Has CA gone insane? (Norwalk, Upland: mortgage, lawyer, equity)

[gizmo980]

Originally Posted by Need_affordable_home

Whats wrong with Kansas besides the mild winters? I am shocked jobs pay better than in CA. Also you have low crime and friendly people. In my opinion, this makes Kansas the better location. I cant wait to get out of south FL, it has many of the problems that plague Cali. I dont even care that it gets a little cold up north, its a much better location without the crime and corruption

Wellll... no offense to people in Kansas, but you can't really compare it to California! A location isn't good simply based on cost-of-living and weather, since you have to consider other things - like quality of life, attitude, scenery, culture, etc. I probably wouldn't like Kansas because it's too conservative, rural, Christian, non-diverse, cold & flat. I'm a west-coaster, plain & simple, and will just have to deal with the costs of being here. If it gets too rough for me, I'd rather re-locate to Oregon, Washington or Nevada, before I'd consider heading east/south.

Can you show me where those crappy million dollar houses are? Even CA is not that insane yet, I hope. What city was that?

Here's a house in the "okay" part of Redwood City, which is a mid-level suburb south of San Francisco... it's selling for $1,050,000, with 3 bedrooms, 2.5 baths & 1850 sq.ft. It's a fairly nice house, but certainly not what you'd consider a million-dollar place!

[Need_affordable_home]

The lady living in Kansas hates the crime, although she misses the ocean and mountains. She says CA isnt worth it for the price. Funny I would like to live in CA too but the price keeps almost everyone away and the crime doesnt help either. One guy mentioned San Fernando Valley as "crime ridden" would you rather live in San Fernando Valley or Kansas? Thats the question.

I probably wouldnt find alot to dislike about Kansas. I actually want to live in a more rural location, nothing like vast expanses of rolling hills and pastures. Im Jewish but got nothing against other religions. How flat is Kansas? I thought it had some hills. south Florida is really flat however! It can get a little chilly in Kansas and I admit theres no better weather than the maritime pacific west, but you pay dearly for this.

Oregon and Washington are nice too, too bad they arent exactly cheap, in fact they cost more than south Florida! Im seeing western Idaho going in in value, lots of Californians relocating there and still be on the west. San Jose is very expensive, my dad can tell the stories. He visited before I was born and 3 bedroom houses were costing a quarter million(now they are a million!)

[gizmo980]

Originally Posted by Need_affordable_home

I probably wouldnt find alot to dislike about Kansas. I actually want to live in a more rural location, nothing like vast expanses of rolling hills and pastures. Im Jewish but got nothing against other religions.

I want to clarify my statement on that... I have nothing against other religions, but since I'm a practicing Jew, I need to be somewhere with a decent Jewish community. I'm sure some of us exist in the bigger KS cities, but it would be hard to find a large Synagogue or JCC (Community Center)! I'd also feel a bit out-of-place, and might encounter some ignorance from the locals.

[dusesean1986]

[quote=Need_affordable_home;426362]The lady living in Kansas hates the crime, although she misses the ocean and mountains. She says CA isnt worth it for the price. Funny I would like to live in CA too but the price keeps almost everyone away and the crime doesnt help either. [quote]

I want to help clear up any uncertainties. California is enormous, some areas great, some areas mediocre, and some areas rough crime wise. But, the crime is not severe in most areas, because of California's large amount of cities and high wealth status. Yes, if you make a low income, you have a more substantial chance of living in a rougher area.

[wifmmmy]

Originally Posted by dusesean1986

I want to help clear up any uncertainties. California is enormous, some areas great, some areas mediocre, and some areas rough crime wise. But, the crime is not severe in most areas, because of California's large amount of cities and high wealth status. Yes, if you make a low income, you have a more substantial chance of living in a rougher area.

and theres the problem.... in cali low income can be considered making almost 50,000 a year.. in order to afford a semi decent house and also afford to live there and have any kind of savings or money left over ..you should make at least 80,000 or more. is that reasonable ? not in my opinion.

[Winston Smith]

Originally Posted by wifmmmy

and theres the problem.... in cali low income can be considered making almost 50,000 a year.. in order to afford a semi decent house and also afford to live there and have any kind of savings or money left over ..you should make at least 80,000 or more. is that reasonable ? not in my opinion.

If $50k household income is "low," what should an $18k or $20k/yr. income be called? It's brutal to think about, but there are whole families trying to survive in CA on such incomes, and less.

Regarding the question of "reasonable" or not? In a free-market capitalist system "reasonable" has nothing to do with it; market forces are the only things that matter. If the housing market in CA can sustain half-million-dollar shacks, then that's what they'll cost -- reasonable or not!

