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Old 03-31-2019, 11:24 PM
 
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I'm surprised that buyers are struggling so much to buy a home, CA has the fifth largest economy in the world.
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Old 04-01-2019, 01:03 AM
 
Location: in a galaxy far far away
19,218 posts, read 16,701,480 times
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Originally Posted by max210 View Post
I'm surprised that buyers are struggling so much to buy a home, CA has the fifth largest economy in the world.
I never thought of it that way but you're right.
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Old 04-06-2019, 11:31 PM
 
237 posts, read 411,704 times
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Originally Posted by max210 View Post
I'm surprised that buyers are struggling so much to buy a home, CA has the fifth largest economy in the world.
That doesn't mean individuals' wages are keeping up with home prices.

Have been watching the wage to home price issue since the 80's when I started looking for my first home...

Have seen the same thing, everywhere in the country I had to go for work...

A nice home takes 2 average incomes to float the mortgage... I believe that started happening after WW2... when women entered the workforce en masse... and mortgages become commonplace... Home prices went up to absorb the second income... and the bankers benefitted the most (as well as sellers that got in prior to these event).

In Ca. it's even worse in the nice areas. Home price are 4x or more the national average... so an individual would need 9x the average income to float the mortgage.

Salaries have been flat for decades... so eventually we have to reach a cap... unless we are going to send the kids out to make a 3rd income to float the morgage on.

So if there have been price reductions as of late... just means the market it finding the highest price that folks in the area can afford. But rest assured... without an market implosion... it won't be to far from the multiples of income mentioned above.

Compare incomes to home prices in any part of the country, you'll see similar.

If those rough numbers don't hold... you can bet there's something wrong with that area. A reason folks don't want to live there.

At least that's been my experience.

For me the fault is clear... I failed to get into a career field that typically pays the 2x, 3x, or more that is needed to beat this game, when I was young. To old now to go back and become a surgeon, etc. However, if I could... I would. Rather than spend a life behind the eight ball on home prices.

What blows me away (and I'm college educated in at tech field) is how many folks richer than me there must be... even though I've worked my whole life... never had drug problems... no divorces... always been a saver... (but have lost it all more than once during bad periods and recessions in my career field)... no "crazy mortgages"....etc.

Every single home here in South OC that I can't afford....*someone* else can. And on the day I guess I have to packup and leave this region if I want a decent house... somehow the clerk at Wal*mart will somehow, still be able to live here.

So somehow... I missed the boat... to be sure! LOL!
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Old 04-07-2019, 06:08 AM
 
Location: So Ca
26,735 posts, read 26,820,948 times
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Quote:
Originally Posted by Searching-01 View Post
A nice home takes 2 average incomes to float the mortgage... I believe that started happening after WW2... when women entered the workforce en masse... and mortgages become commonplace...
Women entered the workforce DURING WWII; they quit when the war ended and their jobs were taken back by men returning from the war.

Quote:
Originally Posted by Searching-01 View Post
Every single home here in South OC that I can't afford....*someone* else can. And on the day I guess I have to packup and leave this region if I want a decent house... somehow the clerk at Wal*mart will somehow, still be able to live here.
Living here doesn't mean the person owns a home, and some people don't care to own one. The clerk at Walmart is most likely renting with multiple other people, living with parents, or has a spouse or SO with a higher paying job.
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Old 04-07-2019, 06:11 AM
 
Location: So Ca
26,735 posts, read 26,820,948 times
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Quote:
Originally Posted by max210 View Post
I'm surprised that buyers are struggling so much to buy a home, CA has the fifth largest economy in the world.
What does that have to do with the affordability of a home here? The industries showing the largest growth in southern California recently were retail trade, a notoriously low paying field, and health services, another underpaying field (unless one happens to be a physician).
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Old 04-07-2019, 09:16 AM
 
560 posts, read 581,679 times
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Quote:
Originally Posted by max210 View Post
I'm surprised that buyers are struggling so much to buy a home, CA has the fifth largest economy in the world.
It's not a struggle by every buyer, there are a lot of viable buyers sitting on the sidelines waiting for a favorable trend although it slowed a little the last couple of months, homes are still selling usually with multiple offers. There are also a good number of potential buyers who are struggling, especially in a sellers market. I highly doubt we will see anything resembling a decade ago.
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Old 04-07-2019, 11:28 AM
 
3,346 posts, read 1,269,360 times
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Quote:
Originally Posted by RockyCity View Post
It's not a struggle by every buyer, there are a lot of viable buyers sitting on the sidelines waiting for a favorable trend although it slowed a little the last couple of months, homes are still selling usually with multiple offers. There are also a good number of potential buyers who are struggling, especially in a sellers market. I highly doubt we will see anything resembling a decade ago.
Just wait until there is a downturn in the economy, then people will struggle to keep paying their high mortgages and rent if they lose their jobs.
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Old 04-07-2019, 02:15 PM
 
Location: TOVCCA
8,452 posts, read 15,046,521 times
Reputation: 12532
Quote:
Originally Posted by Searching-01 View Post
In Ca. it's even worse in the nice areas. Home price are 4x or more the national average....Compare incomes to home prices in any part of the country, you'll see similar.
Your facts are way off.

The median price (using "average" prices for anything is a poor statistical practice) for a house in the US, latest figures:
$300,000 https://www.usatoday.com/story/money...es/3357094002/

The median price for a house in California, latest figures:
$548,800 https://www.zillow.com/ca/home-values/
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Old 04-07-2019, 04:01 PM
 
4,481 posts, read 2,286,736 times
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Quote:
Originally Posted by CA4Now View Post
What does that have to do with the affordability of a home here? The industries showing the largest growth in southern California recently were retail trade, a notoriously low paying field, and health services, another underpaying field (unless one happens to be a physician).
Exactly. 5th largest economy in the world means squat when people can barely afford to live here or even buy a house.
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Old 04-07-2019, 04:40 PM
 
560 posts, read 581,679 times
Reputation: 764
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Originally Posted by Eli34 View Post
Just wait until there is a downturn in the economy, then people will struggle to keep paying their high mortgages and rent if they lose their jobs.
If they lose their jobs, they should already have a plan b in place. They can rent out their home and/or live on a robust emergency fund while seeking employment. Otherwise if they foreclose, there are plenty of investors in the bay area looking for a bargain. A lot of wealth is amassed via taking advantage of a downturn.
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