Real Estate-- How overpriced is it in your area?

[Rosebud]

We despair that we will ever be able to buy a home at the current prices. Anyone else in the same boat? We've looked around and haven't seen a 2 or 3 bedroom home in our area (West Los Angeles) for under around $650,000. Most are a lot more than that. The duplexes on the street where we rent are currently selling for $1.2M - $1.5M. :eek: We will be renting for the rest of our lives, I think.

Go ahead and complain about the real estate market in YOUR hood!

Better yet, post what $600,000 will buy you in your area. Here's what you get for your money here:

http://photos.themls.com/images/05-033835/05-033835.jpg
Single Family Home
Price: $629,000
Bed: 2
Bath: 1
Location: Miracle Mile area of Los Angeles

http://photos.themls.com/images/05-022947/05-022947.jpg
2 Story Townhouse
Price: $629,000
Bed: 2
Bath: 2.50
Location: West Los Angeles

[irish74]

Um, yeah, I'm thinking we are going to be in an apartment forever or going to have to move to the boonies if we want a house (not gonna happen!)

For 600K you can get a two BR/one BA flat in this building:

http://www.sfarmls.com/listingpics/tmbphoto/57/290257.jpg

The neighborhood is so-so. I can't find a single family home for 600K anywhere close to us.

So we continue to rent and lust after the million dollar homes on our block. :rolleyes:

[emschwar]

We were able to buy a townhouse here (suburban MD, between DC and Baltimore) but I worry we'll never be able to afford a real house. Here's 600K here:
http://homepics.realtor.com/image10/http/washingtondc/submit/large/094/hw5275185a.jpg
$600,000
4 Bed, 4.5 Bath

Ok, so not as bad as where you ladies live, but it's nuts here nonetheless.
2 years ago we bought our townhouse for 242,000. Now units in our development are selling for 300+. :eek:

And, what really makes me sick - what 600k will get you where my mom lives (NC)
http://homepics.realtor.com/image8/http/greensboro/listings/large/092/g332950_0.jpg
$610,000
5 Bed, 5.5 Bath

[ee_chick]

I'm in SoCal, too. It's pretty outrageous, but at least we've got it better than the San Fran people! I'm in the Los Angeles suburbs, and here's what $600k buys

http://img.photobucket.com/albums/v216/cmrink/da19168d.jpg
$599,000
3 bed, 2.5 bath condo

[MommaO]

I've got nothing to add b/c I'm a So Cal girl too. Just posting to feel your pain. We just bought... got the keys today

All I can say about the housing market in So Cal is- OUCH. We *had* to get in. At our income level taxes were KILLING us. Now we just need to home the market doesn't completely go to sh!t. If it drops a bit, we won't mind as we're not looking to move for a long while but a HUGE dip would be scary.

[t3h_wookiee]

I'm in Norman, OK, and the prices aren't too terrible here. A little high due to OKC being north of us, and this being a college town, but MUCH cheaper than the rest of the country!

Here's $610k:
http://homepics.realtor.com/image8/http/norman/listings/large/086/92191.jpg

It's a 5 Bed, 5 1/2 Bath, 5,985 sq foot. (the inside is AWFUL though. We looked at it for the heck of it, and there's wallpaper EVERYWHERE, bright turquiose and pink and purple. God it's awful!)

In my hometown you can get this for only $310k (nothing more expensive on the market!)

http://homepics.realtor.com/image6/http/tulsa/listings/large/009/516955_0.jpg

It's 5 Bed 4 Bath, 4,052 sq ft.

[Stephanie]

I'm in Southern CA also. My parents are in south Orange County and the house next door to them sold a couple of weeks ago. Three bed, two bath, 1650sq.ft. and it sold for $850,000. :eek:

This is my area. 3 bed, 2.5 bath, 1900sq.ft.
$610,000
http://homepics.realtor.com/image8/http/mrmls/listings/large/062/c509683_1.jpg

Or there is always this beauty. 5 bed, 4 bath, 3700sq.ft.
$1,028,000 (Goodness!)
http://homepics.realtor.com/image8/http/mrmls/listings/large/042/w502147_1.jpg

[mrstim]

Wow - we're lucky to be in a great market! :)

$559K - riverfront property
http://naris.net/narisreports/media/184878_180612.jpg

$645K
http://naris.net/narisreports/media/166879_110008.jpg

of the most expensive in our area - 2.4 mil
http://naris.net/narisreports/media/161696_162343.jpg

Wow!

[Natasha]

Oy Vey...I'm on the SF area, and there is NO way we will be buying anytime soon. Although, rent is insane here, too...

[Asha]

here is manhattan. actually, this looks like a great apartment.

2br, 1ba, 1260 sq feet. most apts are co-ops so on top of the mortgate payment you usually spend around 1,000 bucks a month for co-op fees.

http://homepics.realtor.com/image2/http/manhattanny/listings/large/009/179115a.jpg

we would have loved to live in manhattan but no way could we afford that. so i have to commute over an hour to work and live in a marginal neighborhood to afford anything.

[Brady]

I complain about where I live, Boston... but then I see CA prices and my jaw always falls to the floor. A friend of mine in Los Angeles sold a house she had bought for $250K 6 years ago just recently, for $680,000. It was TINY and not even in a great neighborhood! It's amazing to me...

I do have a question for you CA ladies... who is buying these houses? Could two young professionals afford that? In that, are salaries/cost of living anywhere near on par with that?? I know in Boston, to get a nice "starter" home in a good neighborhood, you are looking at about $400,000 on average. My husband and I both have decent jobs, and honestly- unless we had a hefty chunk of change to put down as a downpayment, there is no way we could afford those mortage payments! It's just truly unbelievable to me.

Anywho. Here is $600,000 in my neighborhood. $624,000 to be exact.
http://media.mlspin.com/photo.asp?mls=70119091&n=0
Rooms: 8
Bedrooms: 3
Full Baths: 2
Half Baths: 1

[BethElena]

http://homepics.realtor.com/image3/http/trend/listings/large/006/4459833.jpg

This is in the northern suburbs of Phily:

Description:
Located on a serene, wooded lot, this home offers a great room concept, gourmet kitchen, main bedroom suite and a bonus room for storage, crafting, gym-whatever you need. Full basement, 2 car garage and many features often counted as "extras" in new construction packages.


Single Family Property, Approximately 8.98 acre(s), Two story, Garage, Central air conditioning, Basement, Fireplace(s),Dining room, Hardwood floors


Our 628 sq ft condo cost us $100,000...1bed1bath :)

[Stephanie]

Brady~To tell you the truth, I don't know who is buying. I wouldn't even buy the house that we live in now! We talked about it the other day and if we came looking at our home to buy right now, we couldn't afford it. We bought in Dec. '00 and paid $259,000. If we sold now, it would be worth about $600,000. It's just crazy to me! Our home has a really great view and is on a cul-de-sac, but it's still only 1800sq.ft. It can be tempting to sell, but we figured that we wouldn't be moving anywhere else. You sell high and then buy high. :rolleyes: I would also be honest and say that the salaries are not really that high. :confused: I'm a teacher, so I'm not exactly swimming in money. ;) I make just under $40,000, but I don't really know how that compares to the rest of the country. (Can you tell that I don't really have a problem discussing money?)

Anyway, the worst part of all these home prices is that two young people really can't afford a nice starter home. I work with another teacher who is single w/ one son and she wants a house so badly. She would have to move pretty far east to the desert areas to afford one and she would still be paying almost $300,000. I see it as just unbelievable sometimes!

[emmjay]

$600,000 in central Denver would pretty much get my dream home!

3,000 square foot Victorian, built in 1890
5 BR, 3 bath, 3-car garage, 3 stories

http://tsmtbdpr4.pdclane.net/photos/2-19/191007a.jpg

Unfortunately for us this is NOT in our price range! :)

[Natasha]

Yeah, I am not sure who is buying...My FH just graduated from SJSU, and starting salary for a mech. engineer around here is about $40-50K. We're waiting for the market to go down, we won't be seriously considering buying for a few years at least.

http://www.mlsb.com/pix/pixMAX/MAXEBRDI40088902.jpg

This is $599,000 in the area we are moving to (we live in San Jose right now). 3 bedroom, 1 bath, 1,085 sq. feet. Not the greatest neighborhood, either...

http://www.mlsb.com/pix/pixMAX/MAXEBRDI40089237.jpg

This one is $350,000. 3 bed, 1 bath fourplex (just one quarter of the duplex, not the whole thing). Again, not the most savory neighborhood.

http://www.mlsb.com/pix/pixMAX/MAXEBRDI40086236.jpg

This is what $800,000 will get ya...5 bed, 3 bath 2200 sq feet.

[Brady]

What's funny is that I was just on boston.com and there is an article today-
Americans migrate to cities in South, West
By Jennifer C. Kerr, Associated Press Writer | June 30, 2005

WASHINGTON --Skyrocketing housing prices are driving people from San Francisco, Boston and other big cities. Warm weather and more affordable living are behind the rapid growth in midsize cities in Florida, Arizona, Nevada and California.

Here is a link to the full article- story (http://www.boston.com/news/nation/articles/2005/06/30/americans_migrate_to_cities_in_south_west/)

[Rosebud]

I do have a question for you CA ladies... who is buying these houses? Could two young professionals afford that? In that, are salaries/cost of living anywhere near on par with that??

I can't figure out how people are buying these houses either. My FH and I are both professionals. Our combined salaries are just under the six figure mark. We can't even touch the market. We're completely priced out and just have to wait. Some of our friends do make more than we do (Kevin and I both changed careers a few years ago and are still working our way back up the salary ladder)... but all our friends complain that they can't afford to buy either.

I read somewhere that 80% of the people in Los Angeles county cannot afford a median priced home here. Median price is like $450k, so that's way below what you'd pay on the westside.

My friends who've bought recently are either (a) from wealthy families who are helping them out a lot (b) making really nice salaries in the six figure range and buying 1 or 2 bedroom condos or (c) moving WAY out of the city (like Valencia or Upland- probably an hour's commute to work) to afford something. We just think it's CRAZY! But at the same time we'd love to have a house and we'd probably do whatever it took if any of the above options applied to us.

[villanelle75]

I dont' know whose buying the really really pricy houses, but we just sold our SoCal condo for 400k (2 bed, 2 bath 1300sqft) after paying just under 250k for it a litte more than three years ago. That allowed us to afford upgrading to a larger place (about 1950sqft) with a garage and a decent view without breaking the bank. Our new housepayment is more, but doable. We are very thrifty though, so it's actually less than we could have afforded and we make well shy of six figures combined. But if you have a fairly expensive lifstyle, there really is no way you could do it. Salaries here really aren't much mroe than other places, and everything, not just houses costs more. (I paid $2.67 for "cheap" gas this week.)

BTW, about 38% of our monthly income goes to our mortgage (which doesn't incldue property taxes, HOA, insurance, etc.).

[LeslieR]

Count me in as another one worried we'll never be able to buy a "real house" (we live in a townhouse now).

$599,500
4 Bed, 3 Bath
2,802 Sq. Ft.
2.17 Acres
http://homepics.realtor.com/image1/http/norwalk/submit/large/077/98234910a.jpg

Definitely more sq ft and acres than we would need, but my ideal is a 4 bedroom house. You can't find a 4 bedroom house around here for less than $400,000

Who can afford a house that costs that much???

[emschwar]

wow, Leslie, 2 acres? Around here nothign has that much land.

I found this last night and thought I'd share:
http://homepics.realtor.com/image10/http/washingtondc/listings/large/058/hw5293252.jpg
$525,000
4 Bed, 3 Bath

It's a freaking townhouse! Who pays 525 for a townhouse?!?!

[LeslieR]

wow, Leslie, 2 acres? Around here nothign has that much land.

Don't let the description mislead you, it's probably all hill and rock-totally useless.:rolleyes:

[emschwar]

Don't let the description mislead you, it's probably all hill and rock-totally useless.:rolleyes:
Still, here you're lucky enough if you get enough land for a swing set.

[Jessie]

It's a freaking townhouse! Who pays 525 for a townhouse?!?!

They're building condos a few blocks away from us that are selling for 1.2 million :eek: for a 2bd/2ba. WTF? This is a small city (pop. 70,000) in NW Washington!

