I don't know. However, if you ever find a home that you love and end up losing it in a bidding war, that can be pretty brutal.
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California Buyers Are Inflating Home Values (Video)
- Thread starter entremet
- Start date
I don't know. However, if you ever find a home that you love and end up losing it in a bidding war, that can be pretty brutal.
Oh they are moving to Idaho
Idaho doesn't want more deep-pocketed Californians? Too bad
For as long as California has existed, out-of-staters have moved here and driven up prices. Now, that's happening with ex-Californians in other states.
www.latimes.com
Same, I also live in north Phoenix and my house is approaching 80k increase in value since we bought it 1.5 years ago. While I was washing my car yesterday I had a couple walking past ask if I was thinking about selling anytime soon. The market is bananas.
Honestly I think it's all nonsense. I agree with him about what's happening. I strongly disagree that a crash is not coming. It will start with commercial real estate, under the weight of much debt. As companies terminate employee profit in favor of their own, the debt of huge house loans and new ownership will create a weight that will lead to a devastating crash.
Shit is extending to the Midwest as well. I was born in Indianapolis and their home prices have skyrocketed over the past decade. It's fucking unreasonable and it's driving everyone native to the city outward. If you're rich as fuck and can afford a lavish lifestyle in California then fuck right off with driving everyone else out of the market in their home cities.
I'm currently closing on my first home in Denver. I found a beautiful 890 sq. ft. home with a sizable yard for under $312,000 and I feel so lucky. Where I grew up, that could buy a 5BR mansion. My realtor specifically mentioned out-of-state buyers who are now permanently remote employees as a cause for the spike in prices and scarcity.
The problem is the taxes in California seem to fall into a black fucking hole. They sure as hell aren't going into the roads, or the schools, or the hospitals, or the energy infrastructure. As far as I can tell they mostly go toward funding the fucking cops.
The funny thing is, that's the exact way it is in CA too. People buying houses with outright cash, ignoring appraised values, waiving contingencies, etc. It was hell trying to buy a house because of this. You'd always lose and houses would go so fast that you had no time to even think. You had to see it and pretty much put in an offer immediately because it will be gone in a matter of a couple days.
Everyone, stop using California as a scapegoat for your housing costs.
Unless you're from NV, AZ, or TX, they probably aren't the only ones driving up prices.
Also, CITY PLANNING. We all need to freaking support better zoning laws that use mixed-use development and high-density living. The US is absolutely horrendous at city/housing planning, and it's destroying our real estate markets in cities and desirable markets. That's the real culprit in this situation.
Both of these bring up the other actual issues that are really in play here.
All of you out of state people complaining about California - YOUR states are the reason why prices are so high in CA.
People move here from YOUR state, make their money, then get out and drive up prices throughout the US. Yes, there are CA native people moving out, but I would guarantee most are opportunistic career seekers.
Also, ANY desirable area is going to be expensive. That's about all there is to it.
A lot is public services, including state employees and pensions, teachers, schools, funding the UC/Cal State systems etc.
On top of that, CA just has a ton of other problems most states don't have, including major water management issues, air quality mitigation, earthquakes, and, of course, tons of fires as of late.
We also have about the most miles of road in the US, so that doesn't help.
I dunno, they've done a ton of roadwork lately where I'm at.
There's still heaps of garbage all over the sides of the freeways though.
Unless you're from NV, AZ, or TX, they probably aren't the only ones driving up prices.
Also, CITY PLANNING. We all need to freaking support better zoning laws that use mixed-use development and high-density living. The US is absolutely horrendous at city/housing planning, and it's destroying our real estate markets in cities and desirable markets. That's the real culprit in this situation.
Oh they are moving to Idaho
Idaho doesn't want more deep-pocketed Californians? Too bad
For as long as California has existed, out-of-staters have moved here and driven up prices. Now, that's happening with ex-Californians in other states.
Both of these bring up the other actual issues that are really in play here.
All of you out of state people complaining about California - YOUR states are the reason why prices are so high in CA.
People move here from YOUR state, make their money, then get out and drive up prices throughout the US. Yes, there are CA native people moving out, but I would guarantee most are opportunistic career seekers.
Also, ANY desirable area is going to be expensive. That's about all there is to it.
A lot is public services, including state employees and pensions, teachers, schools, funding the UC/Cal State systems etc.
On top of that, CA just has a ton of other problems most states don't have, including major water management issues, air quality mitigation, earthquakes, and, of course, tons of fires as of late.
We also have about the most miles of road in the US, so that doesn't help.
I dunno, they've done a ton of roadwork lately where I'm at.
There's still heaps of garbage all over the sides of the freeways though.
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Pretty much. There are a whole slew of factors — subdued interest rates for over a decade, the popularity of AirBnb and similar services expanding the short term rental market, America's obsession with home ownership and accompanying tax breaks, investors seeking stability from overseas, the increased demographic shift to cities as economic engines — that's been driving up prices.
I lived in Austin for a decade and watched that city go from chill, college town with an arts scene to every out of towner wanting to live there, thereby exploding the cost of housing and pushing up demand in the surrounding areas (less Austin proper). I remember visiting Portland a decade apart and saw the same thing; moved to SoCal and the same thing happened again. The second a city gets any level of caché and prosperity, the cycle will kick in.
