or you can keep fantasizing.

I have warned you to find your lifeboat......prepare...don't fear.

Pretty soon cities will not be able to afford to pay police officers due to suffocating debt payments, states will not be able to fund schools due to suffocating debt payments, hospitals will not be able to upgrade technology due to suffocating debt payments, business will not be able to afford to advertise due to suffocating debt payments......

Soon you fools will appreciate Alstrynomics.....trust me.......it ain't hard to see once you open your eyes........

11 Comments – Post Your Own

#1) On April 08, 2009 at 11:35 AM, foolsMeThrice (99.59) wrote:

i see it.

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#2) On April 08, 2009 at 12:00 PM, Kenaida22 (< 20) wrote:

Alot of people are bullish now. I'm not as bearish as I used to be, i might even turn bullish after this month. I think things around turning around for popele here in Usa and around the world.

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#3) On April 08, 2009 at 12:01 PM, alstry (35.69) wrote:

With only $6 Trillion of cash in the bank and over $30 Trillion of NON Federal debt......

with revenues evaporating.....it is only a matter of time my friends.........

PREPARE.....don't FEAR.........things are about to heat up.....

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#4) On April 08, 2009 at 12:12 PM, Toxin (26.85) wrote:

Alstry no disrespect intended, but the SoCal area is some of the most overpriced housing in the U.S.

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#5) On April 08, 2009 at 12:23 PM, alstry (35.69) wrote:

Toxin.....

No offense taken....houses are basically free in parts of Michigan and Ohio....and people still can't afford to pay taxes, insurance, maintenance and utilities......

CA just has a lot further the fall than the rest of the country because it is one of the places where Toxic Borrower Syndrome is most accute and widespread.

Toxic Borrower Syndrome is a nationwide disease and spreading rapidly.  The comedy is that the Yahoos on CNBS are advocating infecting people with more debt as a solution to the problem.

Florida is a Disaster and getting worse quickly.  Until we restructure....we are going to see things few have ever seen before.

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#6) On April 08, 2009 at 1:28 PM, tahoestock (30.73) wrote:

Alstry....right on.  I live in Nevada where casino revenues are a significant source of revenue for counties.  The state take is down another 15% year over year, unemployment one of the highest in the nation, and they are cutting police/fire staffs..even many public library branches are closing to help meet budget shortfalls.  Just my opinion but this little upturn in optimism is usually what happens just before the washout of all hope happens...then we have hit the bottom.  

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#7) On April 08, 2009 at 1:29 PM, motleyanimal (97.85) wrote:

I see dead people. And they are wandering all around in circles, wearing Louis Vuitton shoes and seem to be looking for something. There is a 30% off sale at Macy's. They want to go shopping. But. But. But.

 They can't find their credit cards!

Oh......THE PAIN, THE PAIN, THE PAIN !!!!!!!!!!!!!!!!!!!!!!!!!!!

It is just too much to bare!!!

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#8) On April 08, 2009 at 2:19 PM, Toxin (26.85) wrote:

I would say CA, NV, FL, MA, NY would be the ones to be hit the hardest.  Basically anywhere where a 150,000 house sells for 300,000+.

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#9) On April 08, 2009 at 2:23 PM, outoffocus (24.53) wrote:

Toxin.  Dont forget DC.  DC was just as bad as the rest you mentioned.

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#10) On April 08, 2009 at 8:47 PM, glissandi (< 20) wrote:

Hopefully There's a little bit of good news around the corner in terms of a housing rebound. At least investors seem to think so in light of the Pulte-Centex deal.

Check it out.
http://www.coffeeforclosers.org/?p=125

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#11) On April 09, 2009 at 3:01 AM, debtRichQuick (< 20) wrote:

First off the dynamic in LA is all over the board. Plus there was a high-end yee-haw that happened in 2007 as developer's mouths began water at the thought of squeezing ex-homeowners turned renters to death. A glut of units hit the market and shazam, mid-point rents are falling. Most solid class B rents are not falling. Those that boarder A-B are falling and those that are high A are falling.Plus, if you are a borrower who borrowed in the last two years to purchase your apartment complex, you are probably making a killing because the spreads didn't take into account a less than 1% 1-month LIBOR. Fyi for you who sees the inflation…SWAP rates are gonna get super favorable in the next 6-9 months ;)Alstry please note that the restructuring, in my opinion, has already begun! This is what I was waiting for, and more will follow suit! Japan's stimulus package. If Japan borrows $154B from the US and the US borrowers $154B from Japan, what is the net effect on the currency exchange between the US and Japan? Get ready for all other Nations to get their "required" stimulus amount and soon announce it. Who is not going to play ball? Last one in gets a rotten traded deal. This is what needed to happen! The entire world needs to plug the whole. I am now, not just optimistic, but SUPER optimistic!!

Yes, the negative news will continue for another couple quarters, but things are now turning in the right direction. 

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