Post #285,366
5/25/07 1:02:29 PM
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I grew up in California.
But I have not understood the housing market there since 1971. In 1971, my dad bought a ranch house on the corner of a very busy street. Traffic was always heavy because McDonnell-Douglas was a block south, as was Long Beach City College. Two blocks north was Lakewood Center Shopping Mall. He bought the house in '71 for $30,500. In 1980 (9 years later) he sold it fo $99,000. I'm told that in 1998 the asking price was $480,000 and it sold for $450,000. I haven't a clue what that house would go for today. Our first house in Ca cost $14,500 in 1963 and sells for well over $250,000 now. I don't get it. I don't see how a house already valued at 10 or 20 times its worth can possibly go up in value. For how long can you sell $20,000 houses for $300,000?
bcnu,
Mikem
It would seem, therefore, that the three human impulses embodied in religion are fear, conceit, and hatred. The purpose of religion, one might say, is to give an air of respectibility to these passions. -- Bertrand Russell
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Post #285,367
5/25/07 1:24:03 PM
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Sales prices are public information in most places.
E.g. you can easily check sales in [link|http://maps.assessor.lacounty.gov/mapping/viewer.asp|Los Angeles County]. It only seems to go back a few years, though. I don't know if Long Beach is listed in there or not.
As to how the price can go up so much, well I think it's due to several factors: 1) Most people spending that much have profits from previous houses (they're not first-time buyers); 2) A rising market makes people accept more risk; 3) Easier lending (you don't have to put 20% down anymore; ARMs; negative amortization; "liar loans"; etc.); 4) Multiple incomes (2 people or more working to pay the mortgage payment, versus 1 in the 1970s and earlier); 5) Jobs attract people and they have to live somewhere reasonably close by; 6) Inflation in general - When houses cost $15k [link|http://www2.census.gov/prod2/popscan/p60-043.pdf|in 1963, the median family income was $6200] (54 page .pdf). Using that same scaling of household income ([link|http://www.census.gov/Press-Release/www/releases/archives/income_wealth/005647.html|$44k in 2004]) to housing price, you end up with $106k for a home price. You can get a decent house for that in the midwest, but not in Long Beach, I'll bet. ;-) So inflation isn't the whole answer...
FWIW.
Cheers,
Scott.
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Post #285,369
5/25/07 1:43:19 PM
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Father Guido teaches the answer
at the [link|http://pratie.blogspot.com/2005/03/guidos-five-minute-university.html|Five Minute University]
Too much of today's music is fashionable crap dressed as artistry.Adrian Belew
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Post #285,370
5/25/07 1:47:45 PM
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muy bien.
:-)
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Post #285,372
5/25/07 2:18:50 PM
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Thanks for the link.
Apparently, judging by the assessed value in 1979, my dad got hosed. It is definitely my old house, though.
bcnu,
Mikem
It would seem, therefore, that the three human impulses embodied in religion are fear, conceit, and hatred. The purpose of religion, one might say, is to give an air of respectibility to these passions. -- Bertrand Russell
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Post #285,368
5/25/07 1:27:15 PM
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It's called "location" . . .
. . like New York City rents.
[link|http://www.aaxnet.com|AAx]
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Post #285,371
5/25/07 2:09:32 PM
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I get that. And above.
But, come on. These homes in the Lakewood/North Long Beach area are stucco homes, built in the 50's or 60's, and are something like 1400 sq ft. WHERE does it makes sense for such an abode to cost > $200,000?
bcnu,
Mikem
It would seem, therefore, that the three human impulses embodied in religion are fear, conceit, and hatred. The purpose of religion, one might say, is to give an air of respectibility to these passions. -- Bertrand Russell
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Post #285,373
5/25/07 2:50:14 PM
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Where? In California, thats where.
Or on Long Island or Monmouth Co NJ.
Too much of today's music is fashionable crap dressed as artistry.Adrian Belew
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Post #285,378
5/25/07 3:19:20 PM
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intercoastal in florida
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep
reach me at [link|mailto:bill.oxley@cox.net|mailto:bill.oxley@cox.net]
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Post #285,393
5/25/07 6:53:42 PM
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It's all about how far out you have to go . . .
. . to get the same thing at a significantly lower price.
Two decades ago thousands of young couples who just had to have those huge houses with high vaulted ceilings, RVs and all the trimmings built out in Palmdale and Lancaster where they could (almost) afford the property and property taxes. That's 60 miles or more commute to where they worked in Los Angeles.
Today with traffic congestion and high gas prices the area would be crumbling into a ghost town if it weren't for the Metrolink line. Service was expanded and improved after the Northridge earthquake and people figured out how to use it. There's still plenty who drive though. 8-1/2 hours for work and lunch, 4 hours of commute, 8 hours of sleep - that leaves 3-1/2 hours a day for breakfast, supper and life.
[link|http://www.aaxnet.com|AAx]
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Post #285,427
5/26/07 10:40:58 AM
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Oh come on... who (living that kind of life) sleeps 8 hours?
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Kip Hawley is still an idiot.
===
Purveyor of Doc Hope's [link|http://DocHope.com|fresh-baked dog biscuits and pet treats].
[link|http://DocHope.com|http://DocHope.com]
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Post #285,430
5/26/07 11:44:54 AM
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That includes tossing and turning time . . .
. . while trying to figure out how you're going to pay your bills.
[link|http://www.aaxnet.com|AAx]
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Post #285,432
5/26/07 1:30:17 PM
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They do that during the commute*
Where do you think road rage came from.
* Just realized that could be read as "thinking about their bills during the commute", or as "tossing and turning during the commute". Either one works.
===
Kip Hawley is still an idiot.
===
Purveyor of Doc Hope's [link|http://DocHope.com|fresh-baked dog biscuits and pet treats].
[link|http://DocHope.com|http://DocHope.com]
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