This is an LA Times Article has been getting a lot of attention on the mortgage broker blogs.
Why? Look at this graph:
Holy cow! Yes, the Southern California real estate market has hit the skids. Why? Jumbo loans are tough to get and it looks like not that many qualified buyers really have enough money for down payments... at today's prices (e.g., drop the prices!).
This credit contraction is spreading fast. The total dollars being transacted are dropping fast. California recessions tend to spread... (Its a big state.) Consider that Florida, Phoenix, Las Vegas, and DC are also pulling the market down...
Calculated risk has some great charts up today. I recommend reading.
Got Popcorn?
Neil
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