Is Disneyland Over For the SoCal Real Estate Market For Awhile?

Is Disneyland Over For the SoCal Real Estate Market For Awhile?

 

We're starting to see lenders, buyers and investors doing a lot of crazy things that slightly resemble the crash of '08. I'm not suggesting there will be another crash like that. But I think it might be time to start paying attention to some of the experts.

What we are starting to see over and over again are folks borrowing against their equity, some several times over, and investing in the F&F market. Interestingly, lenders are funding them. Sometimes on multiple occasions as long as there's equity in the home.

I know of several folks that have done this repetitively and are now sitting on multiple overpriced properties that are not moving that quickly if at all. In the meantime their equity is not only tapped out on their own home but their over leveraged investments are starting to nibble away at their staying power.

This is a different type of trend than the early 2000's when liars loans were flying off the shelves and if you could fog a mirror you could qualify for a loan. Banks are all about making loans. That's how they survive and thrive. However, in that ambitious endeavor they too have temptations that can do them harm and bring harm to others at the end of the day.

I'm not for revisiting Dodd Frank by any means. But should we all start being a little more prudent moving forward and pay attention to the warning signs on the horizon? My 3 $CENTS$; adjusted for inflation.

Why To Choose Us?

John DL Arenden, Broker 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

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Comment balloon 8 commentsJohn DL Arendsen • July 25 2018 03:29PM

Comments

John DL Arenden ~ As a Realtor in the Inland Empire we too are watching the trends. The Disneyland comparison is great for those in tinkertown.

Posted by Kristal Wilson, We Like 'Em New ~ New Home Specialist (Strategic Sales and Marketing) 5 months ago

And I think a lot of SoCalies are in TinkerTown Kristal Wilson 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

Hi John- we've been through these scenarios far too many times and wonder when will they ever learn. This is another reason why I so enjoy reading the posts from agents such as yourself so I can keep up with the various markets.  

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 5 months ago

I share your views on the liar loans that acted as catalyst for the 2008 meltdown.  As long as the lending industry doesn't go down that path again, we should be on more secure ground.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 5 months ago

Thanks Kathy Streib Always good to hear from you and you always look at thnigs so prgmatically.

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

That's kinda what concerns me a tad Myrl Jeffcoat except this may be a different type of liar this time around.

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

I too see a shift in the air. I'm also worried about those who are in too deep. And, I suspect, there are more than we know. 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 5 months ago

Starting to see an incresaing amount of aging F&F;s as well Debb Janes EcoBroker and Bernie Stea JD 

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 5 months ago

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