Dom418

Damn.. take it easy.

All I'm saying is that the article clearly says that the MEDIAN home price has risen by 20%, in no way, shape, or form does it say that property values have increased by 20% (which they very well could have and I'm not saying they did or didn't).

My point was that, as newer, bigger houses are built, it increases the MEDIAN value (which would be the average of all the houses in the area). Obviously the average will go up as you add more valuable homes into it.

Also, I never said it was about new or used houses, my point was that the median rises as newer, larger homes are built.

I'm not claiming to know the market out there at all.

CrockPot

to say that it is the newer and more expensive houses that are the major factor as to why MEDIAN home price is rising means that you aren't seeing the whole picture.

let me add to what i said previously about seller's inflating their asking price to 10-15% above market value. the inflation tends to be associated with lower priced houses or entry-level property, as this is what the majority of SoCal residents can afford. it is actually the higher priced and newer residences that have more flexibility for the buyer who happens to be in that market. the demand for expensive houses is far far less than the demand for lower (if 300K for a 1000sqft house can be called low) priced homes. it is in fact, the increase of entry-level housing costs that has caused an enormous rise in MEDIAN pricing.

CrockPot

from the article:
"A closer look at DataQuick's January figures shows the median price for new homes rising 22.2% to $595,000, with the median for existing homes climbing 30.7% to $456,000."

now, if the median price for existing homes are increasing faster than the price of new homes (whether they are larger or equal sized as the ones being replaced), what does that say about your theory?

the trend has been to create as much living units based on a given amount of space. new home developers are generally taking a plot of land and building multiple unit housing condos/townhomes/PUDs, maximizing...rather than building larger dwelling areas.

phil2

:whocares:

This is in no way a realistic representation of the actual real estate market for the country as a whole so therefore its not applicable to this post! :shakehd:

CrockPot

are you for real...this thread has already gone off tangent, and who the hell ever said i was referring to the whole country? read my first post...it clearly states SoCal, not the entire nation.

but, it IS a REALISTIC REPRESENTATION of the SoCal housing market as well as some others in this nation. for you to bash dfreder or anyone else who says situations like this AREN'T "overinflated and unrealistic!" is an ignorant assumption.

dets

I read that this thread is about where to put 20,000.00 dollars.



i would invest in either a progressive market such as bio medical technology, or invest in a conservative mutual fund. For 20,000.00 dollars for investing, i'd strongly consider using that to start speculating on depressed real estate. I don't know where you live, but buying buildings as fix me ups and putting equity into the home is a great idea to build real assest value. For example, buying a house through HUD would require buying a duplex or building at 5% of the total cost down. You are then required to pay closing costs, court fee's(there are usually hearings involved with such depressed property such as conditions of transfer) and other such immediate expenses.

just a thought. i'd would heavily recommend picking a mutual fund though. they are starting to look very aggressive.

good luck.

dfreder371

Scrib: (I've been out of town). $500,000? Not likely, but possible, YES! My folks live in a house they bought for $88,000 twenty years ago, and a house in their neighborhood recently sold for almost $600,000.

But here is what I really think. I'm a baby boomer, age 52, generation X. You're one behind me, generation Y. From what I've read, if all things remain relatively the same, as my generation dies off, housing prices will decline due to the law of supply and demand.

Gen X is bigger, considerably, than Gen Y. Therefore, oversupply will drive housing prices down, and new housing starts will drop considerably. It's just theory.

As an interesting aside, if the above happens, and as the property value of your home declines, do you think your property taxes will decline also? I doubt that!

Silver™

Where do you read this stuff???

By the end of this decade, the population will be 300K, by the middle of the decade it will be around 400K. Immigration is the key...

Scrib

And a dollar twenty years ago is equal to what in today's dollars? Inflation???


All, I'm saying is I think you're slightly off base thinking that your property is going to continue to increase in value at the inflated numbers you stated.

Let's see what happens when rates come back up. I bet that $600,000 house will have a hard time selling for anything close to that.

What people PAY and what it's WORTH are two different things.

phil2

as they say there is an ass for every seat !

dets

inflation is one thing. But speculating numbers that high on real estate valuation is being overly optomistic and not realistic at alll.

dets

:woo: i own page 3