Strangely California is the only state I know that continues to experience high rates of fires. It is also the state with the highest real estate markets in the country. What I’ve observed in the past 4 years, these fires always seem to startup when housing rates or the people are at dire straits.
In October 2003 when housing rates were off the scales hemorrhaging the most highest sale rates in the country, a fire broke out burning over 3,000 homes in the SoCal area and “fire officials blame at least two of the fires on arson.”
Here it is October 2007 prices are dropping like flies…literally. The price of housing has went down not 1, 2, or 3 percent, but an average of about 5 percent each week in the last two months…outrageously horrifying for sellers and joyously advantageous for the buyer and these fires are also presumed to have been caused by arsonist.
However, there are some who truly stand to loose big in a market of such indecisiveness and flux. Not to mention the many creative financing which thousands of homeowners were tricked into signing and lost their homes as a result by mortgage lenders bad decisions.
Over the last 10 years or so lenders have promoted a numerous amount of creative financing loans which created a means for low income homeowners to obtain a home, as a result this method backfired on not just the lenders but the homeowners as well…sending soaring numbers of homeowners into foreclosures and even some lenders out of business.
“Lenders sent California homeowners the highest number of default notices in over a decade last quarter, the result of flat of falling prices, anemic sales and a market struggling with the excesses of the 2004-2005 home buying frenzy.”
Foreclosure Statistics from 1992-2007
Not only have SoCal have seen a tremendous increase in the number of foreclosures but due to the supply-and-demand for housing back in 2000-2004, builders went on a rampage and built more homes to meet the supply-and-demand and because of greed not realizing the increase in the amount of homes that have been built. As a result haulting the supply-and-demand, and created a market which was once in favor of the seller/builder, but now leveled the playing field and forced a number of those sellers/builders to drop prices at levels which were not seen in over 5 years in the SoCal areas. These sellers/builders are practically trying to give there homes away because of the current market.
“Home sales in Southern California plunged to the lowest level in more than two decades, as financing with “jumbo” mortgage dropped by half. The median price paid for a home dropped sharply as a result.”
Housing Sales Statistics from 1988-2007
The fires are simply a fine line between thought and action. Although some may think to do something so disastrous but never do it. Then there is that proactive thinker who’s going to take action regardless of who is at stake.
The fires have burned over 3500 homes and still burning today. California should implement an “interstate terrorist law” and reward anyone who hears of anyone speaking on any acts of arson on California should be sent to prison for a long time.
I think this also says a lot about California residence. Is California residence so arrogant and greedy that their willing to risk innocent peoples lives because of their fear of lack and limitation?
I think this is a terrorist act, and this does not mean that it’s someone who is not a citizen. I truly believe that its an “interstate terrorist” and I hope and pray that the terrorist is caught and put behind bars where he/she belongs for the rest of their life.
I feel for the many innocent homeowners and families and pray that they recover in a big way. In the meantime, I will be watching those fire updates on local news and those stats on the housing flux in SoCal. Peace.