[amew]

This is what $600K gets you in a near-downtown neighborhood in Austin. It's 4 bedrooms, 2.5 baths, around 3500 sq. ft. on 0.4 acres.

http://www.austinhomesearch.com/Photos/Houses/0991/RGB/9846631.jpg

In the Austin suburbs, $600K will get you 4500 sq. ft., 4 bedrooms, 3.5 baths, 2 acres of land.

http://www.austinhomesearch.com/Photos/Houses/3060/RGB/6664049.jpg

[Georgiana]

Have you ladies seen that show on HGTV about what you kind of home you can buy for a certain amount all over the country? I love that show! However, since the hoity toity transplants are moving into this area, the real eastate prices are stupid. Besides if you are one of the many that work for an RV company on the assembly line, you are making at least 40 bucks an hour and bringing home about well over a grand a week. So you can afford the home prices :mad: :mad: :mad:

This is $200 G Range:
http://us.f3.yahoofs.com/class/000653240616/_fs__029aaba8d6bd0a2cef4dae1446529203_0_u1.jpg?cf_ L5gyCdFBKOm6X

$300 G Range
http://us.f3.yahoofs.com/class/000161790034/_fs__50d163b6b1c59712a4b0f16b9d9abb01_0.jpg?cf_L5g yCImXCZoHs

$500G's
http://us.f3.yahoofs.com/class/000544340856/_fs__fabd04f2c2b1e09d4d7900833e52a909_0.jpg?cf_L5g yCIfe2Mif_

[MrsWilson]

This is $599,900 in Germantown, TN (suburb of Memphis.)

http://homepics.realtor.com/image6/http/memphis/listings/large/051/2604820_0.jpg

Age: 5 year(s) old
5 total bedroom(s)
4.5 total bath(s)
11 total rooms
Style: French provincial
Master bedroom
Dining room
Kitchen
Game room
Den
Office
Laundry room
Master bedroom is 23x17
Dining room is 15x11
Kitchen is 20x17
Game room is 22x22
Den is 20x15
2 fireplaces
Garage
Heating features: Central, Gas
Central air conditioning
Interior features: Attic, Breakfast area, Breakfast bar, Cable TV avail., Carpet, Dishwasher, Disposal, Eat-in kitchen, Great rm, Kitchen isle, Laundry rm/area, Microwave, Pantry, Refrigerator, Security feats, Tile flrs, Wood flrs
Exterior features: Fenced, Level lot, Patio, Porch, Public sewer srvc, Public water supply, Trees, TV cable avail.
Approximate lot is 15972 SF 112 X 154
Approximately 0.36 acre(s)
Lot size is less than 1/2 acre

[laura]

We could afford a house of some sort here (SF Bay Area), but we're not sure we're "settling" in this area (at least partially due to cost of living), so we're renting for now. Plus, townhouses are in the $600K-$700K range where we live, so that isn't too enticing! However, my husband's business partner and his wife bought a house here that looks remarkably like this one posted above:

http://homepics.realtor.com/image8/http/mrmls/listings/large/062/c509683_1.jpg

for ~$1.3 million when we moved here last year - and that was *over* asking price, and against 3 other offers. It's 3 BR, 2.5 baths, maybe 2000 sq ft. On top of that, they live in one of those subdivisions where all the houses look the same, so they pay an association fee (I don't know how much) and they have NO yard - they can literally trim their grass with a pair of scissors. And they cosmetically-gutted the entire house (new floors, new paint, re-facing cabinets, etc.) b/c the woman who lived there before must have had a blind decorator. :p

As far as who's buying, I don't know. I can think of a select group of people who account for some of the purchases, but it boggles the mind that there can be the kind of volume needed to support such an inflated market for so long! We keep thinking it will improve, but it hasn't noticably, so we just continue to rent out overpriced apartment instead. ;)

I have learned from this thread, though, that clearly I must move to Austin!

[Asha]

someone said "who pays so much for a townhouse." in ny and other more urban areas townhouses are not really considered "lower" on the rung on housing. i didn't even realize townhouses were considered less desirable until i visited maryland and people were talking about them like they were a pretty bad thing.

actually, in manhattan townhouses are the most desirable thing bc they are the closest thing you can get to a house. though, they are more commonly referred to as brownstones here rather than townhouses. you would pay a lot more for a townhouse in manhattan than 600k. For a townhouse in harlem that needs a gut renovation you are looking at close to 800k. :eek: believe you me, those places are going like hotcakes, too. we have even considered that a few years down the road when we are a little more established financially.

here's what you get for 725k

http://harlemhomes.com/listing_pics/512-w-168.jpg

[SiValleySteph]

I was going to comment on the "who pays so much for a townhouse" thing also.

I live in a townhouse. :p

We bought new construction, 2-1/2 years ago, 1800+ sq feet.

I just looked up the listings for my zipcode - a 25 year old townhouse smaller than mine is listed for $600k and for $800k you can get one similar in size to mine, not as new.

To get into a single family house in my neighborhood that I would consider worthy of trading into (since I have a larger house than most single family and I'm not all that into yard work and numerous other trade-offs), I would be looking at $900k and up. :cool:

New condos around the corner from us - not townhouses, true condos with neighbors on top/bottom - are going for $500k for 2 bed/2 bath.

[laura]

someone said "who pays so much for a townhouse." in ny and other more urban areas townhouses are not really considered "lower" on the rung on housing. i didn't even realize townhouses were considered less desirable until i visited maryland and people were talking about them like they were a pretty bad thing.

actually, in manhattan townhouses are the most desirable thing bc they are the closest thing you can get to a house.

I think this hits the nail on the head, though. In very urban areas, where there are essentially no actual houses, perception of space and cost are different. The "townhouses" I speak of are essentially all new developments that were built to 'economize' on space but really not give a huge break on price - ie. the builders get more bang for their buck b/c they can squeeze more people into a smaller area and get not that much less cash from them - that's why I don't personally care for them. For these you are paying $$$$$ to still share walls with your neighbors, sometimes have really weird layouts, have no yard to speak of, and pay HOA fees. In places like NYC, all those things apply regardless of where you live, so a brownstone/townhouse is more appealing b/c it doesn't carry the same "burdens" it does in places where the choice is single family home vs. townhouse. Does that make sense?

FWIW, I would gladly pay a million bucks (if I had it) for a charming brownstone on Beacon Street or in the Back Bay in Boston, but I don't equate that to remotely the same thing I'm talking about when I say "townhouse" here in CA.

ETA: I think my post came across as badmouthing townhouses (?) and I really didn't mean to. If we stay in this area, we'll probably buy a townhouse :p; I was just trying to comment on the different perception in different areas.

[Asha]

laura - i didn't think you were badmouthing townhouses. i understand that it is ridiculous to pay so much for a townhouse when you can get a single family house for relatively the same price. though, i think i might not mind it still if it offered more ammenities like tennis courts, pools, yard maintenace. i really don't enjoy gardening or yard work, so i wouldn't want the added burden of taking care of a huge yard unless had the bucks to shell out for a gardener.

[Rancid13]

I'm in coastal Orange County (work in Huntington Beach, live in Los Alamitos) and prices here have definitely skyrocketed in the last 5 years! Hubby and I were lucky enough to get into the market in January this year when we purchased a condo, our first home. I believe the median home price in Orange County right now is at $600K. Crazy!

I work in real estate (for an appraiser and a broker) and I see the market going up every day-it's ridiculous; in the 6 months that we've owned our condo, the value has gone up to ~460K (and we paid ~400K for it and haven't done a thing other than move ourselves and our stuff into it!). If we were to buy it now, we probably either couldn't afford it, or would seriously be stretching to afford it.

In Huntington Beach, $599,900 gets you:
http://socalpictures.marketlinx.com/MediaDisplay/51/hr95260651-7.jpg

http://socalpictures.marketlinx.com/MediaDisplay/51/hr95260651-2.jpg

http://socalpictures.marketlinx.com/MediaDisplay/51/hr95260651-5.jpg
3 bedrooms, 2.5 baths, 1,650 sq feet, 1,633 sq ft lot, built in 1979. HOA dues: $275. End unit townhome (it's zoned as a PUD, not a condo). Not far from downtown HB and the beach.

$599,000 gets you:
http://socalpictures.marketlinx.com/MediaDisplay/30/hr95266330-2.jpg

http://socalpictures.marketlinx.com/MediaDisplay/30/hr95266330-3.jpg
2 bedrooms, 2.5 baths, 1,506 sq feet, 1,562 sq ft lot, built in 1974. HOA dues: $184. Also a townhome PUD (non-condo). Very close to Huntington Harbour and the beach.

Actually, both of these aren't that bad. If I had that kind of dough, I'd snatch one up. They're in great areas and the interior pictures look pretty decent. Liveable, IMO.

[PrincessButrcup]

This is $629,000 in my town:
http://www.riliving.com/Images/propsearch/PropertyImages/536652__.jpg http://www.riliving.com/Images/propsearch/PropertyImages/536652_2.jpg http://www.riliving.com/Images/propsearch/PropertyImages/536652_3.jpg

Gracious Colonial In Desirable High Hawk - Cherry Cabinets Corian Kitchen, 24x22 Fam rm/fp,cathedral Ceil,slider Deck Central Air,vacuum,fabulous 25x23 Recrm/mahogany Wet Bar Full Bath/shower,dble Jac, Great Yard,cul De Sac Street

4 beds, 3 1/2 baths, 3564 sq.

[MrsSmith]

Are you girls just showing the high end of houses in your area or is this what the average home looks like? I'm asking because we have houses that look like most of those in this area too. However, there are plenty of good houses in great neighborhoods that are more reasonably priced.

Example: $199K
http://disallerealestate.com/images/property/4562148.1.jpg

$174K - http://disallerealestate.com/images/property/4565818.1.jpg

$199K - http://homepics.realtor.com/image6/http/nwohio/listings/large/077/4568890a.jpg

All of these homes are over 2000 sq. feet and have at least 4 bedrooms. This is more of the average in the area compared to those houses that are $700K or more. Is this true in your areas too?

[LRL]

MrsSmith- those houses are beautiful!

Sigh. We own a condo in the SF area. We are professionals making a good combined income- and still cannot afford a home in this area. My only consolation is that at least I own something which is appreciating in value even if it not our ideal housing situation (I am not devaluing townhouses/condos in anyway). While there are some advantages to owning a townhouse/condo, the thing that bugs me each and every month is that the payment for the HOA is going towards nothing (IMO). If I was to take the money that we pay monthly in HOA and assume that this was a loan to be amortized over 30 years that I was paying on, it amounts to a big loan!!! That is money we could be using towards the mortgage!

I also work in the financial industry, and am amazed by the home prices that people are paying. The only people that can afford these prices are a. Getting money from their families, or b. putting themselves into the highest level of risk possible and hoping and praying that their homes appreciate.

We were actually in the market for a new home a couple of months ago. We bid on a property which was 733 square ft, 2 tiny bds, 1 bathroom. There was no dining room, and no kitchen eat in area to speak of. We would have had to use second bedroom for a dining room- and to top it all off, it was in terrible condition, it needed new foundation, and some electrical work besides cosmetic changes. The house sold for 600K.

We will be *happily* staying put until the market slows down. :rolleyes:

[Rancid13]

Are you girls just showing the high end of houses in your area or is this what the average home looks like? I'm asking because we have houses that look like most of those in this area too. However, there are plenty of good houses in great neighborhoods that are more reasonably priced.

The OP had stated a question that asked what kind of home $600K would buy in your area. That was the question I was posting pics/info in response to. :) $600K also happens to be the median home price right now in Orange County, CA, where I'm at.

[LeslieR]

$199K - http://homepics.realtor.com/image6/http/nwohio/listings/large/077/4568890a.jpg

$199k! Holy crap-I'm moving to Ohio! :p

All of these homes are over 2000 sq. feet and have at least 4 bedrooms. This is more of the average in the area compared to those houses that are $700K or more. Is this true in your areas too?

The cheapest house I found in my town that has 4 bedrooms and 2000 sq ft is going for $415,000. The most expensive house with that same set up is over a million. :eek:

[amtaylor]

We are very lucky... the average house price in our area is ~%150K. We bought ours for less, so $600K would buy something massive!

http://homepics.realtor.com/image10/http/triangleareanc/submit/large/006/805945a.jpghttp://homepics.realtor.com/image10/http/triangleareanc/submit/large/016/805945c.jpg
4 Bed, 4 Bath
4,167 Sq. Ft.
1.71 Acres

[Zelda Von Yitz]

Funny you should mention this...

A house up the street from me was just sold.

The same people owned it for many years.

They did no improvements to it at all; it's still the same way it was when they moved in.

It's a one family house on a 75 x 50 lot.

They sold it for $350K.

[MLA]

I live in the 'hood in L.A., and here's what $600K will get you in a crappy area:

http://homepics.realtor.com/image2/http/itech/listings/large/071/12054444.jpg
$589K
1600 sq ft
4/2
0.11 acres


http://homepics.realtor.com/image2/http/itech/listings/large/013/22053864.jpg
$590K
3/2
0.11 acres

http://homepics.realtor.com/image2/http/itech/listings/large/007/12054819.jpg
$599K
1228 sq ft
3/1
0.1 acres

And all of these homes were built no later than 1940. Ugh.

$600K here gets you a 1500 sqare foot old house that's falling apart, conveniently located in a cruddy area. This is why DH and I are moving to North Carolina.

[chefker]

Wow...I really sympathize with you ladies who are in SoCal. Scary housing market out there! :eek:

I live in the 'burbs, west of Hartford, CT....and the market is better than some, worse than others. Here's what 600K will get you around here:

http://homepics.realtor.com/image1/http/hartford/submit/large/036/g382030a.jpg

We got a pretty good deal selling our condo, then bought a house--if we didn't have the condo as a bargaining chip though, there is no WAY we'd have been able to afford our house.

What's killing us here though, is property taxes are skyrocketing. Just weeks after we moved in, our taxes went up a LOT. And we have a pretty big lot--almost 2 acres, so we're getting nailed. :rolleyes:

[seattleguamgirl]

For those of you in CA, do you think the bubble will really burst?