It sucks for millennials and later generations who tend to be saddled with student debt, a Republican "once in a lifetime" recession every decade, and economic forces that favor institutional investors and the wealthy.
According to Redfin, my SoCal house has already appreciated by almost $200k in value since I sold it last year. I feel like this is more due to my agent doing a horseshit job and just wanting a fast sale, though, but that kind of appreciation isn't farfetched at all for California.
Yeah, it's rough. My current house, we just happened to see it the one weekend it had an open house, and they were taking final offers by that Monday.
I can believe it. In the Bay Area, ours shot up pretty high after a year we got it and within 4 years after we got it, it was showing up as being valued at a 45% increase over what we paid for it. It has come back down a bit since then but still well over what we got it for and we haven't owned it that long either so the market is just nuts. I don't think we would have been able to buy it for the price that it's valued now either. Although I know it's crazier here than it is in SoCal too though.
Ya, the Monday after the weekend was pretty typical here from what we saw too and I know you're in the Bay Area as well.
We got lucky on ours because I think their agent made a few mistakes. The house got listed a couple days earlier than planned which meant it was a couple days before the weekend rather than on Friday. So we got to see it ahead of the rush. Our agent asked them what the sellers were looking for over list and the amount wasn't that high over list considering how crazy it is here so we offered it to them and the agent accepted the offer several days before the deadline and before the weekend offers could come in. We were prepared to pay a higher amount too but our agent said let's see what they're thinking first so he saved us money too and I think worked his magic to get them to accept. We heard later that there were some unhappy people about their offers being declined because we were in contract so I fully think if the agent hadn't made a few mistakes, we would not have this house now. Prior to that we had been looking for years but had no luck because of all cash buyers and houses going immediately after the weekend showing. I'm so glad that's over with because I never want to have to go through that craziness again.
People who complain about homeless encampments but can afford to buy a house . . .
What is empathy? What is a fucking pandemic putting people out of work? What is mass social inequality?
What is empathy? What is a fucking pandemic putting people out of work? What is mass social inequality?
Oh I know two bedrooms to bathrooms and a park g spot. Got I. 2009 at height of the renters market
I'm sorry Millennials buying homes? since when?
I thought a new record was just set of them living at home because 90% can't afford anything else.
I thought a new record was just set of them living at home because 90% can't afford anything else.
Yes, but also corporate landlords have been on a huge single family home buying spree.
It's nuts to see what's happening in the real estate market across the US. I was considering moving, but then I saw how much prices have increased in homes in areas like Colorado, Las Vegas and others from just a year ago... nope. Can't afford them.
I honestly don't know how the next generation of people will be able to afford homes unless they're working in the tech industry or doctors.
I honestly don't know how the next generation of people will be able to afford homes unless they're working in the tech industry or doctors.
Millennials now represent the largest cohort of home buyers
Millennials Help Power This Year's Housing Market Rebound
Still nowhere near where previous generations were at our age, though.
Watching house prices inflate faster than I can save up for a down payment is incredibly frustrating. Just looking at price history and seeing someone purchasing a house for like $120k a few years ago and now it's $250-300k with no real improvements beyond maybe a water heater feels pretty much hopeless. I'm like 5 years behind on everything.
This is exactly me. Leaving CA after being here 14 years. Moving back to the midwest. Moving into a huge home (3000+ sq ft), new construction, for literally $300k less than the absolute cheapest home we could buy where we lived in CA.
The scenario this video in the OP laid out of buying your "retirement home" as your first home with your "big pile" of CA money is me, in this instance. Almost exactly. Right down to us having a two-income household with extremely high (on a national scale) income and rock-solid jobs, but still unable to really get a starter home in CA.
I understand how that is a Bad Feel for people that have lived in the area for a long time, but in our situation it's a little different at least. We have roots and family in the area so we aren't just swooping in from "out of state" at random. And it's not like we planned for this to happen -- we had 0 plans to leave. But COVID and other evolving situations just changed our plans.
The scenario this video in the OP laid out of buying your "retirement home" as your first home with your "big pile" of CA money is me, in this instance. Almost exactly. Right down to us having a two-income household with extremely high (on a national scale) income and rock-solid jobs, but still unable to really get a starter home in CA.
I understand how that is a Bad Feel for people that have lived in the area for a long time, but in our situation it's a little different at least. We have roots and family in the area so we aren't just swooping in from "out of state" at random. And it's not like we planned for this to happen -- we had 0 plans to leave. But COVID and other evolving situations just changed our plans.
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A good house where I live in socal is one million fucking dollars. Wtf. I plan on leaving, probably to Texas or outta the country.
Seriously though...
With better zoning laws and actual building, there's a ton of empty commercial real estate RIPE for dev around Los Angeles. They could put a giant dent in the BOE for this market.
With better zoning laws and actual building, there's a ton of empty commercial real estate RIPE for dev around Los Angeles. They could put a giant dent in the BOE for this market.
