 ThespisI'm not an actor, but I play one on TV.Premium
join:2004-08-03
Keller, TX | reply to Mr Neutron
Re: [Rant] House/Property Prices in California said by Mr Neutron:I agree the someone paying 700K for a house might seem ridiculous to you if the houses go for, say, 300K in your neck of the woods. But there's a reason why the houses are going for 300K in your neck of the woods (and more/less elsewhere): because that's what the market will bear. Just to add to your point...
There's been significant population growth in my area over the last 10 years or so, but the housing prices have been relatively stable. I believe it's the fact that there's still a great deal of undeveloped land around. In this case the supply can easily keep up with demand and the price stays the same. In areas that are more or less "built out", the supply is finite and the price rises with rising demand.
This won't last forever. The population in our area continues to rise. Texas is a little more recession-proof than other states and folks are flocking here for jobs. In another five years, we may have an explosion in housing prices too. I can only hope. I'll do what some of my friends from California did; sell the house for a small fortune, buy one in another state for cash and bank the profit.  |
