MEDIAN home price in California: $428,280

[conjur]

Median Price of a Home in California Increases 22 Percent in March, Sales Up 4 Percent, C.A.R. Reports

:Q :Q :Q :Q

 

[ElFenix]

and yet people are still buying in :Q

 

[SuperTool]

Bleh. I guess I am not buying one now. Everyone is buying to get the low interest rate. I guess I'll wait for interest rates to rise and suppress prices. Cus looking around it's crazy in the bay area, a 1 br condo goes for $300K. I don't think incomes rose 22 percent, so this is low interest rate driven buying, which will be over this time next year.

 

[HeroOfPellinor]

My house has gone up almost 100% in two years.

 

[maddogchen]

Damn whats wrong with my neighborhood then? my house hasn't moved over the 800k hump still.

 

[conjur]

Are people getting like 50, 75 year mortgages or something?

 

[Orsorum]

Originally posted by: conjur
Are people getting like 50, 75 year mortgages or something?

Probably.

 

[HeroOfPellinor]

Originally posted by: conjur
Are people getting like 50, 75 year mortgages or something?

The deductions from their mortgage payment interest and property taxes are bringing them all down to non-taxable income basically.

 

[SuperTool]

Originally posted by: maddogchen
Damn whats wrong with my neighborhood then? my house hasn't moved over the 800k hump still.

Median price means half the homes are cheaper, and half ar mroe expensive than $430K
So maybe cheaper homes became more expensive, but more expensive ones didn't change much.

 

[HeroOfPellinor]

Originally posted by: SuperTool

Originally posted by: maddogchen
Damn whats wrong with my neighborhood then? my house hasn't moved over the 800k hump still.

Median price means half the homes are cheaper, and half ar mroe expensive than $430K
So maybe cheaper homes became more expensive, but more expensive ones didn't change much.

Exactly. Affordable housing especially in places like Sacramento has been on fire. There are such big percentage increases because the prices were so low to begin with. Not any more though.

 

[maddogchen]

Originally posted by: HeroOfPellinor

Originally posted by: SuperTool

Originally posted by: maddogchen
Damn whats wrong with my neighborhood then? my house hasn't moved over the 800k hump still.

Median price means half the homes are cheaper, and half ar mroe expensive than $430K
So maybe cheaper homes became more expensive, but more expensive ones didn't change much.

Exactly. Affordable housing especially in places like Sacramento has been on fire. There are such big percentage increases because the prices were so low to begin with. Not any more though.

I see, makes sense.

 

[charrison]

Originally posted by: conjur
Are people getting like 50, 75 year mortgages or something?

Longest term i have have seen is a 40 year note.

I have also seen interest only mortages, I guess that works out ok if you dont plan to stay long and property values are rising at 20%

 

[Steeplerot]

Renting is going waay down in the city San Francisco. (A few years ago we were drowning in skyrocketing rents and yuppie infiltration.)
I guess they went back to the midwest with their money yay!

 

[LordMagnusKain]

at 5.5 you can get a 428k home on a 30 year and pay ~ 2,450 per month, or a 428k home on a 75 year and pay ~ 2,000 per month. I can't imagen how a few points of interest is worth an extra ~ million dollars in payments.

as a side note: a 15 year note would cost ~ 3,550 a month and save you ~ 243k on the home; So send in that extra payment whenever you can

 

[Drift3r]

Originally posted by: steeplerot
Renting is going waay down in the city San Francisco. (A few years ago we were drowning in skyrocketing rents and yuppie infiltration.)
I guess they went back to the midwest with their money yay!

The .com bubble burst took out a lot of people. I still cant get over people buying $500,000 dollar homes in areas with rampant drug dealing ( Hunter's Point, Mission District, etc.. ) happening in the open.

 

[Queasy]

Make me wish I were older and had bought a house in California in the early 80s....

One of my wife's friends sold their house in California for a small fortune and bought a REALLY nice house here in the Atlanta area almost two years ago.

 

[bozack]

Originally posted by: SuperTool
Bleh. I guess I am not buying one now. Everyone is buying to get the low interest rate. I guess I'll wait for interest rates to rise and suppress prices. Cus looking around it's crazy in the bay area, a 1 br condo goes for $300K. I don't think incomes rose 22 percent, so this is low interest rate driven buying, which will be over this time next year.

it is all relative, buy now or buy when prices slightly drop and your not saving or losing money in the end...

here in mass you cannot even touch a decent townhouse for under $350K...and people are still buying in droves, one would think with the lousy econ that housing prices and sales would be down?? or maybe the econ isn't as lousy as some would lead us to believe....Dave?