We currently live in the Bay Area (moving to Seattle later this month) and we purchased a 3BR 2.5BA single family home in the east bay for $540K two years ago. Now our home is worth $800K, which is totally mind boggling. There is nothing special about our house except that it is walking distance to our downtown area. We have no driveway and are spitting distance from our neighbors!

Since we are moving, we are seriously considering cashing out and buying a nicer property in the Seattle area. I'm afraid of cashing out though--what if we want to move back? Will we be totally priced out of the market? We have the option to rent our place out but we can only do this for two years max as we'll be taking a big loss on the property each month. Ugh, what to do.

I just can't see how this market can sustain itself. People are moving to the outer areas (Tracy, Martinez, Stockton) in droves and commuting into the bay just to afford housing! First time home buyers are being priced out and it is the first time buyers that drive the market.

[Asha]

seattleguamgirl - we are considering moving to the seattle area too in a few years. we are tired of ny taking so much out in taxes and not being able to afford to live in a neighborhood we feel comfortable in.

hmmm...personally, if you are not going to come close to making mortgage payments by renting i would probably not rent it out unless you are seriously considering moving back to the bay area very soon. you will make a hefty profit on your house and be able to put a huge down payment on a place in washington. your mortgage payments would be less, so the extra money you would save on housing expenses you could invest or save, so if you move back to san francisco you could afford it because of your saving on housing expenses.

my personal opinion is that soon prices will stagnate. i don't think they will drop, but it is getting to the point where many middle class people are being priced out of housing.

[Asha]

MLA - i can't believe that 600k is for a bad neighborhood. :eek: you can get much more for a run-down place in a crappy neighborhood in ny. we don't live in the chicest neighborhood either, but our place was half that price. i think california has the most expensive housing in the country, and i thought ny was bad.

[LalaKini]

I'm also in Southern CA, and we bought our house (3 br/1.5 bath, 1450 sq feet) a little over 2 years ago, and our house has *almost* doubled in price over that time. To give you an idea, we are about 30 miles from downtown (but still in LA city limits-we live in the valley), and the median home price in our zip code is about $550-600K. That will buy you a 3br/1-1.5 bath home, probably around 1300-1400 sq. feet, on about a 7500 sqft lot. If we had waited to get into the market, there's no way we would be able to afford our house now. The market has just exploded. The craziest prices are in the 'entry-level' homes, condos and townhomes, because they are the only thing anyone can afford...so they are snapped up very quickly.

It makes me want to cry when I think of the places we looked at when we had *first* started looking. I remember a GREAT townhome in Santa Monica we looked at in 2001 that was 4 blocks form the beach and was $425K. We thought that was *SO* expensive. My guess is that it could sell for over $1Million now. Coulda-woulda-shoulda! ;)

[kris97]

In suburban NJ, in a great town with a highly ranked school system and excellent train access to NYC, this is what $600,000 will get you:

a 1934 3 brd, 1.5 bath colonial on a 50x 142 lot (we don't measure in acres around here) :)

http://pictures.gsmls.com/MediaDisplay/65/lr3169865-1.jpg
http://pictures.gsmls.com/MediaDisplay/65/lr3169865-5.jpg
http://pictures.gsmls.com/MediaDisplay/65/lr3169865-2.jpg

good, but not great.

when I was growing up, I imagined half million dollar houses being mansions- now, they're just slightly bigger versions of our little house.

[kris97]

To compare: this is what $625,000 gets you on the Upper West Side of Manhattan, where we lived before we moved to NJ.

687 sq ft, 1 bed, 1 bath, on West End Avenue (a great street with beautiful old buildings, but still...)

http://newyork.foxtons.com/resources/wlbr/wlbr0058085/wlbr0058085_largefloorplan.png

[jki]

Coulda-woulda-shoulda! ;)

Oh - I hear you! I lived in San Francisco for 11 years and we just rented a house in the 'burbs... 14 miles north of San Francisco. Our rent is probably 1/3 what our mortgage would be for the same house. We rent a 3 bedroom, 2 bath house.

This house is a 2 bedroom, asking $1.1M, located a block away from us:
http://www.cleanoffer.com/servlet/Picture?mlsId=20514410&areaId=1&photo=1

Yes, it's cute, but $1.1M cute? :eek:

We started looking for a house 2 years ago and were outraged by the prices back then.... now we are even more so.

As far as the bubble goes, I don't think it will ever pop - at least not in the North Bay. Every other young couple we know has a very sizeable downpayment and high income. They are all ready and waiting to buy here since the weather is great and the commute is decent. The second prices come down even a little bit, I am sure they will be pouncing.... as a result, there will still be competition and prices won't come down nearly as dramatically as they need to. Also, from what I've witnessed, many people just take their homes off the market when the homes don't command the price they want.... supply will never increase.

[seattleguamgirl]

rebjc-I get what you are saying, but what savings/investment oppty would get you anything equivalent to the 25%+ gain in equity we are seeing in our home per year? Not to say that the market will continue in this trend, but even if the market plateaus, we will still make good on our investment.

ETA: it's our montly liability and the hit to our well established savings account that is making us second guess our option to keep our bay area home. The plus side to selling is that Seattle is seeing a 10-15% gain in the housing market as well. There is a ton of money in that area and us reinvesting our equity in a similarly hot market is not a bad idea at all!

[MrsSmith]

Okay, here's what you get in my area for about $600K (actually $550K):
http://homepics.realtor.com/image6/http/nwohio/listings/large/097/4562497a.jpg
http://homepics.realtor.com/image6/http/nwohio/listings/large/098/4562497b.jpg
http://homepics.realtor.com/image6/http/nwohio/listings/large/099/4562497c.jpg
http://homepics.realtor.com/image6/http/nwohio/listings/large/001/4562497f.jpg
It's right on a lake in a golf community and has its own dock, has 4 bed, 4 bath with over 4,000 sq. feet.

[Asha]

seattleguamgirl - you're right that there is not much out there that will get you a 25% return on your investment. but then again, it is not a guaranteed return, but not much is. not that i am saying this is what you should do, but if i were so lucky to have made that much equity in my home, and i was moving to a less expensive market, i would maybe buy 2-3 properties in the less expensive market and make them into rentals or something like that. plus, seattle probably hasn't hit its peak yet bc prices are still affordable there. holding on to the california house isn't a bad choice either bc it probably won't go down in price, and it is always good to diversify your real estate investments to different locations bc it is rare that all parts of the country see a downturn in the real estate market. good luck with your choice. really either choice you make will be good bc you just have to choose the better of two good options.

[seattleguamgirl]

rebjc-ITA! Your equity is only good if you cash it out. It looks really great on paper but we won't actually know what we will have in the bank until we liquidate!

We are toying with the idea of buying a second property up in Seattle. We just want to live there for a bit to get a feel for the area (which areas are great for rentals).

Also, just to reinforce your point to diversify real estate investments, we would be doing that by keeping the bay area house! Ugg, if only the decision were an easy one. :)

[Sandie78]

http://www.brevardmls.com/pictures/327753.JPG
5 Bedrooms, 3 Full Baths , 1 Half Bath
Other - Single Family
Lot Acres: 1.25 Aprx Total Sqft: 4808
Deluxe kitchen with over 30 ft. of Corian countertops, plus center work station with extra sink, double built-in ovens, special cook-top, side by side refrigerator, hardwood cabinetry with brushed steel hardware. Could easily be 6 bedrooms, plus giant great room, plus oversized formal area. High volume ceilings with crown molding, 3 walk in closets plus pantries and floored attic storage galore! Soaring Southern-style front porch. Huge covered back patio with built-in BBQ open to heated screened pool with heated spa (complete with fountain overlooking inlaid tile mermaid). Lush, manicured landscaping awaits through an electronic gated entrance. SELLER WILL GIVE BUYER A TOTAL OF$10,000.00 CREDIT AT CLOSING FOR CARPET AND SCREEN ENCLOSURE REPLACEMENT.
This location is a little remote, but not too bad.

Or if you want to live on the beach for $615,000:
http://www.brevardmls.com/pictures/332409.JPG
3 Bedrooms, 3 Full Baths , 1 Half Bath
Mediterranean - Single Family
Lot Acres: 0.17 Aprx Total Sqft: 2434
I don't even want to think about the cost of homeowners insurance due to hurricane coverage.

[histulip05]

Here's what $650K gets you in Central Florida:

http://homepics.realtor.com/image1/http/orlando/submit/large/048/o4611554a.jpg

5 bedrooms, 3 baths, 3005 sq ft. 6.25 acres

http://homepics.realtor.com/image1/http/orlando/submit/large/031/o4609627a.jpg

http://homepics.realtor.com/image1/http/orlando/submit/large/046/o4609627d.jpg

http://homepics.realtor.com/image1/http/orlando/submit/large/056/o4609627f.jpg

5 bd, 4 bath, 3500 sq ft

~Karen

[littlecindy]

where we just moved from, in minneapolis (minnesota), the market is going crazy, but not as bad as LA, etc.

here's a townhouse for around $600k up the street from where we used to live for $579k:

http://edinaimages.fnistools.com/IMAGES/LISTING02/9/Large/3046360_1.jpg

or you could get a house for $525k:

http://edinaimages.fnistools.com/IMAGES/LISTING02/9/Large/3020781_1.jpg

though the area we really loved would've gotten us this for $450k:

http://edinaimages.fnistools.com/IMAGES/LISTING02/9/Large/3020377_1.jpg

[Lizard]

If I were to guess, I'd say the median home cost here in Omaha is about 150K. Houses are very cheap and cost of living is cheap too. A 600K house here would be a waste of money, in my opinion, but here is one that's 575K and includes a 25K allowance for basement refinishing. It's on 2.5 acres and has some wild turkeys loose on the property. :)

http://cbshomeimages.fnistools.com/Images/Listing/7/Large/20510004_102.jpg

http://cbshomeimages.fnistools.com/Images/Listing/7/Large/20510004_3.jpg

http://cbshomeimages.fnistools.com/Images/Listing/7/Large/20510004_5.jpg

[Kimberland30]

Our market is through the roof. The average income in our area is only $55,000 per household, but homes are selling for $200,000 to over half a million. New neighborhoods are going up EVERYWHERE. We have no idea HOW people are getting into these homes unless they are going with a 40-year or interest only mortgage.

Our neighbors bought their house 2 years ago for $180,000.00. Now it would sell for well over 200K. We are buying our home this year, but since we are purchasing it from my parents, I think we'll be getting it for $150K. That's for a 4-bedroom 2 bath ranch home.

You could get this for $600,000
http://www.hrmls.com/photos/rein/0/8/0518380.JPG
5 bedroom 3 full bath

[dionysia]

609K in a Boston suburb:
http://www.realtor.com/Prop/1047966650

Bearing in mind it's not a 'great' Boston suburb; about 40 min west of the city.

Di

[SiValleySteph]

These are in my zip code.

$595,000
http://im1.shutterfly.com/procserv/47b5d927b3127cce92e216f3a4d700000006108EcsmTFu4Zs
1518 sq ft
25 years old
3 bedrooms, 2-1/2 baths

$624,900
http://im1.shutterfly.com/procserv/47b5d927b3127cce92e216f1a4d500000006108EcsmTFu4Zs
1082 sq ft
64 years old
2 bedrooms, 1 bath

[villanelle75]

Perspective is such a funny thing. Kimberland30, there is a possibility that DHs work coudl bring us to Virginia Beach and as much as i dont' want to go, when we discuss it what alwasy comes up is that housing is so much cheaper and we could get a palace fro what our townhome sells for.

[SingleWhiteFemale]

emschwar, what city are you looking at/talking about? I'm in Bowie, and the townhouses here, bought and built between 5-8 years ago for $130-150k are going for $300-350k.

[jeneca128]

Things are crazy here in Las Vegas too. For years the housing market here was wonderful! My parents bought a 5 bedroom 3 bathroom 2400 sq foot house for $130,000. This is now out of the question. Many CA residents started moving out here, as well as buying up houses and condos as rental and investment properties, and the market was driven sky high. For a while there was a waiting list for any new homes and if you put your house up for sale the average length of time before it sold was only 2 days! My parents could sell their house for a huge profit now, but even tiny condos are $200,000 so why should they bother.

Now that I'm married, I wanted to buy a house, but we can't afford anything decent in a nice part of town anymore! So we're renting a home right now, and moving to still over-priced Seattle in a year.

