2007-01-17 00:15:03 · 9 answers · asked by Gordon L 2 in Business & Finance ➔ Renting & Real Estate
I live in Southern California and I don't think we will be seeing a return to the home prices of the 70's, 80's or 90's. My parents bought a house in Pasadena for $20,000 in the early 70's and that was A LOT for a house at that time. That house recently sold for $750K. I think real estate prices will continue to climb (sometimes slowly, like now and sometime fast like in the recent past). This isn't the first bubble we've gone through and it wont be the last.
We would have to have a major financial incident happen to have really significant price drops in real estate and if that did happen most average people would probably still be unable to purchase because our jobs and finances would be adversely affected as well.
Right now its so hard for people to afford homes here because salaries have not kept up with housing cost and salary increases in general have barely even kept up with inflation. We work harder and longer hours for the same salary we were probably getting a year or more ago.
2007-01-17 05:22:14 · answer #1 · answered by Lucy E 2 · 0⤊ 0⤋
Believe it or not, there are some affordable places left, that arent located 50 miles away from the nearest employment.
Ive found that they are mostly in the midwest though.
The Minneapolis metro area is one Im heavily considering. You can get 1500 square feet for under 200k still. There are also some pretty cheap suburbs surrounding the city which are within 15 miles of downtown Minneapolis or St. Paul. It seems like jobs pay probably above national average and they have something like 6 Fortune 500 companies based there as well.
The Lexington, KY area is another one. You can get 1500 square feet in the mid 100's, and employment prospects are decent, and there is a couple Fortune 500 companies.
The state of Missouri is coming up, and Winsconsin seems ok, and Texas is a hotbed.
Unfortunatley, if you plan on living within 100 miles of a major metro area on either coast, your housing will likely be unaffordable, especially in the Mid Atlantic states, where the wage isnt remotely close to the cost of living.
2007-01-17 00:35:07 · answer #2 · answered by M O 6 · 0⤊ 0⤋
Price of real estate will always go up, but so do salaries. It is possible for real people to afford a nice house, if they save. Start small, with a condo, and build up equity. Prices are actually lower now then they have been in the past.
2007-01-17 01:25:14 · answer #3 · answered by strtat2 5 · 0⤊ 0⤋
Every area is different.
In So. CA, the market hit it's top in the Summer of '05 and is still going down! Many neighborhoods are already down 15%+! Consider that the average sales price in San Diego is appx. $570,000 and you get an average LOSS in value of $85,500 in just about 18Mos!!
The BIG question is will the dropping real estate markets in CA , Vegas, Boston Wash D.C. Fla, N.J., etc. spread to most of the US?
For a real 'insiders' view on this, I would suggest a real eye opener read at:
http://www.brokerforyou.com/brokerforyou
http://www.brokerforyou.com
2007-01-20 06:29:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
that is all relative. costs skyrocketed in Las Vegas, San Diego, and so on. and now they are falling like a rock. You seem at an section like Detroit, the position autos became once made, and they are in a stand-on my own recession even as something else of the country is doing in basic terms high-quality. houses there are presently promoting for decrease than the cost of the forums, bricks, and mortar used to construct the living house. places that are proper, no longer in basic terms cities, yet places interior cities are the places that understand the most value appreciation in accordance with provide and demand. in case you'll locate a robust college district, on the fringe of downtown (the position all the jobs are), overlooking a lake, probability is that is going to value a fortune. Or in case you'll locate a slum with undesirable colleges, force-by technique of shootings, and a 2.5 hour commute to artwork, probability is costs are not any further appreciating and can want to okay be depreciating. each thing interior the middle falls between those 2 extremes, although that is compared to all and diverse is getting priced out of possessing a house. perchance they are getting priced out of neighborhoods as those neighborhoods develop into more effective perfect.
2016-10-15 08:40:41 · answer #5 · answered by Erika 4 · 0⤊ 0⤋
Some places have cost more than 'real' people can afford for decades. That does not mean that 'real' people have not continued to buy in such areas.
You made no mention on where you are and what you consider affordable. In many ways it is relative. Some folks earn more than others. Some places are very affordable still. One survey in the US showed that there are areas where the average person earns 3 times more than is needed to buy the average home. Then there are places that are very expensive in that the average person can not afford to buy.
2007-01-17 00:51:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I don't know what you mean by real people? I know lots of real people who have homes. They stayed in a real school so they could get a real education and then got a real job. Prices will come down a little this summer, be stable for a while, then begin to rise again. Spend your money on getting smarter. Real people can be smart too.
2007-01-17 08:43:43 · answer #7 · answered by sm4125 3 · 0⤊ 0⤋
My Sister and her husband wanted to buy a home. They checked the prices in their so CA city and found there was NO way and not likely to be a way in the future. They looked at homes online in TX. They called me a CA RE Broker and asked me what I thought about just moving to TX where they could buy a home. I did some research and found that it made sense. I called my son, a young adult, who also lived and worked in CA told him what they were thinking. He and I knew he couldn't afford a home in CA either.
Long story short. We flew out to TX. shopped for a week and bought homes.
We all moved to TX. My son bought his home here close to mine just 6 months after we made the move.
My son has a low paying job, but the work is steady. We got him an FHA loan that only required 3% downpayment. They are easy to qualify for and are good for low income, first timers, with credit issues, he was all of those.
His loan is 6.75 30 yr. fixed. his home price was 116,000. It is a very nice 10y yr old brick home in a nice area, in a nice part of town in a nice town. 1560 sq ft. with a nice back yard 2 car garg. etc.
There are so many people flooding into TX from CA that everywhere I do I meet people who did just what we did. We picked up and got out.
Now 7 months later. Every time that we talk or see each other, we all rejoice at moving to TX. FYI it is cold out right now and we don't mind. Not when we all gained so much.
Very best of luck. The expensive places to live aren't the only places to be in this wonderful country of ours.
I paid $129,000, my sister paid $185,000 they got a wonderful fixed rate loan in the 6% range.
http://www.realtor.com/FindHome/HomeListings.asp?locallnk=yes&frm=bymap&mnbed=3&mnbath=1&mnprice=70000&mxprice=125000&js=off&pgnum=1&lnksrc=&fid=so&stype=&mnsqft=&mls=xmls&areaid=5334&poe=realtor&ct=Mckinney&st=TX&sbint=&vtsort=&sorttype=&typ=1&x=25&y=7
Check out the homes in my new home town.
2007-01-17 00:33:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Probally not, it just seems like they keep going up and up..and will never go back down.
2007-01-17 00:18:19 · answer #9 · answered by mag48 3 · 0⤊ 1⤋