Market correction?

borg
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borg
Edited Date/Time 8/26/2015 12:02am
Maybe we will finally have a real one. Dow futures -600 right now. I may have to change my mind and get back in. I hope we have another housing correction here in SoCal too. Prices are back up to crazy levels again.

For you guys in other parts of the country:

Typical single family home in Lakewood/Long Beach CA. Starter homes we used to call them. It was for me.
Lot size 50' x 110'
House 900 to 1800 sq/ft
Garage 18' x 20' (360 sq/ft)
Price $400 to $600,000.00

Rent for this house $2400.00/m

These are not luxury homes. These are cookie cutter, mass produced, cheaply built houses from the 40's and 50's. No insulation, inadequate electrical, single floor furnace, galvanized pipe for water distribution. Many have been upgraded over the years but it doesn't effect the price that much.

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Andy_Greenney 8/24/2015 6:11am
8/24/2015 6:11am Edited Date/Time 8/24/2015 6:13am
borg wrote:
Maybe we will finally have a real one. Dow futures -600 right now. I may have to change my mind and get back in. I hope...
Maybe we will finally have a real one. Dow futures -600 right now. I may have to change my mind and get back in. I hope we have another housing correction here in SoCal too. Prices are back up to crazy levels again.

For you guys in other parts of the country:

Typical single family home in Lakewood/Long Beach CA. Starter homes we used to call them. It was for me.
Lot size 50' x 110'
House 900 to 1800 sq/ft
Garage 18' x 20' (360 sq/ft)
Price $400 to $600,000.00

Rent for this house $2400.00/m

These are not luxury homes. These are cookie cutter, mass produced, cheaply built houses from the 40's and 50's. No insulation, inadequate electrical, single floor furnace, galvanized pipe for water distribution. Many have been upgraded over the years but it doesn't effect the price that much.

Sounds cheap to me....but then again I live on the outskirts of London. I can only imagine the future problems that will come about when everyone is just about getting by paying rent, not owning any property for their retirement.

Looking at near $900,000 for a small 2 bed flat!
newmann
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newmann 8/24/2015 6:21am
8/24/2015 6:21am
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and was bummed because I couldn't get it for $35,000.00 considering the condition. Going to have to put about $6000.00 into it to make it nice and it will rent in the $775.00-795.00 range.

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Harry Backmon 8/24/2015 7:09am
8/24/2015 7:09am Edited Date/Time 8/24/2015 7:22am
Don't sweat it guys. Yellen will be along any minute to do the banksters bidding. No rate hike in September. QE4 to be announced soon. Bank on it.

I see now all trading has been stopped. Free market? Only if it is going up. They never invoke Rule 48 when the market is running up hundreds of points on the day. Wonder why?
Sandberm
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Sandberm 8/24/2015 7:17am
8/24/2015 7:17am
Thats probably a $200,000 house here. But our market is starting to take off as the supply of affordable($200,000 houses or less) is begining to dry up

Id hate to spend 600k and then have the market collapse to ???
DPR250R
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DPR250R 8/24/2015 7:18am
8/24/2015 7:18am
newmann wrote:
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and...
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and was bummed because I couldn't get it for $35,000.00 considering the condition. Going to have to put about $6000.00 into it to make it nice and it will rent in the $775.00-795.00 range.
If you love the area... You make it work. I saved for about 10 years to buy my first place. It seems like every 1,000 I saved, housing jumped another 10,000. Then the bust came.

I love watching HGTV and seeing 20 somethings walk into a 3000 sq ft house for 300K and complain about the paint.
borg
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borg 8/24/2015 7:26am
8/24/2015 7:26am
newmann wrote:
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and...
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and was bummed because I couldn't get it for $35,000.00 considering the condition. Going to have to put about $6000.00 into it to make it nice and it will rent in the $775.00-795.00 range.
I don't know how a young couple does it here. Using a 25% front end ratio, the household income needs to be about 10,000.00/m. That's if you can come up with the down payment. In the 50's and even into the late 70's these houses were bought by young couples and families where 1 person worked and the other stayed home to care for the kids and the house. I don't see that it's remotely possible now. Both have to work and if you have kids you have to turn them over to sitter of some sort every day. Total bullshit way to raise kids IMHO.
Family ties are what kept me here all these years. I was born in Long Beach in 1953. I'm hoping that my kids make a break for it before they start making families. Too much important stuff has to be sacrificed to live here now.
hillbilly
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hillbilly 8/24/2015 7:41am
8/24/2015 7:41am
40 k here,rent it for $400 to $500 ,.

