Median price for existing OC house: $760,000 (LA & IE prices rise faster than OC) (Garden Grove: to rent, credit)

[Electrician4you]

Originally Posted by FirebirdCamaro1220

Anyone who can pay $1 million dollars or more for a house without over-leveraging themselves is well off in my opinion. A $5k/month mortgage payment is no joke. That would require a household (or individual) income of at least $250k to be approved by a reputable bank. Anyone who earns twice that would be rich easily

You’re talking about maybe 10% of the population in OC that can do that. And I’m being generous. Most people living in the affluent areas of OC are not making that kind of money. My tenants average 100,000 a year income as individuals.

Housing has long surpassed wages. You’re dreaming with the 150/350,000 house prices anywhere in So Cal that’s in demand. Just because YOU see Garden Grove or Anaheim Westminster, Santa Ana as below some “rich” persons standard doesn’t mean that someone isn’t knocking down the door to move in.
My last home ... the next door house sold for 515,000. The tenant renting my last residence grosses over 250,000 a year. And they were foaming at the mouth to move in there.
My other rentals I just did a 200/250 dollar a month rent raise. And I’m still 3-600 below what I can get for the places. And the tenants can’t leave because everyone else wants even more.
Btw I only did a rent raise because all my costs went up a lot. Everyone is charging more.

[FirebirdCamaro1220]

Originally Posted by Electrician4you

You’re talking about maybe 10% of the population in OC that can do that. And I’m being generous. Most people living in the affluent areas of OC are not making that kind of money. My tenants average 100,000 a year income as individuals.

Housing has long surpassed wages. You’re dreaming with the 150/350,000 house prices anywhere in So Cal that’s in demand. Just because YOU see Garden Grove or Anaheim Westminster, Santa Ana as below some “rich” persons standard doesn’t mean that someone isn’t knocking down the door to move in.
My last home ... the next door house sold for 515,000. The tenant renting my last residence grosses over 250,000 a year. And they were foaming at the mouth to move in there.
My other rentals I just did a 200/250 dollar a month rent raise. And I’m still 3-600 below what I can get for the places. And the tenants can’t leave because everyone else wants even more.
Btw I only did a rent raise because all my costs went up a lot. Everyone is charging more.

Yeah, but houses aren't going for a million dollars+ in Garden Grove or Westminster either, like they are in Laguna Beach or Dana Point either. Most of that part of OC is in the $450k-$550k range. I was saying what it should be going for, pointing out more apartments need to be built to take up some of the slack. When housing isn't in line with wages and unemployment is low, you have a housing shortage. And the easiest way to fix a housing shortage is with apartments, when land is scarce, building more sfh's is not the way out

[Electrician4you]

Originally Posted by FirebirdCamaro1220

Yeah, but houses aren't going for a million dollars+ in Garden Grove or Westminster either, like they are in Laguna Beach or Dana Point either. Most of that part of OC is in the $450k-$550k range. I was saying what it should be going for, pointing out more apartments need to be built to take up some of the slack. When housing isn't in line with wages and unemployment is low, you have a housing shortage. And the easiest way to fix a housing shortage is with apartments, when land is scarce, building more sfh's is not the way out

I’m not sure when the last time you looked at housing in central OC but houses in that area are going for a lot more than 450/550 range. Unless you’re talking townhouse purchase a SFR in those areas is in the 600s-high 700 range. Even 800,000. My townhouse can go on the market right now for 580,000 and I’ll sell it . If you have a SFR you can sell it for that and it could be a pile of trash and you’ll get it. A tract housing complex was built next to a buddy’s house. Prices were in the low 800 to start.


You have a housing shortage due to basically 8 years of no or very little home building AND people still procreating. Think about it man. All those kids that were fifteen years old ten years ago are now graduating college and possibly starting a family. Wages isn’t what made housing expensive. If anything there are people who can buy because they have the income. They can’t because there isn’t anything to buy in their affordability range. Its more than wages that’s pushing up house prices.
The way you usually stop/slow the demand is by the prices being raised so high that only a few can afford it thus letting supply catch up. Unfortunately it’s not gonna happen overnight. You could be looking at a decade or more if it even happens at all. Especially in the in demand areas.

When the housing market crashed you couldn’t give a house away. Not until all the banks and investors started buying and prices started going up.

They are building apartments as fast as they can. HB added 12 of the damn things. Too bad nobody wants them. As a investor I would want them because it makes my rentals that much more desirable. As a homeowner I would say keep them away I don’t want the traffic.