[Hangin'in]

Here is what ~600K will get you in central AR

http://photos.crye-leike.com/proppics/LittleRock/3/5/CARMLS10076035.jpg
$625K New Construction in Gated Community
4 Bedrooms
4 1/2 Baths
They don't list square footage on our MLS, but this house is HUGE!

http://photos.crye-leike.com/proppics/LittleRock/2/1/CARMLS10033821.jpg
$595 Built 2004 in Gated Community
5 Bedrooms
5 Baths
Very Large House

[linekelei]

We just bought a house in Orange County last summer. It's appreciated over $100,000 in less than a year. Insane. In order to afford it, we had to borrow the down payment from my mom (only 5%), and then refinanced this spring with more equity in the house and paid her back. What we've found are:

1. People buying are upgrading-they paid $350,000 for a house 7 years ago that is now worth $750,000. They were able to upgrade to a much more expensive house without having to pay a much bigger mortgage.
2. People took advantage of the low interest rates and were able to afford a whole heck of a lot more house for the money.
3. People used risky loans-interest only, one year adjustables, etc. Not that these are bad, but if you depend only on making an interest only payment, and then interest rates sky rocket, you might have a problem. ;)
4. Lots of people are living with their parents/relatives around here-combined families in one home. I see a lot of families with 3 generations living together.
5. A lot of people our age received "gifts" of down payments from their parents-the parents had a ton of equity in their homes, took out a home equity loan or line of credit and gave it to their kids for down payments.
6. Orange County is an insane place to live, and lots of people are simply living above their means, driving Hummers and living in 2 million dollar houses. :)

Living in California is by no means cheap. Anywhere else, DH and I would be living in a mansion. Salaries are higher, probably higher than anywhere else but NY, but certainly not high enough to keep up with the crazy housing market. We are both attorneys, so we are fortunate enough to make a good combined income. However, this combined income anywhere else would have us joining the local country club, taking fancy European vacations, and shopping at Neiman Marcus. In California it means I get a house, a decent car, and an occasional trip to Nordstrom. But we do have a house, and that was really important to us. Plus, it helps with our tax returns.

Do I think the bubble will burst? To a certain extent, yes, but I don't think it will totally crash. Too many people want to live here. Why, I don't know. The weather, maybe? I grew up in California and it has gotten increasingly crowded-to the point where I dread even going to the grocery store. Some days I'd kill to live in some rural area. Anyway, I do think house sales and prices will have to level off some, or go down a bit. But I don't see it totally tanking-the demand and desire to live here is simply too high. When the models opened for our housing development neighborhood, there were over 10,000 people there, just to see 8 new housing tracts in the neighborhoood. It was crazy.

[tgray99]

http://harpictures.marketlinx.com/MediaDisplay/48/hr1475748-1.jpg

$600,000
Bedrooms: 5 Bedroom(s)
Baths: 4 Full & 1 Half Bath(s)
Garage: 3 CAR ATTACHED
Stories: 2 STORY
Style: Traditional
Year Built: 2000/Appraisal District
Build Sqft: 4,049 /Appraisal District
Lotsize: 33,933 /Appraisal District

BEAUTIFUL LAKEFRONT HOME W/LARGE GAMEROON ON .8 OF AN ACRE. FEATURES 2 BEDROOMS DOWN, HOUSTON AREA BUILDERS HOME = HARDLY USED. FEATURES 2 STORY GREAT ROON, 2 STORY AUSTIN STONE FIREPLACE, BUILT-INS IN EVERY CLOSET, LARGE SPACIOUS ROOMS, CEILING FANS THROUGHOUT, LARGE DECKS, SPRINKLER SYSTEM, BOAT DOCK, 2 JET SKI LIFTS. NO MUD TAXES. THIS IS A MUST SEE!!

One of the most expensive homes in Houston:

http://harpictures.marketlinx.com/MediaDisplay/06/hr1412806-1.jpg
http://harpictures.marketlinx.com/MediaDisplay/06/hr1412806-6.jpg

$10,900,000
Bedrooms: 5 - 6 Bedroom(s)
Baths: 6 Full & 2 Half Bath(s)
Garage: 3 CAR ATT-DETC
Stories: 3 STORY
Style: Georgian
Year Built: 1994/Appraisal District
Build Sqft: 13,053 /Appraisal District
Lotsize: 67,600 /Appraisal District

French Chateau estate backs to River Oaks Country Club Golf Course. Entertaining/family living. Limestone floors, gleaming hardwoods, soaring ceilings. Master down, his & her baths/dressing rooms. Gourmet kitchen. Mahogany library/study. Gameroom down. Wine cellar. Elevator. 3rd floor with bath. Quarters. 3 car garage.

[Secret_Squirrel]

Here's 615k in Seattle, 3 bed, 1.75 bath. It comes with a view:
http://www.macphersons.com/NWMLS/photos/25059770.jpg


No view, 3 bed, 2bath:
http://www.macphersons.com/NWMLS/photos/25090895_12.jpg

[chefker]

Just for fun, here's what 9.8 million will buy you in Farmington, CT.

http://www.millstreams.com/images/home_photo.jpg

http://www.millstreams.com/images/view_aerials.jpg



From realtor.com:

Set along the banks of the Farmington and Pequabuck Rivers, in the historic village of Farmington, Connecticut is Millstreams. This brick home offers over 10,000 square feet of magnificent living space with beautifully detailed interiors. Millstreams was originally designed Edward T. Hapgood for the accomplished playwright Winchell Smith. Accompanying the main house is a 1,900 square foot pool house with every imaginable amenity, and a free-form pool with slate patio. The original boat house sits on the east bank of the Farmington River and is a perfect place to launch a canoe, kayak or small boat and enjoy an afternoon on the water. Beautiful plantings, gardens, patios and stone walls are found throughout the nearly five acres of grounds surrounding the home. It is a rare opportunity to own this private, historic and impeccably preserved estate. For more information, please visit http://www.Millstreams.com, a custom website offering a wealth of information and additional photographs.


Single Family Property, Area: 11, Approximately 4.58 acre(s), Year Built: 1917, View, Waterfront property, Four or more stories, Garage, Swimming pool(s), Basement, Fireplace(s),Dining room, Hardwood floors

The website listed above shows a LOT more photos and info. on this mansion ( www.millstreams.com). JUST the pool house is 1900 sq. feet! Beautiful home though, and you can see photos of the inside on the website. Ah, to be disgustingly rich..... ;)

[SingleWhiteFemale]

Heres' what $10,750,000 will buy you in DC: http://photos.mris.com/nfs/photos01/1/0/3/2/2/2/10322201072_1_M.jpg

Type of Home: Semi-Detached
Style: Federal
Year Built: 1820
Lot Acreage: 0.12
Subdivision: GEORGETOWN
County: D.C.
State, Zip: DC, 20007


* Fireplaces (3)
* Full, Fully Finished Basement
* Separate Dining Room
* Detached Garage
* Hardwood Floors
* Gas Heat
* Central Air


Comments: THE BEST OF THE BEST OF THE BEST--RENOVATION OF 1800S FEDERAL USING NEVER BEFORE SEEN LEVEL QUALITY OF MATERIALS, AMENITIES AND CRAFTMANSHIP ALL IDEALLY LOCATED IN THE HEART OF HISTORIC GEORGETOWN--AN ENTERTAINER'S DELIGHT--READY FOR THE MOST DISCERNING BUYER--A TRUE JEWEL BOX! This is what $599,990 will get you in DC:http://photos.mris.com/nfs/photos02/1/0/3/2/9/6/10329684337_1_M.jpg
Type of Home: Attach/Row Hse
Style: Federal
Year Built: 1908
Lot Acreage: 0.05
Subdivision: COLUMBIA HEIGHTS
County: D.C.
State, Zip: DC, 20010

* Fully Finished Basement
* Separate Dining Room
* Attached Garage
* Gas Heat
* Central Air

Comments: Fully renovated, hard wood floors, S/S new appliances, new furnace, new A/C, new deck, parking space in the back for 4 + cars. Basement with its own kitchen and separated entrance and much more. And in my zipcode:http://photos.mris.com/nfs/photos02/1/0/3/2/9/7/10329785229_1_M.jpg
Type of Home: Detached
Style: Colonial
Year Built: 1987
Lot Acreage: 0.3
Subdivision: HIGHBRIDGE
County: PRINCE GEORGES, MD
State, Zip: MD, 20720

Price: $619,000
Bedrooms: 4
Bathrooms: 3 full 1 half
City: BOWIE

* Fireplaces (1)
* Full, Fully Finished, Walkout Stairs Basement
* Separate Dining Room
* Attached Garage
* Walk-In Closets
* Gas Heat
* Central Air

Comments: Incredible home in mint condition - Extra large home in Highbridge (Bowie) - Tons of upgrades including large landscaped corner lot, patio off family rm - family rm with heated tile floors, new w/w carpeting, fresh paint thruout, super 2-level MBR with walkin closets & super bath, dramatic 2-level entrance, open eat-in kitchen, finished bsmt, 2-car garage, and much more...

[emschwar]

Just for kicks, here's the most expensive listing on realtor.com in my zipcode:
http://homepics.realtor.com/image10/http/washingtondc/submit/large/015/hw5212765a.jpg
$2,500,000
6 Bed, 7 Bath
Approximately 1.99 acre(s), Lot is 86684 sq. ft., Year built: 2004, Colonial style, Detached home, Three story, Garage, Central air conditioning, Basement, Fireplace(s), Dining room, Den, Laundry room

Here's the virtual tour - http://www.realtor.com/Redir/Redir.asp?target=http://www.obeo.com/Public/Viewer/Default.aspx?ID=169273%26refurl=Realtor.com%26resi ze=true%26?_MLSNAME=washingtondc%26_MLSID=HW521276 5%26poe=realtor&lid=1046408932&lnksrc=00022 (I hope that link works)

[miel]

Emschwar --I donated some money for your walk. Sorry it couldn't be more...My father in law has multiple myeloma. I'm so sorry to hear about your father. That is such a nice picture of the two of you.

----------------------------------------------------------

I am a snob? I hate most of these houses! They seem really tacky to me.

I could kinda go for those Georgian mansions though...but if I saw them in real life, I know they would bother me.

I guess I'm just not cut out to be rich...

[emschwar]

Miel - thanks so much. I hope your FIL can beat it!

[Asha]

miel - i agree with you about a lot of those "mansions". i think they don't have too much personality to them. though, i guess if someone were going to give me one, i wouldn't turn it down. :p have you ever heard the term "mcmansions." i guess that's what would describe a lot of those houses. personally, i would love to get a historic "mansion" and renovate it. older houses were really built well, and they have so much life to them.

[dollface]

Severely overpriced in our area (Los Angeles). We live in a million dollar home - it's only 2 bdrm. 2 bath but it's in a highly desirable neighborhood. On the other hand we own a few other homes within 15 miles of us - one of them is 4 bdrm. 2 bath and we are listing it for $580,000. It's all about location!

[Janey]

plus, seattle probably hasn't hit its peak yet bc prices are still affordable there.
Actually, not really. Seattle is comparitively more expensive than the bay area, according to Forbes Magazine (http://moneycentral.msn.com/content/invest/forbes/P92017.asp). Sure, the houses are less money, but the income is a lot less here, too. First time buyers really are priced out of the market here. Unless you've got family money, bought in 10-15 years ago, or have two high-paying incomes in the family, you're living out in BFE, or in a teeny tiny condo.

[Asha]

kjh924 - interesting to here what forbes magazine has to say. but i have a slightly different perspective. is it correct that you don't have state taxes? also, do you have city taxes? (that is income taxes.) my dh and i pay nearly 50% of our income to taxes bc of state and city taxes. :mad: we would be saving a bundle of money if we were to move to washington. plus, my dh has looked up the salaries for his same position, and they pay the same as they do here in nyc. we could get more house for the money in a nicer neighborhood, save on our taxes, leaving more money in our pockets. as you can see, we are considering the possibility of moving out of ny for those reasons. though, you are right that the seattle area does look pretty pricey, and i am sure on average people do make less in seattle than they do in california or ny. a lot of areas of the country are seeing huge increases in home prices.

[Janey]

Rebjc - Seattle is great, and has a lot going for it. That's why I live here. :) Moving into the city having established yourself elsewhere first, you'll do just fine. But folks starting out here have a really hard time buying into the real estate market.

We do have tax, just not income tax. Seattle/King County has property taxes, automobile taxes, gas tax, and sales tax. I'm sure it isn't nearly 50% of my income that we pay for taxes, though. I'm saving all of my receipts that have tax on them so we can decuct the sales tax from our IRS taxes. If you can move into Snohomish or Pierce county, they have less sales/property taxes than King County does (we have a monorail and 2 stadiums to pay for). If you really want to leave more of your money in your pocket, though - move to Alaska! ;) I did that for 13 years. No sales tax, no income tax, and you get a Permanent Fund Dividend Check (http://www.apfc.org/theapfc/faq.cfm) every year. (Course, ya gotta deal with the dark and the snow and being soooo far away from everything else.)

[Asha]

kjh924 - that's good to hear about seattle. people think we are crazy for considering such a a far away move, but it seems like the best of both worlds to us. we need to actually take a visit there. we won't be moving anytime soon, though, bc i have to finish my phd. we have all the other taxes you mentioned too. that's amazing you lived in alaska. my dh tells me that they pay pharmacists a lot more there too. it is beautiful there, but i absolutely hate the cold weather. i don't think i could deal with that. also, i love sun, so i think i would be depressed with it being dark all the time.

[Dasha]

Here's what $619,000 gets you in Evanston, Illinois, a northern suburb approximately a 25 minutes north of downtown Chicago. It's a wonderful town to live in, as diversified as any community could be in terms of racial, ethnic and economic mix. It's on the lake, has a lovely downtown shopping area, lots of great restaurants, theatre, live music easily accessible to downtown Chicago by either public transportation or driving, good school system. All in all a great place to live. However, for a really nice older house with some character on a larger piece of property, the price tag would be easily double the $600,000.


\http://www.realtor.com/Prop/1048364479

There's very little new construction of single family houses, and what is new is usually a tear down that's considerably more expensive.

