California housing market starting to turn

Discussion in 'Politics, Religion, Social Issues' started by stylinexpat, Sep 25, 2018.

  1. stylinexpat macrumors 65816

    stylinexpat

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    #1
  2. DearthnVader macrumors 6502a

    DearthnVader

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    #3
    Trouble with bubbles, they always pop, then the bank start blowing up the next one.

    When the government debt bubble pops, that's when we'll all be in for shared pain.

    Maybe that's what it takes for us to stop worshiping money and greed, and take the time to love one another.
     
  3. Solomani macrumors 68040

    Solomani

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    #4
    Awesome!

    MAGA MAHA!

    Make Affordable Homes Again
     
  4. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #5
    In order to MAGA he needs to MAAA (Make America Affordable Again) and that will not happen until the bubble pops. Perhaps by MAAA (Making Apple Affordable Again) ;):p
     
  5. Solomani macrumors 68040

    Solomani

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    #6
    So you want $650 iPhones in 2019? Not gonna happen. :p That's less likely to happen than Ivanka Trump succeeding her dad as the next POTUS.
     
  6. FX120 macrumors 65816

    FX120

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    Not really a shocker. Rising construction and increasing supply + years of massive gains in property values + rising cost of borrowing will always drive down home prices. People are being driven from California due to the insane cost of living which is also increasing supply as those people cash out of their homes to move elsewhere in the country. This isn’t “housing bubble 2.0”, it’s just a natural correction to what has been a very hot market.
     
  7. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #8
    In the old days when the people moved out Asians or others from overseas snapped up the properties but if no one snaps up now it will be quite ugly.
     
  8. Solomani macrumors 68040

    Solomani

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    #9
    I think overseas investors, Asians or otherwise, should NOT be allowed to purchase American homes, unless they are US citizens or at least legal residents of the given State. I don't want those Chinese Communist billionaires to buy out houses meant for Americans, neither do I want those greedy Saudi royals to construct million-dollar mansions in the USA which drive up the prices of whatever neighborhood. Besides, they only stay in their "American summer homes" for a few days a year. They might as well just stay at the Ritz.

    Ironically, this is one of those "pro-American-citizen" things that I feel that Trump should have done. But he totally failed to do, because he is such a Saudi arse-kisser. So he allows all the corrupt Russian oligarchs and Saudi princes (there are hundreds of them) to buy out American property, create lavish mansions in the USA, which then contribute to even higher real estate prices…. which means middle class Americans cannot afford reasonably priced homes.
     
  9. Vanilla Ice, Nov 3, 2018
    Last edited: Nov 4, 2018

    Vanilla Ice macrumors 6502

    Vanilla Ice

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    #10
    Why is Trumps name getting thrown in when it comes to California’s housing market?
     
  10. FX120 macrumors 65816

    FX120

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    #11
    That only makes sense if the market is tightening and prices are increasing, reach the peak and investors/speculators will either hold back on additional purchases or dump their holdings, driving pricing down. No investor from anywhere parks their money in an overvalued asset.
     
  11. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #12
    Do you know how many non-American Citizens sell on Amazon which has helped put American business and companies out of business in America?

    There would need to be new laws implemented in order to prevent non-Americans from being able to buy US real estate/properties as now there are no such laws in place. Foreigners are allowed to buy and own homes in the US.
     
  12. DearthnVader macrumors 6502a

    DearthnVader

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    #13
    Capitalism, in the form it takes in the US, has always been a boom and bust economic cycle. With each cycle, new safeguards and regulations are put in place, self satisfying bankers and politicians tell us they have fixed the trouble.

    People fail to understand where money comes from, and where it goes. New money, in the economy is the byproduct of banks extending new credit, and banks need to extend new credit to be more profitable.

    When things are good, banks tend to extend more and more credit, and engage in riskier and riskier lending. This gets exacerbated by low interest rates, as banks can charge higher rates on riskier investments. The more money banks loan, the more the economy booms, and we all fool ourselves into believing the good times are going to stay forever, ignoring the fact that all bubbles pop.

    No one can ever say for sure, when, how, or what will pop a bubble. Some people guess, sometimes they guess correctly, and they look really smart when they pick the right things to short. However, really, they just get lucky.
     
  13. s2mikey macrumors 68020

    s2mikey

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    #14
    Dont you know? Hes responsible personally for everything bad ever. Right?

