RE bubble collapse pre-2008 in LA ghetto areas

This is a look back at fraudulent bubblicious prices pre-2008 in some really nasty LA ghetto zip codes. These are some of the poorest impoverished neighborhoods in US and are 90% populated by minorities and recent immigrants, including illegals. As you can see on the chart, there were already price declines of from 16% to 50% in home prices YOY from peak 2007 prices to mid-2008, the time i wrote the list. And this was just the start of the great SoCal RE bubble collapse. Today the average prices in these hoods is $200,000; perhaps $250,000 for the slightly better hoods. Prices have fallen 100-150% or more in vitually all the listed zips. Today they have scarcely budged from their lows and foreclosures are on the rise again.

Occupy Wall St movement and their ultra-left radical allies decry big banks as being the sole cause of rampant foreclosures in LA inner city areas. In fact it was local neighborhood homeowners, local realtors, local mortgage brokers, local speculators and the homeowners themselves who drove the 200-300 % markups in the LA ghettos. Examination of foreclosure lists back then and even today will reveal a majorty of the foreclosed-upon have Hispanic names. These Minorities and other ethnic minorities, including Blacks, constitute the overwhelming majority in these listed LA zips, and are the ones you see marching at take-back foreclosure rallies and protests against the villanous banks. Google Refund LA and who backs them. It is a coalition of radical groups composed of minorities, similar to ACORN's composition.

It was not solely the big banks who caused the price runups in the LA inner ghettos but local RE speculators who were in fact minorities selling/reselling/ buying homes on margin, and reselling those homes at ponzi-ed prices, then buying higher priced properties in a speculative frenzy for speculative porposes. At every step in the RE sales they took out massive HELOC's, or re-financed each time, and took out yet another HELOC. I delivered and passed thru all these zips in 2004-2007 and saw all the speculation, re-models, teardowns and rebuilds occurring in these ghetto hoods, and marked for sale at %300-%400 markups. Tiny 700 sq foot crackshacks with 1 bdrm/1 bath were listed at $400,000, even $500,000 in such ghettoized ratholes as lennox and Compton.


The list below was written in mid-2008, before the great fall 2008 financial meltdown, of which the SOCAL/LA RE bubble collapse was a harbinger and symptom

These are a few selected areas, maybe 20-30% of the total inner ghetto zips and the ones i have some familarity with. My inclusion of these particular ones is because these are where mortgage fraud was running most rampant, and these contain some of the nastiest gutted hoods in america. Bell and Maywood are for all intents and purposes controlled by the 18th st gang lock stock and barrel. Where mortage price specualtion and fraud activity was the highest you will see the steepest drops in YOY drops. LA inner city price run-ups were in mnay cases based entirely upon fraudulent appraisal and subsequent 200-300% markups. They should revert back to under $200,000 when the smoke clears.

City/ Zip/ # homes sold/ home prices early-2008/ % price drop from peak 2007

Bell 90201 5 $420 -11.6%
Huntington Park 90255 5 $385 -16.3%
Inglewood 90301 2 $400 -22.3%
Inglewood 90302 4 $450 -25.6%
Inglewood 90303 5 $295 -49.1%
Inglewood 90304 1 $417 -16.2%
Inglewood 90305 3 $469 -20.6%
LA 90011 5 $360 -18.2%
LA 90018 4 $343 -43.6%
LA 90047 17 $350 -26.7%
LA/View Park/Windsor Hills 90043 8 $363 -30.3%
LA 90062 9 $380 -23.4%
Long Beach 90805 17 $378 -16.3%
Maywood 90270 2 $325 -29.3%
Norwalk 90650 30 $352 -27.8%
Pacoima 91331 17 $320 -37.9%
Paramount 90723 9 $260 -46.8%
San Fernando 91340 2 n/a n/a n/a n/a n/a n/a
Wilmington 90744 5 $355 -20.7%
Winnetka 91306 11 $360 -35.7%