[Koala_Gurl]

...My friends who've bought recently are either (a) from wealthy families who are helping them out a lot (b) making really nice salaries in the six figure range and buying 1 or 2 bedroom condos or (c) moving WAY out of the city (like Valencia or Upland- probably an hour's commute to work) to afford something. We just think it's CRAZY! But at the same time we'd love to have a house and we'd probably do whatever it took if any of the above options applied to us.

We live way out in Valencia, and even prices here are rediculous. Our house has almost doubled in price since we bought 3 years ago.

1600 sq. ft. homes are selling in the 500 range out here. About $600k will get you a bit more (1800 - 2000 sq. ft.)

[mb1197]

DH and I are originally from Massachusetts. We really had to evaluate things after we got married and decided that the cost of housing up there was simply not affordable for us. We have since moved to North Carolina and purchased a brand new home on 2 acres of land. It is 1500 square feet with 3 bedrooms and 2 baths. It cost $150K. Big difference from what it would have cost us back in MA.

[ktsb]

Count me in on the out of control California market. I'm in Nor Cal, Sacramento area. I didn't get a chance to read the whole thread although my DH and I talk about this constantly.

We bought our house in the middle of the craziness in Jan of '04. Sold a starter home of 1,640 sq. ft. for $352k (crazy, just crazy) and bought 3,000 sq. ft for $440k. Our same model is now selling for a little under $700k.

So in essence I'm not sure we could afford our own home now. I'm almost temped to take my $300k on this house but then we couldn't buy another house at these prices.

I continue to hear there won't be a big bubble pop but the bubble may be as big as it's going to be so we at least don't lose on our house.

I'm also not impressed with the huge rental market that's been created. We were lucky we bought in a new development that was not allowing investors so only a few snuck in. In other neighborhoods including my old one there are up to 50% of the houses which are rentals.

[Asha]

koala gurl - you live out by valencia as in santa clarita??? i remember valencia being the nicest town out of the towns that make up santa clarita. has all of santa clarita gotten that expensive??? i used to live in saugus and canyon country when i was a kid. it was definitely not expensive way back when. boy, times are a changin'!!!

[December27JJB]

2 blocks from my house. It's selling for $1.3 million

http://www.coldwellbankerpreviews.com/imgs/property2002/160/7543231_1.jpg

[PG-rated]

I hate to say it, but seeing all of the posts about the CA housing market makes me feel a little better about being completely priced out of the market in DC.

Here's what $599,000 gets you in my zip code (NW DC):
http://images.longandfoster.com/Viewers/Property_Photo.aspx?sizeType=M&CoId=2&MlsNum=DC5286658&default=1

New conversion of 3 level townhouse. Huge 1 BR, 1.5 BA located on the main level. One parking space included. Luxury amenities including Granite Counters, Stainless Appliances,Wood Floors, Elegant bathroom. Front Porch conveys with this unit.

Just checked - there is nothing in my zip code available for under $400,000.

[Koala_Gurl]

koala gurl - you live out by valencia as in santa clarita??? i remember valencia being the nicest town out of the towns that make up santa clarita. has all of santa clarita gotten that expensive??? i used to live in saugus and canyon country when i was a kid. it was definitely not expensive way back when. boy, times are a changin'!!!

Yep, I live in SCV! Houses are getting pretty crazy out here (at least in Valencia / Stevensen Ranch.) I assume Saugus is very close.

[Rosebud]

Speaking of outrageous home prices, have any of you seen this new T-shirt? I've been emailed the link to it several times, but haven't seen anyone wearing it yet. Funny! :-)

http://www.t-shirthumor.com/Merchant2/graphics/hompage9_03.gif

[December27JJB]

An adorable 1920's bungalow with a lot of *hidden* termite damage and probably old pipes and wires= more money to repair.

http://images1.e-net.com/mls/import/midFLregional/property/full/91/T2101691_1000.jpg

$599,999

[Rosebud]

Here's a little gem not far from my office:

http://photos.themls.com/images/05-039355/05-039355.jpg

Traditional Remodeled 2br And 1.75ba Home Located In Wonderful Palms/ Mar Vista. Bright Living Room And Dining Room With Hwd Floors, Remodeled Kitchen W/ Adjoining Laundry Room. Wall Air Conditioning. Automatic Sprinklers. Kitchen Garden Bay Window Overlooking A Lovely Private Backyard W/ A Patio Area.

$814,000

ARE THEY CRAZY?!

[alical04]

I love that shirt that Rosebud03 posted!! I would be afraid to wear that around LA because people would get really mad at me, especially the ones that just bought places!!

[ktsb]

all I can say about these houses is OMG!!!

and I MUST get that shirt!!

It's really a bummer on the low end when folks are just trying to get a starter home or are downsizing. Basically they can't.

[nettreefrog]

What a great thread! Coming from NYC (Brooklyn), it never astounds me to find out what people pay for real estate--it does surprise me though how much extra space people have outside of the City!

So--what can you buy in South Brooklyn (B. Heights, Carroll Gardens, Cobble Hill) for ~650K? Answer--not a whole lot--but here is what I did locate:

1) For $725K, you can buy an 850 sq. foot 1 bedroom, 1 bath co-op. The maintenance is an additional $1,083/month though...
2) One broker (in June) told me about a place that was 2 bedroom and a bath...it was just under $500k --but the kitchen and bath needed to be basically completely gutted--oh and it was 700 square feet!?!

However, if price is not an issue, you can buy the following townhouse (here known as a brownstone): http://www.corcoran.com/property/listing.aspx?Region=NYC&ListingID=754484
As you can see, it is actually a steal at $3.9M for 4 units (you live in a duplex and rent out the other three units). It also has amazing views, historical status, and is stunningly beautiful inside.

http://www.corcoran.com/images/media/BldgPhotos/22949.1.jpg

[jojoswife]

DH and I have recently started house hunting. We were amazed at the cost of homes in our area. Looking at the cost of living in Cali makes ours look like chump change. When we look at houses that cost over 300k, we ask ourselves "what do those people do". I'm an x-ray tech-I make o.k. money, not bad for an assoc. degree and only working 36hrs a week. DH is a mechanical engineer, he makes double of what I make. We are not in debt. We both own homes, I rent mine out and he plans to rent his when we move. Even though our finances look great on paper, I still feel like an elepant is sitting on my chest when I look at a house that has all the features that I like and it costs 250k! I can't imagine what I would feel like if the houses I was looking at were less than 1000 sq ft and are listed for over 1mill.

Here are some houses in the area we are looking. Not mansions by any means!http://im1.shutterfly.com/procserv/47b5d635b3127cce933e509ecaa500000026108AcNmbhu5bOA 2224 sq ft...$239.900

2000sq ft $234,900
http://im1.shutterfly.com/procserv/47b5d635b3127cce933e6b7a0bf400000016108AcNmbhu5bOA
http://im1.shutterfly.com/procserv/47b5d635b3127cce933e56bbca8300000016108AcNmbhu5bOA
2445sq ft lots of unfinished sq ft upstairs....$269,600
http://im1.shutterfly.com/procserv/47b5d635b3127cce933e6a53ca7500000016108AcNmbhu5bOA
http://im1.shutterfly.com/procserv/47b5d635b3127cce933e6a5a4b4c00000016108AcNmbhu5bOA
http://im1.shutterfly.com/procserv/47b5d635b3127cce933e6a4c4b5a00000016108AcNmbhu5bOA

These homes don't really have any "extras" they all just had laminate counter tops, one of them didn't even have tile in the bathrooms!

Anyway, I guess we shouldn't complain over here in NC....it could be a lot worse. If we lived in Cali we would have to find a refrig box under an overpass!

[Rosebud]

jojoswife- OMG, any of those places you just posted would qualify as my *dream home*!!! Gorgeous! In California, they would cost over a million, no question. :rolleyes:

[jojoswife]

Rosebud03-you are so right. They are beautiful, and now that I know how much real estate is elsewhere it won't be so difficult looking at homes in the 2005-250k :)

[udsweetpea]

http://idxpro.cisdata.net/idx/FL-MID/photos/O4618805.200x150-abs.jpg

This is what you can get for $619,000 in my area of Central Florida. 4 bedroom, 3 bath.

My apartment is being sold as a condo for $337,500. 2 bedroom, 2 bath, 1209 sq. feet. I find the price pretty ridiculous.

After looking over real estate costs in North Carolina, I think I'll be moving there ;)

[jojoswife]

udsweetpea-you're right about the realestate here. Not so expensive in comparison to what you posted. Although, I'm interested in finding out what the difference in wages are. I guess I just don't know how people afford homes that are sooooooo expensive. Like I said before I'm having heartburn when I look at homes that are priced in 220,000 range.

I realize real estate is an investment. But I just don't want to live pay check to pay check just for my house. Right now we are homeowners with low mortgage therefore we are able to be more free. But anything is possible, just depends how disciplined you are.....right? ;)

[greenbunny]

Our area is frustrating to us, but nothing like most of you guys.

The problem is that a few years before we were able to buy, they finished a highway extension that cut commuting time to NYC by about 30-45 minutes. Now prices have skyrocketed, houses are popping up everywhere, and the entire area is filling up with New Yorkers and New Jersey people. Our grocery stores are being refurbished with olive bars and food courts and everybody is fighting over what mall will get the sacred Starbucks. They stopped building "malls" and started building "lifestyle centers" and the price of everything is flying through the roof.

What gets me is how freaking lazy people are. Houses right off the main highways go for a fortune. Go five miles back into the towns and the prices drop by 1/3. Is that extra five miles THAT difficult?

I always imagine/lament if we could have afforded to buy three years ago instead of this year. We paid more than twice what the previous owners did when they bought the place in 2001.

$600,000 in my area will buy you a gorgeous home, or something average-looking, or something I consider not worth it. It's so varied. For example, all for $599,900 you could get:

A Victorian on 3.4 acres:

http://www./bigphoto/083/225983.jpg

Or this sort-of colonial, which is your run-of-the-mill upper-middle class house around here and I'd expect to cost about $300,000:

http://www./bigphoto/083/225983.jpg

Or this converted ranch, which based on the few ranch neighborhoods we have left in this area I wouldn't pay more than $250,000 for:

http://wwwoto/026/222626.jpg

[betsyboop]

This house is listed at $598,500 in my town, about 25 miles west of Boston. It's not really my taste, but it's a pretty standard 1800 sqft 4 br, 2.5 bath colonial on an acre in a family neighborhood.

http://www.ziprealty.com/images_mls/MLSPIN/70/22/34/70223463_250.jpg

[October2002Bride]

Greenbunny:

Where do you live in what town, just curious dont worry we wont move there :D

[Rosebud]

Bumping this old thread back up to post an interesting article I read in the L.A. Times recently about the insane housing costs here:

Housing Prices in L.A. Aren't Letting Up (http://www.latimes.com/business/la-fi-homes13apr13,1,922028.story?coll=la-headlines-business)

Some highlights:

To buy a house at the median price [$506,000], a household would need an annual income of at least $120,000 to qualify for conventional financing with a 20% down payment. The county's median household income: about $47,000.

BTW, $500,000 will buy you a 2-bedroom condo (which will probably be older and need some fixing) anywhere near my neighborhood.

I also read something in Newsweek last night that said only 2% (two percent!!) of L.A. residents can afford to buy a median priced home. Insanity. Still, it's been a couple of years since everyone started talking about a housing bubble. We haven't seen any reduction in prices yet. ?????

http://www.latimes.com/media/thumbnails/graphic/2006-04/22916079.gif

[bubbles]

Rosebud03,

I like to read this blog:
http://patrick.net/housing/crash.html

My DH and I will probably wait to see what happens at the end of the year. Prices cannot continue to rise forever in L.A. and I think we'll see reductions very soon. Actually, prices are falling nationally.

[Rosebud]

That's a really interesting site, Bubbles. Thanks!

Here's an article I just saw on CNN.com:

Welcome to the dead zone

Real estate survival guide: The great housing bubble has finally started to deflate, and the fall will be harder in some markets than others.

NEW YORK (FORTUNE) - The stories keep piling up. In many once-sizzling markets around the country, accounts of dropping list prices have replaced tales of waiting lists for unbuilt condos and bidding wars over humdrum three-bedroom colonials.

The message is clear. Five years of superheated price gains rescued America from stock market collapse, put billions in consumers' pockets, and ignited a building boom that bolstered the nation's economy. But it's over. The great housing bubble has finally started to deflate.

You won't find that news in broad national statistics or the upbeat comments from the real estate industry. Thelatest official figures, for example, show both new and existing home sales rising in March, a mixed bag on prices - and a record number of new homes on the market.

But FORTUNE's on-the-ground reporting - in what up to now have been some of the nation's hottest areas - paints a very different picture: Contracts are being canceled, deals are drying up, prices are starting to drop. The psychology is shifting even as thousands of new homes and condos join the for-sale listings each day - so the downward pressure will only get worse.

"The buyers' sense of urgency is gone," says Bob Toll, CEO of luxury builder Toll Brothers (Research), who has long been a housing bull. "They see the market going soft, so they stall."

Take a deep breath. We're not forecasting a nationwide housing collapse. For one thing, the vast expanse of America between the coasts was never touched by real estate mania and is in no danger of a meltdown. And even some overheated markets - including Manhattan, Los Angeles and California's Orange County - are still simmering.

