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Old 08-03-2011, 11:23 PM
 
Location: Los Altos Hills, CA
36,666 posts, read 67,603,135 times
Reputation: 21255

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Guess which state managed to escape this list?

America's 10 Sickest Housing Markets: 24/7 Wall St.
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Old 08-04-2011, 12:32 AM
 
Location: San Diego, California Republic
16,588 posts, read 27,411,459 times
Reputation: 9059
Quote:
Originally Posted by 18Montclair View Post
Guess which state managed to escape this list?

America's 10 Sickest Housing Markets: 24/7 Wall St.
Now montlcair, you know someone's going to come in and say:

Well Ca. is bigger so it'll take longer because of blah blah blah blah blah

Or...

The list is bias because of blah blah blah blah blah

Or...

You cherry picked your stats because of blah blah blah blah blah

Or...

This doesn't prove anything because of blah blah blah blah blah

Or...

...fill in the blank here. Come on, that train is never late
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Old 08-04-2011, 01:04 AM
 
Location: Los Altos Hills, CA
36,666 posts, read 67,603,135 times
Reputation: 21255
Quote:
Originally Posted by Gentoo View Post
Now montlcair, you know someone's going to come in and say:

Well Ca. is bigger so it'll take longer because of blah blah blah blah blah

Or...

The list is bias because of blah blah blah blah blah

Or...

You cherry picked your stats because of blah blah blah blah blah

Or...

This doesn't prove anything because of blah blah blah blah blah

Or...

...fill in the blank here. Come on, that train is never late
Or all of the above....LOL
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Old 08-04-2011, 02:28 PM
 
12,823 posts, read 24,423,518 times
Reputation: 11042
Even in places like the IH, Far East Bay and Central Valley the overbuilding was an order of magnitude less than places further East. Some of those places will never recover, given the reality of demographics.
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Old 08-04-2011, 03:22 PM
 
2,311 posts, read 3,508,046 times
Reputation: 1223
Quote:
Originally Posted by Gentoo View Post
Now montlcair, you know someone's going to come in and say:

Well Ca. is bigger so it'll take longer because of blah blah blah blah blah

Or...

The list is bias because of blah blah blah blah blah

Or...

You cherry picked your stats because of blah blah blah blah blah

Or...

This doesn't prove anything because of blah blah blah blah blah

Or...

...fill in the blank here. Come on, that train is never late
I'll keep it short :

California ...
Deutsche Bank's Estimation of Percent of Home Borrowers Underwater
MSA Name


Percent of Borrowers

underwater Q1-09' | underwater Q1-11'
Bakersfield, CA 78.8 87.4
Chico, CA 29.6 56.6
El Centro, CA 84.7 91.7
Fresno, CA 71.6 81.1
Hanford-Corcoran, CA 56.0 76.2
Los Angeles-Long Beach-Glendale, CA 51.1 62.4
Madera, CA 71.8 83.1
Merced, CA 85.4 91.2
Modesto, CA 83.5 89.8
Napa, CA 34.8 47.0
Oakland-Fremont-Hayward, CA 49.8 63.7
Oxnard-Thousand Oaks-Ventura, CA 36.9 47.0
Redding, CA 33.7 57.0
Riverside-San Bernardino-Ontario, CA 78.2 87.4
Sacramento-Arden-Arcade-Roseville, CA 64.9 74.6
Salinas, CA 51.3 62.5
San Diego-Carlsbad-San Marcos, CA 47.7 56.6
San Francisco-San Mateo-Redwood City, CA 8.8 15.0
San Jose-Sunnyvale-Santa Clara, CA 26.9 41.4
San Luis Obispo-Paso Robles, CA 21.9 39.0
Santa Ana-Anaheim-Irvine, CA 27.3 51.1
Santa Barbara-Santa Maria-Goleta, CA 41.9 47.5
Santa Cruz-Watsonville, CA 25.5 36.0
Santa Rosa-Petaluma, CA 42.7 51.3
Stockton, CA 80.5 88.0
Vallejo-Fairfield, CA 75.1 84.3
Visalia-Porterville, CA 70.5 79.4
Yuba City, CA 73.0 83.9
State Overall 54.3 67.9

------
Average California income : ~$60K .. avg. home price $450k ..
Seems like a barrel of greater fools if you ask me ...
Keep home prices where they are.. Wont catch me buying a 1/2 million dollar shack here.

Others are happy doing so w/ option arms and 5% down.. More power to em'.

