Comments on: California’s Long Term Real Estate Issues http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/ Your Home Is Our Business Fri, 03 Feb 2012 10:35:45 +0000 hourly 1 By: Doug Willis http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3652 Doug Willis Wed, 14 Jan 2009 23:42:06 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3652 Ed, You are correct, I am a Realtor. What do you do Ed? Your implied response is correct, things are looking up here in the Golden state. Ed,

You are correct, I am a Realtor. What do you do Ed?

Your implied response is correct, things are looking up here in the Golden state.

]]> By: Ed http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3641 Ed Wed, 14 Jan 2009 17:53:18 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3641 Wow Doug, If California destroys itself as you predict interesting that real estate values will continue to rise by 3-4% per year. You are a genius! But then again you are a realtor, I shouldn't be so shocked! I hope you have a lot of savings or I'll soon be serving you soup. Wow Doug,

If California destroys itself as you predict interesting that real estate values will continue to rise by 3-4% per year. You are a genius! But then again you are a realtor, I shouldn’t be so shocked! I hope you have a lot of savings or I’ll soon be serving you soup.

]]> By: Ned Carey http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3076 Ned Carey Thu, 04 Dec 2008 06:23:21 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3076 You wrote: >home prices tend to increase on average at an inflation adjusted rate of 2.5% to 3% per year That's not bad when you consider, tax deductions for interest and the effects of leverage. You actually get a pretty good return at those numbers. Add to that the fact the you are building equity instead paying the landlord, you are still doing GREAT with even those low appreciation rates. You wrote:
>home prices tend to increase on average at an inflation adjusted rate of 2.5% to 3% per year

That’s not bad when you consider, tax deductions for interest and the effects of leverage. You actually get a pretty good return at those numbers. Add to that the fact the you are building equity instead paying the landlord, you are still doing GREAT with even those low appreciation rates.

]]> By: SA Realtor http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3072 SA Realtor Thu, 04 Dec 2008 05:26:34 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3072 I grew up in California and I definitely understand your concerns. I have seen them first hand. Unfortunately I left California for many reasons because many of the problems you described cannot be solved individually and rather than fight the wave, I decided to leave. Hopefully there can be some real change in California, unfortunately it will take something big to make this change happen. Sincerely, Jaime Sandoval http://www.sanantoniotxrealestateforsale.com/ I grew up in California and I definitely understand your concerns. I have seen them first hand. Unfortunately I left California for many reasons because many of the problems you described cannot be solved individually and rather than fight the wave, I decided to leave. Hopefully there can be some real change in California, unfortunately it will take something big to make this change happen.
Sincerely,
Jaime Sandoval
http://www.sanantoniotxrealestateforsale.com/

]]> By: Doug Willis http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3060 Doug Willis Wed, 03 Dec 2008 17:54:45 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3060 Tim, As always, thank you for your comments and opinions. I would disagree with your assessment of Jeremy's article as I think you have to take it in context. A 30 year fixed rate loan was available at 5.5% yesterday, there are less homebuyers in the market today and especially this time of year. If you are buying you have quite a bit of negotiating power. Is now a good time to buy? If you believe the NAR and many local agents, its always a good time to buy. I get ask that question often. I instruct people that buying a home is only a decision you can make. There are many factors to consider of which interest rates and declining home values are only a couple. You need to consider your long term needs and how long do you plan to stay in the house. Yes, home prices can fall in the short term, but most data seems to suggest that a home will be worth more money in 5 to 10 years. We are living in unprecedented times. Some people see nothing but gloom and doom while others see an amazing opportunity. Tim,

As always, thank you for your comments and opinions. I would disagree with your assessment of Jeremy’s article as I think you have to take it in context. A 30 year fixed rate loan was available at 5.5% yesterday, there are less homebuyers in the market today and especially this time of year. If you are buying you have quite a bit of negotiating power.

Is now a good time to buy? If you believe the NAR and many local agents, its always a good time to buy. I get ask that question often. I instruct people that buying a home is only a decision you can make. There are many factors to consider of which interest rates and declining home values are only a couple. You need to consider your long term needs and how long do you plan to stay in the house. Yes, home prices can fall in the short term, but most data seems to suggest that a home will be worth more money in 5 to 10 years.

We are living in unprecedented times. Some people see nothing but gloom and doom while others see an amazing opportunity.

]]> By: Tim K. http://up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/comment-page-1/#comment-3058 Tim K. Wed, 03 Dec 2008 15:11:40 +0000 http://www.up2daterealestate.com/2008/12/02/californias-long-term-real-estate-issues/#comment-3058 Thank you Doug, for a refreshingly candid take on the state of California's economy with respect to housing. It's this kind of perspective that reflects positively on your business, as opposed to what Jeremy posted two posts below, which was basically a "it's a great time to buy" puff piece - that kind of thing has to be watched out for, because it hurts *your* credibility by leaving it up there. That being said, I do believe that California's budget problems, while significant, are less important to well managed cities like Pasadena in terms of housing prices. In hard times, cities with extremely rich enclaves manage to keep services running at a minimum such that they do not have problems rebounding when times get better (and I do believe they will get better!). Cities that don't have this traction don't fare so well (mostly newer cities in suburbs). Thank you Doug, for a refreshingly candid take on the state of California’s economy with respect to housing. It’s this kind of perspective that reflects positively on your business, as opposed to what Jeremy posted two posts below, which was basically a “it’s a great time to buy” puff piece – that kind of thing has to be watched out for, because it hurts *your* credibility by leaving it up there.

That being said, I do believe that California’s budget problems, while significant, are less important to well managed cities like Pasadena in terms of housing prices. In hard times, cities with extremely rich enclaves manage to keep services running at a minimum such that they do not have problems rebounding when times get better (and I do believe they will get better!). Cities that don’t have this traction don’t fare so well (mostly newer cities in suburbs).

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