Affordable California Living?? - Beyond Tiki

H Hanalei_Pirate Member Joined: May 15, 2003 Posts: 136	H Hanalei_Pirate Posted posted on Mon, Aug 11, 2003 6:33 PM [i]On 2003-08-11 18:14, PolynesianPop wrote: My first "home" purchase was my 2 bedroom/2 bath condo in Chino Hills almost 4 years ago. Because of this crazy market, I was able to cash out $100k in equity. I put down 20% ($72k) on the new house and paid off my wife's car and all our cc's. ... Truthfully, I sometimes wonder if there even IS a bubble..... This market is crazy. However, as long as there is that kind of demand for new homes, I can't see prices going down any time soon. My prediction? Mortgage loans will begin running in longer terms just like when they went from 15 year terms to 25 year terms to 30 year terms. If prices don't go down, its the only way I can see people affording the payments. Poly-Pop * [ Edited by: PolynesianPop on 2003-08-11 18:22 ] That is exactly what I was trying to say - if you were fortunate enough to have bought in the last year or couple years, you've made some serious appreciation - my husband is really bitter about this because we wanted to buy over a year ago and my dad couldnt see how the market was so crazy in L.A. my other dad was telling us to low-ball offers - we saw it was coming - we knew these prices were going sky-high and our parents weren't on board as of that point to help us out. So we bought Jan. 2003 - top of the market - well, maybe the prices will keep going up but I don't think we will see the run ups that Poly Pop and other folks who were lucky enough to buy a few years ago - are seeing. He also points out my other point is that there seems to be no end to this market - where are all the people coming from? I remember hanging out in the 1980s in Huntington and how it was all fields on the old side of Main Street - today it is a sea of houses - same thing in the inland empire - same thing in Antelope Valley - where are all the people coming from? It is immigration and higher birth rates of immigrants. That's why it is really now or never if you plan to get a house - housing prices are rising faster than people's paychecks. And now the interest rates are starting to jump back up which will make houses even more unaffordable (ie. I don't think we will see prices dropping on the account of higher rates). It is something like only 23% of the people here can afford the median priced home now in L.A.

[i]On 2003-08-11 18:14, PolynesianPop wrote:

My first "home" purchase was my 2 bedroom/2 bath condo in Chino Hills almost 4 years ago. Because of this crazy market, I was able to cash out $100k in equity. I put down 20% ($72k) on the new house and paid off my wife's car and all our cc's.
... Truthfully, I sometimes wonder if there even IS a bubble..... This market is crazy. However, as long as there is that kind of demand for new homes, I can't see prices going down any time soon. My prediction? Mortgage loans will begin running in longer terms just like when they went from 15 year terms to 25 year terms to 30 year terms. If prices don't go down, its the only way I can see people affording the payments.

**Poly-Pop ***

[ Edited by: PolynesianPop on 2003-08-11 18:22 ]

That is exactly what I was trying to say - if you were fortunate enough to have bought in the last year or couple years, you've made some serious appreciation - my husband is really bitter about this because we wanted to buy over a year ago and my dad couldnt see how the market was so crazy in L.A. my other dad was telling us to low-ball offers - we saw it was coming - we knew these prices were going sky-high and our parents weren't on board as of that point to help us out. So we bought Jan. 2003 - top of the market - well, maybe the prices will keep going up but I don't think we will see the run ups that Poly Pop and other folks who were lucky enough to buy a few years ago - are seeing. He also points out my other point is that there seems to be no end to this market - where are all the people coming from? I remember hanging out in the 1980s in Huntington and how it was all fields on the old side of Main Street - today it is a sea of houses - same thing in the inland empire - same thing in Antelope Valley - where are all the people coming from? It is immigration and higher birth rates of immigrants. That's why it is really now or never if you plan to get a house - housing prices are rising faster than people's paychecks. And now the interest rates are starting to jump back up which will make houses even more unaffordable (ie. I don't think we will see prices dropping on the account of higher rates). It is something like only 23% of the people here can afford the median priced home now in L.A.

Post #47407 by Hanalei_Pirate on Mon, Aug 11, 2003 6:33 PM