Has CA gone insane? (Monterey, Stanford: condo, houses, neighborhoods)

[MotleyCrew]

Oh. I remember that spot on campus now, Summertime. I think they were using it for storage and stuff when I was there. I remember going there for chairs for an art show we were having. Most of the food stuff was over at the other end of campus.
Yep, N. CA can get very, very hot. Redding CA can get up to 122 for a week long stretch. Chico and Red Bluff can get hot too and very humid. They are not as affordable as they once were. I know we searched for some affordable spots on the N. Coast years back and regret not buying up by Crescent City. It is gummy and not much in the way of shopping, but it is still not bad for being on the coast. There is that prison though.

[kansaslady]

I've really enjoyed reading all the postings...some great information has been shared! I grew up in CA (Ventura County) and recall when the housing market went "over the edge". It was in the mid-70's that the speculators hit the "gold coast" and starting buying and selling property to make a fast buck. It wasn't long before residents jumped on the band wagon to see how much profit they could reap in a hurry. People started bragging about selling their house in 24-48 hours and how much money they'd made. The rest is history. By the early 80's, market values had already skyrocketed and by the late 80's families were joining together to buy a home just to sell it as soon as it appreciated.

One of my friends worked in a mortgage company and it was not uncommon by the early 90's for home owners to walk in and just drop off their house keys, walk back outside and get into the rented U-Haul and leave the state with their family.

Many people were paying $3-5,000/mo mortgage payments; and when some of the companies started laying off employees, it was a nightmare.

Sadly, the salaries did not increase with the increase of housing.

There is a lot to be said in favor of living in CA; but the price is just way too high for the majority of people. And living "house poor" is not my choice.

Someone asked about Kansas, and is it "flat"...yes, parts of KS are. But the area I live in (east-central area) has beautiful rolling hills. The four seasons each have their own special beauty.

I have nothing against CA except for the high cost of living. For me, KS is affordable.

As far as salaries in CA; the avg hourly wage for administrative assistants is $14-16/hr. That would be okay if housing was in balance with the wage. The avg hourly wage in KS for the same position is $14 - $18/hr; and the housing is within balance. In a very nice area, and very safe, a 1-bed apartment (with garage, w/d, frig, water/trash paid) rents for $615/mo. A condo in a nice/safe area can be purchased in the $80k range; and a nice single-family home in the mid 100's.

One post mentioned the cost of a/c and how high it is in CA. We have the average pay plan in KS; my heating bill averages $40/mo, and the electric (a/c) averages $50/mo.

As I said, no place is perfect, and it's all relative. We each need to live where it is best for us, and where we are the happiest.

[Need_affordable_home]

Thanks Kansas lady. Did you see my post addressed to you? You will definately be happier in Kansas. I just want to mention that the rent rates are waaaaaaaaay too high. The mortgage on an $80k condo is much less than the rent! However in CA the rent can be half the mortgage. I have found that in expensive locations, the rent vs. buy cost is huge! $600 a month to rent a 1/1 in Kansas is a very, very high price. You can rent a 1/1 in CA for $1200-1500 a month and if you split the rent on a 3/2 house, each person pays only $800! Actually makes it tempting for me to move to CA and split the rent on a house, perhaps find a girlfriend for a roomate.

[kansaslady]

$600/mo for a 1/1 is very affordable in KS....especially since the avg wage for a clerical worker is $16-20/hr. If you are in a more professional field, salaries in the KC Metro area can range anywhere from $60 - $250k/yr and up.

You must realize that for $600/mo, you get a clean/safe/peaceful area to live in, including a garage, washer/dryer, etc.

It's important that one live where one feels they belong....no offense against anyone. If a person's priorities are a mild year-long climate, then that person needs to live in that climate and adjust their lifestyle accordingly.

It's all relative.

[wifmmmy]

Originally Posted by kansaslady

It's important that one live where one feels they belong....no offense against anyone. If a person's priorities are a mild year-long climate, then that person needs to live in that climate and adjust their lifestyle accordingly.

It's all relative.

I completely agree with ya.. for some weather is the priority. for me safe community with reasonable real estate and cost of living is a priority for me. its all relative as you said.

[Need_affordable_home]

Originally Posted by kansaslady

$600/mo for a 1/1 is very affordable in KS....especially since the avg wage for a clerical worker is $16-20/hr. If you are in a more professional field, salaries in the KC Metro area can range anywhere from $60 - $250k/yr and up.

You must realize that for $600/mo, you get a clean/safe/peaceful area to live in, including a garage, washer/dryer, etc.

It's important that one live where one feels they belong....no offense against anyone. If a person's priorities are a mild year-long climate, then that person needs to live in that climate and adjust their lifestyle accordingly.

It's all relative.

$600 a month is cheap rent but if the same condo can be bought for $75k your mortgage, taxes and insurance will be much cheaper than the rent and youll also get equity. Therefore it makes no sense to pay $600 for rent.

[kansaslady]

There are many reasons people rent instead of buying. Each of us has to do what is right for us.

[Kele]

We're going to put our home on the market soon. It is in the Riviera Village area of Redondo Beach, three blocks from the beach. (We can see the water from the front yard and from the upstairs balcony) The schools are excellent and the area is beautiful. This house was built in the 1920's, the first in the area. It needs some work and some TLC as it was neglected by hubby's elderly parents for several years, but it has some amazing features including gorgeous woodwork and hidden closets where liquor was stashed during the prohibition. We're only asking 1.3 million, a definite steal in this area.

[kansaslady]

People ask what a home is worth. And the answer is that it is worth whatever amount someone will pay for it. What homes sell for in the community dictate the asking price.

Where will it all end as far as market values in CA? That remains to be seen.

As long as buyers are able to come up with the down payment and loans to enable them to buy million dollar homes, then buyers will continue to ask for ludicrous amounts, and more.

Paying millions of dollars for a 1 or 2 bedroom home, with one bathroom, is considered a true mark of insanity by some. But again, everything in life is relative. If buyers want to pay "sane" prices for homes, they will stay away from CA, or any other area of the country that has gone over the edge.

When a person is paying off a mortgage, they are not "home owners", they are "home buyers", the lending institution is the "home owner" until the loan is paid in full.

One could argue that paying such high prices for a "granny shack" is working against the system, but it's far too late in the game to start worrying about that now. It would be considered "too little too late"....those concerns should have been addressed back in the 70's and 80's when the speculators hit the "gold coast" and began driving up home prices to pad their wallets. Had the general public not jumped on the bandwagon to see how much they could profit in a week, CA's housing market would still be within reach. However, that is the thinking of a Monday Morning Quarterback. What's done is done.

[Need_affordable_home]

Show me 1 bedroom shacks for a million. If any exist, they are probably oceanfront and land value only. No one buys one to live in, they are either tear down, remodel or to invest. People that buy shacks to live in are paying $200k to $400k for them, any more and they tear down.