All Forum Posts by: Account Closed

I'd wager you could find the appropriate meaning seeing how badly you want this to stay on topic...

I'd wager you could find the appropriate meaning seeing how badly you want this to stay on topic...

 A few times why? Almost got caught in bad traffic :-)

@Account Closed just out of curiosity have you been to CA?

Becasue we aren't talking about the state, we're talking LA or LA metro

The Southern California Region reversed a three-month decline and posted a 1.3 percent improvement in pending sales from the previous year, aided largely by healthy gains in Orange and Riverside counties, which marked increases of 12.5 percent and 8.4 percent, respectively. Pending sales in San Diego, San Bernardino, and Los Angeles counties declined from last May, but those counties had drops of less than 5 percent.

http://www.prnewswire.com/news-releases/california-pending-home-sales-stumble-for-fifth-straight-month-in-may-car-reports-300480998.html

Totally agree, given the numbers, the foreign purchases have gotten to a level where you could consider them a hindrance to the local population's home ownership ability and it is a definite possibility that government intervenes. However, until something actually happens, this is speculation and without gvt intervention, demand is demand and prices should stay strong. So it seems this entire thing hinges on whether the gvt does something or not, which is something that investors have to speculate on when making purchase decisions.

Here let me save you the click:
"Some parents are very very very well off and are capable of making a gift of a house to a kid," says Richard Green, director of the USC Lusk Center for Real Estate.

Green adds that his research shows another group that makes up cash buyers: people in the tech industry.

"People who work at Google, people who work at Facebook, people who work at LinkedIn," he says.

Some of these people aren't just paid well, but they're also paid with stock options.

When their hot tech company goes public, that means they can cash out. Big time.

"In California, people sell stock to buy houses in a big way," says Green, noting that it's a phenomenon unique to just our state and New York.

http://www.scpr.org/programs/take-two/2017/07/12/57900/socal-so-curious-who-are-the-cash-buyers-in-socal/

 I agree, i was going to mention rich parents as well. Its sort of the only way for a situation like this to exist, rich people buying, since the regular population cant afford to buy, on the average. As well as people stretching themselves too thin, but i would argue this isnt at levels to justify calling it a bubble. 

Sure foreign money was really coming in 4/5 years ago but in no way has it gone a it still exists in a large way. I have several chinese acquaintances in the LA area and helping the chinese buy is still going strong.

I think the people that are telling you it's incorrect don't know how to better articulate what they see. Like I said (and have shown various sources) wages CAN support these "crazy" house prices. No, not forever, yes it's a bubble, CA is a boom and bust market. What I'm trying to tell you is that we don't have the supply in any major metro to support the median wage earner with affordable housing. 

What we do have is concentrated sectors of wealth and people who are more than willing to pay a huge premium to live as close to work as they can afford. Look at the silicon valley, it's BORING. It's not fun, the houses aren't great, if it was anywhere else in the world it'd be unlikely to gain a second look. But the traffic sucks so bad that people are willing to plunk down SERIOUS cash via rent or buying a house to cut down that commute.  LA had bad traffic before tech overflowed, they don't have public transit like most other major metros. 

SF I think has reached damn near the top of it's bubble and has taken people (even the wealthy) to their limits for reaching the max COL/housing. I think that people are going to see LA as a "cheaper" alternative to SF/SV.