As far as living in beach communities, that was expensive for a long time before this housing issue. Living in beach areas has been expensive for 40/50 years (compared to elsewhere/not beach community)

[FirebirdCamaro1220]

Originally Posted by Electrician4you

I’m not sure when the last time you looked at housing in central OC but houses in that area are going for a lot more than 450/550 range. Unless you’re talking townhouse purchase a SFR in those areas is in the 600s-high 700 range. Even 800,000. My townhouse can go on the market right now for 580,000 and I’ll sell it . If you have a SFR you can sell it for that and it could be a pile of trash and you’ll get it. A tract housing complex was built next to a buddy’s house. Prices were in the low 800 to start.


You have a housing shortage due to basically 8 years of no or very little home building AND people still procreating. Think about it man. All those kids that were fifteen years old ten years ago are now graduating college and possibly starting a family. Wages isn’t what made housing expensive. If anything there are people who can buy because they have the income. They can’t because there isn’t anything to buy in their affordability range. Its more than wages that’s pushing up house prices.
The way you usually stop/slow the demand is by the prices being raised so high that only a few can afford it thus letting supply catch up. Unfortunately it’s not gonna happen overnight. You could be looking at a decade or more if it even happens at all. Especially in the in demand areas.

When the housing market crashed you couldn’t give a house away. Not until all the banks and investors started buying and prices started going up.

They are building apartments as fast as they can. HB added 12 of the damn things. Too bad nobody wants them. As a investor I would want them because it makes my rentals that much more desirable. As a homeowner I would say keep them away I don’t want the traffic.

As far as living in beach communities, that was expensive for a long time before this housing issue. Living in beach areas has been expensive for 40/50 years (compared to elsewhere/not beach community)

How is the median for OC $760k if every house is $760 or higher? That doesn't jive

[1AngryTaxPayer]

[quote=FirebirdCamaro1220;51702916]How is the median for OC $760k if every house is $760 or higher? That doesn't jive


Here's a nice empty lot for 520

[FirebirdCamaro1220]

Originally Posted by 1AngryTaxPayer

Here's a nice empty lot for 520

There were houses for over $700k as well, and an empty lot for $520k would probably be in one of those areas. Point being, the heading of this thread was median $760k. It would be numerically impossible for the median to be $760k if the cheapest houses were in the upper $600s. Because that would mean the most expensive would have to be in the $800s, and we know that's not the case, as most homes in Newport and South County are over $1million. So the low end would have to be in the $450-$550 range. Otherwise, the median would have to be at least $1million. If there is one thing I know, it's math

[Peasy973]

There are a lot of more lower priced homes than million homes. Its also a bit easier to sell a lower priced house. Also the median price probably includes condos which are typically cheaper the SFHs.

[CaliRestoration]

Originally Posted by FirebirdCamaro1220

How is the median for OC $760k if every house is $760 or higher? That doesn't jive

Edit: just checked and it shows several single family detached homes in Garden Grove in the 500's (and with pictures)

MEDIAN

Median doesn't mean all homes in OC are $760,000 and higher. That's not what that term means.

[FirebirdCamaro1220]

Originally Posted by CaliRestoration

MEDIAN

Median doesn't mean all homes in OC are $760,000 and higher. That's not what that term means.

I know that, that's why I said it didn't check out. Median means the 50th percentile. And since we know the 99th percentile is multiple millions of dollars (more than likely in Newport Beach), that the 1st percentile would have to be at or below $500k

[CaliRestoration]

Originally Posted by FirebirdCamaro1220

I know that, that's why I said it didn't check out. Median means the 50th percentile. And since we know the 99th percentile is multiple millions of dollars (more than likely in Newport Beach), that the 1st percentile would have to be at or below $500k

What?

No, that's not what median means.

Median is simply the value at which the TOP HALF of a data set is SEPARATED from the BOTTOM half of a data set.

So say you have 5 houses with the following prices in a "market".

$300,000
$375,000
$700,000
$1.2 million
$1.5 million

The MEDIAN from that data set is $700,000, so you would say "the median price of a home in that market is $700,000 USD".

The only difference is that CoreLogic has 7,000 - 9,000 homes in its data set.

So you saying the "since we know the 99th percentile is multiple millions of dollars (more than likely in Newport Beach), that the 1st percentile would have to be at or below $500k" doesn't make much sense from a statistical perspective. What is that view even based upon?