Last edited by yeahthatguy; 08-04-2011 at 03:38 PM..
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Old 08-05-2011, 02:43 AM
 
Location: Oroville, California
3,477 posts, read 6,518,686 times
Reputation: 6796
Quote:
Originally Posted by yeahthatguy View Post
Average California income : ~$60K .. avg. home price $450k ..
Seems like a barrel of greater fools if you ask me ...
Keep home prices where they are.. Wont catch me buying a 1/2 million dollar shack here.

Others are happy doing so w/ option arms and 5% down.. More power to em'.
Last August I bought a small, but very solid 3/2 house with 20% down and 4.5% 30 year fixed. My PITI is cheaper than the rent for most apartments here. In the year I've owned it the price has dropped a percent or two - nothing too terrible. With 20% down I have a little cushion and I bought it to live in, not speculate off of. There's something to be said for not having to deal with a greedy landlord or the loud and lousy neighbors in many apartment complexes. Inland California can still be a decent buy if that's important to you. I know I'm very happy with my little patch of dirt.
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Old 08-05-2011, 02:54 AM
 
28,115 posts, read 63,726,673 times
Reputation: 23268
Quote:
Originally Posted by BeauCharles View Post
Last August I bought a small, but very solid 3/2 house with 20% down and 4.5% 30 year fixed. My PITI is cheaper than the rent for most apartments here. In the year I've owned it the price has dropped a percent or two - nothing too terrible. With 20% down I have a little cushion and I bought it to live in, not speculate off of. There's something to be said for not having to deal with a greedy landlord or the loud and lousy neighbors in many apartment complexes. Inland California can still be a decent buy if that's important to you. I know I'm very happy with my little patch of dirt.
You've got to live somewhere... the benefits of home-ownership are often overlooked... the ability to shape the place to fit your lifestyle, make changes and alterations, a modicum of control of your destiny... and something to show for all those years of payments

I'm currently renting to several tenants that were previous tenants 7 and 10 years ago...

Both families were great and decided they wanted to become owners... sadly, it did not work out for them and I'm glad to have them back...

What killed them was they got on the refi craze and put the money back into the homes... just didn't make sense to have 350 to 380k mortgages on homes that are now worth 150 to 180k...

Ironically, both bought within 10 to 12 blocks from where they rented from me... renting from me has cut their monthly housing costs in half...

I think an entire generation may be soured on the idea of home ownership... at least this is what I'm getting from many around me...
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Old 08-05-2011, 01:02 PM
 
Location: Living on the Coast in Oxnard CA
16,289 posts, read 32,372,800 times
Reputation: 21892
Quote:
Originally Posted by yeahthatguy View Post
Average California income : ~$60K .. avg. home price $450k ..
Seems like a barrel of greater fools if you ask me ...
Keep home prices where they are.. Wont catch me buying a 1/2 million dollar shack here.

Others are happy doing so w/ option arms and 5% down.. More power to em'.
I don't think your comments fit into the current lending situation. Now you have to have the income to purchase a home. It has to be able to sustain the payments. Most homes have lost value and aren't selling for their former price anymore. I don't even know if you can get an ARM anymore.

We bought a home in Oxnard that appraised for $340,000 and we paid $310,000. I put 10% down on the home. The former owners paid close to $600,000 for it back in 2005. The former owners had an ARM and couldn't keep up with the increase. When we bought we had to get a 30 year fixed which is something we wanted anyway. I didn't know anyone that was getting ARM's now and with interest rates as low as they are why would they want to get anything but a fixed rate mortgage. Between my wife and me we make over $100,000 a year. Not sure what it matters now anyway what someone makes. The banks want to make sure that you have the income needed to buy the home. No more loans like in the past where everyone could qualify.
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Old 08-05-2011, 02:54 PM
 
28,115 posts, read 63,726,673 times
Reputation: 23268
I have one ARM because it was convenient at the time...

So far the interest has dropped on each adjustment... it has been 3% for awhile.

Never planned on keeping the loan but at 3% I'm in no hurry to pay it off.

Two years ago, the lender lender offered to switch to a 30 year fixed and I said OK... the Home came in 78% loan to value and their "Special" program required 75% to escape a bunch of loan fees and the best rate...

It's there loss
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Old 08-06-2011, 09:44 AM
 
Location: So Ca
26,763 posts, read 26,875,608 times
Reputation: 24825
Quote:
Originally Posted by SOON2BNSURPRISE View Post
The banks want to make sure that you have the income needed to buy the home. No more loans like in the past where everyone could qualify.
When "everyone could qualify" was actually only a brief period. Many, many of us bought property when incomes were scrutinized, employment history was carefully weighed, 20% down was encouraged (and mortgage interest rates were in the double digits).
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