Millennials simply can't afford to live in OC (August: moving, activity)

[CaliRestoration]

Originally Posted by k374

It's not just Coastal OC that is high priced, try inland dumps like Whittier and Pomona going for half a million dollars or more. Those places are also prime gang areas with ****ty schools. Nothing great about those neighborhoods. Yeah, it isn't Newport Beach we are talking about here.

Yeah those places do suck.

[LuvSouthOC]

Originally Posted by k374

housing is a joke... the prices keep going up by tens of thousands every month or two, imagine if other categories went up similarly, milk would be $100/gallon, bread $50/loaf, cup of coffee $20... for whatever reason people think these home prices are just fine, ridiculous! At one point in our history ordinary people were buying these homes, teachers, social workers even lower end folks like admin assistants etc. could buy a smaller condo. Now even a small condo can be afforded by only those appearing on Lifestyles of the Rich and Famous.

The weather argument is ridiculous, it's a very small reason prices are so high... the sun has always been shining here for the last 100 years yet prices have been very low in the past, has more to do with the demand vs supply at a particular moment. Right now there is a lot of cash floating around the world and plenty of people with suitcases of million dollars that want to park it somewhere. Sometime in the future capital will dry up and all these homes will be suddenly worthless just like 2009.

Housing is now behaving like stocks, 100% appreciation followed by a 50% drop, whereas in the past the up/down cycles were much smaller.

Perhaps, but the situation differs dramatically from 2008. It is foolish to think prices will drop to the point of being "worthless" barring an extreme event like a major earthquake, war, etc.

[expatCA]

Originally Posted by k374

housing is a joke... the prices keep going up by tens of thousands every month or two, imagine if other categories went up similarly, milk would be $100/gallon, bread $50/loaf, cup of coffee $20... for whatever reason people think these home prices are just fine, ridiculous! At one point in our history ordinary people were buying these homes, teachers, social workers even lower end folks like admin assistants etc. could buy a smaller condo. Now even a small condo can be afforded by only those appearing on Lifestyles of the Rich and Famous.

The weather argument is ridiculous, it's a very small reason prices are so high... the sun has always been shining here for the last 100 years yet prices have been very low in the past, has more to do with the demand vs supply at a particular moment. Right now there is a lot of cash floating around the world and plenty of people with suitcases of million dollars that want to park it somewhere. Sometime in the future capital will dry up and all these homes will be suddenly worthless just like 2009.

Yes, because in the past people did not want to move and CA had minimal jobs until the aircraft industry took off just like IT now. CA was affordable for mist people until about 2000. Life has changed very fast and what happened in the last 1900 years is meaningless. More people. more money and more people with pensions, etc that want to move. However that is dying as more residents of CA move out of State than move in from other States. Now it is foreign buyers and those born in CA who want to live in CA, that are driving the prices up.

[man4857]

Originally Posted by k374

housing is a joke... the prices keep going up by tens of thousands every month or two, imagine if other categories went up similarly, milk would be $100/gallon, bread $50/loaf, cup of coffee $20... for whatever reason people think these home prices are just fine, ridiculous! At one point in our history ordinary people were buying these homes, teachers, social workers even lower end folks like admin assistants etc. could buy a smaller condo. Now even a small condo can be afforded by only those appearing on Lifestyles of the Rich and Famous.

The weather argument is ridiculous, it's a very small reason prices are so high... the sun has always been shining here for the last 100 years yet prices have been very low in the past, has more to do with the demand vs supply at a particular moment. Right now there is a lot of cash floating around the world and plenty of people with suitcases of million dollars that want to park it somewhere. Sometime in the future capital will dry up and all these homes will be suddenly worthless just like 2009.

Housing is now behaving like stocks, 100% appreciation followed by a 50% drop, whereas in the past the up/down cycles were much smaller.

+1

It's like the person who says they need to clip coupons every month and penny pinch... but lives in the most expensive parts of the country. Gee... just a little bit ridiculous ehh?

[man4857]

Originally Posted by BMW R1100

I'm a SoCal native, only because my Mom came to CA to visit her married sister, saw the weather was 75 degrees in January, and call home and said, "Ma, send my stuff, I'm not coming back to west TX." However, my son can't afford to buy a house in Orange Co., and doesn't want to live in Temecula or Hemet or Corona. His three boys need room to run and grow, without fear of drive-by bullets. His wife's employer wanted to open an office in TX, so the went to check it out. Couldn't believe the palace they could buy for 275k, and for giggles put an offer on a beautiful house near DFW. Within four months they were gone. He got a job right away and they're loving TX. I should be retired now, but I'm still working for the man every night and every day, and am considering moving to TX.

Well, most in CA are living in a bubble anyways. Thinking that single family homes selling for 500K+ is the norm. Everywhere else in the country with the exception of other expensive cities, it just isn't the case.

[CaliRestoration]

Originally Posted by man4857

Well, most in CA are living in a bubble anyways. Thinking that single family homes selling for 500K+ is the norm. Everywhere else in the country with the exception of other expensive cities, it just isn't the case.

That's the market. It's not "living in a bubble" and people "thinking their homes are $500,000+".

If Gilbert, Arizona had extreme high demand like Coastal California, it would also have $500,000+ homes all over. But there are real reasons why people choose to live in Coastal California vs a desert.

[man4857]

Originally Posted by CaliRestoration

That's the market. It's not "living in a bubble" and people "thinking their homes are $500,000+".

If Gilbert, Arizona had extreme high demand like Coastal California, it would also have $500,000+ homes all over. But there are real reasons why people choose to live in Coastal California vs a desert.

Well obviously that's the market. But what I was getting at was...people who think they can afford those homes are living in the bubble. Which includes most people living in expensive cities with the exception of a few like NYC/SF who knows it's really expensive since it's literally impossible to purchase property.

[LuvSouthOC]

Originally Posted by man4857

Well obviously that's the market. But what I was getting at was...people who think they can afford those homes are living in the bubble. Which includes most people living in expensive cities with the exception of a few like NYC/SF who knows it's really expensive since it's literally impossible to purchase property.

I am a person from the bubble of desirable real estate you are referring to: OC, LA, SD, Bay Area, DC. I have not lived in a place that is cheap and I don't know what that would be like. I do not think real estate in the places I have lived should cost what it does in El Paso. What say you? All prices should be the same?

What does "literally impossible to purchase property in NYC/SF" mean?

One cannot purchase property there?

[payutenyodagimas]

Originally Posted by man4857

Well obviously that's the market. But what I was getting at was...people who think they can afford those homes are living in the bubble. Which includes most people living in expensive cities with the exception of a few like NYC/SF who knows it's really expensive since it's literally impossible to purchase property.

you mean the homeowners cant afford their houses?

[Finper]

Originally Posted by man4857

Well, most in CA are living in a bubble anyways. Thinking that single family homes selling for 500K+ is the norm. Everywhere else in the country with the exception of other expensive cities, it just isn't the case.

I know what your talking about. My friends kids in their 20s have no clue of life outside of so cal. They think expensive gas, housing, taxes high crime. High COL vs low wage is what every state is like. I showed a girl pics of gas prices and real estate and nice roads no traffic in Az and she was mind blown. Then she said but it's hot every day there