Median price for existing OC house: $760,000 (LA & IE prices rise faster than OC) (Los Angeles: sales, rental)

[expatCA]

Originally Posted by ryanst530

No surprises here... People priced out of OC are flocking to LA and IE causing those markets to jump in value.

They're grabbing whatever they can get, wherever they can get it.

Yes, OC has no truly bad areas like LA so the price will be higher. The whole area of coastal and inland SoCal will keep rising though OC may begin to slow a bit.

[expatCA]

Originally Posted by Earthquake thrill seeker

IE prices already have been going up for sometime. The more expensive OC gets, people get priced out, therefore making the IE more expensive.

Eventually the IE will run out of room to built out, development will begin to urbanize, then the Victor Valley will be the new hot spot for promising equaity/property values

It is amazing how many homes have been and are being built over the hill on the I-15.

[Electrician4you]

Originally Posted by Peasy973

Gentrification takes time to occur in LA. First, long time residents need to be forced out either by evictions, cash purchases of properties. IMO, OC is the premier location for people wanting the ideal SoCal lifestyle where you can still get a decent, respectable wage (unlike SD). Not all ppl want to live in urban centers like most of LA County and not everyone wants to move out to the IE even though they will get more space for their dollars. I don't think prices will come down any. Any talk about the tax plan having an affect on real estate here will be subdued as prime house-buying season begins soon.

It’s gonna happen faster than you think. I have a few former coworkers who bought in Compton. The houses went up in value over 100,000 in a year. They all said the neighborhoods are going from gang to blue collar.

Prices may not come down a lot but they aren’t going to go up 10% YOY. People can only stretch so much. And I just had a rental available and I can tell you I had a well over two hundred inquiries and 20 applicants. Most were turned away by prescreening the applicants. Less than a literal handful were processed and out of that I found three that actually passed my requirements. Which weren't that stringent. At least not any more than anyone else’s. Out of those two fell by the way side one signed a lease that morning befire meeting and the lad5 9ne 8 took. And even then I had to slightly give in but the applicant had very high income. Either way I didn’t have a lot of great applicants. A few years back I had puck of the applicant. Part of it was th3 time of the year. Another lesson learned is to end leases in March
There are a LOT of people who are in a lot of debt with high DTI ratios. I know this because I get some insight on people’s finances that the average posters here do not.

[BGS91762]

Originally Posted by expatCA

It is amazing how many homes have been and are being built over the hill on the I-15.

Very true. Any new SFR under $400k is in the Victorville area. Driving many people up there. I commute on the 15 Freeway daily and the traffic has gotten horrible.

[expatCA]

Originally Posted by BGS91762

Very true. Any new SFR under $400k is in the Victorville area. Driving many people up there. I commute on the 15 Freeway daily and the traffic has gotten horrible.

I actually looked at buying there once, but it really made no sense to do so. Could not believe the growth the last time I drove through there on the way to Vegas.

[LuvSouthOC]

The I.E. will continue to sprawl with more and more in fill projects. However, I don't expect the high desert to pick it up where I.E. left off unless there is a new transit system that makes it worthwhile to commuters. The benefits of living in So Cal diminish drastically due to the extreme weather, among other problems.

[Peasy973]

Electrician,

Are your friends going to be residents or investors in Compton? Huge difference between the two. When I was there late last summer there were still a lot of vacant lots on major streets but i did see building projects going on as well.

[iExtrapolate]

Originally Posted by Electrician4you

OC is reaching its price/affordability ceiling so the price gains won’t be as high or as fast as previously gained values were. But truthfully it was bound to reach that ceiling at some point.

That's what people were saying 2 years ago.

[antarez]

Originally Posted by BGS91762

Very true. Any new SFR under $400k is in the Victorville area. Driving many people up there. I commute on the 15 Freeway daily and the traffic has gotten horrible.

It's been horrible for over a decade.

[Electrician4you]

Originally Posted by Peasy973

Electrician,

Are your friends going to be residents or investors in Compton? Huge difference between the two. When I was there late last summer there were still a lot of vacant lots on major streets but i did see building projects going on as well.

All are former coworkers and plan on being residents. No investors at this time although some eventually do plan on buying elsewhere and renting the house they bought. Right now wherever there is land or a old building someone somewhere is getting a plan together.
Near where my buddy lived in OC there were two huge lots that were farm land. One became a 80 house tract and the other is slated to be a big shopping center with a hotel and apartment building. Even out in Corona area every little dirt lot has something moving dirt on it.
Eastvale has a plan for a square mile of land to be a housing tract. After that it’s some shopping centers and Eastbale is basically done. You’re looking at moving out to Rancho Cucamongs or east into Riverside

Originally Posted by iExtrapolate

That's what people were saying 2 years ago.

Maybe I’m wrong. There aren’t a lot of houses up for sale. I think it’s a 60/90 day supply. Basically if no other houses go n the market we would run out of houses to sell in 90 days.

It takes a while. Even when the bubble popped it wasn’t overnight. Housing doesn’t stop on a dime. It’s a slow moving beast for a long time to lower prices. Either way the selling prices are starting to level out because there simply aren’t enough people with high enough income/finances to buy. But homeowners are stubborn when it comes to lowering rents.
A homeowner who is selling is going to keep his price higher longer even if the market is going down in price. Call it stubbornness, pride or plain stupid it’s a fact. Once they realize if the want to sell they need to lower the price they either do or don’t.
Prices go up when people see the neighbor sold for 500,000 so they should be able to sell for 510,000 because surely my house is worth more. Then the other neighbor sees that guy selling at 510,000 so they want 520,000. Not because the house is really worth 520,000 but simply because everyone else is asking more.