Crazy Cali Real Estate

1967 R50/2 · 10-13-2005, 06:53 AM

I forsee....hmmm....an increase in rich real estate agents and poor land owners...

http://money.cnn.com/2005/10/06/real_estate/property_california.reut/index.htm

tabs · 10-13-2005, 09:37 AM

Inland areas will go up by 10% next year....Hah.....Price collapse is more like it. Starting out in Orange and LA Counties and spreading from there.

If U need to sell and can't find a buyer, then you drop your price till you find one. Simple really, and that starts the downward trend. The next guy will sell under the first sellers price. Then if you start to get some of these creative loans called in...and the owner finds himself upside down...it's walk away time...better known as foreclousure time....so the RE outlook isn't too bright.

My guess would be that as fast as prices went up and the %age they went up in the spike is the amount of decline your going to see. All that excess is going to be wiped away.

I think the Coastal areas are going to feel the pinch first and then it's going to move inland. It still might even be on the rise inland whereas the coast is declining.

EdT82SC · 10-13-2005, 10:32 AM

But for the moment RE prices inland are still climbing. All the people that feel left out by the huge price increases on the coast are moving inland for the cheaper real estate. In the mid 90's Moreno Valley turned into a ghost town after people bought places they could barely afford in 91-92, and then walked away from them when the houses lost more then half their value.

P0WER · 10-13-2005, 10:37 AM

Doesn't seem too bad at all.
I bought mine in 2002 for $170k it appraised 3 months ago for $360k
But my area is sky rocketing

pbs911 · pbs911's Garage

Humm, only 14% of the population can afford to buy homes, even at an increase of the standard percentage of income going towards a mortgage. Yet, 100% of the population needs a home to live in. That leave 86% of the population out of the home-ownership equation. If sellers ever want to sell their home they will have to come down to a level where there is a significant numbers of potential buyers in the market.

Alternatively, if the market doesn't move in line with reality. . .

The scenerio where the majority of the population could not buy land occured in Hawaii in the 60s or 70's, I forget. A few landowners held the majority of property. There simply no affordable homes available for people of the state. The state enacted eminate domain, took the land for the people and sold at a resonable price the people could afford. With the recent Supreme Court decision regarding confiscation for the public use, this is one possible cure for people across the US.

campbellcj · 10-14-2005, 06:28 PM

LOL, I was in Ft. Worth, TX yesterday and at lunch break happened to glance at the bulletin board next to the coke machine. Saw a posting for a house for sale, 3br/2ba 1800 sf, pic looked nice...I thought to myself, LOL, self, I gotta read this, I bet it's "only" about 300-400K. WRONG...$182K or thereabouts.

There is a comparable sized/vintage house down the street from me, needs some work and probably the crappiest house in the neighborhood, asking $900K. It has been listed for about a month already. The last quite a few houses in the neighborhood sold in under 2 weeks, many in 1-3 days, so I tend to agree that things are slowing down a bit. Crash or serious price erosion - personally I do not see that happening, but regardless am not very concerned as we do not plan to move for a few years, and in the mid-long term CA real estate is as solid an investment as you'll ever find.

flyenby · 10-14-2005, 07:05 PM

IF you are into real estate for the long run you will be okay........