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Something 'crazy' Is Happening In The Southern California Housing Market Rate Topic: -----

#1 User is offline   The Masked Tulip 

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Posted 08 April 2012 - 02:46 PM

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

Quote

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
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#2 User is offline   sims 

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Posted 08 April 2012 - 02:48 PM

View PostThe Masked Tulip, on 08 April 2012 - 02:46 PM, said:

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 User is offline   frederico 

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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 User is offline   thecrashingisles 

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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.
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#5 User is offline   Bloo Loo 

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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?

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#6 User is offline   RufflesTheGuineaPig 

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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 User is offline   markyh 

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Posted 08 April 2012 - 04:25 PM

View Postsims, on 08 April 2012 - 02:48 PM, said:

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 User is offline   cybernoid 

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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 User is offline   frederico 

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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 User is offline   EmpiricalBear 

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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 User is offline   The Ayatollah Buggeri 

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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 User is offline   ader 

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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 User is offline   cybernoid 

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Posted 08 April 2012 - 05:13 PM

View Postader, on 08 April 2012 - 05:10 PM, said:

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'.
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