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Is it me, or are home prices high

Bpracing1127

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So is it me not willing to spend 500k for a 70 year old home in anaheim or fullerton or buena park that is run down and needs major work. I have been looking for a long time and I do not see the value in a home in mid oc for 500-700k even in south oc like mission viejo a home that is ok is going for 750k and this is absurd. Townhomes and condos in nice neighborhoods in south oc are pushing 400-600k. So is it me or is the house pricing out of wack? My gf and I both make decent money and combined we are over a 100k a year and we cant even touch a decent home right now. We want to buy, but I dont see the value in spending half a million on a house that less than 7 years ago was 300k

This is frustrating for a first time home buyer
 

pkrrvr619

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So is it me not willing to spend 500k for a 70 year old home in anaheim or fullerton or buena park that is run down and needs major work. I have been looking for a long time and I do not see the value in a home in mid oc for 500-700k even in south oc like mission viejo a home that is ok is going for 750k and this is absurd. Townhomes and condos in nice neighborhoods in south oc are pushing 400-600k. So is it me or is the house pricing out of wack? My gf and I both make decent money and combined we are over a 100k a year and we cant even touch a decent home right now. We want to buy, but I dont see the value in spending half a million on a house that less than 7 years ago was 300k

This is frustrating for a first time home buyer

That's socal for you. If possible, come down to San Diego. There are better deals to be had in some parts of the county....
 

NicPaus

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My Sister is in escrow on the cheapest 3 bed 2 bath in the south bay. I still think it is to much $399,500. House is thrashed and 90 years old. All the other houses in area are $550k on avg for 3 bed 2 bath. This one the owners did not even bother to clean up and listed it as a 2 bed 1 bath thinking the master bedroom and bathroom were un-permitted. Permits were pulled and appraisal will show it.


I would wait if you can, Sister is in a position where she has to buy now.
 

grumpy88

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I agree . I live in a not very nice neighborhood and my house was built in 57 . The homes are flying off the shelf at a average of 600 k . There 1300 square feet too !! It's Bull shit . I guess to put it in perspective a new 1/2 ton truck is 45 k so who knows . I agree with you though
 

Bpracing1127

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I guess I cant complain too much. We live in condo that my gf bought back in 09 for cheap. We want to keep it for a rental property but dont know if I can if I have to spend 600k for a house. We would have to sell the condo to come up with 120k for a down payment if that was the case.
 

Cole Trickle

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Supply and demand....it's not going to change and comparing today's prices to a recession price are just going to make you mad.

The market is never getting to 09 prices in OC again. Even if it dumps those days are gone.

Sell the condo and buy your last house that you will ever live in while raising a family and pay it off ASAP. You are a long ways financially from needing to worry about rental income.
 

Andy01

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So is it me not willing to spend 500k for a 70 year old home in anaheim or fullerton or buena park that is run down and needs major work. I have been looking for a long time and I do not see the value in a home in mid oc for 500-700k even in south oc like mission viejo a home that is ok is going for 750k and this is absurd. Townhomes and condos in nice neighborhoods in south oc are pushing 400-600k. So is it me or is the house pricing out of wack? My gf and I both make decent money and combined we are over a 100k a year and we cant even touch a decent home right now. We want to buy, but I dont see the value in spending half a million on a house that less than 7 years ago was 300k

This is frustrating for a first time home buyer

My wife and myself are looking at moving. We have been looking at Huntington Beach for the last 7-8 months. We will sell our current house and buy there. I am just really having a hard time spending $700,000 on a pile of shit to work on for the next 5 years. I just can't believe what the pricing is in the OC and truly not much better then other places, as for crime and such. Some schools are better, some are the same. I share your frustration.
 

Bpracing1127

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Cole. I hate to sell the condo when we only owe 80k or so into it. We have serious equity in it but again hate to borrow on it when we owe so little. Dilemas
 

Cole Trickle

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Cole. I hate to sell the condo when we only owe 80k or so into it. We have serious equity in it but again hate to borrow on it when we owe so little. Dilemas

It's all monopoly $$$

You can obviously rent it at a positive but refinancing it to pull cash so you can afford the next house imho is a mistake. Now the condo isn't cash positive and if the economy tanks and goes into the crapper you are sitting on a condo that at best is break even/headache and still a 600K mortgage on the primary house.

Buy a nice 600K project house in a good area with good schools where you can raise a family. Put 200K down and with current rates the new 400k mortgage should be affordable over a 30 year term and fix it up as you go.

I understand rentals and everyone wanting to get property rich....trouble is you just aren't there yet and the income/savings will be an issue if you ever run into a "bump in life". believe me these things happen it could be work,family,baby related,loss of a tenant,etc....

