More upside-down homeowners in L.A., Orange counties

   About 40% of those who bought homes in Los Angeles County and Orange County in the past five years now owe more on their property than the homes are currently worth, according to data released today by Zillow.com.

     The most "upside down" are those who bought in 2006 -- Zillow says 71% of them have mortgages greater than their property values. About 57% of those who bought in 2005 and 2007 are upside down, Zillow says.

     Homes in L.A. and O.C. purchased in 2006 had a median down payment of 5%, according to the Zillow third quarter real estate market report, which also has data for the rest of the nation.

     The picture looks better for post-bubble 2008 home purchasers in our area. The median down payment for L.A. and O.C. homes bought so far this year was 20%. Not surprisingly, only 12% of homes purchased in 2008 are upside down.

     Zillow figures L.A. and O.C. home values are now 27% below their peak, which they identify as first-quarter 2006. That's more than double the 13% fall from the peak for homes nationwide.

     --Peter Y. Hong

Comments

[Laker]

"...The median down payment for L.A. and O.C. homes bought so far this year was 20%. Not surprisingly, only 12% of homes purchased in 2008 are upside down...."

Really. For these, how much of their own cash down payment is not LOST??? These buyer of 2008 are actually in much WORSE shape than the buyer of 2006. When the buyer of 2006 get foreclosed, they simply walk away from their "rental" and rent a nicer house for less money. When the "true" home owner of 2008, that put 20% cash down payment, is today down about 10% of the price or 50% of his investment....It is safe to assume that another 6-9 month, ALL of the 20% down payment would be GONE. And the true prudent home buyer of 2008 has lost hi entire 100% of his investment and will fall behind because he was simply a poor knife catcher who overpaid, lost his job because of the economy, and would become a renter with no money and no future.

Thank you very much US government...
Sadly if foreclosures will slow or stop, this process will repeat itself for the next 10 years until the price of houses will eventually correct back to fundamental.
However, if we stay away and let the market correct, price will get slashed by 1/2 at the minimum, they will reach fundamentals much sooner, and buyers in 2010-11 will actually never lose their down payment.

[MyLessThanPrimeBeef]

Laker, you make more sense than our current president and all future presidents.

[puckhead]

Laker,

Don't tell me, you're no longer looking for a house.

[Laker]

puckhead,
As peter left LA Times, I got cold feet....
Remember that i mention my rent to be 5% less what i used to pay.
Well, guess what, i was offered a similar place like i rent today for about 40% less than what I'm paying today!
Real thing, not a joke....
Now all my calculations that were based on equivalent rental need to be slashed...
WOW.

[Ken]

No matter how much taxpayer money the Fed wastes trying to stop the slide in real estate prices, it will not work. Natural market forces can no be denied. Foreclosure. Start the auctions.