Get Ready For An Economic Downturn

[Sparky]

It's all downhill if housing boom ends

www.sgvtribune.com/business/ci_3207418

A downturn in housing could mean more than 1.3million lost jobs, Goldman Sachs Group Inc. predicts, bumping up the national unemployment rate by 1percent and the unemployment rate in house-mad California by 2percent. Those numbers don't include likely job cuts in housing-dependent businesses, such as banking, furniture and building materials.

"House prices are at the mountaintop," Zandi said. "All roads lead down. It's just a question of how steeply."

[cottontail]

Well, home prices in Azusa are still much lower than many other cities in the area. Hopefully, Azusa's home prices will just stabilize. With the school district hopefully making major improvements, the new building in the downtown, and the Rosedale project being built, the image of Azusa is changing for the better. It is the cities where home prices are double what Azusa's are that really need to be concerned.

[Rocco]

Considering that most of us in Mountain Cove bought our homes 2+ years ago and have experienced at least a 50% gain in our property values, providing that the market just stabilizes, then I think we are in pretty good shape.

No reason why most of us will not be able to pull out $100,000+ from our homes and go buy a Rosedale if the market stagnates. I am hopeful, just as Cottontail mentioned, that because Azusa property values are still on the low side, that we do not suffer as much as some other areas. When I bought my home in Mountain Cove, for example, I had a choice...I could have remained in Pasadena and bought an 1,800 sq. ft. home in Bungalow Heaven or Hastings Ranch or for the same price (including my landscaping and upgrades to the interior) I could have a 2,600 sq. ft. home in Mountain Cove. While it was difficult at first to be away from Pasadena, I don't even miss it anymore but since I still own my other property there I visit frequently.

If I am able pick up a 3,000 sq. ft. house in Rosedale for $800,000 or less, I will buy it in a heartbeat. I will then have the choice of staying put in Mountain Cove and leasing out the Rosedale or of moving into the Rosedale and leasing out my current home.

I have no idea how big the biggest Rosedale's will be, but I would probably only move if I could go up to at least 3,100 sq. ft. on a bigger lot than I have now. I am eagerly awaiting more details. I do think with the experience of buying and living in Mountain Cove that we will all now have a much better ability to select the best tracts in a planned community.

Although it is taking longer than I would like, Azusa will surge very soon. We must. We are located between Arcadia/Monrovia/Duarte/Bradbury and Glendora/La Verne/Claremont. Once Rosedale is built, it is going to trigger a chain reaction on the retail end of things and then the city, as a whole, will finally be noticed.