$783 000 ??? its totally insane...:eek: I just bought mine $500 000 without putting a penny down in chicago..and I even claimed to make only half of what you claimed.....just don't get this....
here's one benefit of immigration. both rich and poor want to come to the u.s. the ones with money buy up the houses and drive prices up. and the poor immigrants (legal and illegal)? well, someone is getting rich paying them minimum wage or less than minimum wage. so more money left over to buy a bigger house.
I think the answer to "how can they all afford it" is they bought for a lot less, so they don't have to be able to afford it.
They are overbuilding...some company that was going to sell 270 units as condos bailed and now they are just going to rent them out as apartments. Patience... If you buy, you should short a few of the CME LA housing futures... It's all a deck of cards...on big BLOW and it's all gonna come tumbling down... PS - that's just wishful thinking from a 5-year renter in LA.
exactly..... can you believe my insurance went up close to 100% from the last level....i was going apeshit for about 2 days..then i just accepted it as part of being in the midlle of hurricane alley...but how older people or lower income folks do it is beyond me...they are paying more in insurance/taxes than their house mortgage principle...now thats freaken nauseating
The answer is it can't keep going because affordability is at generational lows and these smug sellers have only unrealized paper gains if the buyers wont bid. Imagine Ed McMahon calls u up and says Mr Traderbm you've won a million dollars. Then he calls back and says I'm dreadfully sorry I misread my list and you were a 600,000 winner. You'll take it. That's the setup and scenario I see coming with each Price Reduced and the resulting accumulation of sales at lower prices that drag down the comparable sales used in the bank appraisals. Sellers' wealth is eroding and taking it off the market and waiting is no solution to that in many places. I think some of you young bucks in these overpriced markets are about to get some decent opportunities over the next 3 years or so. You may find interesting articles and research for your area on your regional fed website, the FDIC site, etc. They've looked at RE booms and busts exhaustively because these things are often a credit/bank lending issue. Good luck.
Just wait about a year. Its going to get ugly. 12 yr highs in inventory at the same time sales are collapsing. Just a matter of time before sellers give in. Also, a record number of ARM's readjust next yr. Can you say "foreclosure". Cal, and many other places are going to get slaughtered. Down 20 to 30% I bet. Then maybe it will hit real affordability levels.
I don't think it's wishful thinking. I witnessed first hand the fall of the real estate bubble in Japan over the past 20 years. I was only a kid, living in both California and Tokyo areas, but I remember seeing how the market just started sinking and sinking and just would not stop dropping year after year. It's funny how arrogant people were during the go-go days, secure in their new-found wealth. It's those same people who became part of the tens of thousands of suicide statistics that emerged when it all fell apart. While I don't think the bubbles in the more "frothy" areas of the US matched the intensity of the Tokyo RE market in those days, it's a no-brainer to arrive at the conclusion that surges of people are gonna be lining up at the soup kitchen pretty soon, after losing their homes and their jobs in the coming recession. RoughTrader
I had a new house built in the suburbs of Dallas. A very nice area. 3500 sq ft on a 1/4 acre creek lot. I only paid 255K and got 5.75% interest on a fixed rate mortgage. Since I used my VA benefits they actually paid me 3,000 at close. I'll put up with the heat anyday.