But things are suddenly looking very chilly indeed in four coastal cities - Boston, Washington, Miami and San Diego - as well as three Western boomtowns: Phoenix, Las Vegas and Sacramento. So far this year, monthly sales have fallen 11 percent to 25 percent in Miami, Boston, northern Virginia and San Diego, according to local housing experts.

The prognosis is even worse in Phoenix, where only 4,500 homes sold in the first three months of 2006, vs. 6,100 for the same period last year, and in Sacramento, where new-home sales plunged 57 percent in the first quarter (compared with the first quarter of 2005). In California it now takes six months to sell a house, twice as long as a year ago. (See a slideshow of home prices in all the troubled areas.)

And what's happening in these areas is a sign of what may be coming in the rest of the bubble zone -- the two dozen or so mainly coastal cities and their suburbs that have seen prices soar in recent years and account for 60 percent of the nation's residential real estate value.

The problem is as basic as beams and trusses: The triple threat of soaring prices, higher mortgage rates and relentlessly rising property taxes has drastically increased the cost of ownership and put many homes out of reach for a huge number of potential buyers.

In California, for example, only one household in seven can manage the payments on the median-priced house, now selling for $561,000. It takes an income of $134,000 to afford that home, which might be a modest three-bedroom ranch in a bland subdivision. The affordability gap is driving buyers to the sidelines, replacing the frenzy with a growing void as buyers wait for prices to drop.

With houses hovering beyond the reach of most potential purchasers, formerly frantic markets grow eerily calm. People who rush to list their homes, hoping to grab a fat gain just before prices break, take them off the market.

Sales shrink as buyers float low-ball offers, and sellers refuse them. Realtors and mortgage brokers find other jobs. The bubble areas turn into Dead Zones.

There's no mystery about what it will take to close the affordability gap and bring the markets back to life: Prices will have to come down, and incomes will have to move up. Right now the ratio of home values to incomes in the bubble zones is about 40 percent above its historical average. So the only question is how much of the adjustment will come from rising incomes and how much from falling prices.

On that point there's reason to be hopeful. In the past, housing declines almost invariably occurred while the economy was suffering through a recession. This time the housing downturn is coming during a period of strength, with GDP surging nearly 5 percent in the first quarter. If the economy keeps chugging along, household incomes should grow at around 4 percent a year.

Under those conditions one likely scenario is that housing prices would drop 10 percent to 15 percent in the bubble zone over the next 12 months, then remain flat for maybe four more years while incomes catch up.

But there's another possibility. For the past few years the housing boom has driven the economy, adding jobs in construction, remodeling, and real estate services. And consumers gorged on the equity in their homes, taking out a total of $2 trillion via loans, refinancings, and sales over the past five years.

Those powerful stimulants, which added a full point to annual GDP growth, will soon vanish. If corporate spending or some other force doesn't come along to pick up the slack, we could go into a recession that would cut income growth to zero. Then inflated housing prices would have to shoulder the entire, wrenching adjustment, falling 30 percent or more over several years.

In either case, many individual homeowners have nothing to worry about: They can simply stay put and ride out the cycle. The only thing they'll lose is the opportunity to brag about their paper profits. And in some places, appreciation has been so sharp that a seller could see prices plunge 30 percent and still make a hefty gain.

The real losers will be those who bought recently at inflated prices and are forced to sell, usually because they're taking a job in another city or can't make the payments when their adjustable mortgage rate jumps. And speculators who bought overpriced condos in hope of a quick killing are going to get hosed.

article (http://money.cnn.com/2006/05/03/news/economy/realestateguide_fortune/index.htm?cnn=yes)

[miel]

Oops. I'm one of those (1) homeowners and (2) speculators. I guess I'm doomed!

I should mention we aren't greedy. We were just trying to get a reasonably sized condo at an affordable rate by buying a house and dividing it into condos. We tried to beat the market and maybe we will pay for that with desperate poverty.

What would kill us is if rents go down. The city we have our units in has an extremely low vacancy rate. If rents stay where they are, we'll probably be fine. Hope it recovers in a few years, try again.

If this article is right (he isn't right about the housing market in our city) the whole thing kind of, I don't know, SUCKS!!!!!

Our jobs are not lucrative or secure either.

Damn, we could probably use the old bankruptcy laws.

[PinkMartini]

Man I hope the housing market is starting to fall... Just in time for us to buy

[~queen~]

This really depends on the area. I live in a Maryland suburb right outside Washington, DC. In my entire zip code, there are only a small handful of houses on the market. We list our house next week and will be the only house available in within a $20k range.

In DC and No VA, I understand the bubble has definitely burst. My co-worker has a house for sale for the past few months with one bite well below what he originally paid for it. He says at least 6 other houses around him are for sale as well - all brand new. :eek:

[bubbles]

The prices in Florida seem to be coming down. I really hope that the real estate bubble burst in Los Angeles, so that my DH and I can finally afford to buy a decent small home.

By the way my name is in no way connected with the real estate bubble, just a coincidence.

[Janey]

It doesn't seem to be slowing down any in our area, either. It's total craziness. Last month, two houses sold on my street -- one five houses one way, one five the other. The first sold at $599k. The second $569k. 'Course, that's what they were asking; I don't know what they actually got for these houses. Word is that people are actually getting more than they're asking due to lack of properties on the market. These houses selling for $600k are small, 1920's era, 3 bedroom homes in a marginal neighborhood. (I say marginal because 2 blocks west is crack houses and shacks -- the shacks still sell for $300k -- and 2 blocks east are multi-million dollar mansions where the 7th employee of Amazon.com lives)

Who can afford a house for $600,000??

The schools in our neighborhood are complete crap. To move to an area with better schools that still has a comparitively easy commute to the city, it would be a $250,000 investment. Yikes.

[miel]

It's hard to see evidence of the extreme slowdown the article discusses. I think it could happen. If it does, that's a bummer. But there's this guy in my apartment. He's been renting here for 10 years. He's middle aged, single has a job. We were asked to buy here. I asked him if he was going to do it. He said "No, I'm not going to buy in this market." So he's going to rent for the next 10 years? Sometimes it makes sense to buy in whatever market. His mortgage would not be substantially more than the rent.

[question]

http://homepics.realtor.com/image1/http/houston/listings/large/002/8730177_0.jpg
$605,000
4 Bed, 3.5 Bath
4,106 Sq. Ft.
0.23 Acres


THat's what $605,000 gets you in Houston

[Rosebud]

Sometimes it makes sense to buy in whatever market. His mortgage would not be substantially more than the rent.

In our circumstance, we would be paying about $2000 a month more for a mortgage than we do for our rent, and we would be in a less desirable neighborhood with less square footage. In L.A., it makes more financial sense to rent than to buy right now. But of course, it's different in other areas. I'm all for a slowdown here, because I think any environment where only two percent of the population can afford to own a home is outrageous and, in my mind, the death of the American dream.

ETA: You can't buy anything for $605,000 in my neighborhood. Prices start closer to 850,000 for a 2 bedroom. Here's what $620,000 buys you in a neighborhood about 15 minutes south of mine.... a 2 bedroom condo with lovely green carpeting and 70s bathrooms:
http://photos.themls.com/images/06-012117/06-012117-9.jpghttp://photos.themls.com/images/06-012117/06-012117-19.jpg
http://photos.themls.com/images/06-012117/06-012117-3.jpg

[jki]

Sometimes it makes sense to buy in whatever market. His mortgage would not be substantially more than the rent.

It still doesn't make sense to buy in my market. A mortgage in my neighborhood would be over DOUBLE our rent.

This week, I saw 2 houses taken OFF the sale market and placed on the rental market. The problem here is that the owners don't necessarily NEED to sell and if they can't get their asking price, they'll just wait. <SIGH> You can't get ANYTHING in my area for $650K. A 2 bedroom, 1 bath, 700sf, not remodeled, 5000sf lot home starts at $900K. Granted, it's a 'nice-ish' area with good schools.

[bubbles]

I rent because I don't want to be a slave to a $500,000 mortgage! That would keep me up at night.

Wow, nice condo Rosebud03. Please email me the MLS number.. :-)

[bubbles]

Both buyer and seller can play this waiting game, but the seller is the one who has to pay the mortgage so I think the tide will turn (for California at least).

[SpanishRose]

WOW! Those are crazy amount to pay for so little house.
This is what you can get in my area for under $850k:
http://homepics.realtor.com/image1/http/carmls/submit/large/087/10104372a.jpg

[Asha]

5,000 SF is so big I have no idea what those things go for here but it would be way over a million! 5,000 SF?

i think she was talking about the size of the lot, not the size of the house.

***
we are definitely paying more than we paid in rent, but we get much more space than we would be for paying rent. plus, if you factor in the tax savings we actually pay just slightly more than if we were renting. its worth it to me to be paying slightly more bc of appreciation, having more space, and having a permanent place to live.

[Asha]

i have a question for the californians. the prices you are quoting ($600k and above) are those for places in good neighborhoods? i live in ny metro area and those are the prices for good neighborhoods, but you can pay substantially less for a condo if you are willing to live in an "not so great" neighborhood. that's what we ended up doing. it didn't make sense for us to be paying out the nose to live in a good neighborhood with good schools when we don't even have kids who would attend school yet. plus, the actual crime level in our neighborhood is one of the lowest in the cities, but it just has a bad reputation for times past that it just can't seem to shake.

[Rosebud]

i have a question for the californians. the prices you are quoting ($600k and above) are those for places in good neighborhoods?

Nope. I rent in a nice neighborhood on the Westside. To buy anything here will start at about $850k. 3 bedrooms are over a million. To buy a single family home for $600k.... that's tough. You could go about a 45 minute drive (without traffic) out of the city and buy in someplace like Valencia or Torrance. They're okay neighborhoods, it just makes your commute hell. Or you could buy in supposedly developing neighborhoods like Echo Park or Inglewood.

We looked at moving out of the city, but really disliked the neighborhoods we looked at and the fact that we'd spend 2+ hours a day in traffic, in addition to our 10 hour work days.

[jki]

i think she was talking about the size of the lot, not the size of the house.
Thanks, Asha. Yes, I was talking about the size of the lot. The home itself is only 700 square feet.

the prices you are quoting ($600k and above) are those for places in good neighborhoods?
Where I live, for about $750K, you can buy a very, very, nice, completely remodeled (but small) SFH in a 'bad' neighborhood. By bad, I mean non-working cars up on cinderblocks on the front lawn, trash bags taped to the roofs, trash bags taped to windows, public schools where English is not anyone's first language, and public schools where 90+% of the kids get free lunch, etc.

I have 2 kids and I want to feel safe while taking them for walks around the block so I'd rather buy a fixer in a 'good' neighborhood and a neighborhood where I can send them to public schools.

[Asha]

that is pricey for a bad neighborhood. i think california is more expensive than ny. we have a 3 br, 2.5 bath townhouse in the outer boroughs of nyc that we bought 2 years ago for $300k. supposedly, its worth about $350k now. its too bad it is so expensive there bc i would consider moving back to california once i finish grad school.

rosebud - valencia isn't bad at all. i used to live in santa clarita, and valencia was considered the nicest of the towns that make up santa clarita. my mom used to commute to usc from santa clarita (saugus) and the commute was about an hour. though, the traffic may have gotten much worse since we lived there bc i am sure lots of people have moved out to the burbs for less expensive housing. i could see how you wouldn't want a long commute since you work such long hours. plus, i am sure its more fun to live closer to the center of things. my dh and i wish we were closer to a lot of the action bc we are a bit out of place in our neighborhood with all the families and seniors.

jki - since you have kids its understandable that you would want to be in a better neighborhood. dh and i have decided once our maybe children are school aged we will move to a better neighborhood. oh gosh, those neighborhoods sound awful. there are a few abandoned houses in our neighborhood that are trashy, but there aren't too many of them.

[MLA]

i have a question for the californians. the prices you are quoting ($600k and above) are those for places in good neighborhoods? i live in ny metro area and those are the prices for good neighborhoods, but you can pay substantially less for a condo if you are willing to live in an "not so great" neighborhood.


Having just moved from LA, I can say tha $600K for a SFH is not for a good area. That's why we moved! I used to live in the 'hood in LA(we're talking gangs, cars on cinderblocks, etc -- though not the worst neighborhood in the city), and I remember that 3 years ago a little house two doors down from my apartment complex, there was an 800 square foot house on a postage stamp lot that sold for $450K. Three years ago! It was a cute house, and the owner had done a lot to renovate it, but $450K for a small house in pretty bad area?!?

In my old neighborhood, this is what you get for $600K (granted it has a view, but come on!)
http://homepics.realtor.com/image2/http/westernla/submit/large/069/05-072463a.jpgBreathtaking city view property in Highland Park. Living room w/hardwood floors, decorative fireplace, new paint. Kitchen w/tile floors & counters leading to dining area. Laundry hookups in kitchen. Great backyard w/grassy yard area & new deck and roof. 2 bedrooms + 1 bath towards front of house. 3rd bedroom off kitchen. On street parking only - no garage. House positioned for incredible views of city, Dodger Stadium & fireworks! Well maintained - move-in condition. Evening & weekend showings.

