Home prices have record 17.7% plunge!
The over inflated home prices of the last 20 years are cumbling faster than any investment in recent memory. I heard on NPR not too long ago that Orange County, FL had twice as many homes as there are families (TWICE!!!).
On the Westcoast Stockton is where the housing bubble is most popped. Who would have thought that building tens of thousands of homes in the least desirable part of the country would have been such a bad idea? Stockton is a shithole. Why would anyone pay $400k to live there is beyond me. Then the banks foreclose and are stuck with a POS house in a POS part of the country and guess who now owns that big ol’s POS? We the people! We just paid $850 billion dollars to buy bad ideas in shitholes all across America that are just like Stockton.
The last time I was in Southern California to visit my brother and his family was in April 2007. The Orange County Register (one of the most right wing rags I know of) was congradulating everyone for reaching a median home price of $700,000. “Yay, OC, you did it!”
The problem with this was that the average Orange County resident made around $60,000 per year. that’s $5k per month. The average mortgage was $8k per month. That is bad economics. Period.
