Just when it was looking like things couldn't get any worse in the housing market, government officials announced Tuesday that home prices had their biggest fourth-quarter drop in 17 years.
At the same time, foreclosure filings in California soared 120% in January from a year earlier to 57,158, according to Irvine-based market researcher RealtyTrac. California's foreclosure rate was second only to Nevada nationwide.
Not that he's rooting for anyone to lose their home. Rather, he's looking for a little plot of land to call his own.
The topsy-turvy housing market is a blessing in disguise for people who never imagined they'd have a shot at owning property in Southern California, where prices are so ridiculously high that many recent college grads are forced to live with their parents.
The median home price in the state last month was $430,370, according to the California Assn. of Realtors. The median household income in California as of 2006 was $64,563, according to Census figures.
It's a cruel imbalance that keeps the American dream out of reach for far too many people.
On the other hand, for those trying to sell a house or condominium, or those (like me) who look on their home as the bedrock of their retirement plans, you can almost feel the money slipping between your fingers as prices keep plunging.
"People who are selling now are really feeling it," said Doug Willis, a Pasadena real estate broker. "After taking money out of their homes for years, they're realizing they might have a significant loss on their property compared to what they owe for it."
In San Diego, Porcupile moved into his rental house in late 2006. He immediately set about sprucing the place up -- painting, landscaping, replastering the ceiling. He didn't own the house, but he still wanted it looking good.
"It's my home," Porcupile said. "I live here. I take pride in my home."
The housing slump came knocking a few weeks ago when Porcupile found a foreclosure notice on his door. (As I wrote earlier this month, renters are increasingly getting blindsided as landlords miss payments and foreclosure proceedings begin.)
Porcupile worked out terms on Monday to vacate the property and will move into another rental house within the next couple of weeks.
But he's also looking around his current digs and wondering if he might not want to make an offer when the house hits the market.
"I've invested a lot of blood, sweat and tears in this house," he said.
As a member of the military, who saw action in Desert Storm, Porcupile said he always figured his annual pay of less than $50,000 and uncertain life would preclude home ownership.
Now he's thinking otherwise.
"I'm paying $2,000 a month in rent," Porcupile said. "If I could pay about the same amount in mortgage, absolutely I'd do it."
It would all depend on how low the price goes. An index of home prices nationwide compiled by the Office of Federal Housing Enterprise Oversight found that prices had their biggest fourth-quarter drop since 1991. Home prices were down in every state except Maine.