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Old 09-23-2007, 03:25 AM
 
3 posts, read 9,206 times
Reputation: 11

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How can so many people there can afford to buy housing at this price and even higher?

Upon pulling up real estate I can see what looks like a shack in places like Compton and Watts are going for well over $200,000. That's if you can find anything at that price.

I find it unreal that you can't even find anything halfway decent for $250,000 there.

Do the jobs pay 5 times higher than they do here to have housing that costs 5 to 10 times as much as they do here in Tennessee?

 
Old 09-23-2007, 08:12 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,771,454 times
Reputation: 17831
This topic has been discussed in the past. Check out

http://www.city-data.com/forum/los-a...put-least.html

About the last question: You can find out for yourself by checking Careerbuilder or Monster. But in general, the answer is no.
 
Old 09-23-2007, 09:36 AM
 
Location: City of Angels
1,287 posts, read 5,025,695 times
Reputation: 672
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.
 
Old 09-23-2007, 09:39 AM
 
4,610 posts, read 11,102,781 times
Reputation: 6832
Quote:
Originally Posted by TheRealAngelion View Post
It's simple economics of supply and demand.
I agree 100%, supply and demand. When or if that changes the home prices will change.
You pay a premium to live in California.
 
Old 09-23-2007, 01:11 PM
 
4,139 posts, read 11,492,423 times
Reputation: 1959
That is what I don't get.....so many people on this board slam CA over and over again, but yet, the people are still there and are continuing to come.....so there must be a draw!

I know what it is for me and I can't wait to move back. It would really help if all the LA haters would go ahead and move out and help bring the housing down a bit!

Dawn

Quote:
Originally Posted by Roma View Post
I agree 100%, supply and demand. When or if that changes the home prices will change.
You pay a premium to live in California.
 
Old 09-23-2007, 01:59 PM
 
4,610 posts, read 11,102,781 times
Reputation: 6832
Quote:
Originally Posted by DawnW View Post

I know what it is for me and I can't wait to move back. It would really help if all the LA haters would go ahead and move out and help bring the housing down a bit!

Dawn
I wish I could move back too!

Okay all you "oceanfront" California hating homeowner people...move already!! Oh, and move at the same time so the market is flooded with beachfront homes for sale!!! Then I might be able to get back in.

But sadly, I don't think those are the people complaining or hating California. Darn!

Plan B

Last edited by Roma; 09-23-2007 at 02:10 PM..
 
Old 09-23-2007, 02:24 PM
 
2,222 posts, read 10,650,473 times
Reputation: 3328
Quote:
Originally Posted by Roma View Post
I wish I could move back too!

Okay all you "oceanfront" California hating homeowner people...move already!! Oh, and move at the same time so the market is flooded with beachfront homes for sale!!! Then I might be able to get back in.

But sadly, I don't think those are the people complaining or hating California. Darn!

Plan B
Nope, not moving. Been living at the beach for over 50 years. I love it here. Yes, prices are sky high. Just to give an idea of home prices, I also own a rental house in a good community with good schools. It's a 3 bedroom, 1 bath, 2 car garage. Your typical ranch home of 1100 SF on a 5000 SF lot. Value: $700,000 and it rents for $2300/month. It's about 1-1/2 miles from the beach. Not much around the same neighborhood for less. I've seen much nicer homes in other states for about $250,000. California beach properties are costly.
 
Old 09-23-2007, 02:34 PM
 
4,610 posts, read 11,102,781 times
Reputation: 6832
Quote:
Originally Posted by Beth56 View Post
Nope, not moving. Been living at the beach for over 50 years. I love it here. Yes, prices are sky high. Just to give an idea of home prices, I also own a rental house in a good community with good schools. It's a 3 bedroom, 1 bath, 2 car garage. Your typical ranch home of 1100 SF on a 5000 SF lot. Value: $700,000 and it rents for $2300/month. It's about 1-1/2 miles from the beach. Not much around the same neighborhood for less. I've seen much nicer homes in other states for about $250,000. California beach properties are costly.
Lucky you my friend. I miss the beach so much. Enjoy!
 
Old 09-23-2007, 02:50 PM
 
134 posts, read 562,410 times
Reputation: 63
Default rental

The fact that a 700k home rents for 2500 mo tells you that RE is overvalued and will come down alot as it already is doing.700k homes will sell for 350k soon as the banks will no longer lend money for overvalued RE.California RE booms and busts every 10 to 15 years and this time the bust will be severe.
 
Old 09-23-2007, 07:25 PM
 
2,222 posts, read 10,650,473 times
Reputation: 3328
Quote:
Originally Posted by desertdawgx View Post
The fact that a 700k home rents for 2500 mo tells you that RE is overvalued and will come down alot as it already is doing.700k homes will sell for 350k soon as the banks will no longer lend money for overvalued RE.California RE booms and busts every 10 to 15 years and this time the bust will be severe.
Not so fast my friend. Been there done that. What you say will not happen, but it's everyone's wish. I could see a reduction, but not back to 350K which equates to 2001 values.

And my home does not rent for 2500 mo. It rents for 2300 mo., so lets get the information right also.

And, when you say the price has come down, it has. I watch my value weekly. It's taken a 25K hit over many months, but no more based on comps that have sold. You are generalizing.
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