PhinT

Housing and Financials: The Worst May Soon Be Over

Well.. I can understand why there is a decline in the real estate market and it needs to happen (and I am long on FNM). I did a real estate comparison last year with what you got for the buck in LA. A looked at a number of “starter” home in El Monte, CA and compared them to a number of homes in La Canada, CA…Comparing a 1000’ sq home in El Monte selling for $500k to a 3800’sq home in La Canada selling for $1.8M… The El Monte home sat on a 5000’ sq lot the La Canada home sat on a 48,000’ sq lot…. Setting aside the lot size, high end appliances, pool, better schools etc…with the home in La Canada it does not take a rocket science to figure out that the “starter” homes in general are not comparative just based on sq footage… btw.. from further review the homes in higher end areas in CA (e.g. South San Francisco, LA…) are not declining in cost but it is the “Starter” homes… Humm, once again I feel that the general population is not getting the entire story but hype and manipulation for the media at the cost of the waning middle class…