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Old 05-03-2015, 07:45 PM
 
18,172 posts, read 16,321,515 times
Reputation: 9325

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Quote:
Originally Posted by jimmy92683 View Post
Unless you buy with cash, home price today is still much lower than 2005 because of lower interest rate and inflation. For example, if you borrow $400k in 2005 with 6% rate, the payment was $2400 ($3000 in 2015 $). With today's rate, the payment is around $1860 so the payment in 2005 is 60 higher.

I am not saying that there is no bubble. I don't know.
But the property taxes go up based on purchase price, sooooo............... higher prices mean higher tax, even if a lower interest drops the mortgage payment. Now imagine that 2005 price at $400,000.00 and today it is a $600,00.00 house. Same $2400.00 payment but 1/2 again more on the property tax and insurance.
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Old 05-03-2015, 11:50 PM
 
Location: Berkeley, CA
662 posts, read 1,277,900 times
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We're not in a bubble. There's simply not enough housing. OC is a major job market, so people aren't going to up and leave. They just pay more for the housing that exists.

OC has this naive view that if you stop building, people will leave. That doesn't happen. OC is too big a job market. And people stay where their jobs are.
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Old 05-05-2015, 10:20 AM
 
18,172 posts, read 16,321,515 times
Reputation: 9325
Quote:
Originally Posted by dtran103 View Post
We're not in a bubble. There's simply not enough housing. OC is a major job market, so people aren't going to up and leave. They just pay more for the housing that exists.

OC has this naive view that if you stop building, people will leave. That doesn't happen. OC is too big a job market. And people stay where their jobs are.
True, OC is a case of limited land. Too many people already live there. The biggest problem is the increasing division between rich and poor. The Middle class is even having a hard time buying there.
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Old 05-16-2015, 05:56 PM
 
2 posts, read 1,922 times
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The majority of buyers are foreign cash buyers. The more houses that get built, the more foreign buyers there are to buy it all up. The demand will continue to rise while supply is eaten up by investors or future immigrants.

With out all the foreign cash buyers and investors, prices would be much more reasonable.

People who already own homes don't mind because the value of their houses continue to rise at an incredible pace. Half of the people own a home and they quite enjoy the gain in equity. I doubt anything can be done to stop this trend other than another economy crash.

The housing market is a lot more stable now as people have a lot more invested in their homes. It was easy for people to walk away when they were underwater. A lot less people underwater on their loans on the next decline. Also the new low interest rates that people are locked into now pretty much guarantee that people will stay put. We probably wont see another event like the last one again in the future.
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Old 05-18-2015, 11:08 PM
 
823 posts, read 1,777,493 times
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For any first time home buyers out there--there is HOPE!

I just saw some old friends over the weekend and found out they just bought a house! Whoa! Escrow just closed.

They are a family of 4 (husband, wife and 2 kids) with only 1 bread-earner--yes, just one. They've dreamed of buying for so long, but with one person bringing in income, you know it's hard to save.

I really don't know how they did it, because I had to leave, but I did ask how long they looked for a house: 2 months. A whopping 2 months! The husband saw the "for sale" sign, called his agent who arranged a viewing the next day. They were the first to see the house. They did write a nice letter to the sellers and got the house mainly because of this letter.

I seriously don't know how they did it, how much they put down, but I am so happy for them. It doesn't sound like a dump. It's in a great area with good schools, pretty neighborhoods, safe streets, etc.

OMG, you just can't give up. Forget what you hear about investors, all cash buyers, bidding wars, etc. Yes, there is all that, but I know of 2 families, no 3 if you count my family, who were able to buy despite the intense market.
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Old 05-21-2015, 02:56 PM
 
Location: Irvine
49 posts, read 68,405 times
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I just joined the site, interesting comments on this thread. Seems like majority think we're in a bubble in OC. Has anyone seen that movie with Matt Damon (Elysium). Well, my theory is that parts of OC (Irvine, Newport Beach, Corona Del Mar, Laguna Beach) will continue to rise in price and divide the haves and have nots. The have nots can complain about the imbalance all day till they're blue in the face but it won't change the tide thats already here. Time to settle in less expensive areas and just call it a day. Once the rich settle in an area it basically forms a financial barrier for entry. Helps them keep out the riff raft.
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Old 05-21-2015, 07:17 PM
 
18,172 posts, read 16,321,515 times
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Quote:
Originally Posted by OC Troll View Post
I just joined the site, interesting comments on this thread. Seems like majority think we're in a bubble in OC. Has anyone seen that movie with Matt Damon (Elysium). Well, my theory is that parts of OC (Irvine, Newport Beach, Corona Del Mar, Laguna Beach) will continue to rise in price and divide the haves and have nots. The have nots can complain about the imbalance all day till they're blue in the face but it won't change the tide thats already here. Time to settle in less expensive areas and just call it a day. Once the rich settle in an area it basically forms a financial barrier for entry. Helps them keep out the riff raft.
One advantage to rising prices is that bad neighborhoods get cleaned up. My old one in Bellflower did and is a nice area now. A dump for a while, but the ones who don't care about their property, etc cannot afford to live in such areas after a while (Mainly renters) and the owners must improve the property to get new renters who can pay market rates. This is also happening in man city centers where old factories become condo's and such.
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Old 05-23-2015, 01:11 AM
 
1,078 posts, read 1,072,704 times
Reputation: 1041
Quote:
Originally Posted by dtran103 View Post
We're not in a bubble. There's simply not enough housing. OC is a major job market, so people aren't going to up and leave. They just pay more for the housing that exists.

OC has this naive view that if you stop building, people will leave. That doesn't happen. OC is too big a job market. And people stay where their jobs are.
It's a bubble. Back in lets say 2012. My brother bought at the right time. He payed $290k (Garden Grove). The house right now is worth $550k.

I'm pretty sure there are tons of foreclosed properties the banks are holding out on.
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Old 05-23-2015, 01:18 AM
 
1,078 posts, read 1,072,704 times
Reputation: 1041
Quote:
Originally Posted by OC Troll View Post
I just joined the site, interesting comments on this thread. Seems like majority think we're in a bubble in OC. Has anyone seen that movie with Matt Damon (Elysium). Well, my theory is that parts of OC (Irvine, Newport Beach, Corona Del Mar, Laguna Beach) will continue to rise in price and divide the haves and have nots. The have nots can complain about the imbalance all day till they're blue in the face but it won't change the tide thats already here. Time to settle in less expensive areas and just call it a day. Once the rich settle in an area it basically forms a financial barrier for entry. Helps them keep out the riff raft.
The rich? LOL, you mean like back in 2008 when the bubble burst and the rich had to move.
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Old 05-23-2015, 11:40 AM
 
2,986 posts, read 4,566,202 times
Reputation: 1664
Quote:
Originally Posted by incognitoe View Post
It's a bubble. Back in lets say 2012. My brother bought at the right time. He payed $290k (Garden Grove). The house right now is worth $550k.

I'm pretty sure there are tons of foreclosed properties the banks are holding out on.
2012 prices were seriously deflated due to all the foreclosed properties on the market. Those have all been snapped up and flipped and prices have corrected themselves. Your brother (and other who bought in 2012) just got lucky in timing the market perfectly.

Don't expect to see those prices for coastal property anytime soon
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