How can you consider $500,000 to be "affordable housing"? (Los Angeles: sales, loan)

[monti]

Actually I think he's the guy that enjoys his life --- you must be the other guy...

[jemarqu]

Originally Posted by monti

Actually I think he's the guy that enjoys his life --- you must be the other guy...

What does that make you monti? lol

[JackSparrow]

Originally Posted by jemarqu

You don't believe in a housing bubble either? I bet you believe everything that your real estate agent tells you huh?

Considering I do my OWN market research, independent of the several agents with whom I am in contact, I believe there is no housing "BUBBLE."

You see, a "bubble" means ALL INCLUSIVE!!! It's the "everything-is-gonna-crash-and-burn" mentality that narrow-minded investors (or scam artists) tout as the second coming of the end of the world. The problem with this concept is, it is not a well rounded concept. It is a catch-phrase designed to steer Johnny Average from buying a house with NO market research (and maybe protecting them from what a lousy RE agent might advise them of). But you sir... nm, YOU dude, are not talking to Johnny Average. I research 4 areas on a weekly to monthly basis. The first area is my own. The place where I currently own. It is most important to know WHAT your current home value is before trying to buy another. The second two areas I want to research, are, places I am considering buying. These are both very "high end" locales. The fourth is what I consider a control group, and it's not of nice of an area. I study this to see what is happening in OTHER markets.

That being said, the area I live in has been untouched (or inversely touched by the bubble). ONE of my choice areas has seen some minor price reductions, but nothing drastic compared to my control group, and desirable area #2 has done nothing but go up; incessantly. The control group has dropped some, but not the numbers that people have predicted for 2007. 2008 will reveal a bigger picture. But thats just for the control group. Remember 2 of the 4 areas went up. 1 remained unchanged, and the 4th sunk. It's only 3 months til 2008, you know that right? Ok.



So, there's the long answer to your short question. Is there anything else you'd like to learn about while you have your little cap on?

[jemarqu]

Thanks for setting me straight! I was wrong. Prices never skyrocketed, foreclosures aren't up by 300%, inventory isn't up by 120% and the US dollar is strong.

[JackSparrow]

Originally Posted by jemarqu

Thanks for setting me straight! I was wrong. Prices never skyrocketed, foreclosures aren't up by 300%, inventory isn't up by 120% and the US dollar is strong.

Finally, you realize that you are wrong, as your blanket statements don't fit all the data sets. It's ok, happens to the best of them...

[jemarqu]

Originally Posted by monti

Actually I think he's the guy that enjoys his life --- you must be the other guy...

It all makes sense now. Denial must be bliss.

[SandyCo]

I happen to believe there is indeed a housing bubble that is starting to pop now, and will continue to do so into next year as a lot of ARMs reset, and people can't afford their mortgages.

The areas that will be last to feel the decline are the most expensive ones, because in general, the top has less sub prime issues. Just my opinion, everyone.

I don't consider $500,000 to be affordable in any way, shape or form when you consider the median income in L.A. is only $50,000.

[EscapeCalifornia]

Originally Posted by SandyCo

I happen to believe there is indeed a housing bubble that is starting to pop now, and will continue to do so into next year as a lot of ARMs reset, and people can't afford their mortgages.

The areas that will be last to feel the decline are the most expensive ones, because in general, the top has less sub prime issues. Just my opinion, everyone.

I don't consider $500,000 to be affordable in any way, shape or form when you consider the median income in L.A. is only $50,000.

You just have to double up on the families under one roof and it gets affordable.

[CLQ]

Originally Posted by TheRealAngelion

LA and California in general have a very large population. And among that population is a very large class of people who are middle and upper middle income. There is also a very large number of affluent/weatlhy households too (the most in the U.S.).

Creative financing by subprime morgage lenders over the last several years helped a lot of the middle class to purchase a home they otherwise could not have afforded, but in general California's real etsate prices are high because there is a market here large enough and wealthy enough to sustain it. It's simple economics of supply and demand.

Actually only 5% of the LA population can afford a median home of $500K. It is typical of LA people to live beyond their means so many bought a house they couldn't afford and now look what happened we can be heading into a recession.

[CLQ]

Oh and home prices are going down all locations OC and LA. Check ziprealty.com and see how long homes are sitting on the market and all the sellers that have dropped home prices. Those that say otherwise are probably realtors trying to convince people otherwise. There will be a trickle effect even in the nicer areas since those buying and upgrading need to sell their home at a lower price.