Thursday, July 09, 2009

Will the California Budget Crisis Put Signifcant Downward Pressure on Housing Prices?

Please weigh in.


  1. Not unless government money never comes after the IOU's expire.

  2. A responsible state would actually make good on its IOUs. Unfortunately, too many Americans think it's acceptable to just walk away from old debts. California, especially L.A., seems to be the heart of selfishness in America, so I think California's IOUs are as valuable as confetti.

  3. "California, especially L.A., seems to be the heart of selfishness in America"

    I dont think its fair to say that. People are pretty trashy and selfish all around America. Ive lived all over the US, and I would have to say people are pretty selfish and stuck on themselves in DC and NY as much as LA....hell maybe even more so.

  4. The CA budget is affecting Housing as follows:

    - State employees are effectively receiving lower salaries
    - Some are losing their jobs
    - The state is increasing taxes which damages business and reduces consumers spendable income
    - People no longer trust the state gov't and if I were considering moving to CA I would be rethinking it because if they don't cut spending they have to raise taxes.... result lower take home and stunted business and increased unemployment

    Right now CA looks to be in a world of hurt mostly because of the legislature they have (not that I am a fan of the governor, but at least he seems to be trying of late to put the brakes on the out of control legislature).

  5. How much of the California budget is benefiting illegal immigrants including their children? LA Times ran a recent story that stated the costs due to illegal immigrants is of considerable significance.

    Also consider that a lot of the defense money that left California during the late 1980's has not been transferred to liberal enclaves such as Northern Virginia/DC Suburbs. Good luck telling those latte and BMW liberals in Northern Virginia that California wants a bigger piece of the pie. California's growth after World War II was due in part of major defense spending.

  6. The budget problems in California are having an effect on prices but not nearly as much as the simple force of gravity.
    When I left LA almost 2 years ago it cost 5-7 times as much to buy as it did to rent the same amount of space.
    Some people are now saying with a 50% reduction in price that homes in California are now "cheap".Wrong.
    They are STILL way overpriced and have a ways to drop before settling at a reasonable cost.

  7. You think LA is overpriced? Look at what the trash in the DC area goes for. Pathetic.

    Im going to rent here for another 5 years, and move back to Florida and buy a beach house with cash. Screw this trashy place.

  8. I work at UCLA. The UC system is in crisis, paycuts are coming in the form of graduated furloughs. The more you make, the longer your furlough. Faculty and staff are worried about 4-10% effective salary cuts, many of whom are already living close to their limit. As one of the larger employers in CA, the changes in the UC will filter down to housing in the middle to upper tier. Just a question of magnitude.