RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA | reply to oliphant
Re: That's the case in OC
It's a shame too, I love CA, and I will stay here, but they need to do something about the home prices! I mean, it's great if you own a home, you make more money, but first time buyers are getting shut out of the market. |
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oliphant
I Have 8 Boobies
Premium
join:2004-11-26
Corona, CA
1 edit | Heck at the way things are going up, even previous owners are having a hard time. I think it's topography as much as it being OC. With the mountains just to the east, it creates a sort of island of demand since you can't just be another 5 miles away. The other side of the mountain like where I am, turns a 5mi commute into a 25mi commute in some of the worst traffic in SoCal. If they had more routes (like the proposed tunnel or another toll road over the mtn.) in and out of the county I think prices would stabilize a bit since you would have more supply and west RCo would continue increasing.
In the meantime...yep...OC buy-in is getting steeper and steeper.
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3SGTE
ST215W
Premium,MVM
join:2000-11-23
there
clubs: | It sounds like it is cheaper to buy land in Japan.
Having said that there is another paralell there too...
Can you say bubble?
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Zorglub
join:2000-11-18
Fremont, CA | Bubble no, supply and demand yes. Land is a finite resource out here (ocean to the west, moutains to the east), while population growth shows no end in sight. So, as long as the demand for housing outstrips the supply, prices will go up. |
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HousePoor
@159.83.x.x | reply to RR Conductor
Tell me about it. I make over 100K/year and have 50K for a down and I still can't get into anything in an area I'd want to live in. I figure I'll have to wait until I retire to buy a home somewhere affordable. |
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Alan Greenspan
@sonnet.com
| reply to Zorglub
Not true. The biggest factor in home prices is not supply and demand of homes, it is supply and demand of dollars. Meaning, it is interest rates, because most of a home's purchase price is borrowed money. A really big increase in interest rates will shut down your home prices overnight.
And yes, there is a bubble. Hope you're not in it. |
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Zorglub
join:2000-11-18
Fremont, CA
| Duh, a really big increase in interest rates would shut all homes sales overnight... Big wooptidoo.
Supply and demand of dollars... I'm not sure that actually means anything.
While CA home prices could be headed down short term, long term, they have nowhere to go but up. Reason, supply and demand. So long as there is population growth in CA, prices have nowhere to go but up.
Now, will my house appreciate another 50% in the next five years, I really doubt so. Could my house go down in the next five years? Sure, it's possible. But at the end of the day, it'll still gonna go up in the next 20. |
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3SGTE
ST215W
Premium,MVM
join:2000-11-23
there
clubs:
| said by Zorglub  : But at the end of the day, it'll still gonna go up in the next 20. That is the problem after a bubble.
After the correction comes, and the prices are not likely to rise as fast as quickly.
Sure they will rise again. Say they start rising from the new value of the house, which may be 50% of the peak value.
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Zorglub
join:2000-11-18
Fremont, CA | Aside from a huge earthquake or a complete economic meltdown, a 50% decrease in house value is very unlikely IMHO. If prices go down 10% in the next couple years, that might be the end of it. |
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