 

[zephyrprime]

Are people getting like 50, 75 year mortgages or something?

Nope. Still the regular 30 yr. In japan, lots of people buy 100yr mortgages!

But this bubble will burst soon. Greenspan and all the other members of the fed have said that rates are going up. I'm thinking that they'll move in the second half of this year. Plus, new house starts have been at record levels for so long (outpacing population growth even when considering only single family homes) that I can't seen how there isn't adequate supply in the market.

 

[charrison]

Originally posted by: zephyrprime

Are people getting like 50, 75 year mortgages or something?

Nope. Still the regular 30 yr. In japan, lots of people buy 100yr mortgages!

But this bubble will burst soon. Greenspan and all the other members of the fed have said that rates are going up. I'm thinking that they'll move in the second half of this year. Plus, new house starts have been at record levels for so long (outpacing population growth even when considering only single family homes) that I can't seen how there isn't adequate supply in the market.

existing home sales are at record levels too...

 

[warcrow]

My Fiancee and I (see sig) are going to be in the market in a few months to a year depending on how things go. Do you guys think the market is ever going to slow down?! Read the paper last week and they said its not stopping and prices will double in the next 8 years WTF!! :shocked:

 

[SuperTool]

Originally posted by: bozack

Originally posted by: SuperTool
Bleh. I guess I am not buying one now. Everyone is buying to get the low interest rate. I guess I'll wait for interest rates to rise and suppress prices. Cus looking around it's crazy in the bay area, a 1 br condo goes for $300K. I don't think incomes rose 22 percent, so this is low interest rate driven buying, which will be over this time next year.

it is all relative, buy now or buy when prices slightly drop and your not saving or losing money in the end...

here in mass you cannot even touch a decent townhouse for under $350K...and people are still buying in droves, one would think with the lousy econ that housing prices and sales would be down?? or maybe the econ isn't as lousy as some would lead us to believe....Dave?

If the bubble burts and some people are underwater on their mortgages and foreclose, wouldn't that start a snowball effect? They put their house on the market, supply increases, prices drop, more people under water, repeat. I don't know, I haven't been in a housing market bust, but how does it work?

 

[charrison]

Originally posted by: SuperTool

Originally posted by: bozack

Originally posted by: SuperTool
Bleh. I guess I am not buying one now. Everyone is buying to get the low interest rate. I guess I'll wait for interest rates to rise and suppress prices. Cus looking around it's crazy in the bay area, a 1 br condo goes for $300K. I don't think incomes rose 22 percent, so this is low interest rate driven buying, which will be over this time next year.

it is all relative, buy now or buy when prices slightly drop and your not saving or losing money in the end...

here in mass you cannot even touch a decent townhouse for under $350K...and people are still buying in droves, one would think with the lousy econ that housing prices and sales would be down?? or maybe the econ isn't as lousy as some would lead us to believe....Dave?

If the bubble burts and some people are underwater on their mortgages and foreclose, wouldn't that start a snowball effect? They put their house on the market, supply increases, prices drop, more people under water, repeat. I don't know, I haven't been in a housing market bust, but how does it work?

That is a possible scenerio.....

 

[HeroOfPellinor]

Originally posted by: warcrow
My Fiancee and I (see sig) are going to be in the market in a few months to a year depending on how things go. Do you guys think the market is ever going to slow down?! Read the paper last week and they said its not stopping and prices will double in the next 8 years WTF!! :shocked:

Increases to the interest rate could slow it down, but interest rates rising won't happen until the job market starts heating up which could cause another surge.

 

[LordMagnusKain]

Originally posted by: Drift3r

Originally posted by: steeplerot
Renting is going waay down in the city San Francisco. (A few years ago we were drowning in skyrocketing rents and yuppie infiltration.)
I guess they went back to the midwest with their money yay!

The .com bubble burst took out a lot of people. I still cant get over people buying $500,000 dollar homes in areas with rampant drug dealing ( Hunter's Point, Mission District, etc.. ) happening in the open.

Just like kurgman?s book 'the great unraveling' said: we're trading the .com bubble for a housing market bubble.

Save your highly inflationary cash in precious mettles and invest in housing when time comes in 2-6 years.

 

[TechJunkie95242]

Originally posted by: conjur
Median Price of a Home in California Increases 22 Percent in March, Sales Up 4 Percent, C.A.R. Reports

:Q :Q :Q :Q

I think the GOP are saying the economy is getting stronger, but no one is feeling it. It's a shame..