4 ms·

I think it depends on the location. During the last bubble-burst(?) housing in Santa Monica didn't really fall. Activity just kind of slowed down. Also, the las

by gdilla 11y ago

I think it depends on the location. During the last bubble-burst(?) housing in Santa Monica didn't really fall. Activity just kind of slowed down. Also, the last bubble was partially fueled by bad loans to unworthy borrowers. They were leveraged to the hilt, and when their rates reset on their teaser loans, foreclosures went up. This is happening less now because easy mortgages aren't as rampant. I bought a house in LA as a 20 year old with 0 downpayment and 'stated income' in 2002! That doesn't happen anymore.

ghaff 11y ago
Much of the Boston area didn't really drop much either. Certainly a much different situation from, say, Las Vegas where there was a huge amount of speculative building and bad loans going on.
- talmand 11y ago
  I was there, it was an interesting thing to see that's for sure.
CalRobert 11y ago
While supply and demand affect Santa Monica as much as anywhere else, there are probably a _lot_ of people in the LA area who would like to be in SM but instead are living elsewhere, so if prices ever drop they will be sure to swoop in and grab a spot. Santa Monica also has rent control, which increases pricing friction and raises prices (fewer people willingly moving = fewer vacancies = more competition for the few places that do come on the market = higher prices). This means that if housing drops at all people will be enticed to become buyers instead of renters. I was lucky to get a spot in Santa Monica, but mostly because the landlord wasn't too concerned about maximizing rent, and we were the very first people to show up and look at the place. It was listed on a Sunday night and we were signing papers Monday at 9 AM. And this was in 2011!
maxxxxx 11y ago
Things have to get really bad for Santa Monica prices to fall. It's probably one of the most desirable places to live in the US so there will always be people willing to move in as soon as prices fall even a little.

by gdilla 11y ago

ghaff 11y ago

Much of the Boston area didn't really drop much either. Certainly a much different situation from, say, Las Vegas where there was a huge amount of speculative building and bad loans going on.

talmand 11y ago
I was there, it was an interesting thing to see that's for sure.

CalRobert 11y ago

While supply and demand affect Santa Monica as much as anywhere else, there are probably a _lot_ of people in the LA area who would like to be in SM but instead are living elsewhere, so if prices ever drop they will be sure to swoop in and grab a spot. Santa Monica also has rent control, which increases pricing friction and raises prices (fewer people willingly moving = fewer vacancies = more competition for the few places that do come on the market = higher prices). This means that if housing drops at all people will be enticed to become buyers instead of renters. I was lucky to get a spot in Santa Monica, but mostly because the landlord wasn't too concerned about maximizing rent, and we were the very first people to show up and look at the place. It was listed on a Sunday night and we were signing papers Monday at 9 AM. And this was in 2011!

maxxxxx 11y ago

Things have to get really bad for Santa Monica prices to fall. It's probably one of the most desirable places to live in the US so there will always be people willing to move in as soon as prices fall even a little.