Where I live now, it's hard to even find something priced that high. For $550K, here's what you get in my area:
http://homepics.realtor.com/image10/http/triangleareanc/listings/large/064/856948_0.jpg
4/4 on .29 acres 4082 square feet. Brand new build

For $200-$300K, here's what you'll get where I live now:
http://nc-tmls.photos.mlsfinder.com/photos/8/5/3/6/8/0/853680-1.jpg
Brand new build.
4/3 on .35 acres
2410 square feet.
$288,880


http://nc-tmls.photos.mlsfinder.com/photos/8/6/0/8/8/9/860889-1.jpg
Built in 1988
4/2.5 on .32 acres
1880 square feet
$218,500


See why I moved?

[Sophia]

I did a search for homes with at least 3 bedrooms and 2 bathrooms in my zip code, starting with something comparable to what we have.

$158,000
4 Bed, 2 Bath
http://homepics.realtor.com/image2/http/mcallen/listings/large/019/10611.jpg

$204,995
5 Bed, 3.5 Bath
http://homepics.realtor.com/image2/http/mcallen/listings/large/002/06321.jpg

$299,000
5 Bed, 3 Bath
0.3 Acres
http://homepics.realtor.com/image2/http/mcallen/listings/large/015/08697.jpg

$429,000
4 Bed, 4 Bath
http://homepics.realtor.com/image2/http/mcallen/listings/large/051/08228.jpg

$675,000
5 Bed, 4.5 Bath
http://homepics.realtor.com/image2/http/mcallen/listings/large/081/03436.jpg

$998,000
6 Bed, 4.5 Bath
http://homepics.realtor.com/image2/http/mcallen/submit/large/099/09888a.jpg

The most expensive house in my ZIP:
$1,575,000
9 Bed, 6 Bath
20.98 Acres
Unfortunately, the pic is just a red X.

[SingleWhiteFemale]

Here's a great article in today's NY Times about this: A Chill Is in the Air for Sellers (http://www.nytimes.com/2006/05/09/business/09home.html?pagewanted=3)

[Rancid13]

The cheapest detached single family residence available on the market right now in my city is a 3 bedroom, 1.5 bath, 1493 sf house on a 7,505 sf lot built in 1963 for $609,000.
http://socalpictures.marketlinx.com/MediaDisplay/13/hr95369813-1.jpg

The cheapest detached single family residence that has actually sold (closed sale) recently in my city is a 3 bedroom, 2 bath, 1,611 sf house on a 7,300 sf lot built in 1959, which sold for $724,000 at the end of February.
http://socalpictures.marketlinx.com/MediaDisplay/78/hr95318878-1.jpg

Cheapest residential property of any type available here right now actually happens to be in my project, a 2 bedroom, 2 bath 1095 sf, bottom level (out of 3 levels) condo built in 1983 for $498,000 (they just lowered the asking price from $510,000 last week).

http://socalpictures.marketlinx.com/MediaDisplay/23/hr95383423-1.jpg

We paid a little over $400,000 for ours almost 1.5 years ago, same size, same # of rooms/baths, different floorplan, on the top floor (cathedral ceilings) with all new flooring (hardwood, ceramic tile, carpet) & new appliances. We checked out the other place during an open house over the weekend, it looks more worn and lived-in compared to how ours looked when we bought it. Prices have skyrocketed.

[ManteoChik]

Housing for us is out of control.

$895,000
3 bed/ 2 1/2 bath
http://www.obxmls.net/mlsm/medium_41997.jpg
http://www.obxmls.net/mlsm/medium_41997a.jpg

$769,000
4 bed/ 3 1/2 bath
http://www.obxmls.net/mlsm/medium_42324.jpg
http://www.obxmls.net/mlsm/medium_42324a.jpg
http://www.obxmls.net/mlsm/medium_42324c.jpg

Just buying a lot in our town is nearly impossible. My parents bought their lot and built their house 6 years ago, and paid $35,000 for the lot. The same lot across the street from them (last lot in the neighborhood) is going for $179,000...just the lot.

What's really sad, is that you could go inland a few hours (near Raleigh) and build a similar house for 1/2 the price.

[la_bride_2004]

I work in commercial lending. I agree with this:

But there's another possibility. For the past few years the housing boom has driven the economy, adding jobs in construction, remodeling, and real estate services. And consumers gorged on the equity in their homes, taking out a total of $2 trillion via loans, refinancings, and sales over the past five years.

Those powerful stimulants, which added a full point to annual GDP growth, will soon vanish. If corporate spending or some other force doesn't come along to pick up the slack, we could go into a recession that would cut income growth to zero. Then inflated housing prices would have to shoulder the entire, wrenching adjustment, falling 30 percent or more over several years.

In either case, many individual homeowners have nothing to worry about: They can simply stay put and ride out the cycle. The only thing they'll lose is the opportunity to brag about their paper profits. And in some places, appreciation has been so sharp that a seller could see prices plunge 30 percent and still make a hefty gain.

The real losers will be those who bought recently at inflated prices and are forced to sell, usually because they're taking a job in another city or can't make the payments when their adjustable mortgage rate jumps. And speculators who bought overpriced condos in hope of a quick killing are going to get hosed.

First, it's hard for me to consider something "overpriced" when you have a buyer for it. And even at these high, high prices you still have buyers. Crazy financing? Yes, it's common here in LA. But until I see the foreclosure rate creep up, I am not seeing cause for alarm.

Second, for example, we bought our home in 2003. We've seen the market go up 40%+ in the last two years (Thanks LA Magazine for naming our hood one of the "10 best you've never heard of!"). I refuse to believe it's going to stay that high, so I haven't (and won't) take out any equity. If the value dropped 30% tomorrow, we would still come out ahead.

On the commercial lending side, we've stopped funding construction loans for multifamily properties- many are too speculative. Supply is going to remain tight, while the population continues to grow.

FWIW, I think most people who have bought in the last few years make over $150k, most over $200k from what I can see in my loan files. And yes, salaries ARE higher out here than other parts of the country. However, because the cost of housing is so high, I agree with what one of the PP said. We make our hefty mortgage payments each month, but my car is paid off and I won't buy a new one anytime soon, and we keep most other expenses at a fairly modest level.

[PinkMartini]

Up here in Northern California, housing prices are also out of control. Definitely not as bad as good ole' SoCal but for one of the poorest counties in Ca, out of control.... Here are a few houses for sale here

1,424 sqf - built in 1905 - $224,900

http://img.photobucket.com/albums/v338/PixiePrincess/SNVMLS200602748.jpg

816 sqf - built in 1935 - $225,000

http://img.photobucket.com/albums/v338/PixiePrincess/SNVMLS200601328.jpg

936 sqf - built in 1983 - $229,000

http://img.photobucket.com/albums/v338/PixiePrincess/SNVMLS200602588.jpg

And for actual 'nice' houses with more than 1000sq ft or that weren't built 100 years ago

1,498 sqf - built in 1989 - $319,500

http://img.photobucket.com/albums/v338/PixiePrincess/SNVMLS200602054.jpg

1,344 sqf - built in 1994 - $319,900

http://img.photobucket.com/albums/v338/PixiePrincess/SNVMLS200601825.jpg

[Rancid13]

Up here in Northern California, housing prices are also out of control. Definitely not as bad as good ole' SoCal but for one of the poorest counties in Ca, out of control.... Here are a few houses for sale here


Oh, those houses are cute!! I wish we had some prices like that in SoCal, hubby and I would love to upgrade from our condo into an actual house house, but we're not finding anything below $550K that has at least 3 bedrooms and 1100 sf (our current place is 2 br and 1100 sf).

[Asha]

http://homepics.realtor.com/image8/http/longisland/listings/large/016/1751721.jpg
Queens, NY
$196,000
2 bed, 1 bath

this is the cheapest, single family home i could find in my neighborhood, and let me say i pass this house every single day, and it is awful. it is has been for sale since the winter. it is right under the train tracks, so it would have a major noise problem. also, people always dump their trash in their yards. the house looks like it will blow over in the next storm. i also don't see how it could even be 2 bedrooms bc it is really, really small. it's on a lot of 1,100 sq feet, so the house is gonna be smaller than even that.

[Asha]

i live in the "poor cousin" neighborhood. the next neighborhood over with better schools has this as the least expensive option for a single family home. that neighborhood is gorgeous with lots of big, beautiful homes but for a quite a hefty price tag.

http://homepics.realtor.com/image8/http/longisland/listings/large/067/1762431.jpg
Queens, NY
$999,000
3,678 sq feet
5 br, 3 bath

[wine_o_girlie]

Housing for us is out of control.

$895,000
3 bed/ 2 1/2 bath
http://www.obxmls.net/mlsm/medium_41997.jpg
http://www.obxmls.net/mlsm/medium_41997a.jpg

$769,000
4 bed/ 3 1/2 bath
http://www.obxmls.net/mlsm/medium_42324.jpg
http://www.obxmls.net/mlsm/medium_42324a.jpg
http://www.obxmls.net/mlsm/medium_42324c.jpg

Just buying a lot in our town is nearly impossible. My parents bought their lot and built their house 6 years ago, and paid $35,000 for the lot. The same lot across the street from them (last lot in the neighborhood) is going for $179,000...just the lot.

What's really sad, is that you could go inland a few hours (near Raleigh) and build a similar house for 1/2 the price.

Wow, I guess it's all relative because those houses, with those features and the proximity to the water sound FABULOUS to me. I am near a major city in the Northeast and I would kill for those houses at those prices.

[Asha]

the thing i don't get about this house is that it is 3 bedrooms. that makes absolutely no sense to me especially considering that house looks gigantic. if you are going to buy a house with that much square footage and spend so much money it better have more than 3 bedrooms, imo.

http://www.obxmls.net/mlsm/medium_41997.jpg

[Asha]

Wow, I guess it's all relative because those houses, with those features and the proximity to the water sound FABULOUS to me. I am near a major city in the Northeast and I would kill for those houses at those prices.

that house that i posted has all those perks that you describe and its around the same price, and is located in a major city in the northeast.

[bubbles]

http://abclocal.go.com/kgo/story?section=business&id=4163208

Link to story about home foreclosures going up!

[nettreefrog]

Because we just lost our condo deal, I am back to looking at places in our area (you may have read our story --but basically we are looking around certain areas of Brooklyn --including Brooklyn Heights, Carroll Gardens, Cobble Hills, Park Slope, etc.). $600K seemingly buys very little, and we are hopeful that the increase of the rates will bring prices down a bit. Although this is NYC and we recognize that prices in this area are generally barely affected by downturns in other areas.

In May 2006:

$589K might get you a 2 bedroom, 1 bath condo with 800 square feet. Your maintenance would be $313/month. Check out: http://www.corcoran.com/property/listing.aspx?Region=NYC&ListingID=860014

[ManteoChik]

Wow, I guess it's all relative because those houses, with those features and the proximity to the water sound FABULOUS to me. I am near a major city in the Northeast and I would kill for those houses at those prices.

Well I guess the reason we complain is because just a few short years ago those homes would have been in the $400-500,000 range. However, with all the tourists coming in to build their vacation homes land is becoming a hot item (I mean the island I live on is only 12 miles long and 5 miles wide....that doesn't count the "barrier islands") so the prices keep going up. Those are just prices for homes on the island where I live. If you cross the bridge to the oceanfront (5 min. drive) the same house would cost WELL over a million or more.

[Rancid13]

I saw an article about this place in the LA Times (OC Edition) over the weekend and sought out the listing. This is a few miles south from where I work (Huntington Beach) and even farther south from where I live (Los Alamitos) in the most expensive portion of Newport Beach: Corona del Mar. List price is $75million.

8 bedrooms, 10.5 baths, ~30K sq ft house, on a ~42K sq ft lot (actually 3 lots combined). I'll let the pictures speak for themselves.

http://socalpictures.marketlinx.com/MediaDisplay/86/hr95405786-4.jpg

http://socalpictures.marketlinx.com/MediaDisplay/86/hr95405786-3.jpg

http://socalpictures.marketlinx.com/MediaDisplay/86/hr95405786-6.jpg
Yeah, that's a movie theatre

http://socalpictures.marketlinx.com/MediaDisplay/86/hr95405786-10.jpg

http://socalpictures.marketlinx.com/MediaDisplay/86/hr95405786-9.jpg

[August2005Bride]

I have to subscribe to this thread!! WOW I thought NYC was very expensive I cant believe the outrageous prices. Ive been doing research and I know me and DH will be renting for a much longer time than expected :(

[Rosebud]

Interesting article from MSNBC about the housing bubble. I'm not sure that an 8% decline would really help us in L.A. at this point. That still leaves the housing market out of reach for a majority of residents. (Oh, but local real estate analysts keep going on NPR and insisting that the market isn't overvalued and we'll all just have to get used to paying $800,000 for a single family home).

Bubble watch: 10 cities where prices will deflate

From Las Vegas to Edison, N.J., these bubble busters are facing everything from a lack of new building and job loss, to price appreciation that simply can't be maintained.

By Pat Curry, Bankrate.com

Las Vegas: What goes up must come down. Fortune lists Las Vegas dead last in its list of 100 metro markets for housing appreciation in the next two years, predicting a two-year combined decrease in housing values of nearly 13%. Local Market Monitor reported a 33% increase in appreciation between 2003 and 2004, and then a 14% increase by the third quarter of 2005, evidence that prices have begun to cool.

