joseph.hutcheon@[EMAIL PROTECTED]
wrote:
> Michael wrote:
> > kd***ton@[EMAIL PROTECTED]
wrote:
> > > On Tue, 17 Oct 2006 04:32:25 GMT, kd***ton@[EMAIL PROTECTED]
wrote:
> > >
> > > >On 14 Oct 2006 22:12:53 -0700, "Michael"
<spoonermichael@[EMAIL PROTECTED]
>
> > > >wrote:
> > > >
> > > >>Did someone call my name?
> > > >>
> > > >>
> > > >>Just a bit ago?
> > > >>
> > > >>Michael
> > > >
> > > >
> > >
> > > Oh, I should add, the reason why I was looking in the CA MLS was out
> > > of curiosity; I was aghast at how prices have gone up since we left.
> > > Eegads! The house my mom sold to come here is in the $600,000 range
> > > now. She sold it for $250,000 in '99. Our little one bedroom condo
in
> > > Fullerton that we bought for $78,000 is now $300,000. I don't look
at
> > > it as a good thing- how can it be? How can young couples start out
> > > paying $3,000-$6,000 a month? We could turn into a nation of
> > > millionaires, none the better for it with no place to go. Scary-
well,
> > > then I started searching farther away from LA and I saw Campo.
> > >
> > > KS
> >
> > Yup, CA real estate is nuts indeed I too feel it's a pretty lousy
deal
> > for young people starting out who are doomed to renting because of the
> > high cost of owning property. Of course back country property is
> > generally cheaper, but still no bargain and the cost of fuel being
what
> > it is that's a tough go as well.
>
> The UK press has run several re****ts about how the US real estate
> business is cra****ng and burning, house prices plummeting etc.
> Presumably this is just newspaper hype?
I think it's more correct to say that at least in SoCal the market has
flattened out and and making a gentle downward correction. Since many
continue to want to come to where the sun ****nes most of the time, I
don't look for the market to really make any hard landings. In fact, a
slight drop in mortgage interest rates caused housing starts to
increase modestly last month.
>
> Such a house price crash in the UK would certainly the only way my
> children would be able to afford to buy property!
Right, that's a sad truth. Although my son has a very good job, the
best he can manage ATM is a rather large mobile home/carvan. Of course
a really sharp crash would have negative consequences for the economy
since real estate is such a major market component. How about all
those folks left holding the bag who bought high and financed with
negative amortization loans who'll just walk away and default on these
contracts? Crash of 29 revisited? Some of the real doomsayers paint a
similarly dire picture, but I don't feel that's really in the cards,
IMHO.
Michael
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