I assume we're going to see similar patterns around other major cities in the world, especially with the rise of WFH within the tech world.
San Diego is the only place where I'd want to buy in CA. But I looked at them prices and wooooo boy. I'd have to be crazy rich to do it. At least to get the house that I'd want to raise a family in.
I really don't wanna move back to FL but I wanna be close to water and decent year round weather. If Chicago didn't have dogshit weather CoL world double. Summers here beat FL and Cali real talk. 70-80 degree days where your buck goes a long way.
I do love my seasons though. I'm so conflicted.
I really don't wanna move back to FL but I wanna be close to water and decent year round weather. If Chicago didn't have dogshit weather CoL world double. Summers here beat FL and Cali real talk. 70-80 degree days where your buck goes a long way.
I do love my seasons though. I'm so conflicted.
Bought a smallish 1100sf house back in 2014 in east bay sf. Just sold it a few months ago for double what I paid and turned around and got a house 3-4 times the size with a few hundred k left over. Area just got worse and worse every year. Leaving CA was the best decision I ever made.
OP
OP
Shades of the 08 crisis which was filled with NINJA loans. No Income, No Job/Assets. They were giving away homes to anyone. Combined with the national religion that it homeownership and you a huge problem.
Banks sold those loans in bundles as securities to speculators who bet against, causing the 08 crash.
That is right. Though I do believe that a buying a home as it is now is far too complex and time consuming. The aspect you describe is only one aspect of a home transaction. 30 day closes should be the norm and they sadly are not.
I don't see a crash coming in California, more like slower paced years.
People moved out of their states to California to try their luck cause their states sucked at providing opportunity.
Everybody blames tech companies, but tech companies went to California because it was cheap and because there was talent to draw from. That's exactly what Texas has done and why it's been "invaded" by economic migrants.
Of course people will want to have their own affordable places, who wouldn't?
People moved out of their states to California to try their luck cause their states sucked at providing opportunity.
Everybody blames tech companies, but tech companies went to California because it was cheap and because there was talent to draw from. That's exactly what Texas has done and why it's been "invaded" by economic migrants.
Of course people will want to have their own affordable places, who wouldn't?
Yea, no crash in cali. If theres a dip it will recover in 2-3 years. What's always going to be f'd are home prices in good school districts. My neighbor behind my place is in a school district with 9/10 rated schools. Im on the wrong side of the district line so my kids school is 4/10. Wtf.
The housing market in California is a joke. The barrier to entry is ridiculously high if you're not already a home owner.
We'll have to see how COVID and the continued proliferation of remote work impacts housing prices in CA.
Assuming remote work becomes a standardized practice in large swaths of CA's primary industries, there's good reason to think that Californians will continue to leave CA and potential new residents will decrease. The decentralization of power from urban centers via remote work, in theory, has the power to fundamentally restructure QoL in CA for the better.
Assuming remote work becomes a standardized practice in large swaths of CA's primary industries, there's good reason to think that Californians will continue to leave CA and potential new residents will decrease. The decentralization of power from urban centers via remote work, in theory, has the power to fundamentally restructure QoL in CA for the better.
To be fair, all the out-of-staters brought their bullshit here first and priced those of us who are actually from here out of our neighborhoods. Them leaving is a fucking blessing. When I started working, I couldn't even afford a place because minimum wage was ~ $9 an hour and rent was nearly $1500 for a studio where I live. Moved to the East Bay to finish undergrad, came back to L.A. and now with people leaving, the pandemic, and with the city cracking down on Airbnb last year, prices are finally falling. We've been apartment hunting for the last few weeks and now we have landlords practically begging us to move in. I can finally afford to live in my hometown comfortably, but prices are still too high for most.
It was infuriating having people who aren't from here trying to make those of us who are, feel unwelcome in our own neighborhoods just because we have darker skin or speak a different language. Now they're whining about taxes and "threatening" to leave. Good. We never wanted you here in the first place.
Are the wages of the tech industry in California inflated? Or should everyone regardless of role/industry be paid better?
I wrote this already in the last thread to a similar topic (and it's even more true now):
It's not just an American problem.
It's a worldwide problem.
Housing markets becoming more and more insane everywhere.
In my small Bavarian town you cannot get a small house for under 1 million EUR - that is - if there are any even available (spoiler: there aren't, and if there are, then they are immediately gone)
It's not just an American problem.
It's a worldwide problem.
Housing markets becoming more and more insane everywhere.
In my small Bavarian town you cannot get a small house for under 1 million EUR - that is - if there are any even available (spoiler: there aren't, and if there are, then they are immediately gone)
My wife and I moved from LA to Austin. We were in the mid-six figures and could barely afford our 2br apartment in LA. We came to Austin and got a 3/2 with a huge backyard for 50% of what we would have paid in LA.
Wife and I have been trying to buy a home for about two years now. Everything is either too expensive or in really poor condition. Haven't managed to find much of that middle ground yet.
In large cities you have to take appraised values with a grain of salt. The BC government was bragging about lower prices in Vancouver based on appraised value but nothing was selling anything close to those values. Properties are getting multiple offers above the asking price so appraised values are a joke. It's all about supply and demand.