From ForeclosureListings, just a few of the foreclosures in zip code 91406, where we used to live. When we moved in Jan 2007, there were few, if any, foreclosures. Now there are 466 when you include preforeclosures. The area is suburban middle class tract homes built in the 50’s on 1/8 to 1/4 acre plots in Van Nuys, which is part of L.A. County.
The green prices are the (fantasyland) Zillow estimates. They look to be what prices were in about Jan 2007. The red is the asking price now, obviously from a distressed buyer or the mortgage holder, but such drastic reductions will drive prices down even more. Ouch.
Wow: Single family homes in Los Angeles County under $400K? Unheard of! For those who believe this cycle will eventually correct itself, there are plenty of buying opportunities.
OTOH, if you anticipate TSHTF, buy gold, ammunition, and solar panels instead.