Jump to content


Photo
- - - - -

Something 'crazy' Is Happening In The Southern California Housing Market


  • Please log in to reply
12 replies to this topic

#1 The Masked Tulip

The Masked Tulip

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 39,179 posts
  • Location:Swansea, West Wales

Posted 08 April 2012 - 02:46 PM

Something 'Crazy' Is Happening In The Southern California Housing Market

Monthly payments on a house are now cheaper than monthly rents on a similar house in most of North San Diego and Southwest Riverside counties, according to an analysis of county-supplied and Realtor data by the North County Times.

"I don't think this has ever happened before," said G.U. Krueger, a principal economist for HousingEcon.com.

"It's a function of the huge housing price collapse which has left a lot of people in the lurch."

Or, as Carlsbad real estate agent Tyson Lund put it: "This is crazy."



Read more: http://www.businessi...4#ixzz1rSbXO9be
The success or failure of your deeds does not add up to the sum of your life. Your spirit cannot be weighed. Judge yourself by the intention of your actions and by the strength you faced the challenges that have stood in your way.

The people closest to you have been trying to tell you that you have made a difference. That you did change things for the better. The Universe is vast and we are so small. There is really only one thing that we can ever truly control - whether we are good or evil.


The political triumph of the American Right has been to advance relentlessly the economic interests of the country's richest people, while emphasising a swath of moral, social and foreign policy issues that motivate and certainly distract middle-class and poor voters.

#2 sims

sims

    HPC Poster

  • Members
  • PipPip
  • 243 posts

Posted 08 April 2012 - 02:48 PM

Something 'Crazy' Is Happening In The Southern California Housing Market




Read more: http://www.businessi...4#ixzz1rSbXO9be

By that measure, does that mean property prices in the UK are cheap? :unsure:

#3 frederico

frederico

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,212 posts

Posted 08 April 2012 - 02:59 PM

there's a lot more to it than just being able to make the payments.
Latest news, 5000 jobs to be created transferred to ASDA, the new high tech, knowledge based economy is powering ahead.

McDonald's says it will create 2,500 new jobs across the UK this year, taking its workforce to 90,000

#4 thecrashingisles

thecrashingisles

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 13,918 posts

Posted 08 April 2012 - 03:14 PM

When they can pay the mortgage by taking in a lodger, then they'll know what crazy is.

#5 Bloo Loo

Bloo Loo

    Ripened on the Diversity Vine

  • Members
  • PipPipPipPipPipPipPip
  • 52,797 posts
  • Location:Essex-the land of Equality
  • About Me:Im Bloo yabba dee yabba die.

Posted 08 April 2012 - 03:15 PM

"I don't think this has ever happened before," said G.U. Krueger, a principal economist for HousingEcon.com. "It's a function of the huge housing price collapse which has left a lot of people in the lurch."
Read more: http://www.businessi...4#ixzz1rSiXVAtu

surely the whole reason behind BTL is that the rent is more than the mortgage?

WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#6 RufflesTheGuineaPig

RufflesTheGuineaPig

    is fluffy

  • New Members
  • PipPipPipPipPipPipPip
  • 8,038 posts
  • Location:Cricklade, UK
  • About Me:I am Ruffles, the destroyer of worlds....

Posted 08 April 2012 - 04:03 PM

I thinks it's comparing if you buy now to if your renting a place someone bought years ago.

Given that houses were being sold in places like Detroit for 10s of dollars, this isn't news.
It's time to pay the piper. There is no magician who will magic away the debt. Someone is going to have to pay it. Bend over and prepare to make payment.

In this glorious nation of ours, if you work hard and keep your head down for 25 years then you too can aspire to own one-eighth of a one bedroom flat in Manchester.


My mum and day always tell me how important it is to save to buy a house. They should know, it took them nearly 6 months to save for theirs. As teenagers, they bought a 3 bed semi.

#7 markyh

markyh

    HPC Regular

  • Members
  • PipPipPip
  • 740 posts

Posted 08 April 2012 - 04:25 PM

By that measure, does that mean property prices in the UK are cheap? :unsure:


Umm, when I bought in 1996 in the SE this was exactly the situation. Was 50 to 100 cheaper p/m to buy a 2 bed house rather than rent and that was with first time buyer mortages @ 7% IR and 1k mortage indemnity payment.

M

#8 cybernoid

cybernoid

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,060 posts

Posted 08 April 2012 - 04:28 PM

"Monthly payments on a house are now cheaper than monthly rents on a similar house"

So the first time ever renting out a house has made financial sense.

Crazy times.

#9 frederico

frederico

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,212 posts

Posted 08 April 2012 - 04:29 PM

aren't they just saying that the BTLers are stuffed having over paid for the house.
Latest news, 5000 jobs to be created transferred to ASDA, the new high tech, knowledge based economy is powering ahead.

McDonald's says it will create 2,500 new jobs across the UK this year, taking its workforce to 90,000

#10 EmpiricalBear

EmpiricalBear

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,453 posts

Posted 08 April 2012 - 04:36 PM

Don't forget that lots of places in the US have rent controls. For that reason rents may not be fair market rents, i.e.: unfairly low.

Er... similar here, exept that rents here are kept high by HB.... so not fair market rents, i.e.: unfairly high.

#11 The Ayatollah Buggeri

The Ayatollah Buggeri

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 7,560 posts
  • Location:Redlands, CA, USA (expat - formerly Yorkshire)

Posted 08 April 2012 - 05:04 PM

Further to this anecdotal, both houses have now been sold and have new OOs in them, both of whom bought in the $140s. So in San Bernadino County at least (50-100 miles north-east of the places mentioned in the OP's article), prices appear to be creeping up a bit, albeit from spectacular lows compared to the 2007 peak.

#12 ader

ader

    HPC Regular

  • Members
  • PipPipPip
  • 403 posts
  • Location:East Yorkshire

Posted 08 April 2012 - 05:10 PM

In the 80s upto mid 90s repayment mortgage payments were cheaper than rents all over the UK.

#13 cybernoid

cybernoid

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,060 posts

Posted 08 April 2012 - 05:13 PM

In the 80s upto mid 90s repayment mortgage payments were cheaper than rents all over the UK.


I think thats normal, now is not. This is why its stupid to get into BTL now, without capital appreciation you're sunk. Doesn't stop many from doing it though.

Im a little confused as to why a reversion to actual sense is now 'crazy'.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users