Don't you need to get married first before you worry about this stuff...lol

Travel,have fun and enjoy life before you get locked into a big mortgage and MAB.
:cool:D
 

ParkerMagic

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Short Answer - YES.

Like CT Mentioned, Southern California will always have high demand. Eventually it has to find a point in which it becomes unsustainable...Some would argue that we are there now.

I guess I cant complain too much. We live in condo that my gf bought back in 09 for cheap. We want to keep it for a rental property but dont know if I can if I have to spend 600k for a house. We would have to sell the condo to come up with 120k for a down payment if that was the case.

If you can swing the purchase while keeping the condo I would do it. The rental market is even more insane than the resale market...People are paying $2500/mo for a 1-2 bedroom in some of these newer communities. I listed my condo for lease last summer and had 50 people show up to the 1 hour open house...It was madness. People were bribing me to take their application, offering to pay more, etc.
 

Cole Trickle

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My wife and myself are looking at moving. We have been looking at Huntington Beach for the last 7-8 months. We will sell our current house and buy there. I am just really having a hard time spending $700,000 on a pile of shit to work on for the next 5 years. I just can't believe what the pricing is in the OC and truly not much better then other places, as for crime and such. Some schools are better, some are the same. I share your frustration.

700K is an absolute shit hole in HB right now...lol

My BIL just sold a decent older home 3/2 with a 2 car garage in a so/so area last year for nearly 800K

Anything worth talking about in HB with 4/2 3 car garage and a ok lot is a million...crazy
 

mbrown2

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We bought 6 yrs ago when prices were down in Downtown Huntington Beach..(Bank Owned Foreclosure)....we bought the place 700K under the 06 purchase price, and 400K less than the existing bank note owed..

The price on similar homes have gone back to 85% of what the 06 purchase high was...

I think prices have leveled off in the last 6 months....Most places that were priced 200K over market ie: 1.4M, 1.6M have come back to 1.2 and 1.4 accordingly and are still sitting longer than normal... Our neighbors house could not move at 1.4M, but places at 1.2M and under (similar) seem to move faster...go above 1.5M and they seem to stay on market longer...


Price per sq ft in any of the close to beach areas is crazy...but people are paying for it...

Equity is nice but only if you are moving somewhere else cheaper or selling and hedging your bets for a dip. Personally I love the house and neighborhood and don't want to leave so why gamble.
 

BHC Vic

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As a first time buyer we bought what we could afford. Would have loved Phillips ranch or diamond but like oc you are spending 500k+ we ended up buying in corona. We got very lucky and made some money so we took what we made and put it down on a 400k home in chino and the big down made the payment the same as my 3% down on my 250k house. So my advice would be to look else where. It sucks but it's California
 

BHC Vic

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I guess I cant complain too much. We live in condo that my gf bought back in 09 for cheap. We want to keep it for a rental property but dont know if I can if I have to spend 600k for a house. We would have to sell the condo to come up with 120k for a down payment if that was the case.

I would sell it and put it down on he new house. We would have loved to keep corona as a rental but it wasn't possible. Now hat we've been in chino a few years we are saving for a bigger home and planning to keep the chino as a rental
 

Tooms22

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As a first time buyer we bought what we could afford. Would have loved Phillips ranch or diamond but like oc you are spending 500k+ we ended up buying in corona. We got very lucky and made some money so we took what we made and put it down on a 400k home in chino and the big down made the payment the same as my 3% down on my 250k house. So my advice would be to look else where. It sucks but it's California

This.

Last Spring/Summer our budget was a nice 25 year old Corona house off Green River or alright condos half the size in Yorba Linda or Anaheim Hills for the same price. The areas are 5 miles apart and comparable homes in YL/AH are 25-40% more (yes, I know the traffic... we're banking on the freeway work). We went with Corona (I worked in OC and she worked in San Bernardino).

Oh... and I just got a job in Temecula so traffic isn't my problem anymore :D
 

Gelcoater

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So is it me not willing to spend 500k for a 70 year old home in anaheim or fullerton or buena park that is run down and needs major work. I have been looking for a long time and I do not see the value in a home in mid oc for 500-700k even in south oc like mission viejo a home that is ok is going for 750k and this is absurd. Townhomes and condos in nice neighborhoods in south oc are pushing 400-600k. So is it me or is the house pricing out of wack? My gf and I both make decent money and combined we are over a 100k a year and we cant even touch a decent home right now. We want to buy, but I dont see the value in spending half a million on a house that less than 7 years ago was 300k

This is frustrating for a first time home buyer

Embrace the IE, my friend. Woodcrest is conveniently located in the 951 so the 909 jokes don't apply to us. :)


http://www.zillow.com/homedetails/15962-Rose-Marie-Ln-Riverside-CA-92504/17881994_zpid/
 

HOOTER SLED-

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I'll stick with my shit hole in the dumpy IE of Corona...:D
 

2Driver

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It will pop again. People buying are maxed out. The adjustables will adjust about the time the next inevitable recession comes around then - bam
 

pronstar

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The market is never getting to 09 prices in OC again. Even if it dumps those days are gone.

