How can you consider $500,000 to be "affordable housing"? (Los Angeles: foreclosures, loans)

[greggd]

Originally Posted by JackSparrow

I'm watching some specific houses in some very niche neighborhoods, and I am seeing the same trend. But these aren't housing adjustments, they're dreamer adjustments. Of course people are going to put their homes up for more than they know it's worth. I do it every time I sell something. Price it at X amount, and see if anyone bites. Then if I don't sell it, drop the price to Y amount.

Conversely, I have also seen houses go OFF the market (not into escrow).

*shrug*

Right, I think the dream-reality correction is about 10-12% right now.

There was a place up for sale in Brentwood for literally 6 months. dropped out of escrow once too.

They took it off the market and the guy bought himself a new aston martin and the wife an e500. I dont know the relevance, but thought it was interesting.

[Roma]

Well, I'm watching beachfront properties and they still are continuing to rise. I did see one go down in price though but only because it was extremely overpriced compared to the other overpriced ones!!! And they still made a killing!!!

[JackSparrow]

Originally Posted by Roma

Well, I'm watching beachfront properties and they still are continuing to rise. I did see one go down in price though but only because it was extremely overpriced compared to the other overpriced ones!!! And they still made a killing!!!

Waiting for real estate prices to drop in CA is like waiting for hell to freeze over. Forget it.

The good areas will ALWAYS go up.

[greggd]

Originally Posted by Roma

Well, I'm watching beachfront properties and they still are continuing to rise. I did see one go down in price though but only because it was extremely overpriced compared to the other overpriced ones!!! And they still made a killing!!!

Im not sure of what section of coast you are watching. There are a few malibu beach lots that have been sitting for awhile which are way overpriced and in some cases teardowns. But, Malibu is one of the most unique markets in So. California. Beach front property is sold to those that are willing to pay a big premium for what they want.

I posted somewhere on here awhile back that I was jogging along a section of beach and saw a huge party, so I checked the address and it turned out to be the owner of a major newspaper. As I looked at the addresses up and down PCH, they were all owned by major CEOs, large business owners, Insurance exec's, notable persons in the entertainment industry, Major Real estate developers, etc.

I agree this sector of the market will continue to rise at a rate faster than other nicer sections of the city simply because of the the small supply and growing demand for 1st class properties/locations.

[Roma]

Originally Posted by greggd

Im not sure of what section of coast you are watching. There are a few malibu beach lots that have been sitting for awhile which are way overpriced and in some cases teardowns. But, Malibu is one of the most unique markets in So. California. Beach front property is sold to those that are willing to pay a big premium for what they want.

I posted somewhere on here awhile back that I was jogging along a section of beach and saw a huge party, so I checked the address and it turned out to be the owner of a major newspaper. As I looked at the addresses up and down PCH, they were all owned by major CEOs, large business owners, Insurance exec's, notable persons in the entertainment industry, Major Real estate developers, etc.

I agree this sector of the market will continue to rise at a rate faster than other nicer sections of the city simply because of the the small supply and growing demand for 1st class properties/locations.

Yes, I know. I used to live oceanfront!!!!! I know they are never ever going to go down!!! I know I am dreaming of them going down but it is my dream so please, don't ruin it!!!

I know all about the stars and CEOs and the producers and the musicians because I used to be neighbors with them! I know who is lucky enough to own these homes. Darn them!

The market we are watching is the one we used to live at. Hollywood Beach in Oxnard. We made a killing selling our home in late 2004. But we miss the beach and want to move back. We are also looking at Laguna Beach but for obvious reasons we can scratch that off our list!!!

Anyways, You sound like you live in Malibu maybe? Oceanfront?

[greggd]

Originally Posted by Roma

Anyways, You sound like you live Oceanfront?

Not yet Roma.

[ConfederateGhost]

Originally Posted by unknown111

How can so many people there can afford to buy housing at this price and even higher?

Upon pulling up real estate I can see what looks like a shack in places like Compton and Watts are going for well over $200,000. That's if you can find anything at that price.

I find it unreal that you can't even find anything halfway decent for $250,000 there.

Do the jobs pay 5 times higher than they do here to have housing that costs 5 to 10 times as much as they do here in Tennessee?

As a 4th generation Japanese/American you could not pay me a million dollars or yen to live in Tennessee.My wife is from Tokyo and native Japanese find our housing prices cheap.The post is pointless this is LA and just like SF NYC Miami or any other large city real estate costs a whole bunch of money.This is why I tell my daughters to become lawyers or executives.I never say doctor because the health care system is on life support and I am not sure about the future of that profession.It looks like some form of socialized medicine is in all of our future

[JackSparrow]

Originally Posted by PacificKamikaze

It looks like some form of socialized medicine is in all of our future

Let's hope not.

[ConfederateGhost]

We paid a little over 800 for our house we live in the suburbs north of the city.I could sell my house for twice what I paid some of our neighbors retired to Nevada.They bought their home in the 80's for around 400 they sold for 1.5 and it was only on the market for a month.Now I understand market not what it was a year or two ago but home prices are still high.People want to live here so that means houses when available are going to cost you. i bet a small apartment in NYC for a young banker is at least a half million but people will still pay because manhattan is where bankers go to make big money.My friend Jerry moved to London from LA.He paid a very big price for a small town home in a nice area of the city.The bank he works for pays him so much money that he has already bought another home in Pacific Palisades.There was a time when this guy made 40000 a year now he rakes it in because of the opportunities that are in the LA business community.When he comes back here in 3 years he will have a mansion to live in.Stuff costs alot in cities where there is big opportunity.

[greggd]

Originally Posted by PacificKamikaze

We paid a little over 800 for our house we live in the suburbs north of the city.I could sell my house for twice what I paid some of our neighbors retired to Nevada.They bought their home in the 80's for around 400 they sold for 1.5 and it was only on the market for a month.Now I understand market not what it was a year or two ago but home prices are still high.People want to live here so that means houses when available are going to cost you. i bet a small apartment in NYC for a young banker is at least a half million but people will still pay because manhattan is where bankers go to make big money.My friend Jerry moved to London from LA.He paid a very big price for a small town home in a nice area of the city.The bank he works for pays him so much money that he has already bought another home in Pacific Palisades.There was a time when this guy made 40000 a year now he rakes it in because of the opportunities that are in the LA business community.When he comes back here in 3 years he will have a mansion to live in.Stuff costs alot in cities where there is big opportunity.

Your friend Jerry is an example of who is buying in the higher priced sections of the city. This is why I dont think west los angeles real estate will suffer the downturn that other areas are experiencing.