Will things get better?

Life in LA is hard right now.

Thankfully, the raging fire is almost contained. But water mains are breaking all over the city. We're in a major drought. The economy bites.

More layoffs are coming and yet, for some reason, housing prices here are still insane.

I have a few friends who make GOOD money. And they can only afford to buy places in the valley. No offense but I just could not live in the valley. I rather move back to Connecticut. Between the smog and heat and general craziness of the people there, it just doesn't make sense for me. And it's not like places in the valley are *that* much cheaper or bigger or nicer than the west side. Ok, well maybe people move to the valley because they can afford a house there and not on the west side - so the houses in the valley are bigger and nicer than what you would get on the west side for the same money ($500-600K in the valley vs. $1 million for the same thing on the west side). Frankly, I rather move to Orange County. It's newer and nicer and cleaner and the public schools are better. (er, that's in the off chance I actually get married and have kids)...

Argh.

How can real estate prices still be SO high when so many people are out of work? Am I the only one who thinks it's insane that crappy, small, one bedroom condos with a view of another building are a rip-off at $300-400K??

Maybe everyone sane moved out of LA already...

And the entire entertainment industry is messed up. I feel like it will not recover.

Oh well.

I feel stuck.

It's amazing to me that the only people that regularly read and comment on my facebook status updates are friends from high school. I hate to say it but I just don't think people in LA care. Or maybe they all already have their own circle of friends that they care about. I've cut a LOT of people out in my life here in LA and I have no regrets about that. Flaky, self-absorbed "friends" are not friends worth having.

Why am I still here?

I don't know.

I honestly don't.

I guess if I had some help I would move but for now it's just easier to stay here, stuck, than to make some massive move cross country to Florida or back home.

Anyone want to help??

I mean, my friend said, "it's a GLOBAL recession. It's going to suck anywhere you go..."

But still, I can't help but wonder, if I couldn't find at least one or two friends if I lived somewhere else that had more free time and were more caring and giving than people here.

The @#$#@'d up economy - how did we get here?

For anyone that knows me well, it's no secret that I love reading and talking about the housing market.

And with the economy in shambles, I have to ask myself, "How did we get here?"

Why is everyone struggling?

Sure, if you lose your job, that's a hardship whether you're making 6 figures or minimum wage. We all have bills to pay and it's tough to pay your rent or mortgage without an income.

However, the bigger problem is really the housing bubble.

Why?

It's not just that banks and investors are losing their shirts because of speculation in the housing market.

Because the cost of real estate rose so rapidly the past 5-6 years, we are all now paying the price.

Why?

Because your house or condo isn't worth double, triple, or quadruple what you paid for it 2-4 or even 5 years ago.

And now every American is paying for their neighbor's greed and lack of math skills.

Say, for example, the average American household makes $46K a year. I'm not sure what the average salary is but that sounds about right according to the 2005 census.

How can that household afford an increase in rent from say $700 - 10 years ago to $1000 or $1200 now? Simply put, they can't.

I mean, most people I know are making the same or less money than they were 5-10 years ago and even if you get a raise, how many of us are making 35-50% more to cover the increase in housing costs?

It's no wonder housing prices are tanking.

It's supply and demand working its magic and as more people lose their jobs, rent prices will continue to come down. And housing prices in general will have to come down to sane levels.

I don't care how many things you cut out - cell phone, cable tv, eating out, vacations, etc. I think you could cut out all those "luxuries" and still be screwed financially because housing prices are still way out of whack.

So thanks to Alan Greenspan and George Bush and all the greedy mortgage brokers and banks and lenders. And thanks to anyone who bought real estate as an "investment" in the past few years.

Hold on to your hats, ladies & gentlemen.

We're in for a bumpy ride!