Most of the established areas in Los Angeles suburbs have maintained their value.  

The speculators have lost big time in areas east of Los Angeles suburbs.  Happens in every real estate cycle.

At face value one would think that when housing affordability increases that is a good sign.  The problem is that it is just one indicator and without examining other factors such as NOD and Trustee data to name just a couple it is not really all that helpful in relation to the end of the turmoil in the real estate market.  I do not have the numbers for September with me however going back three months to June NOD recordings were 24,908 up from the June 07 number 12,690.  Additionally, the number of Trustees Deeds recorded has increased from 4,077 to 14,156 that equates to ~ 247% increase in Trustees Deeds recorded in the seven county area that makes up southern California.  Just food for thought.

Being from the Temecula (Riverside County) area... I must say that I have seem the ups & downs of the Real Estate cycle down there. In the 90's when NO ONE wanted to live in Riv Co to about 10 years ago when we had so many people from all other surrounding counties come in by the busloads!!! How do you fit 120,000 or more people in a few small towns? By creating chaos, I say! Though it was good for the original business owners of the area, like my Father & others whom had been in Temec since the 80's. The sad thing is, the prices the builders were charging for these over rated & too large for your average family homes!!! And how about the scandal that rocked the area, a local man that destroyed the RE market with straw buyers. WHO DOES THAT?!?! And I must say, it was not just 1 straw buyer here & 1 there, it was nearly 100!!!!!! OMGoodness!!!!  I had to relocate back to the Pacific Northwest after getting my butt kicked in the mortgage market down there. I had some land purchases, commerical developemnts, etc. But how would I be able to make deals happen when the scavengers out there & leaving carnage for the rest of us?

With all of that being said, this real estate down turn is not uncommon for So CAl... It seems to always been a "Boom then Bust" but I learned my craft down there & was sad to have to move. If I were to point fingers it would be at: LENDERS, BUILDERS (GREEDY BUILDERS), Homeowners that bit off more than they could chew, definately the GOVERNMENT. (Ummm.... Hello Regulation!!! Or was this just more money for you to drain your people for a war that is a little more than done) I say take that money you waisted with the BAILOUT & use it to take care of our Men & Women overseas & stop attempting to be stupid, greedy bastards!!!!!

Greed that's it simple Greed!  I'm glad too see that finally people can realize that the housing market was way out of wack. Things in this country has gotten out of hand we need to wake up and smell the coffee. We been asleep at the switch.

When people let their wants overwhelm their actual needs, and the ability to pay for them, you get exactly what has been happening in the housing market! I need two bedrooms, but I want six, no matter what it cost! Add to that, morgage companies that support their supidity, and you get forclosures. It's very simple, you can afford a home that cost twice what you earn in one year-and no more! Beyond that lies la-la land, and hollywood dreams!!!

When people start living within their means and perhaps saving a little more, economic prosperity must follow.  Yes, wants have overwhelmed the actual needs.  This is true too when you see so much speculatory trading in derivatives, short selling and other forms of what I would call hi-profile gambling; this could not go one for ever and should be stopped as much as possible to make the turn around for prosperity to return.

Hasan

I am one of those people who bought a foreclosed property in Southern California.  I had saved up a 15% downpayment, had a credit score of 800+, and was able to buy my own place for less than half what the previous owner agreed to pay (but didn't) just 3 years ago.  I was sure I'd never be able to own, but I kept saving, and it paid off.  I'm actually paying only $50 a month more than what I was for rent - even without the tax benefits- and my mortgage can't go up, unlike the 10% annual rent increases I had encountered.  

I feel bad for the people who lost their homes, but I'm glad that the market coming down is allowing people like me to be able to realize their dreams.

NO ONE SEEM TO REALISE THAT THE REALESTATE BOOM WAS BECAUSE THOSE BIG GUYS WERE BUYING OFF PROPERTIES OFF OF THE POOR PEOPLE USING AS MANY TACTICS AS THEY CAN BUYING OFF THE CITY PEOPLE AND WHO EVER THEY CAN; THEN BUILDING HOUSES THAT LOOKED NICE WITH THE CHEAPEST MATERIALS THEY CAN USE, AND SELLING IT FOR THE HIGHEST PRICE THEY CAN GET.

PUS THE MONEY HUNGRY LENDERS USED EVERY TRICK POSSIBLE TO GET LOANS FOR PEOPLE WHO DON'T EVEN HAVE A GREEN CARD USING FAKE SOCIAL SECURITY NUMBERS AND WHAT NOT.

THE PRICES MAY HAVE GONE DOWN BUT THE BANKS ARE NOT LENDING,SO THE ONLY PEOPLE WHO ARE BUYING ARE THE ONES WHO ARE SITTING WITH CASH AND WILL SELL IT OFF WHEN THE MARKET GETS BETTER.

I feel bad for some of the people who have lost and will lose homes, but as one who could definitely afford bigger, but elected to get out of debt instead, it's hard to be sympathetic toward anyone who lost a house after buying one at the top of the market with no money down and an interest only mortgage. When you get right down to it, many of the "victims" of foreclosure haven't really lost anything because they really didn't OWN anything in the first place.

Now I, along with millions of other responsible taxpayers, are stuck with the tab for bailing out the greedy, irresponsible and just plain stupid -- developers, buyers, and financial schemers (not necessarily in that order). Fine, but let's hope we all learn from this so we don't repeat the same mistakes when the economy inevitably recovers. And mostly, let's hope that the idiots in Washington think long term for once (past the next election cycle) and don't overreact.

@ MASHWE: Banks are *definately* still lending, they're just not lending to people with no job, no credit, and no money down anymore (read: people who shouldn't be buying a house anyway). I am a first time home buyer and I just bought my first house 2 weeks ago. It was no problem at all to get a loan with good credit (or, as good as it can be for my age group) a 5% down payment, and 4 stable years of work history.