50% haircut in Southern California

sftrade · Post by **sftrade** » Thu Feb 14, 2008 8:27 pm

http://drhortonunauction.com/

Seeing is believing. I'm shocked to see prices in the LA area at 200k. By these standards LA provides more value then Bangalore. Most Indians living in decent apartments in Metros can sell it and buy these houses outright. This is a serious adjustment to housing in Southern California

smariner · Post by **smariner** » Thu Feb 14, 2008 9:30 pm

Wow...this is pretty amazing. Are any of the areas listed on http://drhortonunauction.com/ any good?

mn_op · Post by **mn_op** » Thu Feb 14, 2008 9:38 pm

Sorry but why the thread has title '50% haircut'? Is it some kind of jargon in RE?

sftrade · Post by **sftrade** » Thu Feb 14, 2008 11:37 pm

I've seen the word haircut used in relation to huge price drops whether its stock or real estate or any investment. Hence the title

vijay · Post by **vijay** » Fri Feb 15, 2008 12:10 am

this is ridiculous! even if those house was not in CA but in some other podunk state still the prices would be more. If you factor in the CA prices it should be double (like the post say 50%)

sumputh · Post by **sumputh** » Fri Feb 15, 2008 12:21 am

But why is it ridiculous, vijay? If this is ridicuous, so is the 100+% run-up in the last 3-4 years in california. It was all driven by easy credit and specuvestors and now that the music has stopped, they are headed in the other direction.

Anyway, the 50% is only the starting point of the auction - to get people in droves again. The market will decide what the rates are and it would be interesting to see.

smariner · Post by **smariner** » Fri Feb 15, 2008 1:53 am

According to my friends in the LA area -- most of these neighborhoods far from job-hubs, and are far-off rom LA city.

mn_op · Post by **mn_op** » Fri Feb 15, 2008 2:11 am

sftrade;81203I've seen the word haircut used in relation to huge price drops whether its stock or real estate or any investment. Hence the title[/quote]

Thanks for the info.
SOunds right. My friends have lost all their hair trying to run unprofitable businesses :)

b2b · Post by **b2b** » Fri Feb 15, 2008 2:23 am

opps I thought this is about hair cutting....it would help if the word Real Estate is added in the end...

vijay · Post by **vijay** » Thu Feb 28, 2008 11:46 pm

sumputh;81221But why is it ridiculous, vijay? If this is ridicuous, so is the 100+% run-up in the last 3-4 years in california. It was all driven by easy credit and specuvestors and now that the music has stopped, they are headed in the other direction.

Anyway, the 50% is only the starting point of the auction - to get people in droves again. The market will decide what the rates are and it would be interesting to see.[/quote]
I was amazed the prices look like too good to be true bargains!