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Old 06-27-2016, 06:46 AM
 
Location: Coastal Georgia
50,362 posts, read 63,939,201 times
Reputation: 93314

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It seems like most of the TV shows about real estate are based in California. Right now, I'm watching a young couple with 4 kids and a $750k budget looking for a house. All three choices are total dumps with cheap finishes, 1 bathroom, no yard, and on noisy highways. How did this happen and why do Californians put up with this?

It seems to me. if people refused to pay these prices, the prices would come down.
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Old 06-27-2016, 07:09 AM
 
266 posts, read 319,876 times
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It'll take more time, but people are already leaving. The South is the new cool.
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Old 06-27-2016, 07:22 AM
 
Location: Elysium
12,385 posts, read 8,144,253 times
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Welcome to Elysium
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Old 06-27-2016, 07:25 AM
 
Location: Redwood City, CA
15,250 posts, read 12,955,121 times
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Quote:
Originally Posted by gentlearts View Post
It seems to me. if people refused to pay these prices, the prices would come down.
Ah, yes. The "other people are idiots for paying too much for real estate" theory.

It's called speculation. Since there are no low-risk investments today that pay much of anything, many people are choosing to ride the wave of real estate appreciation.

People will not refuse to pay these prices if they think there's a chance of making money quickly. Of course, some of them are going to get burned in this game of musical chairs when the music stops and there's nowhere to sit.
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Old 06-27-2016, 07:30 AM
 
Location: ATL by way of Los Angeles
847 posts, read 1,457,447 times
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Quote:
Originally Posted by gentlearts View Post
It seems like most of the TV shows about real estate are based in California. Right now, I'm watching a young couple with 4 kids and a $750k budget looking for a house. All three choices are total dumps with cheap finishes, 1 bathroom, no yard, and on noisy highways. How did this happen and why do Californians put up with this?

It seems to me. if people refused to pay these prices, the prices would come down.

The thing is that no matter what, somebody somewhere will pay these prices. If the average Joe doesn't do it, then an investor would.


This is not just an L.A. thing at all. You should see the prices that row houses in D.C. are going for these days. I won't even get into what a brownstone in Brooklyn would cost.
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Old 06-27-2016, 08:36 AM
 
925 posts, read 1,065,051 times
Reputation: 1547
Quote:
Originally Posted by Big L View Post
The thing is that no matter what, somebody somewhere will pay these prices. If the average Joe doesn't do it, then an investor would.


This is not just an L.A. thing at all. You should see the prices that row houses in D.C. are going for these days. I won't even get into what a brownstone in Brooklyn would cost.
Yes LA real estate is cheap compared to NYC and most world class cities. Also LA has the IE which is relatively affordable and has some good train links into LA and OC.
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Old 06-27-2016, 08:47 AM
 
4,795 posts, read 4,821,194 times
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Most houses have like 10 people making offers above asking price so I doubt people will stop paying anytime soon
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Old 06-27-2016, 08:50 AM
 
249 posts, read 266,882 times
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Many people like what LA offers and agree to the price to have it.

People living in LA are aware houses are cheaper elsewhere, but they don't want to live elsewhere.
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Old 06-27-2016, 08:51 AM
 
Location: Southern California
12,713 posts, read 15,527,280 times
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The prices are what they are because of supply and demand not because people put up with it.
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Old 06-27-2016, 09:02 AM
 
4,538 posts, read 10,626,960 times
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A family of 4 buying a place with one bathroom now days is insane.

But for $750k there are plenty of nice neighborhoods where you can get a 4bd/2ba 2000 sw ft house or townhome. However, you are right, the place may be dated.
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