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Mixed Bag for California Home Prices...

3945 Views 31 Replies 20 Participants Last post by  klamedia
Im usually spot on when predicting the market, but this is weird.

According to The California Association of Realtors, April 24, 2007

Statewide Median Price and Annual Percentage Change
Single Family Home $580,090 +3.2%
Condo $435,770 +1.2%

Regions
Central Valley $331,450 -5.6%
High Desert $320,830 -1.8%
Los Angeles $571,110 +2.6%
Monterey Bay $729,840 +2.7%
Santa Cruz County $751,000 +1.5%
Far Northern CA $391,460 -9.9%
Napa and Sonoma Valleys $601,560 -3.5%
Orange County $706,650 -1.5%
Inland Empire $394,370 -1.7%
Sacramento $363,000 -3.5%
San Diego $605,950 -0.2%
San Francisco-Oakland $785,380 +5.6%
San Luis Obispo $550,400 -6.1%
Santa Barbara $867,650 +14.2%
San Jose $830,000 +9.2%
Ventura County $672,550 -0.9%
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I thought Sacramento would be more expensive. Also, isnt S.F. more expensive than San Jose? is this because it is including Oakland?
I thought Sacramento would be more expensive. Also, isnt S.F. more expensive than San Jose? is this because it is including Oakland?
yeah,
Oakland(Pop 2.5M) is "cheaper" at $675,000 whist SF(Pop 1.7M) is around $945K now, but since the East Bay is considerably larger, it drags SF, San Mateo and Marin(The Historical SF Metro) down.
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Im usually spot on when predicting the market, but this is weird.

According to The California Association of Realtors, April 24, 2007

Statewide Median Price and Annual Percentage Change
Single Family Home $580,090 +3.2%
Condo $435,770 +1.2%

Regions
Central Valley $331,450 -5.6%
High Desert $320,830 -1.8%
Los Angeles $571,110 +2.6%
Monterey Bay $729,840 +2.7%
Santa Cruz County $751,000 +1.5%
Far Northern CA $391,460 -9.9%
Napa and Sonoma Valleys $601,560 -3.5%
Orange County $706,650 -1.5%
Inland Empire $394,370 -1.7%
Sacramento $363,000 -3.5%
San Diego $605,950 -0.2%
San Francisco-Oakland $785,380 +5.6%
San Luis Obispo $550,400 -6.1%
Santa Barbara $867,650 +14.2%
San Jose $830,000 +9.2%
Ventura County $672,550 -0.9%


The Central Valley is still one of the cheapest places 4 homes!!!....:righton:
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^^ Cheapness is relative...I don't consider 331k cheap at all.

The thing that I'm suprised is that, although the nation as a whole has seen a decline in prices, not California.
The most expensive state, California is still seeing rising prices, and the most expensive metros are still rising.

Seriously, and I thought housing prices in the Hartford area was expensive..damn.

Has the subprime meltdown hit California hard?
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Has the subprime meltodwn hit California hard?
Unfortunately– and not surprisingly– the subprime mess has hit the Central Valley the most. And it's only going to get worse I fear.

Hey centralCali, why are you stoked prices in the CV are down 5.6%? I mean, it has the cheapest housing in the state but I would argue that it's still not a good deal.
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How is a middle class family in California supposed to afford an average (or even below average) home? :eek:hno:

One columnist from there wrote a while ago that the state is becoming polarized between two kinds of people: rich people with few if any kids who can afford the housing, and immigrants from places like East Asia and Mexico where folks are used to much less living space per capita and will often pile together into $600,000 3 bedroom housing affording it with mulitiple paychecks.

Meanwhile, middle class Americans get squeezed out to other states.
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Wage is correspondingly higher compared with the rest of the nation, though not nearly enough to cover home costs.

The bay area sees a mass of professionals who earn enough to afford a home. Also, remember prices were not so much a while ago.

One of the houses my family has was 400,000 when it was bought 10 years ago. It costs about 1,000,000 now.
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How is a middle class family in California supposed to afford an average (or even below average) home? :eek:hno:

One columnist from there wrote a while ago that the state is becoming polarized between two kinds of people: rich people with few if any kids who can afford the housing, and immigrants from places like East Asia and Mexico where folks are used to much less living space per capita and will often pile together into $600,000 3 bedroom housing affording it with mulitiple paychecks.

