House prices in California suck...

[Budmantom]

Originally posted by: Demon-Xanth
I'd love to find a place under $100/ft^2. All the places around my area (even in the boonies) are closer to $150-200/ft^2

Got to love California 😉

 

[rh71]

The definition of suck is when you have to buy a house for $330k when it sold for $194k back in '95.

 

[vi edit]

One of the few perks of living in the sticks.

Bought a brand new 1550 sq/ft townhouse (3br, 2 bath) 2.5 years ago for 120k. It's now worth 131k.

 

[Demon-Xanth]

I do live in the sticks. I can't get DSL because I'm too far from the central office and the cable companies don't even deliver. It's impossible to get a pizza delivered, maybe if I offer a $20 bill as a tip it could happen. And houses are STILL twice what vi's is.

 

[DT4K]

Originally posted by: Demon-Xanth

Originally posted by: TommyVercetti
So how exactly does a person buy a house in california? How can a person qualify for a ~300K mortgage, when they make around $50K?

That's what I'm wondering. I'm looking down the barrel of a $200k mortgage and I make $40k. About 50-60% of my income would go to the roof.

Sounds like that would really be pushing it.
I can just barely afford my house payment on a 145k loan and I make 52k.

I also wonder how anyone can afford to buy a house in Cali.
Obviously there are enough people who can afford it, otherwise, the prices would go down.

My brother-in-law was in the bay area making 70k. His wife made around 60-70k and they had no kids.
They couldn't find anything decent for under 500k.

So they moved to Boston. Actually, about 30 miles outside Boston.
They bought a 4 bdrm, 2500 sq. ft house for 260k.
They now have 2 kids and live comfortably on his 80k income.

 

[Geekbabe]

Originally posted by: Red Dawn

Originally posted by: Amorphus
I'm in MA. kid I knew, lived in like a 3200 sq ft. house. family sold the house, moved to cali (his dad got a job there), and the best they could do with the money from selling their house was like a 1500(?) sq ft townhouse.



on a related note, California has also turned him into a tool. :disgust:

That's a pretty mean trick when you consider MA is the Fool Capitol of America (Red Sox Fans) 😉

Hand a man a shovel and he just digs the hole he's standing in deeper! 🙂

 

[Cyberian]

Don't housing prices have a lot more to do with what major cities (read: job markets) you are near than what state you are in .
I would imagine that homes in Groton, CT are more expensive than those in Adelanto, CA.

 

[cyclistca]

Originally posted by: TheeeChosenOne

Originally posted by: cyclistca
Houses prices in Vancouver suck. In fact I'm in IT and I can't even afford to buy a house in this market. The best I can hope for is a condo or maybe a small townhouse.

I've already lost out on two places because of bidding wars.

And gee it isn't even sunny here year around.

Wow. Never knew BC was expensive. It's a beautiful area to lie in btw.

Do you think th eburgeoning movie industry has caused the market to scale up?

I don't think it has much to do with the movie industry. I think it's related to

1. Asians with money moving here and pushing up the market

2. People that bought cheap when things are reasonable and who are now selling at large profits. They then either take this money and buy another place or down size and give the funds to their children who push up the market.

3. Canadian who are retire here because it does not snow

4. Americans who buy part time places here.

Make it really hard for us normal joes

 

[OS]

house prices are high also because of several factors. Interest rates are low, so people can still afford the monthly payments. Also people really aren't investing anywhere else now, there really isn't anywhere to put money. Traditional investments like stocks, savings aren't giving any returns.


Prices probably won't collapse, but what may happen is prices will stagnate for several years, especially if interest rates go back up. This happened over a decade ago in CA, house prices remained relatively unchanged for several years.

 

[lowtech1]

Originally posted by: rh71
The definition of suck is when you have to buy a house for $330k when it sold for $194k back in '95.

My parents bought their house for $79,000 CAD in 1983, and now I?m buying it from my mother for $300,000. I got a good deal out of it, because my IT wage can only afford a condo, and I don?t have to paid interest for 10 years. The actual appraise price for it is $330,000 & at the current market condition a house as such would have buyers fighting over at $350,000.

 

[Queasy]

Go check out some of Walter Williams articles (a noted econmists). He pretty much nails the housing situation in California.

 

[LordUnum]

Originally posted by: OS
house prices are high also because of several factors. Interest rates are low, so people can still afford the monthly payments. Also people really aren't investing anywhere else now, there really isn't anywhere to put money. Traditional investments like stocks, savings aren't giving any returns.


Prices probably won't collapse, but what may happen is prices will stagnate for several years, especially if interest rates go back up. This happened over a decade ago in CA, house prices remained relatively unchanged for several years.

Actually, they first dropped precipitously--and on more than one occasion--then 'plateaud' for several years. They didn't just 'even out' against some arbitrary 'ceiling.'

Thankfully we've had no major earthquake, rioting or the almost total collapse of two of our most vital economic engines (the aerospace & defense industries) as we in the L.A.-area did before, so hopefully the lull we'll inevitably reach in the real estate market is small and not too prolonged. Demand being what is, though, and far outpacing any new construction, it's hard to figure out when we'll be in for any period of 'stagnation.' Guess jobs (or a future lack of) will eventually be the deciding factor.

Let's hope for something less dramatic next time on both sides of the coin in all respects--boom/bust, sellers/buyers. 🙂

 

[draggoon01]

Originally posted by: Queasy
Go check out some of Walter Williams articles (a noted econmists). He pretty much nails the housing situation in California.

links?

or summary of his theories?

 

[Mavrick]

Housing in Quebec is about the lowest in America. For example, you can get a newly built house in metro Montreal for $160k or a 2 bedrooms condo downtown for $120k.

 

[cyclistca]

Originally posted by: Mavrick
Housing in Quebec is about the lowest in America. For example, you can get a newly built house in metro Montreal for $160k or a 2 bedrooms condo downtown for $120k.

No kidding. I was getting ready to buy a house in Montreal before I got laid off then moved out here to Vancouver.

 

[bentwookie]

my house appaised for $500,000 last year..prices are crazy in the northbay.

my brother's is $600,000 he paid $400,000 2 years ago.

 

[Adul]

housing prices in phoenix are fairly descent. 🙂
But it is hot here