I wouldn't be so sure that they'll never reach that point again. Parts of LA have blown right past the pre-recession peaks.
 

Cole Trickle

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It will pop again. People buying are maxed out. The adjustables will adjust about the time the next inevitable recession comes around then - bam

It would be interesting to hear from the mortgage guys and see if people are still doing arms and creative financing.

Rates are so stupid low it seems all the home policies I'm writing are traditional 30 year loans in the 3% range.
 

rivermobster

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Do the math...

Housing is expensive because interest rates are dirt cheap!

When the rates go up, price will come down...

But if you're not paying cash, will it Really be cheaper??

Again, do the math. Your total cost will probably be the same, if you wait for prices to fall.
 

HOOTER SLED-

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House a few doors down just sold for only 50k off what we paid in 05.
 

mbrown2

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I wouldn't be so sure that they'll never reach that point again. Parts of LA have blown right past the pre-recession peaks.

Think he meant the 09 low prices...the high prices were from 06-07...

Secondary market failout in the 2/3rd quarter of 07 and mortgage banks began to faulter...2nd lines of credit unused were starting to get called in by 4th quarter of 07 all the way through 08....market stalled in Aug of 2007 and began a slow fall all the way to 2011 and 2012 in some communities..
 

Bpracing1127

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My whole point was are they worth it. Yea I could sell my condo and buy a 500k house and still make the payment but the house is a shithole and in a not so great part of town. So again is buying a 500k house in santa ana worth it. Especially when its needs 100k in work. To me I dont see the value in those
 

EmpirE231

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I would hang on to the condo and just stay there if you can. keep saving.... when the market turns (it will) have the cash ready for a nice down payment on a discounted price. Then rent out the condo. should only be another 1-2 years :drink
 

Cole Trickle

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My whole point was are they worth it. Yea I could sell my condo and buy a 500k house and still make the payment but the house is a shithole and in a not so great part of town. So again is buying a 500k house in santa ana worth it. Especially when its needs 100k in work. To me I dont see the value in those

Welcome to the i.e. My friend....

Can't have your cake and eat it too...

Some people frown on being out this way. I would 400% rather live in a nice newer corona home and make a 45 minute commute than live in a 60 year old Fullerton shit box with a 35 minute commute.

Before I moved to corona I owned a condo in foothill ranch. It took me about the same amount of time to commute to Tustin and my neighbors were typical south Oc star buck drinking BMW snobs. I love Corona it's a great area and my neighborhood and neighbors are rad. We all enjoy boats,cars,camping,etc.
 

pronstar

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My whole point was are they worth it. Yea I could sell my condo and buy a 500k house and still make the payment but the house is a shithole and in a not so great part of town. So again is buying a 500k house in santa ana worth it. Especially when its needs 100k in work. To me I dont see the value in those

That's why we still rent. Comps for our 800 square foot fixer - albeit with a city lights view - are $650k -$700k+

Out of principle alone this is absurd.
 

LargeOrangeFont

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My whole point was are they worth it. Yea I could sell my condo and buy a 500k house and still make the payment but the house is a shithole and in a not so great part of town. So again is buying a 500k house in santa ana worth it. Especially when its needs 100k in work. To me I dont see the value in those

Living in California is "not worth it". You can go to many other places in the country and make a lower wage, but have more buying power, and the same amount of money. You now see why people live in the IE and commute.

What could you rent the condo for? How much net profit per month is that? If that is some meager sum then just relegate yourself to selling the condo down the line. Either way, you need to start hoarding money if you want to move and not be housepoor. You should be able to put together $120K in 3 years if you live lean.

Or just rent and invest your money instead.

For me my house payment is rent control. I know the payment will never go up.
 

LargeOrangeFont

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Welcome to the i.e. My friend....

Can't have your cake and eat it too...

Some people frown on being out this way. I would 400% rather live in a nice newer corona home and make a 45 minute commute than live in a 60 year old Fullerton shit box with a 35 minute commute.

Before I moved to corona I owned a condo in foothill ranch. It took me about the same amount of time to commute to Tustin and my neighbors were typical south Oc star buck drinking BMW snobs. I love Corona it's a great area and my neighborhood and neighbors are rad. We all enjoy boats,cars,camping,etc.