Meanwhile, middle class Americans get squeezed out to other states.
Funny but benefits from higher prices are accross the board...so long as the people lived in the area before 1995. Those immigrants who crammed into one house back in 1995 now each probably own a home worth 750k. The people really getting it are recent arrivals and the young people like myself. I did some math and to afford a nice house (800k) and live comfortably one must make about 7k/month AFTER taxes. That's A LOT of $$ if one doesnt work in hi-tech.
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Funny but benefits from higher prices are accross the board...so long as the people lived in the area before 1995. Those immigrants who crammed into one house back in 1995 now each probably own a home worth 750k. The people really getting it are recent arrivals and the young people like myself. I did some math and to afford a nice house (800k) and live comfortably one must make about 7k/month AFTER taxes. That's A LOT of $$ if one doesnt work in hi-tech.
There's no benefit unless you sell the house, and move to a different part of the country. Otherwise if you sell your $700,000 house in LA, you will just have to buy another $700,000 house.

Which goes back to the above point of a lot of Americans leaving, and few Americans from outside migrating there because of the real estate costs.
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There's no benefit unless you sell the house, and move to a different part of the country. Otherwise if you sell your $700,000 house in LA, you will just have to buy another $700,000 house.

Which goes back to the above point of a lot of Americans leaving, and few Americans from outside migrating there because of the real estate costs.
Well the benefit is that if you purchased a house for 300k thats now worth 800k (very common in Silicon Valley if you purchased pre-1998) the you have gains of 500k which can be taken out and reinvested or spent. May people simply sold and used the gains as a down payment for a larger house or multiple homes. [No harm done, so long as prices hold up!]
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The people who bought homes there in the mid-90s, and sold it when it boomed recently are incredibly lucky. Actually, in most large US metros, this is the case.

I actually know a family who moved from the Bay Area to Atlanta this way. They got so much cash from their home sale that they were able to buy a much bigger house there.
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Wow, those prices are just redic.

$830,000 as an average home price? In much of the country you can find a nicer home for $250,000. Those people who bought for $830,000 are going to be in a world of hurt if prices keep going down or a huge natural disaster hits that spoils the economy for a period. Or both.
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The people who bought homes there in the mid-90s, and sold it when it boomed recently are incredibly lucky. Actually, in most large US metros, this is the case.

I actually know a family who moved from the Bay Area to Atlanta this way. They got so much cash from their home sale that they were able to buy a much bigger house there.
The company I work for acquired a Bay Area company and relocated a bunch of people to Minneapolis. I went out there during the acquisition and I didn't understand why anyone from there would want to move to Minneapolis. It's probably one of the most beautiful areas in the country.

After spending some time with my California co-workers, I understand why now.

A lot of those people bought houses in the Bay Area in the early to mid 90s and a lot of them made well over $300K on the sale of their houses. On top of that, the company paid for all relocation costs.

This enabled them to move to Minneapolis, pay cash for a house, and have money left over for Minnesota toys----SUVs, jetskis, boats, snowmobiles, etc.

All of my California co-workers who now live in Minneapolis live like royalty.
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unfortunetely its not cheap at all..but by "Californis Standards" the central valley is still cheapest region in the state....and around this area "affordable housing" are from $220,000 and less...before the housing boom houses around here were as cheap as $90,000 and could probably get a luxury home for around $200,000. and im actually suprised when i know about new homes in the midwest and other regions in the u.s. that are around 50k, and that is very cheap!.....
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Keep in mind that this is the median number, not the mean number. In cases like California where you have two extremes, the super rich bring the median up a fair bit.
Keep in mind that this is the median number, not the mean number. In cases like California where you have two extremes, the super rich bring the median up a fair bit.
You've got it backwards.
^^ Yup, in the sense of how mean and median works as a measure of the center, median is more resistant against manipulation than mean.

Check this out:

5, 6, 7, 5, 7, 6, 30

Median = 7
Mean = 9.4
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There's no benefit unless you sell the house, and move to a different part of the country. Otherwise if you sell your $700,000 house in LA, you will just have to buy another $700,000 house.

Which goes back to the above point of a lot of Americans leaving, and few Americans from outside migrating there because of the real estate costs.
Also, if you bought the house for $200,000 in the 90s and now its worth $700,000, you can't just buy another house and break even. You would be having to pay taxes on the $700,000 price instead of the $200,000 price.
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How is a middle class family in California supposed to afford an average (or even below average) home? :eek:hno:

One columnist from there wrote a while ago that the state is becoming polarized between two kinds of people: rich people with few if any kids who can afford the housing, and immigrants from places like East Asia and Mexico where folks are used to much less living space per capita and will often pile together into $600,000 3 bedroom housing affording it with mulitiple paychecks.

Meanwhile, middle class Americans get squeezed out to other states.

Who cares? Let the middle class live in the Midwest. The coast of California is becoming like a giant Manhattan, a massive stetch of alpha urbanites, the immigrants to tend to their needs, and brave young hipsters who crave to be in the center of it all.

California, it ain't for everybody.
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