There are houses all over here and many subdivisions with lots,new subdivisions.

You could buy a lot,build,and have a entire subdivision to youself.
seth505
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seth505 8/24/2015 7:42am
8/24/2015 7:42am Edited Date/Time 8/24/2015 7:43am
I've been looking where I live in San Diego and it sucks. Previous to this I was in Boston, MA which also sucked. I'm beginning to think I will rent forever ha

I remember visiting Illinois for work and there were new houses for 250K that would be 500-600K here.
IWreckALot
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IWreckALot 8/24/2015 7:53am
8/24/2015 7:53am
newmann wrote:
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and...
My question is, how the hell do people afford these homes at those prices? I just picked up another 800 sq. ft. townhouse for $39,000.00 and was bummed because I couldn't get it for $35,000.00 considering the condition. Going to have to put about $6000.00 into it to make it nice and it will rent in the $775.00-795.00 range.
DPR250R wrote:
If you love the area... You make it work. I saved for about 10 years to buy my first place. It seems like every 1,000 I...
If you love the area... You make it work. I saved for about 10 years to buy my first place. It seems like every 1,000 I saved, housing jumped another 10,000. Then the bust came.

I love watching HGTV and seeing 20 somethings walk into a 3000 sq ft house for 300K and complain about the paint.
Those HGTV couples have to be screened to achieve their level of stupidity.

My 1,300 sq ft house on a typical quarter acre lot was $100,000. I'll be damned if the wife now wants something in the $250,000 range. Good thing she's a nurse now but still.
MxKing809
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MxKing809 8/24/2015 11:49am
8/24/2015 11:49am Edited Date/Time 8/24/2015 11:50am
I just bought a recently renovated house on a Country Club with a 24x36 insulated and finished pole barn in Michigan for $175,000. I get a kick out of the house shows on HGTV in Cali where they're buying a gutted ranch for 450,000 to flip it for 750,000..... WoohooWoohooWoohooHuh
SF45
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SF45 8/24/2015 9:35pm
8/24/2015 9:35pm
I'd wait a week before you start buying low.
SF45
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SF45 8/24/2015 9:39pm
8/24/2015 9:39pm Edited Date/Time 8/24/2015 9:42pm
I don't pretend to know exactly how the housing market works, and how the stock market effects it, but in 2008, it was a straight up housing bubble, with unbiquitous sub-prime loans. I can attest by way of having been a courier driver at the time, delivering docs to Countrywide offices, which were boiler rooms at the time. They don't exist anymore. Draw those conclusions.
IWreckALot
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IWreckALot 8/25/2015 5:05am
8/25/2015 5:05am
SF45 wrote:
I don't pretend to know exactly how the housing market works, and how the stock market effects it, but in 2008, it was a straight up...
I don't pretend to know exactly how the housing market works, and how the stock market effects it, but in 2008, it was a straight up housing bubble, with unbiquitous sub-prime loans. I can attest by way of having been a courier driver at the time, delivering docs to Countrywide offices, which were boiler rooms at the time. They don't exist anymore. Draw those conclusions.
Student loans have filled the subprime mortgage gap. . . It's well on its way to becoming out of control like the mortgages were and this time, most of the people with the notes are much younger than the mortgage holders. . .
el moto diablo 8/25/2015 6:07am
8/25/2015 6:07am
I wouldn't hold my breath on real estate anywhere near L.A. do drop significantly. It is still a sellers market and even more difficult to find rentals believe it or not.

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Falcon
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Falcon 8/25/2015 9:32pm
8/25/2015 9:32pm
Borg, I'm with you, but even with both parents working it's getting less and less likely to own here. Ever pay daycare? Unless both parents are making College-degree-style money (my wife doesn't,) the cost to take care of the kids hurts bad. Hell, without that expense, her car payment, gas & insurance, I'd probably be better off for her to stay at home.
Sully
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Sully 8/26/2015 12:02am
8/26/2015 12:02am
Falcon wrote:
Borg, I'm with you, but even with both parents working it's getting less and less likely to own here. Ever pay daycare? Unless both parents are...
Borg, I'm with you, but even with both parents working it's getting less and less likely to own here. Ever pay daycare? Unless both parents are making College-degree-style money (my wife doesn't,) the cost to take care of the kids hurts bad. Hell, without that expense, her car payment, gas & insurance, I'd probably be better off for her to stay at home.
I saw a story on NBC7's website a couple of weeks ago saying that a family had to make $108k/yr in order to afford a median priced home in San Diego. As a single dad looking to bring my kids back home soon, that doesn't fill me with a whole lot of confidence.

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