Housing bubble part 2 (Orange, Santa Barbara, Goleta: short sale, real estate, 2013)

[EscapeCalifornia]

Originally Posted by ducviloxi

the problem is that there is a saturation point at which demand will fall and then there are no more buyers to play this game...like a game of musical chairs that suddenly stops. Isn't this what we just went through?

Except in a place like OC, there's little connection between local resident's income and housing prices. Someone who just wants a safe place to raise a family near their job is competing with the world's 1%'ers who just see an investment opportunity. There will always be someone with a ton of cash, a mega income, or a trust fund to bid the price up out of the reach of the riff raff making an above average income.

[Ultrarunner]

It's not limited to OC... other areas of the State are just as active...

Tried to buy a home several times last year and all received many overbids and many were all cash.

[kookooroo]

Is CA the only place in this world where you have to camp out to get a shot at buying a million dollar home?

[EscapeCalifornia]

Originally Posted by kookooroo

Is CA the only place in this world where you have to camp out to get a shot at buying a million dollar home?

Maybe Hong Hong, Tokyo, and London.

[CAVA1990]

We're seeing the same thing in the DC metro area. There just isn't much available inventory. People aren't moving out and there's very little new construction. Plus with gas prices people want to live relatively close to job centers. The economy is picking up, sothere are more high paying jobs drawing people to those. With the continuation of the recovery and the fact they're not making more land near the jobs I don't see any end to the situation anytime soon in any of the major metros.

[Ultrarunner]

People need to live somewhere and many still prefer ownership.

So many have been on the sidelines just watching the market... lot of pent up demand/desire.

A little upward movement with interest at record lows is all that is necessary.

In one are... over 40% of the sales were all cash.

Make no doubt about it... there is a lot of money sitting on the sidelines earning next to nothing interest wise.

I was one of those that offered over asking twice last year... both homes sold for cash and one the owner has refinanced now.

Among family and friends I know many that tried to buy without luck.

The home next to me was bought by a couple from New Zealand that wanted to move to California

[EscapeCalifornia]

Where's all this cash coming from? Are there really that many families with kids sitting on $1M in non-retirement liquid assets than can be sunk into a house?

[Ultrarunner]

Originally Posted by EscapeCalifornia

Where's all this cash coming from? Are there really that many families with kids sitting on $1M in non-retirement liquid assets than can be sunk into a house?

My new neighbors sold their home in New Zealand so I imagine it was sale proceeds.

Their were also several all cash offers from families in Indian decent.

Banks are paying nothing on deposits... my 99 year old neighbor on the other side was living well on interest for years and now it's her Social Security Check for income and the interest is miniscule...

I work at a Hospital and a group of Docs were looking to pool their money and buy a building down the street... they made an all cash offer... low, but, all cash.

[Mr_Geek]

Investment groups have outbid me with cash a handful of times lately.

[CAVA1990]

Originally Posted by EscapeCalifornia

Where's all this cash coming from? Are there really that many families with kids sitting on $1M in non-retirement liquid assets than can be sunk into a house?

With interest rates so low and stocks kind of meh right now there really isn't anywhere else decent to put it. Might as well dump it into a house if you don't really need it.