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

By
Home Builder with CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS 521400, 1501015, 01795582

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.

Posted by

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.

 

 

 

 

SUBSCRIBE TO MY BLOG VIA EMAIL: Enter your email address:

Delivered by FeedBurner

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
California San Diego County Encinitas Leucadia
Groups:
"Whacked"!!!
ActiveRain Ambassadors
Bananatude
Bartender, Make it a Double
Old Farts Club
Tags:
real estate trends
real estate crash
is disneyland over for the socal real estate market for awhile

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
216,300
Kristal Wilson
Strategic Sales and Marketing - Chino Hills, CA
~Your New Construction Specialist~

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.

Jul 25, 2018 08:46 AM #1
Ambassador
642,628
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

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

Jul 25, 2018 09:22 AM #2
Ambassador
3,378,535
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

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.  

Jul 25, 2018 10:44 AM #3
Rainmaker
2,204,056
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

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.

Jul 25, 2018 10:53 AM #4
Ambassador
642,628
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

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

Jul 25, 2018 11:19 AM #5
Ambassador
642,628
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

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

Jul 25, 2018 11:20 AM #6
Ambassador
1,606,207
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

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. 

Jul 29, 2018 06:54 AM #7
Ambassador
642,628
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

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

Jul 29, 2018 02:07 PM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
642,628

John DL Arendsen

Crest Backyard Homes "ADU" dealer & Contractor
Questions about Manufactured Housing?
*
*
*
*
Spam prevention

Additional Information