Orange County is not luxurious (San Diego, Long Beach: house, luxury, college)

[Raelyn28]

Very good post and you are very much in touch with reality... Well said. Delusional is a great way to explain all of this denial thinking that is going on in Southern Cal. As I explained earlier, I personally know people who live in OC and I am sure if there was a decent house somewhere my friends would already have it because they have looked... It is sad that because of an ocean or whatever it is that is such an attraction that people have to live under such a tyrannical system of never being able to get anywhere financially. I am talking about the average low to middle income family, not the rich and famous. I feel for people and wish I could rescue all of them... I admire your honesty...

Originally Posted by threeactingup

Charles, I think you are partially correct. The home prices are definitely correcting and I think the "sunshine tax" may come down to as little as 20%-40% higher than places like Oklahoma.

With that being said, I have been paying very careful attention to the real estate prices in both coastal and south Orange County for the past year and have to say that those home sales you are showing are aberrations at best. Right now average asking price on most single family homes (foreclosures included) are still above $300/sq foot. Selling price is in the $270/sq foot.

There are still a lot of delusional home sellers out there--whether they are bankers, realtors or owners they still seem to think this is a much hotter market than it is. Homes that sell quickly are the ones that price ahead of the downward curve and sadly those are few and far between. Most people chase the market down. They believe into the hype that the economy is turning around. Nationally, that is true; California, not so much.

As for my family, we are refusing to buy before it is time. We are resolved to live well beneath our means until we are comfortable with the price point. A point that will allow us to not only make our mortgage but pay those other pesky bills, like orthodontics, cars, piano lessons, college, vacations, groceries, clothes, and retirement. Granted, not all of those are necessities, but I believe what is the point of living in the dream house if you can't afford the whole dream?! Maybe that will be an attitude that will keep us permanently locked out of home ownership in Southern California, I don't know. But, if it does I will have a "sack full" of money to buy the dream in Oklahoma City.

[Raelyn28]

Hysteria and hostility?? You mean honestly and humility...

Originally Posted by Wurzig

Even though I haven't read all of this thread, it seems to have created hysteria and hostility among some members who usually have fairly balanced input.

Class can be found in all walks of life. Stated simply, it is not measured by how much one has in a bank, the type of car one drives, the size or location of a house in which one lives or bragging or flaunting anything else that is material. Only one form of wealth is measured by dollar amounts.

California is a huge state with good weather, various climates, great views and an immense population. All types of people live here, just as they do in other states. Because of all the variances, California attracts a lot of media attention, which is sometimes not in the best interest of the state. Not all people living by the beach get botox treatments and not all people living inland in very small desert towns make crystal meth in their kitchens. Stereotyping only shows ignorance. For what's it worth, California became the 31st state in 1850, so it's not that old compared to a lot of others.

[antibes]

Originally Posted by Charles

Here's one in San Juan Capistrano, 4+2.5, 3100sqft, sales price $396K ($128/sqft)
33606 Avenida Calita, San Juan Capistrano, CA 92675 - Zillow

Honestly, for an area like SoCal I actually find this "cheap". You'll get an apartment no more than 700-900 sqft for the same price in similar economic prosperous regions in Europe... No parking included. And this is the condition in most countries in the world for housing today.
U.S. has great deals.

[readinvin92]

I think anywhere in cal. that is not a gang infested area, where its just a well kept city, is going to be pretty nice to someone from the midwest.

The weather is always good, and alot of places have very little to no crime. And golf is at a prime there.

Btw. when looking at avg temps. it says like 72 max in the summer. does it feel warmer then that, b/c when looking at pics of ppl at the beach, it makes it seems like its always 85.

[antibes]

Originally Posted by Humanoid

This is misleading, in Orange County (one of the centers of the housing bubble) you have $2 million dollar houses that are really just ~$750k houses. In a few years there will be a lot less "$2 million" dollar houses.

You're dot on with that one! A friend of mine owns a house in Laguna Beach. Its actually a $300,000 house which today is valued just below $1 million... The past city mayors have gone out of their way to turn this artists community into a 'millionaires lair'. They push every possible string to raise house values in Laguna so their own property portfolios will be valued at double than their actual value. To assure no house sells cheap, they can do this as it gives an impression that this is the normal market value. Many locals are upset about this. They've been doing this for the past 7-8 years now, and today you can barely get a dilipated shack in Laguna for less than $800 K...

[Charles]

Originally Posted by threeactingup

A point that will allow us to not only make our mortgage but pay those other pesky bills, like orthodontics, cars, piano lessons, college, vacations, groceries, clothes, and retirement. Granted, not all of those are necessities, but I believe what is the point of living in the dream house if you can't afford the whole dream?!

Very true. I've noticed this ever since moving from California to Colorado and now Huntsville. With four daughters under 10, I have a lot of expenses: gymnastics, summer camps, soccer, bikes, clubs, "because everyone else has one" things, and later orthodontics, cars, college tuition, car insurance, etc.

