Investor · the desert !, CA · Member since 2008 · 78 posts · 9 votes
In the "inland empire" CA it appears that the buying depression is over,, I am making an offer on a 3/2 house in my hood and the first day it was listed (yesterday) the front of the house looks like the disneyland parking lot,,, houses are getting mulitiple offers on day one im kinda bumbed i was hoping to pick up a few more rentals this year but it looks like the competition is heavy now
my realtor told me that there are lots of " realestate investor seminar people jumping in and bidding things up way too much,
on a more positive note she said there is another huge wave of inventory comming so prices should stay dow for a while
how is it out there ? are "investors " jumping in like mad in your areas?? granted here things have fallen from $190 a sq ft at the peak to $60 a sq ft now so i think we have swung down too far.In 1999 prices were at $55 a square ft here so we are back 10 years here
Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
16y
Originally posted by Vikram C.:
Greg, do you know what construction costs are like in your area for these homes that are selling for $75K? That is, how much per square foot would it cost to build one?
Riverside County:
1. Developer Fees $17,000 per door.
2. School Fees $6 per foot.
3. Permit/Inspection/Plan Check Fees $4,000
4. Water Meter $5,000 (if you are lucky)
5. Gas - minimum $1,000
6. Electric $500 - $5,000
7. Septic or Lateral and Connect Fee - $5,000 either way
So to build a 1,200 sq ft home you are starting at $39,700 minimum per lot.
If you build at under $29 sq ft and the land is free you can pretty much break even...... no wonder building has stopped and unemployment in the County is 16%+
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
16y
Originally posted by Summerhomes:
You obviously don't know who the "distinguished gentlemen" I pointed out are. Those distinguished gentlemen (with the exception of David Kittle, I don't know what his stance was in early 2000's) were screaming as loud as they could that the market was heading for a severe crash. Please read Bruce Norris' "California Crash" that he published in January 2006. Dr. Thornberg published a number of article in 2005-2007 predicting one of the worst real estate crashed in history. Rick Sharga predicted that foreclosures would increase every month for the next 5 years in 2005 setting record breaking total foreclosure statistics. (He was right.)
So I refer to those men as individuals that have a track record of understanding the global and local economic picture and who have for the last 20 years provided accurate and valuable real estate economic predictions to keep little guys like me out of trouble. Which I why I didn't mention any economic predictions from C.A.R or N.A.R! They were the one's saying we would have a soft landing.
The problem is real simple to understand. It is all about the multiples of M1 to M2/M3
They should be 10:1 :cool:
They are like 35:1 :cry:
that is why we are a boom bust economy. We will swing from sustainable to unsustainable. UNTIL we fix the problem. The money supply really got wild in 1978
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y
Actually, I see the problem in our real GDP. We've been trading money for the most part of the economy and for the most part of the two last decades. We barely make things that the rest of the world wnats anymore. After the WWII, we were the biggest manufacturer and supplier of goods in the world. We lost that edge and yet we refuse to give up on our lifestyle. It simply doesn't add up. Something will have to give and I'm afraid it will be catastrophic. We may be able to offset it a little by the devaluation of the dollar if we have enough quality products to offer.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y
Jeff,
I don't want it to become a political discussion, but I would blame our collective lifestyle rather than the unions (Which is only small part of it) I would argue that adjusted to inflation, the salary of an average worker (Unionized or not) did not go up that much. The cost of living and maintain our lifestyle did go up and that is why we cannot compete. We need to pay much more for housing, insurance, health, and pension. in many other countries where the products we consume are made, the people don't have to pay that much if at all...
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
16y
All of that boils down to the Multiples of money. Check out the chart at this link. The DOW mirrors it. since the 1970's we are the result of fractionalized banking gone astray