    SAs for Cali's housing issues....not surprised. Productive people are leaving CA in droves and you cant blame them.
     
  14. DearthnVader macrumors 6502a

    DearthnVader

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    #15
    It's not just productive people, retired people also tend to leave high tax states. I'd assume that workers on government pensions don't want to be taxed on personal income, and that they would tend to move to states like TN or FL that have no personal income tax.

    So CA sends checks out of state, and that money helps the economy grow when people spend or invest it, in other states. So CA doesn't meet their growth projections, and ends up with budget shortfalls.
     
  15. ericgtr12 macrumors 65816

    ericgtr12

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    The tech industry, while booming, has priced the average person out of a home here in the bay area. Recently, they reported that to afford a home in the SF area one would need to make just over $300,000 annually which is ridiculous.

    Rents are no better, inventory is low and those who have homes purchased way back when are all selling them off and retiring somewhere cheaper or renting with a 400% markup over what they owe. At some point it has to pop.
     
  16. BoxerGT2.5 macrumors 68000

    BoxerGT2.5

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    #17
    California's housing issue is squarely the result of California's strict regulations on building. Buddy of mine walked away from a property because in order to build a home in the state it was like pulling teeth.
     
  17. ThisBougieLife macrumors 68000

    ThisBougieLife

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    #18
    Yep. Making 100K in SF is considered "low income" now. It's nuts. But market doesn't seem to be turning where I am. Houses barely stay for sale for a week. A 3-bed 1-bath house sells for $1.5 million in a heartbeat. What I am seeing is lower-income people leaving, cashing in on their valuable houses and moving to a more affordable area of the state.
     
  18. ericgtr12 macrumors 65816

    ericgtr12

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    #19
    I think it's happening, just slower than we would like. One of the stats I heard was that houses are starting to stay on the market longer, even after several showings and that they're dropping compared to last year.

    I have personally had to rent because I simply can't afford a $1.5 million house. I'll give it a couple of years and see if things cool down enough to buy again, I can't see the current market sustaining this forever.
     
  19. Khalanad75 macrumors 6502

    Khalanad75

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    #20

    Exactly what I am seeing in the Sacramento area. Houses last maybe 2 weeks at the longest. The people working in the bay area are starting to decide that a 2hour commute isn't that bad if they can get a lot more home for their value.

    Hell, we have new construction going on constantly.
     
  20. ericgtr12 macrumors 65816

    ericgtr12

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    #21
    I moved to the bay area from the Folsom area, I did try the commute but it was an absolute killer, sometimes as much as 4 hours in heavy traffic. However, I saw exactly what you are talking about, people from the SF area sell their home for 5 times what they paid for it and them move up to the Sacramento suburbs and buy a McMansion for $500,000, they're like millionaires in a dollar store.

    In the short time I was there I saw traffic increase significantly and I think soon the drive will not be worth it for people, especially with all the construction south of 50 (11,000 new homes in one alone).
     
  21. Rhonindk macrumors 68040

    Rhonindk

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    #22
    Looked at a couple of houses in my area (Ventura) over the weekend.
    One word: Overpriced.
    If you are looking to build, there are a lot of open lots as a result of the Thomas fire last year. Those also are seriously overpriced. Not to mention the zoning / building regulations are freaking nuts.

    Personally I am in no hurry. Just looking.
     
  22. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #23
    Patience will pay off..
    --- Post Merged, Nov 5, 2018 ---
    Best way around traffic is electric bicycle or electric scooter. They save time and money
     
  23. DearthnVader macrumors 6502a

    DearthnVader

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    #24
    They also kind of suck in the rain and snow, or when you need to haul kids or refrigerators.

    Tho I understand what you are saying, we all need to be minimalist when that suits the task.
     
  24. chown33 macrumors 604

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    betwixt
    #25
    I've seen many an electric bike with a kiddie seat on the cargo rack. Looked reasonable.

    I've seen a late teen or 20-something on an electric scooter with a younger kid "riding pillion" behind. Looked risky, but kids will be kids.

    I've seen a teen on an electric scooter with another teen on a skateboard behind with a tow-rope, water-skier style. Looked like fun, but would not want to try it in traffic.

    Now I'm waiting to see a four-in-hand hitch of electric scooters toting a refrigerator.

    Looking forward to the 20-mule-team versions of electric scooters.
     

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