120K/yr and still can't get a nice house in a decent neighborhood (Sacramento: rent, HOA)

[Mamag]

I don't have any words of wisdom ... only encouragement.

I know countless couples who make in the neighborhood of what you'd be making should you move here, and every single one of them have bought a home that they can comfortably afford in the greater Sacramento area. And, I know many couples that earn significantly less, have bought a home, and do not live paycheck to paycheck. It IS possible. It does, however, take patience and perseverance - along with a fantastic realtor and loan agent!

I bought my first home here in California when I was 26 years old. I've bought several since then - and currently own two rentals in addition to my primary residence. I have no debt and a good savings. And I do not make $100k. So, it is possible. I'm living proof.

[EscapeCalifornia]

Originally Posted by Mamag

I don't have any words of wisdom ... only encouragement.

I know countless couples who make in the neighborhood of what you'd be making should you move here, and every single one of them have bought a home that they can comfortably afford in the greater Sacramento area. And, I know many couples that earn significantly less, have bought a home, and do not live paycheck to paycheck. It IS possible. It does, however, take patience and perseverance - along with a fantastic realtor and loan agent!

I bought my first home here in California when I was 26 years old. I've bought several since then - and currently own two rentals in addition to my primary residence. I have no debt and a good savings. And I do not make $100k. So, it is possible. I'm living proof.

How many of those houses cost half a million bucks?

[Caffreys]

I thought i share with you all, what a Realtor in the Sacrament area just told me. This is for the price range around 525k...

You are right about Sacramento, however this is not particulary true in the areas that you are inquiring about. There is a huge difference between Sac and surrounding areas. Homes that are selling quickly are the homes that are priced at or just below market value. I have had multiple offers on properties in the past few weeks because they were priced correctly. Homes are staying on the market longer because there are so many choices available, lack of seller motivation and buyers don't want to commit. TThe general idea is that the prices are going to keep dropping, however I don't see that in this area. Personally I think it's a great time to buy because interest rates are still low, choices high and the rates will adjust up big time because the lending instituions have huge problems right now and they will have to recover somehow. It's always the consumer who pays!

I think renting for a year to learn the different areas is an excellent idea. I don't know if Californians are leaving in huge numbers, but we do have a huge influx of new residents from all states coming here, so my question would be: If things are so bad in California, why are so many people coming here? According to California HUD statistics the current housing market even with it's problems cannot keep up with the number of people moving in. Believe it or not there is a housing shortage on the horizon. This market will pass, it's part of a cycle. Prices were inflated and now they are nornalizing it's a natural part of real estate. I've seen it before and will see it again, I am sure.

I think it's possible to see up to 6% in some areas, and up to 10% in others and some maybe no more drop at all. I did a search in Rocklin and there is a lot for sale in your price range ,however they are the standard "cookie cutter" homes with no lot lines or yard.

[ndfmnlf]

Personally I think it's a great time to buy because interest rates are still low, choices high and the rates will adjust up big time because the lending instituions have huge problems right now and they will have to recover somehow. It's always the consumer who pays!

For those who can afford to pay cash or pay a huge downpayment, it would be more advantageous if interest rates go up. That's because high interest rates will cause home prices to drop. There is an inverse relationship between interest rates and home prices. Fewer people borrow money when rates are high, so demand for houses goes down. A cash-paying person has no need for a loan, so interest rates on a mortgage are irrelevant to him. What is relevant is the selling price of a house.

[EscapeCalifornia]

Originally Posted by Caffreys

I don't know if Californians are leaving in huge numbers, but we do have a huge influx of new residents from all states coming here, so my question would be: If things are so bad in California, why are so many people coming here? According to California HUD statistics the current housing market even with it's problems cannot keep up with the number of people moving in. Believe it or not there is a housing shortage on the horizon. This market will pass, it's part of a cycle. Prices were inflated and now they are nornalizing it's a natural part of real estate. I've seen it before and will see it again, I am sure.

Of course people from other states still come to California. But even more people leave for other states. California is a net loser of population domestically. California's population gains are from reproduction and international migration and the latter is a big part of the former.

[NewToCA]

Originally Posted by EscapeCalifornia

Of course people from other states still come to California. But even more people leave for other states. California is a net loser of population domestically. California's population gains are from reproduction and international migration and the latter is a big part of the former.

Not quite, some of us came here due to great schools, wonderful environment, lots of things to see and do and GREAT JOBS! I include my family in that category, and my independent sons came to California too (to a different part of the state).

It is more than reproduction and immigrants, California is a very competitive area to consider for relocation for folks already successful in other parts of the country. You may find this remarkable, but some of us former outsiders can even afford homes here.

[EscapeCalifornia]

Originally Posted by NewToCA

Not quite, some of us came here due to great schools, wonderful environment, lots of things to see and do and GREAT JOBS! I include my family in that category, and my independent sons came to California too (to a different part of the state).

It is more than reproduction and immigrants, California is a very competitive area to consider for relocation for folks already successful in other parts of the country. You may find this remarkable, but some of us former outsiders can even afford homes here.

Go look up the stats. More people have left California for other states in the past few years than have come here. You don't have to look any farther than City-Data's California profile. //www.city-data.com/city/California.html

And great schools? I hope you're talking about universities because California's K-12 public schools are something like 48th in the nation.

[NewToCA]

Originally Posted by EscapeCalifornia

Go look up the stats. More people have left California for other states in the past few years than have come here. You don't have to look any farther than City-Data's California profile. //www.city-data.com/city/California.html

And great schools? I hope you're talking about universities because California's K-12 public schools are something like 48th in the nation.

Who disputed the stats? My point is that folks migrate to California for reasons other than the limited reasons you were specifying. I think it is fine that folks want to leave or escape California, and I wish them well. However, it has a lot to offer for folks who can live here comfortably, and is an attractive alternative to a wide variety of folks, beyond immigrants.

Regarding all of the concern I have read about folks not being able to afford housing in California I think many are underestimating the wealth available in the nation. In Sept 2005, almost 2 years ago, almost 9 million US households had a net worth of over $1 million EXCLUDING equity in their primary residence. I don't know what the number of households with over $500 K, exclusive of primary residence equity, but I would be willing to bet it is over 20 million households. Seems like some folks could potentially buy in California to me.

Survey: Number of millionaires hits record - Sep. 28, 2005

[EscapeCalifornia]

Originally Posted by NewToCA

Who disputed the stats? My point is that folks migrate to California for reasons other than the limited reasons you were specifying. I think it is fine that folks want to leave or escape California, and I wish them well. However, it has a lot to offer for folks who can live here comfortably, and is an attractive alternative to a wide variety of folks, beyond immigrants.

That's the sad future of California: a two class society. The middle class people who built the state (and their children) are leaving as the prospects of affording a home get worse and worse. Yeah, its a great place if you're in the 95th income percentile or come from a 3rd world county. If not, enjoy renting or people house poor.

[NewToCA]

Not to belabor the point (though I think we are beyond that point already) but since we are posting these comments in the Sacramento part of the forum, and discussing what can be purchased with a $120 K income, the attached statistics indicate a lot of sales gravitating towards the mid $300 range in Sacramento County. I view median price as more useful than average, or mean price, by minimizing impacts of few high priced sales.

Lyon Real Estate - View Market Pricing Trends