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Old 04-04-2015, 03:18 PM
 
121 posts, read 175,463 times
Reputation: 171

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Quote:
Originally Posted by 2sleepy View Post
Sacramento real estate is undervalued, I can't imagine any scenario short of collapse of the entire economy where prices would significantly drop.
Like the saying goes the three most critical aspects about real estate are location, location and location. Personally I like Sacramento and think it is undervalued compared to say San Fransisco and many places in California but on a whole Sacramento is still more expensive than your average market nationwide.

Quote:
Originally Posted by NinaN View Post
3 years ago was the absolute bottom of the market so inventory was at a peak. We are in a much more normal market now, leaning a little towards a sellers market. That does not mean awful houses will sell quickly at a high price.

I am seeing the nicest houses at all price point sell quickly. It doesn't appear people are up for major cosmetic updates in this market. Those houses are selling very slowly, where in the past people Felt like they were getting a good deal to buy a fixer-upper, and do the improvement themselves.
It's definately a seller's market but where I do disagree with you is the amount of fixer uppers. They are far and few between near downtown since I believe many of them are being snatched up by investors and flipping them for a profit.

Homes from 1940s and older at around 1300-1500 square feet are being sold for over half a mill in places like East Sacramento and Land Park. I understand these are some of the most desirable locations in Sacramento but I think they are overvalued especially considering Sacramento's economic market and these homes will probably come with high maintenance (ie electrical, insulation, plumbing.)
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Old 04-04-2015, 03:20 PM
 
Location: Sugarmill Woods , FL
6,234 posts, read 8,435,798 times
Reputation: 13809
The water shortage has to have a negative effect on prices.
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Old 04-04-2015, 08:22 PM
 
2 posts, read 1,975 times
Reputation: 10
Im not sure I agree with these posts. Nobody is taking into account the businesses or people that are rapidly leaving the state due to unaffordable housing. We are upper middle class wage earners and we moved out of state. In my small world I know of 3 other families tgat have left. We moveto Tulsz as my husband was offered an opportunity we couldnt say no to. Since we have arrived I have met numerous people that have migrated from California along with businesses such as Verizone financial services. Thry moved all of their financial division from California to here. Along with unsustainable housing prices we have a huge burden of welfare in California and lack of job growth. In addition a long term drought. I am in the mortgage industry znd 6 California is one of the highest risks states for mortgage fraud. At thr end of the day if your aages cant keep up with home prices you will not have buyers. California has messed up the housing market with restrictive building artificially keeping the supply tight. This is a bad mix for the entire state. It further pushes talent and businesses out of the market and keeps rentalnprices high due to investor ownership. We have a rental property still inthe Sacramento area. It has had an appreciation rate of 100%. We are not selling just because this is a long term investment for us. We know its nit worth what we can sell it for. California is just a scary state right now. How can anyone retire thete. Our main growth in Sacramento is from bay areas selling and moving up to tge Sacramento area and foreign investors. Sounss replica to the last housing bust. People have short memories.
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Old 04-04-2015, 08:24 PM
 
2 posts, read 1,975 times
Reputation: 10
Please forgive grammatical errors im typing from my cell.
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Old 04-05-2015, 01:15 PM
 
25,619 posts, read 36,677,590 times
Reputation: 23295
Not much building going on over the last 6 years.

Only thing that could crash this market is a world war. Not even the drought is going to make much impact.
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Old 04-05-2015, 08:56 PM
 
1,148 posts, read 1,571,855 times
Reputation: 1308
It's never going to crash again like it did in 2008. That was one of the worst recessions in the history of this country. If that happens again, we have bigger worries than home values.
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Old 04-06-2015, 09:54 AM
 
Location: Sacramento
572 posts, read 598,548 times
Reputation: 1100
Quote:
Originally Posted by deenaranae View Post
Im not sure I agree with these posts. Nobody is taking into account the businesses or people that are rapidly leaving the state due to unaffordable housing. We are upper middle class wage earners and we moved out of state. In my small world I know of 3 other families tgat have left.
Quote:
Originally Posted by deenaranae View Post
Along with unsustainable housing prices we have a huge burden of welfare in California and lack of job growth.
People have been saying this for years. For every business and upper middle class family that is leaving there are plenty of other businesses and successful start-ups and other wealthy families moving in to take their place. There's no getting around the fact that California is one of the most desirable places to live in the world with a ton of very smart, creative, wealthy people. Yes the other side to that is that there's also a ton of people struggling and living in povertyh and California chooses to help those people which does put a certain burden on the wealthier...I'm not really sure what the alternative to that is that would keep a relatively safe and civil society.

Quote:
Originally Posted by deenaranae View Post
California has messed up the housing market with restrictive building artificially keeping the supply tight. This is a bad mix for the entire state. It further pushes talent and businesses out of the market and keeps rentalnprices high due to investor ownership.
Many of these restrictions are environmentally based. It may be a pain for home costs but it's also what keeps the amazing open spaces, access to beaches and parks, and things that make California so desirable in the first place.

Quote:
Originally Posted by deenaranae View Post
California is just a scary state right now.
California has always been a scary state. There's earthquakes and fires and mud slides and droughts. Granted the current drought is very serious. But the world in general is a scary place right now...there's always global economic uncertainty and conflict and environmental problems. If the current drought is a long-term issue directly due to climate change then it's something we'll have to find long-term solutions to. California won't be the only state to suffer severe challenges due to the changing climate.
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Old 04-07-2015, 01:26 AM
 
Location: Folsom
5,128 posts, read 9,836,360 times
Reputation: 3735
Quote:
Originally Posted by sacite View Post
It's never going to crash again like it did in 2008. That was one of the worst recessions in the history of this country. If that happens again, we have bigger worries than home values.
some say the next crash will be worse than 2008

Quote:
Originally Posted by JohnS_15 View Post
Many of these restrictions are environmentally based. It may be a pain for home costs but it's also what keeps the amazing open spaces, access to beaches and parks, and things that make California so desirable in the first place.
And environmental restrictions is a huge contributor the current drought.

Quote:
Originally Posted by JohnS_15 View Post
California has always been a scary state. There's earthquakes and fires and mud slides and droughts. Granted the current drought is very serious. But the world in general is a scary place right now...there's always global economic uncertainty and conflict and environmental problems.
I've native born & I've never been scared of the things that happen in California. I've been through the big Northridge earthquake in the 70's & several smaller ones. Our house did have severe burn damage when I was a child but not the result of a natural disaster. Some crime is scary. Such as things like the night stalker when I used to live in LA. And maybe not scared, but totally disagree with the politics but not enough to move. At least we dont have to worry about radical terrorists, yet.

Quote:
Originally Posted by JohnS_15 View Post
If the current drought is a long-term issue directly due to climate change then it's something we'll have to find long-term solutions to. California won't be the only state to suffer severe challenges due to the changing climate.
No, this is not the primary reason.
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Old 04-07-2015, 09:09 AM
 
Location: Sacramento
572 posts, read 598,548 times
Reputation: 1100
Quote:
Originally Posted by caligirlz View Post
And environmental restrictions is a huge contributor the current drought.

No, this is not the primary reason.
Oh dear... you are not one of those climate change deniers are you?

The definition of drought is "a prolonged period of abnormally low rainfall; a shortage of water resulting from this". How would you argue that environmental restrictions contribute to the drought??

It's certainly plausible that a drought can be linked to the earth's changing climate (something scientists have been warning about for years now). Especially when similar climatic events are happening globally.
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Old 04-07-2015, 10:44 AM
 
661 posts, read 690,391 times
Reputation: 874
All those damn environmental restrictions in California not letting the rain fall
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