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Old 10-01-2013, 09:53 AM
 
Location: San Diego
306 posts, read 657,009 times
Reputation: 263

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The peak median price of a home in Irvine during the greatest Real estate bubble in the history of the United States was $723,000. The current median home price as of August 2013 is $650,000.

We are within 10% of the all time highs set during the previous housing bubble. Just something to think about.

Historical:
http://www.irvinehousingblog.com/blo...-price-history

Current data:
Irvine average and median listing prices - Trulia.com

Yes, interest rates are lower now but how long will the low interest rates last? Rates have only one direction to go from here and that is UP! When valuations reach the previous bubble peak and interest rates jump at the same time what will be the consequence? Will we have a repeat crash?
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Old 10-01-2013, 10:04 AM
 
Location: Madison, WI
1,044 posts, read 2,767,229 times
Reputation: 984
What goes up, must come down, and vice versa. As far as I can tell, California has always had a boom-bust economy.
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Old 10-04-2013, 09:28 AM
 
Location: Phoenix
30,352 posts, read 19,128,594 times
Reputation: 26228
All high housing cost areas are tremendously affected by the interest rates. Once the interest rates go up, the housing prices will have to come down as most people won't qualify to buy at the inflated prices. I don't know how many variable interest rate policies are being used but if it's a lot, then we should expect another bust. I agree these interest rates can't hold forever and there's a good chance they will go up significantly in the future.
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Old 10-07-2013, 02:19 PM
 
1,420 posts, read 3,183,645 times
Reputation: 2257
Quote:
Originally Posted by jbunniii View Post
What goes up, must come down, and vice versa.
Sounds like a quote from Yogi Berra.

As long as a lot of Southern California schools and neighborhoods are mediocre and below, South OC will be desirable and in demand and its higher housing prices will be supported.
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Old 10-10-2013, 07:25 AM
 
Location: Business ethics is an oxymoron.
2,347 posts, read 3,331,765 times
Reputation: 5382
Correct. If you wish to live in the desirable areas, you need to pony up.

And if you don't buy now...as in TODAY RIGHT NOW, you risk getting priced out forever thus condemning you to a life of living in a mediocre, less desirable area.
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Old 10-10-2013, 05:52 PM
 
Location: San Diego
306 posts, read 657,009 times
Reputation: 263
Quote:
Originally Posted by Des-Lab View Post
And if you don't buy now...as in TODAY RIGHT NOW, you risk getting priced out forever thus condemning you to a life of living in a mediocre, less desirable area.
The funny thing is I notice sarcasm in your tone. The odd thing is that what you are saying is true. I do think this time around a lot of people who did not buy already have been priced out forever. A house that was $350,000 a year ago is now selling for $460,000! LOL! What will it be in another 6 months...$500,000? Then in another year $550,000? At that rate perhaps that $350k house will be $1 million by the end of the decade And how much will your pay go up by? 10%? 15%? That's what...a few thousand bucks a year more BEFORE tax? And yes, we have a $16 trillion deficit so higher taxes are coming anyway... and don't forget that $1 million shoebox will have to be financed using at least an 8% loan!
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Old 10-14-2013, 03:07 AM
 
Location: In a house!
193 posts, read 309,659 times
Reputation: 80
I'll translate...

"It's back to regular price to live at the zoo."

Irvine is a pit, 30 years ago it might have been ok.
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