"Las Vegas is a very interesting market," Winzer says. "A lot of people moved in, but construction has kept up with the pace. For a long time until recently, I didn't consider it an overpriced market. I don't think the price increases will last. There's really not an inability to produce new homes out there if there is a demand for it."

Sacramento, Calif.: We're not quite sure what Sacramento ever did to anyone, but it showed up on just about everyone's list of has-been markets. Winzer's Local Home Value Ratings rates the market as 59% overvalued and Burns Housing Cycle Barometer also lists it as overpriced.

"Sacramento, we think, has topped out," says Gollis of The Concord Group. "There is just so much (housing construction) in the pipeline. It's a steady-as-she goes market and has always had consistent growth, but we think the land market has gotten ahead of itself."

Phoenix: The bigger they are, the harder they fall, and Phoenix is the largest housing market in the country in terms of new construction. It's been running at 65,000 new units per year, with housing appreciation increasing at rates of nearly 30% per year.

"You can't sustain 30% increases a year for very long," Winzer says. "Of all the 100 markets we review, we think if you're an investor in Phoenix, you should sell, because vacancy rates are already pretty high." Gollis says his firm has been studying the market carefully and doesn't like what it sees. "It's had an incredibly unusual amount of growth," he says. "The land market has accelerated dramatically and the lot price as percentage of the home price has gone up significantly. We have some concerns about going long in Phoenix."

Boston: This one is in Winzer's backyard, his firm is based in Wellesley, Mass., so he sees what is happening there every day.

"Until about a year ago, homes would go on sale and be gone in a week," he says. "Now they're sitting on the market for a year." He doesn't see the prices dropping rapidly here -- or in any market, for that matter -- because while real estate prices escalate rapidly, they drop slowly.

"In markets that are well-overpriced, prices don't really fall because people just won't sell," he says. "The adjustment mechanism is skewed by people's emotions getting involved. People will grit their teeth and hang on as long as they can to get the price they want."

They might not be able to hang on for long. Burns ranks Boston fourth on his list of markets likely looking at a bubble; Winzer's analysis indicates the market is 33% overvalued.

Los Angeles: The City of Angels has been described as the poster child for how a lack of new housing near employment centers can hurt an economy. Affordable housing has been an issue in the market for years. It's ranked as one of the least affordable places in the country to live, with housing prices consuming 91% of income, according to statistics from John Burns Real Estate Consulting. The median price of an existing single-family home was $568,000 at the end of 2005, the National Association of Realtors reports. Plus, job growth is virtually flat. Together, it's cause for real estate market consultant Gollis to predict that the prices for California coastal markets are topping out in single-family homes. Fortune predicts a drop-off of nearly 8% in housing prices in the next two years, putting it in 95th out of 100 markets for growth.

Naples, Fla.: At 72%, Naples is No. 2 on Local Market Monitor's list of overvalued markets in the country (Santa Barbara-Santa Maria, Calif., is No. 1 at 86% overvalued). In actual pricing, it outpaces other Florida markets by a good $100,000 margin. Plus, there is an abundance of more affordably priced options for buyers within a short driving distance. It is no understatement that entire cities are being built nearby. "The markets that are the most overvalued are the ones at greatest risk of a substantial correction," Winzer says. "Naples is at the top of that."

Miami/Fort Lauderdale, Fla.: Rapid, dramatic price increases over the past two years -- and an extraordinary amount of new products being built in the condo market -- is the reason many real estate market analysts think this market just can't sustain much more in terms of price increases. The market probably won't decline, they say, because the region remains attractive to South American and European buyers, but there just isn't sufficient demand to absorb the entire available inventory. Plus, according to NAR research, affordability is an issue in the market, calling the home price-to-income ratio "unfavorable."

Edison and Newark, N.J.: As far as the real estate analysts are concerned, these two cities have pretty big targets on them for a decline in appreciation. John Burns Real Estate Consulting ranks Edison seventh -- ahead of Los Angeles, Miami and Washington, D.C. -- as a market facing a potential housing bubble. It gives Newark an F on its local market grading scale, attributable largely to the loss of several thousand jobs and the highest housing-cost-to-income percentage in the state's metro markets. Fortune predicts a very modest 1.2% gain in housing appreciation this year for Edison that would be wiped out in 2007 by a loss of 2.9%. The situation is similar in Newark, where Fortune suggests a 1.5% increase this year will be canceled out by a 1.8% loss the following year.

Nassau/Suffolk, N.Y.: Otherwise known as Long Island, this market is No. 2 in the country on real estate consultant John Burns' list of locations facing a potential housing bubble. (Modesto, Calif., has the top spot.) Similarly, Fortune predicts a loss of about 6% in housing values over the next two years.

[Kimberland30]

the thing i don't get about this house is that it is 3 bedrooms. that makes absolutely no sense to me especially considering that house looks gigantic. if you are going to buy a house with that much square footage and spend so much money it better have more than 3 bedrooms, imo.

ITA somewhat. I would rather have more "living space" rather than more bedrooms, but I would have figured that a house that big would have at least 4 bedrooms. Huh, maybe the room over the garage isn't finished or something and that could be a 4th bedroom.

It's amazing to see the vast differences in real estate prices. AP showed homes in Texas that are MUCH bigger than ours that are cheaper than what we just paid. But then looking at sale prices in NY and CA, I don't feel bad for paying what we did for our 3 bedroom ranch.

I've also been reading the stories about the high foreclosure rate. I saw that coming as soon as the interest rates were at rock bottom. Some who couldn't afford houses were suddenly snatching up "interest only" loans and when they expired (normally in 3-5 years) it's no wonder that the foreclosure rate has gone up. People are faced with mortgage payments they cannot handle, sometimes twice what they were paying. The selling value in our area has gone down from what I've seen. Homes similar to those that were going for a nice chunk of change a year ago are sitting empty, or on the market for months. That would have been unheard of. But I'm glad the market has tapered off since we are in the process of closing on our house this week and it's definately saved us some money.

[Rosebud]

This is making me laugh (well, cry and then laugh) today. Look at this broken down place for sale here in L.A. $520,000 for this beauty!

http://photos.themls.com/images/06-014793/06-014793.jpg

I was trying to see if I could find ANY single family homes under $600. Well-- here you go!

[MLA]

This is making me laugh (well, cry and then laugh) today. Look at this broken down place for sale here in L.A. $520,000 for this beauty!

http://photos.themls.com/images/06-014793/06-014793.jpg

I was trying to see if I could find ANY single family homes under $600. Well-- here you go!


Come to North Carolina! It's unbelievable to me what homes cost in LA. That's one of the BIG reasons we left.

[Rosebud]

Come to North Carolina! It's unbelievable to me what homes cost in LA. That's one of the BIG reasons we left.

We're thinking about leaving. We've been considering Portland and Seattle. I just hate to leave my family... so it's hard. :(

[MLA]

We're thinking about leaving. We've been considering Portland and Seattle. I just hate to leave my family... so it's hard. :(

Yeah, I understand that. My family's a bit scattered, so it wasn't so hard for us. And now my parents are moving to NC because they like it so much. I'm slowly getting the whole west coast to move out here. ;)

[Chelsea524]

We have the extream, $17Million 7beds 15 bath
http://photo.wfrmls.com/280x210/584371.jpg
Or my neighborhood $499,000 4bed 3 bath, this one is right around the corner from me and the same size house and lot and is selling for $150,000 more than what we paid less than a year ago
http://photo.wfrmls.com/280x210/601724.jpg
ETA: this one is 4100 sq feet

[trestlegirl]

This is what $1.2 million will get you in my neighborhood...

http://idximages.eneighborhoods.com/107/061011007_0.jpg

...a 4000sf empty lot, on which you can build your dream house not to exceed 2800sf, including the basement and the garage!

Needless to say, I'll be renting for a while longer!!!

[Rosebud]

So.... things are starting to change in Southern CA a little bit. Prices haven't dropped yet (although am I seeing a lot of "price reduced" notices in the MLS and on open house signage) but sales are down and inventory is higher. Some analysts are still trying to claim that prices won't go down, but I don't know how that's possible in these conditions. With a wildly overvalued market like ours, there's got to be some correction.

An article in the Washington Post today:

THE FIVE STAGES OF BUBBLE-OSITY....Here in paradise, the housing boom is over:

Southern California home sales fell to their lowest level in nine years last month as price appreciation continued to decelerate, data released Tuesday showed.

....The figures could rev up the debate over whether the Southland's housing market will be able to navigate a "soft landing" that produces only moderate price declines, or face a brutal correction.

....At the very least, "current trends suggest that the market is heading into a lull," DataQuick analyst Andrew LePage said.

This "soft landing" stuff is all the rage lately, and it reminds of nothing so much as Elisabeth Kübler-Ross's five stages of grief. It goes something like this:

1. We're not in a bubble. Prices are just recovering from years of underappreciation.

2. It's a bubble, but it's a sustainable bubble because the fundamentals of the market have changed in the past decade. People need to recognize this. (Note: this stage is usually recognizable by an explosion in the popularity of increasingly desperate and bizarre financing options.)

3. Yes, growth is slowing, but we think we'll navigate a soft landing. It's absurd to think that housing in [fill in area where you live] will actually lose value.

4. This is a disaster! Somebody better step in and do something! People are losing their life savings!

5. Buyers have learned a permanent lesson this time. Homeowners need to accept the reality that the bubble of the past five years was a one-time fluke and we'll never see it happen again.

The same psychology that keeps prices rising during a bubble also mercilessly drives them down when the bubble is over. After all, who wants to buy a house if it's not going to appreciate? We should expect bumpy weather ahead.

UPDATE: I know that making predictions is stupid, but here's mine anyway: home prices in Southern California will drop 10-20% and bottom out in 2008, after which they'll start to rise again.

[SiValleySteph]

Rosebud, I'm all freaked out by bubble talk these days. :)

I've been reading: http://thehousingbubbleblog.com. I have to say it's convincing.

I'm just hoping prices don't fall more than about 30% from the peak (which was probably a few months back). That will put us at break even for when we bought in 2003, which is more than fine with me. I'm tempted to try and sell and then rent, but that's too much hassle. Plus, it's already gotten harder to sell.

[Tanya]

I must admit being facinated from a distance at all these "bubbles". We just sold in a Houston suburb in June and we had quite a few people ask us if we were nervous since prices were coming down. Uh, well, since prices never went up, not really:rolleyes:. Actually, land costs in nearby suburbs have seen an increase--part of our old land doubled in apppraisal from the county, and our home appraisal put our land up 50% in 2 years.

I never thought I'd be glad to live in an area where appreciation just stays one step ahead of inflation, but it's been nice lately. The main reason that's the case here is due to the overabundance of land and people living so far away from cities. But, since not all of our industry is in the city, that causes the sprawl as well. Heck, we now live in the city and drive to the 'burbs.

Prices in the city and surrounding "yuppie" and eclectic neighborhoods have really seen an increase lately due to revitalization, which is very good for the city since it was quite underpriced. It'll be interesting to see. And that's my real estate overview of Houston:D.

[coquelicot]

Apparently home sales in the Nashville area are still quite hot, bucking the national trend of decline. With the exception of Brentwood/Franklin (read: where a lot of country stars live), the suburbs are generally cheaper than nicer areas within the metro area.

Here's a house in my zip code, one county outside of Nashville:
http://homepics.realtor.com/image10/http/middletennessee/submit/large/014/739660a.jpg
$559,900
4 BR, 4.5 BA
5,753 sq. ft.
1 acre

But head out to Brentwood, here's what you get:
http://homepics.realtor.com/image10/http/middletennessee/submit/large/094/768727a.jpg
$599,900
4 BR, 3.5 BA
3,921 sq. ft.
No info on land area, I think it's in a subdivision

Head over to Green Hills (ritzy area inside Nashville), it gets even worse:
http://homepics.realtor.com/image10/http/middletennessee/listings/large/075/774788.jpg
$600,000
2 BR, 1 BA
1,248 sq. ft.
0.85 acres

The home I grew up in was twice that size, and like 1/5 of that price!

[maplekitty]

In my city of North Vancouver, the cheapest house you can get is:

900 sq ft bungalow, 2 bed, 1 bath
$463,900
http://pictures.mls.ca/mls/reb89/highres/0/v6065101.jpg

930 sq ft, 2 bed, 1 bath
$519,900
http://pictures.mls.ca/mls/reb89/highres/1/v5960411.jpg


the most expesnive are:

6543 sqft, 4 bed, 4 bath
$2.6 million
http://pictures.mls.ca/mls/reb89/highres/9/v5939892.jpg
http://pictures.mls.ca/mls/reb89/highres/9/v5939893.jpg

3753 sqft, 5 bed, 3 bath
$2.5 million
http://pictures.mls.ca/mls/reb89/highres/5/v6061251.jpg

Your *average* home in N.Van costs in the mid to high 7's and you would get something like this:

2400 sqft, 4 bed, 1 bath
$769,900
http://pictures.mls.ca/mls/reb89/highres/4/v6027141.jpg

eta: I keep saying to DH "I want to move to the south-east of the US, they've got it good down there!!" *wink*