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Old 07-06-2016, 08:10 PM
 
271 posts, read 214,149 times
Reputation: 184

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Quote:
Originally Posted by Electrician4you View Post
But you can buy a town home. Or a home that's NOT in OC. I just gave you a perfect example of a area in So Cal where houses run 275-350/400k and you completely ignored it.
I just did a quick Zillow. In Stanton which is in OC there are small homes and town homes for 350 and up. So the houses are there. And that's affordable. Ok it's not 2500 sq ft in Irvine but holy cow dude. Beats renting. If the median income is 60k in OC two people can make those payments. There are a lot of different reasons why prices are what they are. Plenty of people in Montana or Wyoming or Idaho upset because Californians and "rich" people were coming in pumping up prices. Same thing here. There are a lot of rich people buying here in So Cal. And their wallets have more horsepower than the locals.
So Cal is expensive. Deal with it
This. 100% all day long.

The only thing that will cause the housing market to really cool off is if interest rates go up. But that won't make it anymore "affordable" to the people complaining about it currently.
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Old 07-06-2016, 08:19 PM
 
Location: Riverside Ca
22,146 posts, read 33,530,989 times
Reputation: 35437
Quote:
Originally Posted by Yermum View Post
This. 100% all day long.

The only thing that will cause the housing market to really cool off is if interest rates go up. But that won't make it anymore "affordable" to the people complaining about it currently.


Yelled isn't raising rates. No way in hell she's doing that.
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Old 07-06-2016, 08:26 PM
 
5,381 posts, read 8,687,308 times
Reputation: 4550
Just look around. There are still 3 condos (one is a short sale) in Aliso Viejo for $300K, or less. They're small, but big enough for a single person:
https://www.redfin.com/city/224/CA/A...max-price=300k

Rancho Santa Margarita has 9 of them:
https://www.redfin.com/city/15422/CA...max-price=300k

Laguna Niguel has 2:
https://www.redfin.com/city/9965/CA/...max-price=300k
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Old 07-06-2016, 09:05 PM
 
271 posts, read 214,149 times
Reputation: 184
Quote:
Originally Posted by Electrician4you View Post
Yelled isn't raising rates. No way in hell she's doing that.
If this Brexit fiasco hadn't happened she might have.
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Old 07-06-2016, 10:19 PM
 
Location: Riverside Ca
22,146 posts, read 33,530,989 times
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Quote:
Originally Posted by Yermum View Post
If this Brexit fiasco hadn't happened she might have.

You think so? She wasn't raising rates before that happened. It's possible. I mean never say never right? I mean right now rates are incredibly low. There is nowhere for them to go but up. As it is the rate we borrowed at is a joke. 3.62%. After deductions it's about as free money as it gets. And in 10 years this money today is worth less than money 10 years from now. I guess we will have to see whose in the White House next term. Then we will see what happens.
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Old 07-07-2016, 08:30 AM
 
Location: Whittier
3,004 posts, read 6,274,070 times
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Yes it was planned implicitly I believe that this summer rates were to go up. Probably by a fraction of a percentage point, but up nonetheless.

Job growth is still doing OK and the economy here in the US is doing OK, if it wasn't for Brexit to provide instability then they would have gone up.
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Old 07-07-2016, 09:42 AM
 
6,089 posts, read 4,986,718 times
Reputation: 5985
Quote:
Originally Posted by Yermum View Post
This. 100% all day long.

The only thing that will cause the housing market to really cool off is if interest rates go up. But that won't make it anymore "affordable" to the people complaining about it currently.
Ha. We agree.

I love the "bear" argument of "Once interest rates start rising, watch prices!", while ignoring the inflationary effect of rising rates.
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Old 07-07-2016, 10:19 AM
 
271 posts, read 214,149 times
Reputation: 184
Quote:
Originally Posted by CaliRestoration View Post
Ha. We agree.

I love the "bear" argument of "Once interest rates start rising, watch prices!", while ignoring the inflationary effect of rising rates.
Not just that, but the actual monthly payment is going to be affected by an increase in interest rates as well.


2 Hypothetical Scenarios.



Even though the purchase price dropped by 10% the monthly payment only decreased by 4%. That's not going to make these houses "affordable" to a huge swathe of people that can't buy them currently.
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Old 07-07-2016, 01:07 PM
 
6,089 posts, read 4,986,718 times
Reputation: 5985
Quote:
Originally Posted by Yermum View Post
Not just that, but the actual monthly payment is going to be affected by an increase in interest rates as well.


2 Hypothetical Scenarios.



Even though the purchase price dropped by 10% the monthly payment only decreased by 4%. That's not going to make these houses "affordable" to a huge swathe of people that can't buy them currently.
I've never thought rates were a huge factor in "housing affordability" unless you are talking about rates in a vacuum which is how the majority of the "rate" arguments begin.
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Old 07-07-2016, 09:08 PM
 
Location: Riverside Ca
22,146 posts, read 33,530,989 times
Reputation: 35437
Quote:
Originally Posted by CaliRestoration View Post
I've never thought rates were a huge factor in "housing affordability" unless you are talking about rates in a vacuum which is how the majority of the "rate" arguments begin.
That's the thing. Rates would have to go up almost double to make any dent in prices. If a hundred bucks is what makes a person put on the brakes in owning they are better off renting. And .5% is not going to drop 50k off the price. Just not gonna happen. You would be looking at at least double the current rate to get some drop in prices. And even then it won't be 10% drop.
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