Before the big housing crash of 2007, it was conventional wisdom that home values could not fall across America at the same time.
Well, that was basically true. Home values during the great real estate crash of 2007 did not drop much for white and asian homes, but they dropped dramatically for black and hispanic homes.
Versus their peak, white neighborhoods in Greater L.A are currently down 1.6% in median home price, while Hispanic and black neighborhoods are still down over 20%…
Hispanics mostly live in very high home price states, such as California, or fairly high home price states, such as Arizona, Nevada, and Florida. (Texas is the exception.)
…I wouldn’t rule out a Red Chinese Housing Bubble in California. For example, California golf courses are selling for high amounts even though golf appears to be in long term decline. Early in the century South Korean money poured into California golf courses, only to get badly burned. Now Chinese money is pouring in, even though nobody seems to have a clue how to increase golf’s popularity, and it’s very hard to get the permits to plow under a California golf course to turn it into a shopping or housing development. But rich Chinese want something to own that can’t be taken away by Peking.
COMMENTS TO STEVE SAILER:
* An interesting analysis would be to look at the loan brokers that preyed upon the Hispanic immigrants. What are the characteristics, and how does the favorite question Cui Bono translate en Espanol?
* The fascinating thing about the MMM is that the ramifications of the economic disaster wrought – by mass immigration, as it happens – are still being felt profoundly in nations far away from the USA, which had no knowledge of and no control of American immigration and economic policy. For example, despite all the guff one might read, the UK, economically speaking, is still basically ruined. Likewise the genesis of the contagion that has destroyed Spain, Greece, Italy, Ireland and a whole host of other states.
From the rantings of American madmen – and libertarians – these being one and the same thing – insisted upon their ‘right’ to a one dollar box of strawberries, comes the destruction of the ancient Italian nation into a death spiral of deflation, demoralization and collapsed birthrates.
Fascinating, as I said, but also fascinating is America’s original sin, the importation of 500,000 odd west Africans, imported in order to satisfy the laissez faire lust for cheap cotton, but who eventual revealed themselves to be the avenging death angels of the jealous and capricious god, who cursed the States for the sin of having ‘too much of a good thing’.
The moral is ‘heed the words of Powell’.
* That Boston Globe article — which I read in full and much to my surprise was in the Business section — isn’t doing Hispanic immigrants any favors by making them out to be 100% victims. I actually agree that they are victimized — just not 100% victims.
For one thing the article points out: “People who were barely making mortgage payments before the recession went into foreclosure.” So even during the good times lots of these buyers couldn’t handle their payments.
Also their example family’s still in the house that was foreclosed on in late 2009. No mention was made of them making any payments.
It seems in this case a rough justice has occurred.
What will this family do when it is finally forced to leave — and to pay for housing again?
* It would seem the resilience of the housing market is proportional to the IQ of the region, with higher IQ regions such as Palo Also recovering the fastest and low IQ regions taking forever, if at all.
* L. posts: In my experience, all the homes I have seen for sale end up being bought by hispanics. It’s almost like no one else is buying homes but them. Then you end up like my old street, trying to study for my finals with Mexican polka music blasting through the walls every week, eaten corb cobs+old tamale corn husks thrown over the fence, clothes hanging to dry in the front yard or yelling and cursing at their kids all day long. It’s very rare to see a hispanic family who moves and who is not doing those things, unless they are second or third generation and fully Americanized. (Aka, English is the first language and not having the whole village living in the house or having the whole family visit every weekend).