[MrTudo]

I read that only 19% of the population of California can afford a median priced house there. If that's true , are most of the places filled with renters??

[Need_affordable_home]

Originally Posted by MrTudo

I read that only 19% of the population of California can afford a median priced house there. If that's true , are most of the places filled with renters??

Some live in mobile homes, some with parents, others are homeless. I heard only 8% can afford a house now! Droves are leaving!

[josephhawkinson]

yes is not it ridicilous? 500 K median price and up, I think except Sacremento and few other places you cant even see any homes for around 250-300K in CA, it is that bad. houses that are falling apart taht you would not want to live in if they paid you sell for 1 M just because they are in CA. I guess there is demand so it has sustained those crazy levels up to now but I hear that is also changing. Especially after the insane price increases of 2004 and 2005 things have slowed down quite a bit lately and now prices are coming down in CA long overdue.

[mk1116]

Originally Posted by Nancy Lynne

Can you explain what you found out about the insurance? I am not sure what you meant....insurance on the house?????how much? must one have it?
thanks

nancy

thinking of moving to fl from nj

FL LAW SAYS IF YOU CARRY INSURANCE YOU MUST HAVE WIND COVERAGE. THIS LEAVES YOU 2 OPTIONS:
1. FULL INSURANCE ($2500/YR TO $7,000 DEPENDING WHERE YOU LIVE)
2. NO INSURANCE IF YOUR HOME IS PAID OFF.
IT'S THE WIND COVERAGE THAT KILL YOU.

[MrTudo]

[quote=Need_affordable_home;130886]Some live in mobile homes, some with parents, others are homeless. I heard only 8% can afford a house now!

LOL!

[tallrick]

History repeats itself. Sooner or later a category 4 or 5 hurricane is going to take care of a major city in Florida. This will discourage investment for at least 10 years. Once people sour on the state the investors will flee, leaving the residents. Without real estate as a source of income money will be tight. Think 1926 all over again. I have been wishing for this for many years, it will be the only thing that keeps me in Florida. If this area crashes hard, it will create a lot of opportunities for those willing to be creative. I also expect the US economy to enter a major recession, not seen since the 1930's. My grandfather lived here then and he told me some good stories about this state. Oddly enough FLorida was already in recession so the effects of the Great Depression were not as bad as in some areas. Once the speculators went broke Florida relied on it's agriculture and industries. Real estate still had value, but not as a source of income for flippers.

[firemed]

Originally Posted by tallrick

History repeats itself. Sooner or later a category 4 or 5 hurricane is going to take care of a major city in Florida. This will discourage investment for at least 10 years. Once people sour on the state the investors will flee, leaving the residents. Without real estate as a source of income money will be tight. Think 1926 all over again. I have been wishing for this for many years, it will be the only thing that keeps me in Florida. If this area crashes hard, it will create a lot of opportunities for those willing to be creative. I also expect the US economy to enter a major recession, not seen since the 1930's. My grandfather lived here then and he told me some good stories about this state. Oddly enough FLorida was already in recession so the effects of the Great Depression were not as bad as in some areas. Once the speculators went broke Florida relied on it's agriculture and industries. Real estate still had value, but not as a source of income for flippers.

This is looking like Florida in the 1920s
This is from a housing auction in Naples. HOLD ONTO YOUR HAT. There were on line bidders and around 400 people present.

608 Banyan Blvd, Naples Zillow 1.78 million sold for $900,000.
1166 12th Ave North, Naples Zillow $595,000. sold for $300,000.
1034 6th Lane North, Naples Zillow $605,000. sold for $275,000.
510 Riviera Dr, Naples Zillow $1,056,000 sold for $800,000.
570 Rudder Rd, Naples Zillow $1,064,000. sold for $770,000.
635 Robin Court, Marco Island Zillow $934,000. sold for $635,000.
About six lots on the water in Cape Corral. Only one bid for one lot for $60,000. The autioner said the minimum was $200,000.

I do not know how many of these bids will be accepted but this was UGLY.

If this auction gets past the reserves (if any) and the 50 odd properties represent the market; Naples, Marco Island and Cape Coral appear to be off 30% since last year

[verobeach]

Originally Posted by tallrick

History repeats itself. Sooner or later a category 4 or 5 hurricane is going to take care of a major city in Florida. This will discourage investment for at least 10 years. Once people sour on the state the investors will flee, leaving the residents. Without real estate as a source of income money will be tight. Think 1926 all over again. I have been wishing for this for many years, it will be the only thing that keeps me in Florida. If this area crashes hard, it will create a lot of opportunities for those willing to be creative. I also expect the US economy to enter a major recession, not seen since the 1930's. My grandfather lived here then and he told me some good stories about this state. Oddly enough FLorida was already in recession so the effects of the Great Depression were not as bad as in some areas. Once the speculators went broke Florida relied on it's agriculture and industries. Real estate still had value, but not as a source of income for flippers.

I don't think so. Here in Vero Beach, we had our best real estate year ever right after being hit by Hurricane Frances and Jeanne.

And about homeowners insurance, if you buy a newer home that meets all the new codes, your insurance will be surprisingly affordable. Our insurance for a 2600 sq. ft. home here in Vero Beach is $1300. On the other hand, if you buy an older home in a flood zone and you are a chronic claim submitter then you can expect the insurance companies to reward you with high bills.

[josephhawkinson]

Actually lowering prices to affordable levels will help realtors because then they can get paid. They only make money if the house is sold. Vacant houses sitting on the market does not do them any good either. I think they have to educate sellers that 2004 and 2005 days are gone and sellers should not take those years as comps when they are pricing their homes. Only this way houses will start moving again. 2003-2002 prices will help move big chunks of the inventory. After that it may take another year or two to slowly get rid of the excess inventory while prices go down slowly or staying flat. I see no other way out.

[Muggy]

I am posting the results as of 10-30-2006 for benchmark / future reference. Numbers rounded to nearest whole.

No Bubble 2%
Soft Correction 37%
Hard Correction 47%
Crash 15%