Watching the bubble burst in: Lakewood
News item: In a story about economic anxiety in Lakewood, the L.A. Times' Kimi Yoshino talked to Frank Gutierrez, an 86-year-old retiree:
Anyone should have seen a financial meltdown coming, Gutierrez said: "A man making $50,000 a year buying a $500,000 house? How the hell is he going to pay for it?"
Two cents: This guy should have been running the Federal Reserve, or Countrywide Financial.
About Lakewood: Median home prices in August in Lakewood's three Zip Codes ranged from $343,000 to $409,000, representing annual declines of 20% to 30%, according to MDA DataQuick. The research firm counted 80 foreclosures in Lakewood in the second quarter of 2008, up from 23 in the year-earlier period.
--Peter Viles
Your thoughts? Comments? E-mail story tips to Peter Viles
Photo Credit: L.A. Times
The two groups that do not get anything but ost likely pay the most are people who own the house outright and renters. The current mortgage holders get to deduct the intrest they pay from income taxes and get the mortgages reworked to 3.5% APR and reduced principle.
Why is that?
I say a good way to fight back is start deducting rent from income tax, and for those who outright own the house, start deducting the amount that you would get in interest if all the equity in your home was invested. its only fair!
Posted by: wanderer2000 | October 06, 2008 at 12:55 PM
The two groups that do not get anything but ost likely pay the most are people who own the house outright and renters. The current mortgage holders get to deduct the intrest they pay from income taxes and get the mortgages reworked to 3.5% APR and reduced principle.
Why is that?
I say a good way to fight back is start deducting rent from income tax, and for those who outright own the house, start deducting the amount that you would get in interest if all the equity in your home was invested. its only fair!
Posted by: wanderer2000 | October 06, 2008 at 12:55 PM
at least fireworks are legal there... bet that there is a rash of 4th of July 'accidental house fires' next summer...
Posted by: mark g | October 06, 2008 at 01:41 PM
Lakewood will be hurting alot more once those Option Arms begin to reset. Those median prices will be in the upper 100Ks soon.
Posted by: CompaJD | October 06, 2008 at 02:01 PM
I am beginning to think that median prices are like median Republicans or median Democrats.
They don't mean a thing.
You have to look at each candidate individually.
Who was for the bailout, is now or willl be soon, out.
Who voted for the bailout,
you're out!
Who voted for the bailout,
you're out!
Who voted for the bailout,
you're out!
In the case of our two presidential candidates,
they were out
even before they got in.
Posted by: MyLessThanPrimeBeef | October 06, 2008 at 02:20 PM
Can someone please tell me why a 1200sf house in sherman oaks goes for 600,000.00?For a shack?How about 150k?Isnt that the reality of the economy and where housing should be?Is anybody qualifying for loans?
Reality of the financial implosion hasnt caught up to housing ironically even though housing caused the market/banking meltdown.
The high end re market will decimated this week forward.
Russian financial markets are halted,closed on a daily basis.Oil has plummeted 60$...Europeans are just beginning their financial crisis.Wall st is dead.Who now will be buying manhattan and beverly hills nonsense?
No one.
Posted by: stan derrin | October 06, 2008 at 03:03 PM