Question for people who bought houses in CA in the 60's and 70's (Fresno: mortgage)

[EscapeCalifornia]

I'm trying to get a feel for how expensive houses in CA were back then. People say that CA's always been expensive but I'm curious about how much people were paying relative to their incomes for a single family house.

[cleosmom]

My folks purchased the home I grew up in in 1970. It was in Fresno and a 3 bed, 1.5 bath, 1305 sq ft for under $20K.

Not certain of the exact price but I might be able to find out. I do know in 1990 it was sold for $68K

[JustPassinThru]

Originally Posted by EscapeCalifornia

I'm trying to get a feel for how expensive houses in CA were back then. People say that CA's always been expensive but I'm curious about how much people were paying relative to their incomes for a single family house.

Relative is the operative word. Looked at a new home in Santa Susanna (Simi and Santa Susanna later formed the city of Simi Valley) that went for $17,400 in '65. Since there weren't any freeways heading east out of town at the time, we passed. That house sold for $549,000 last year, but the earnings of the new owners were most likely similarly inflated.

Went over to Simi in '68 and purchased a 3bed/2bath for $20,990. My gross weekly income was $200 and the mortgage was $173.

In '71 I purchased a second home, in Santa Susanna, for $25,500. The mortgage was $228.

A good friend in Encino was paying $50 monthly on his $11,000 1950's home, and he struggled to make the payments in the beginning. My father paid $16,000 for our home in Granada Hills, and we never had "extra" money. The prices are shocking (Marin County!) but there will always be buyers, In most cases, the benefits of owning a home outweigh the negatives.

[Twinkle Toes]

The home I grew up in as a child was in Newport Beach and my parents paid somewhere around $30,000 in the mid 1960's. When they sold that house in the early 80's it sold for around $250,000. Today that same house is about 2 million.

[Mvn2nc]

Originally Posted by Twinkle Toes

The home I grew up in as a child was in Newport Beach and my parents paid somewhere around $30,000 in the mid 1960's. When they sold that house in the early 80's it sold for around $250,000. Today that same house is about 2 million.

Is that not the craziest, but in a good way for most.
My parents in the mid 60's bought thier second home for 30k sold it for 60k 10 years later and thought they struck gold!

[cricket_factor]

Originally Posted by EscapeCalifornia

I'm trying to get a feel for how expensive houses in CA were back then. People say that CA's always been expensive but I'm curious about how much people were paying relative to their incomes for a single family house.

My parents bought their 4 bedroom, 3 bath house, 2300 square feet on a 15,000 square foot lot for $21,000 in 1962. Today the house next door to them with a swimming pool and kitchen counters not big enough to place a Thanksgiving turkey on is going for $800,000. I kid you not.

[Ultrarunner]

Not exactly the 70's... In 1983 I bought a single family home that was being used as a rental for $11,500. The home is in East Oakland and I still own it today. It was very expensive for me... I was going to school and making $3.25 and hour, part time.

Hey, in the 70's, there were homes on just about every block in the Flat Lands of East Oakland that the City owned and was selling for $1... provided you agreed to move in and occupy for 5 years... the house was yours.

I know one of these dollar homes that sold around 400k last year. You have to remember that lots of White folks were fleeing Oakland in the 70's for the suburbs.

[BearBranch]

In 1973 my parents purchased a 2400 sf ranch in Fresno for 33k that would sell for 450k today.

[NewToCA]

To give you a contrast, in 1976 I bought a 1500 sq ft home in south New Jersey, about 15 miles east of Philly, for $42K, and it recently resold for $145K.

[kettlepot]

An older lady in my neighborhood told me that she paid, if I remember correctly, about $21k in 1970 for her 1 bedroom, 1 bath, 600 sq ft circa 1920s cottage. Current Zillow estimate is between $300k to $385k. Realistically, I'd go with the $300k price, as the house isn't anything special. The only value is the 3750 sq ft lot.

And another thing to remember is that between the mid-60's and today the population of California has tripled.

Also important to remember that there's a big difference between the climate within 15-20 miles of the coast/bay, and everywhere else. each successive wave of suburbs is built in progressively worse and worse climate zones. There are a lot of people trying to cram themselves into a very narrow area. Most can't afford it, but when they get enough money many will bid aggressively to get closer to the California dream.