Do you think housing prices are STILL going down in California? (buy, median income)

[Charles]

It's been a couple of months since this thread was updated - more data are hitting the databases since things really got bad with the overall economy. I just used the http://www.city-data.com/ main site to get recent sales data for 91362 where we used to live. (Pretty neat tool - you can look for recent sales within a certain distance from a particular location or within a recent time frame.) I looked at about five homes' recent sales pretty comparable to ours within a couple blocks going back to maybe August 2008. The price/sq ft is in the $250-$320 range...Pretty amazing considering we sold our home at $418/sqft in June 2006. And, this was in Lang Ranch of Thousand Oaks, very desirable.

Highlighted in this LA Times article this morning:

Southern California real estate prices have fallen off a cliff - Los Angeles Times

[goodbyehollywood]

Bungalows that sold in the L.A. beach cities in the $200Ks in the mid-to-late 90s and the $400Ks in 2000-2002 are still priced in the $800Ks and $900Ks. If you want to live downtown, in the IE or the Valley, you might find a deal. If you want to live near the beach or on the Westside, keep dreaming. Some short sales are priced above 2005 prices. Buyers bought with little or no down, financed closing costs, have paid interest only and negatively amortized themselves into "reduced" short sales above their purchase price. Factor in government and lender intervention to keep people in homes above their means and prices will stay artificially inflated in the most desirable areas.

[JTGJR]

In many areas, it's still difficult to figure out a true value. Again, using El Segundo as an example, the number of sales is sooooo small the numbers are seriously skewed. Prices HAVE come down, but Dataquick is showing the median at around $750K. . . based on 2 home sales in November. But, as I mentioned earlier in this thread and Charles has aboce, the price per square foot for those 2 homes was $605 which is far inflated above the typical reality. I still think Zillow gives a more reasonable value range and price per square foot figure. For El Segundo, that's in the $400-450/sq ft range.

[Radical Raul]

Don't forget, you now need 15% down, very good credit, and verifiable income.

Good luck.

[edwardius]

As long as the economy is as weak as it is, housing prices are going to be falling.

[EscapeCalifornia]

Originally Posted by edwardius

As long as the economy is as weak as it is, housing prices are going to be falling.

And even when the economy recovers, you're not going to see the insane leverage that created the bubble. Real estate ain't coming back any time soon.

[Radical Raul]

Originally Posted by Charles

It's been a couple of months since this thread was updated - more data are hitting the databases since things really got bad with the overall economy. I just used the http://www.city-data.com/ main site to get recent sales data for 91362 where we used to live. (Pretty neat tool - you can look for recent sales within a certain distance from a particular location or within a recent time frame.) I looked at about five homes' recent sales pretty comparable to ours within a couple blocks going back to maybe August 2008. The price/sq ft is in the $250-$320 range...Pretty amazing considering we sold our home at $418/sqft in June 2006. And, this was in Lang Ranch of Thousand Oaks, very desirable.

Highlighted in this LA Times article this morning:

Southern California real estate prices have fallen off a cliff - Los Angeles Times

That article is also out of touch with reality.

The actual median income for the state of California is barely over $30,000 a year.

[timelesschild]

Originally Posted by Radical Raul

The actual median income for the state of California is barely over $30,000 a year.

Where are you getting your information? I would like to see the source, please.

[GracieJJ]

Originally Posted by Radical Raul

That article is also out of touch with reality.

The actual median income for the state of California is barely over $30,000 a year.

WOW, what part of the neighborhood barely makes over 30k? lots of professionals where we live and they make nothing less than 80k...

[Dark of the Moon]

According to the Census Bureau, California's median income is more than $70,000 for 2008.