Why are real estate prices still so high? (Sacramento, Oakland: apartment, to rent)

[Mugsy]

Riverside also got overbuilt with new homes, where the bay area did not.

[Vario]

Originally Posted by 18Montclair

We've seen a huge increase in foreclosure notices in January 2011 compared to January 2010. At this time, I cant say if its due to people falling behind due to increased Christmas shopping or if its symptomatic of a more serious problem such as slow job growth.

It does seem the majority of people are ignorant of how bad the US economy actually is, or they presume a worsening situation won't affect them because they have "important" jobs.

I suppose that perhaps the majority is betting that everyone else doesn't know, like people at a seance sitting there just assuming everyone else if falling for it.

But seriously, things are much much worse than anyone on TV will tell you. And every day that corrupt officials stay in power, they will grab more and more cash because they know that our country's financial self-destruction is imminent.

[sliverbox]

Not to worry. If you're leaving one of the coastal areas there will be someone to replace you. The only parts of CA that are losing population are inland.

Not exactly true. The metros of LA, SF, and San Diego have all lost population since the early 2000's. On the other hand the fastest-growing metros are: Raleigh Durham, Austin, Atlanta, Dallas, and so on. All primarily Southeastern cities with affordable housing and diversified job markets.

[CAVA1990]

Originally Posted by sliverbox

Not exactly true. The metros of LA, SF, and San Diego have all lost population since the early 2000's..

Don't know where you're getting your population data but these charts contradict you:

U.S. Census Bureau, Population Division - Google public data

U.S. Census Bureau, Population Division - Google public data

U.S. Census Bureau, Population Division - Google public data

[sliverbox]

Don't know where you're getting your population data but these charts contradict you:

Depends on what kind of migratory patterns we're talking about. A key piece of data to consider is domestic migration trends. If that's the case then most of the traditional metro hubs have lost a fair amount of domestic migrants but the overall population has remained steady due to non-domestic migration. On the other hand states like TX, NC, GA, and other sun belt states and their respective cities have gained significant numbers of domestic migrants as well as an overall increase in population. This is important to consider because more often than not, those moving away are younger, educated, and highly skilled.

When you have enough younger educated graduates and adults move to a new metro this fosters growth, innovation, and ingenuity. This in turn creates competition for the more traditional metro hubs. Either way- I've lived in the Bay Area for 11 years and grew up in the South. Unless you happen to have moved here in the 60's or 70's prior to the up and down housing booms and busts, the overall quality of life in comparison to where I grew up is fairly poor. I've witnessed this comparison firsthand. Sure- the area has been good to me. I make a good wage and have managed to save some cash and gain professional expertise. But I'll be gladly joining the rest of the younger educated and highly skilled professionals seeking greener pastures in cities like Austin, Raleigh, and so on in the next few years unless by some miracle home prices come back down to earth here- which they won't.

[04kL4nD]

Yeah, that's not true at all

Sure, native Californians might be leaving in droves to those cheaper sunbelt cities, but The Bay Area, LA and SD continue to grow

and if you think Raleigh, NC is a better place to live than the Bay Area, well, I have some beach front property I'd like to sell you in Arizona...

[sliverbox]

Yes- I think Raleigh is a better place to live than the Bay Area. Then again, that's my opinion after having lived in the South, the East Coast, and now here. The good about the Bay Area is the weather, food, natural beauty, and general access to higher paying jobs. The bad is the crowding, the extremely overpriced housing and the generally high cost of living. The cost of living to me is what overrides the positives. As mentioned- more domestic migrants have been moving out of the higher costs coasts for the better part of 10-12 years. Anyway, this is highly subjective.

[Setsuko]

There is not a house cheap enough that could get me to leave California for the south.

[sliverbox]

Nobody said you had to. In fact, I wish more people had that same attitude because my home region is getting absolutely flooded with Californians and Northeasterners.

[Setsuko]

Too bad they'll all come running back to CA once they realize there's more to life than owning a house.