Still, when I lived in California, I was Mr. Cheap (never had a credit card balance in my life, always maxed 401(k)s and Roth IRAs, always cash for cars, etc.) But I drive a 11 year old F-150 with 165K miles on it and I will drive it forever unless it is totaled, always pack my lunch, workout at the gym at work for free, buy clothes at goodwill and salvation army (you be surprised at the quality of pants and shirts there for like $4.00).

Finally, I have been on the phone with my engineering buddies in SoCal and they say things are starting to slow down for engineers out there - not good.

[Raelyn28]

But there is no pic for the house on that link which tells me there is something wrong with it. Maybe it doesn't have a yard or it is a dump inside. In my experience if you don't have pictures you have nothing to stand on. Sorry, but I know the area and I am not buying the cheap house denial story.. California is expensive period. I showed you the comparison on my previous post. Go back and check it out... Unbelievable... And if Europe is worse I wouldn't want to live there either...and I don't.

Originally Posted by antibes

Honestly, for an area like SoCal I actually find this "cheap". You'll get an apartment no more than 700-900 sqft for the same price in similar economic prosperous regions in Europe... No parking included. And this is the condition in most countries in the world for housing today.
U.S. has great deals.

[mdmagana]

Hello everyone... wow... I just spent the last hour reading through his entire thread. Rich vs. Wealthy. New money vs. old money. Newport vs. Garden Grove. Yadda, yadda, Yadda. This is an interesting thread from a sociology and history point of view.

My family comes from the Brea, Fullerton, Placentia area. We came to Orange County in the late 1890s. Some of you might be interested to know that at that time the poor people lived in the Newport area. In those days real estate value was all about agriculture, and Oranges and Walnuts grew best in Fullerton and Placentia. Interesting huh? Keep reading, it gets more interesting...

When Balboa Island for formed in the early 1900s, (Now probably the most expensive real estate in North America per square foot outside of lower Manhattan) people were so uninterested that the developer had to sell lots for as little as $25 each!!! My how things change.

It's all a matter of what you're accustomed to. A man with $50 million is going to feel poor on a block full of billionaires, right? So, is Orange County wealthy? The answer is yes. By and large even OC trailer trash is wealthy compared to someplace like Youngstown, OH. (Nothing against Y-town... I vacation there once a year.) Now, is Orange County luxurious? For the most part, no. 650k buys you a 3 bedroom, 2 bath stucco box as another poster pointed out. If you're lucky enough to own that stucco box outright, then you're doing better than 99% of the country. That 99% can correctly call you wealthy... even though you do not live in a luxurious house. A 650k house in Youngstown, OH... that's luxurious! Again, it's all perspective and what you're accustomed too. People in y-town are lucky to make 50k a year... whereas people in OC often make 100k+. (Again, not picking on y-town... its just a good rustbelt city to use as an example.)

What is very true about Orange County, is people have a real need... more so that other places I think... to keep up with the Jones'. People think they need a 5 bedroom home with granite counter tops, a BMW, and a boat. For some reason, many people in Orange County don't feel successful if they have a three bedroom home and a Chevy, so the leverage themselves beyond all belief with debt... this is true in OC and is a problem for the whole country.. but that's another topic.

Just my thoughts.

[Hannican]

Originally Posted by mdmagana

What is very true about Orange County, is people have a real need... more so that other places I think... to keep up with the Jones'. People think they need a 5 bedroom home with granite counter tops, a BMW, and a boat. For some reason, many people in Orange County don't feel successful if they have a three bedroom home and a Chevy, so the leverage themselves beyond all belief with debt... this is true in OC and is a problem for the whole country.. but that's another topic.

Spot on! I grew up my entire life here in SoCal, with a brief foray down to San Diego for college, and I can honestly say that this place is absolutely infested with consumerist wannabes. Everyone here is all about keeping up with the Jones'. Most of the 'rich' people don't actually have a lot of money, they just have a lot of THINGS (and MASSIVE debt).

[Raelyn28]

Exactly my point when I started a thread called the truth about Orange County. I agree with you guys and it is even more obvious when you get out of there. I would not do well if I had to return and I probably would downsize and not worry about keeping up with the Jones'. It is too stressful and not worth it and it will give you an ulcer. I would rather live in something small and take up surfing if I had to go back for any reason. Hopefully I won't because I do not miss it at all. Sorry to offend some of you by that comment but it is just my opinion.... You make life what you want you want to make it...

Originally Posted by Hannican

Spot on! I grew up my entire life here in SoCal, with a brief foray down to San Diego for college, and I can honestly say that this place is absolutely infested with consumerist wannabes. Everyone here is all about keeping up with the Jones'. Most of the 'rich' people don't actually have a lot of money, they just have a lot of THINGS (and MASSIVE debt).