When faced with the same question I went the other way and bought a smaller house in South OC. Some of our friends have newer homes in the Corona area that are 3X the size, but cost the same. All in it is cheaper living here (for me anyway) due to less utility costs, less tolls, and less time commuting.
 

Done-it-again

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Do the math...

Housing is expensive because interest rates are dirt cheap!

When the rates go up, price will come down...

But if you're not paying cash, will it Really be cheaper??

Again, do the math. Your total cost will probably be the same, if you wait for prices to fall.


^^^^This^^^^^
 

LargeOrangeFont

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It would be interesting to hear from the mortgage guys and see if people are still doing arms and creative financing.

Rates are so stupid low it seems all the home policies I'm writing are traditional 30 year loans in the 3% range.

Yea I don't see many people doing that now with 30 year fixed rates so low.
 

Bobby V

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When faced with the same question I went the other way and bought a smaller house in South OC. Some of our friends have newer homes in the Corona area that are 3X the size, but cost the same. All in it is cheaper living here (for me anyway) due to less utility costs, less tolls, and less time commuting.

I have meet a lot of nice people from Corona and the IE while I was at dinner or having some beers off of the 91 in Yorba Linda where I live. They were doing the same but waiting for the traffic to die down so they could get home. :eek
 

LargeOrangeFont

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I have meet a lot of nice people from Corona and the IE while I was at dinner or having some beers off of the 91 in Yorba Linda where I live. They were doing the same but waiting for the traffic to die down so they could get home. :eek

Yea F that. I did that OC to IE commute 12 years ago for 9 months. The traffic is twice as bad as it was then.

With my current job I probably could live in the Corona area without much issue, but if that changes I could be screwed.

To each their own!
 

Yellowboat

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a house I bought and flipped in 2006 for 130k, just sold for 480k.... its a 875 sqft shot gun house built in the teens yep so worth it....
 

EmpirE231

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New construction in eastvale (norco / jurupa border) 1700sqft 2 story... considered a condo, but no shared walls.... 420K. I don't know about you guys, but that sounds crazy. Talk about peak price levels all over again.
 

Tooms22

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I have meet a lot of nice people from Corona and the IE while I was at dinner or having some beers off of the 91 in Yorba Linda where I live. They were doing the same but waiting for the traffic to die down so they could get home. :eek

Yorba Cantina is my go to spot if there's an accident between YL Blvd and Green River. For us it's still worth it when it's house vs. condo.
 

HOOTER SLED-

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Yea F that. I did that OC to IE commute 12 years ago for 9 months. The traffic is twice as bad as it was then.

With my current job I probably could live in the Corona area without much issue, but if that changes I could be screwed.

To each their own!

The commute has its days........but I still don't think it's unbearable everyday.....or most days for that matter.
 

prosthogod

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As Sam Kinosin used to say,"BUY THEM SUITCASES AND GET THE F64^&^ OUT"
 

HB2Havasu

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I did the IE to OC commute for 20 years. Moved back to OC in 2012. The traffic is 2X worse in the last 5 years. If your buying a house in IE better plan on getting a job out there or riding the metro link everyday. With more & more people moving out there to save money on housing costs the traffic in another 5-7 years will be gridlock. The 91 fwy is already ranked the most congested freeway in America. I can't see them doing another widening project like what's currently under construction. So take that into account when deciding if a 500K house in Fullerton is too much
 

TPC

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We may be in another bubble.
Mediocre condos in Cedar City Utah starting st $300k was an eye opener.
Something isn't right with this market.
 

Danger Dave

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There is so much new home construction on the 15 south of the 91 right now. Indian Truck Trail has a new subdivision going in, there are new subdivisions off of Railroad Canyon going up as well. I don't see that 15/91 interchange ever getting better.
 

BHC Vic

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Funny to read you guys complaining about traffic. I sit in it 2 hours to work 3 hours home. It's what needs to be done and it is what it is. [emoji5]
 

Done-it-again

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Funny to read you guys complaining about traffic. I sit in it 2 hours to work 3 hours home. It's what needs to be done and it is what it is. [emoji5]


That's crazy. I just get pissed driving from the 210 to the 60 for work. I cannot imagine 5hr a day plus a days work.
 

BHC Vic

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It's almost an hour to get from the hotel to the 10. Beverly Hills sucks
 

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Funny to read you guys complaining about traffic. I sit in it 2 hours to work 3 hours home. It's what needs to be done and it is what it is. [emoji5]

That is rough.. I have that some days, but being paid mileage helps.
 
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