My question is: what are the market forces causing the high prices? My contention is that mortgage lenders play a heavy hand in it. Now the question becomes, what's to be done about that? Crack down on lenders somehow? How is this done without the appearance of government intervention in a free-market system? The banks will cry "foul" and send in their lawyers!

[hockyis1]

Originally Posted by cre8

If $50k household income is "low," what should an $18k or $20k/yr. income be called? It's brutal to think about, but there are whole families trying to survive in CA on such incomes, and less.

Regarding the question of "reasonable" or not? In a free-market capitalist system "reasonable" has nothing to do with it; market forces are the only things that matter. If the housing market in CA can sustain half-million-dollar shacks, then that's what they'll cost -- reasonable or not!

My question is: what are the market forces causing the high prices? My contention is that mortgage lenders play a heavy hand in it. Now the question becomes, what's to be done about that? Crack down on lenders somehow? How is this done without the appearance of government intervention in a free-market system? The banks will cry "foul" and send in their lawyers!

How is a housing boom a bad thing? It depends on who you ask.

The whole real estate situation is bad for buyers and good for sellers. Heck, if I made 300% on my house in 10 years, guess what? I would be thanking the mortgage lenders every chance I got for what they did.

There should be no need for intervention on the government's part. What SHOULD happen in the future is that investors and home buyers will be more sensitive to the risk that is involved with high risk loans. That in and of itself should slow a quick rise in housing prices in the future. But then again, I'm not an economist - and there are a hundred real estate blog's with experts screaming that they know the answer to your questions. But no one really knows.

About the resonableness issue. You're exactly right. "Fairness" or "reasonableness" has nothing to do with it. If you can't afford to live there, then don't.

Plus, the Los Angeles housing market isn't even that expensive compared to Manhattan, San Francisco, London, Tokyo, etc...but i regress...

[MotleyCrew]

I grew up in Ontario CA in the 60's and miss the orange groves that used to go from 7th street all the way up to the base of Mt. Baldy. It was a great little city. We used to walk over to Euclid to the Ritz theater for Sat. movies. You could stop at the Thrifty drug store and get an ice cream for a nickle a scoop. First time my husband and I flew into Ont. airport after being gone for 20 years, we about choked. Looked just like L.A. We drove up to my old home on J St. and saw bars on all the windows and the homes in various stages of decay. A few years later, my old neighborhood friend sent me a photo of the same street and it looked much better, bars gone and the prices were staggering. My dad paid $19,000 in 1962 for our house and it was on the market for almost $400,000. I still miss California, but it sure isnt the state it used to be. The days of the Beach Boys, classic cars and beach parties are all gone now. It is just a matter of time before people still wanting that dream realize it is impossible to reach and refuse to pay those prices for those homes.

[Summertime]

Jill, I went to Chaffey College in Ontario and
stayed in a nice boarding house with 5 other
girls; it was the best of times.

I recall a little cafe where some of us would
meet of an evening, and have coffee or a malt.

I, too, returned, about 10 years ago.. drove in.
Did not recognize a thing and my college is now
a high school.. (I think). lots of fast food places.

It felt like a time warp .. and not a good one.

[wifmmmy]

Originally Posted by cre8

If $50k household income is "low," what should an $18k or $20k/yr. income be called? It's brutal to think about, but there are whole families trying to survive in CA on such incomes, and less.

Regarding the question of "reasonable" or not? In a free-market capitalist system "reasonable" has nothing to do with it; market forces are the only things that matter. If the housing market in CA can sustain half-million-dollar shacks, then that's what they'll cost -- reasonable or not!

My question is: what are the market forces causing the high prices? My contention is that mortgage lenders play a heavy hand in it. Now the question becomes, what's to be done about that? Crack down on lenders somehow? How is this done without the appearance of government intervention in a free-market system? The banks will cry "foul" and send in their lawyers!

in my post i say in cali making close to $50k CAN be considered low income cuz it is so expensive cost of living etc. i know there are lower incomes out there cuz 9 years ago we were making 17-19k and yes it was hard. at that level you get free medical, free or low housing, and help with food etc. even 9 years ago $20k went further in this state.... and alot of families making that much either live 3 or more families together in one house to afford --or live in the worst of neighborhoods with so much crime and corruption it looks like lebanon during war time.
your right about mortgage lenders etc. i know of many houses going into foreclosure because the house payment went from 1000 /month to 2 or 3000/month. people are told they "qualify" for a certain amount but in reality they can only afford half perhaps. and then the variable rate bites them in the butt.