good visual on CA foreclosures

Look at this graph that show the CA foreclosures. THIS IS BEYOND SCARY!

Incredible. Thanks for sharing.


Wouldn’t this kind of be the opposite of scary for investors though? What I mean is markets are full of people who’s credit will now be screwed up and need places to live. That seems to be a good time to be a landlord. At the same time prices are crashing while the bubble bursts, and people trying to avoid forclosures are sacrificing equity for easy outs.

I agree that on a macro scale there’s definite uncertainty, but as far as REI goes, wouldn’t this be kind of a good thing?

I would agree with you in a normal cycle of real estate. But I think that this chart shows how this is not “business as usual”. My tenants are having trouble paying the rent, and finding a job. The prices continue to fall based on a snowball effect. Even though landlords are losing their houses too, there is NO cash flow at these prices still in CA. Why would any investor buy a house woithout cash flow that continues do go down in price. Because this is what the chart tells me,more foreclosures, prices contiue to fall. In S. CA most people used to invest with neg. cash flow waiting on appreciation - it just doesn’t work right now.

Buying properties and hoping for appreciation is nothing more than speculation. These people think they’re investing, but it’s closer to gambling.