CA: Appreciation Slows as Home Prices Hit New Highs

LA Times ^ | 6/13/05 | Annette Haddad

[misterrob]

The real risk is when you buy in an overheated market and get boned when the market contracts even 5% which is $25K on a $500K house. My neighborhood has just experienced one of those albeit after a 30% year over year gain.

[goldstategop]

No body's selling. I live in a Prop 13 "grandfathered" home. Now if I sold, I could over half a million today for it but it makes no sense taking out a mortgage on a new place that would saddle me with triple the property taxes I pay now. In this overheated real estate market, it should be a seller's dream but my profits would be wiped out by the costs of a new home.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[goldstategop]

LOL! A mansion used to be priced at a million. You're talking about a middle class single family home, right? My parents bought the current house I live in for a measly $35,000 bucks in the 1970s. Look at what inflation has done to the pricing value of a home. Its gotten way out of hand. Its just cheaper to rent by the month in California than it is to buy an average home almost no one can afford when you think about the property taxes. DUH.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[BJungNan]

The bubble is starting to burst?

Not according to the aritcle. The bubble is just not getting bigger as fast.

[BJungNan]

Incredible that small house for that much.

Down here in Palm Springs area, homes sales have not slowed. Three house in our neighborhood were on the market less than 3 weeks. All went for well over what they sold for two years ago.

I understand one of them was bought by a couple that sold their 761 Sq. Ft. in Ventura for $819,000.

[RckyRaCoCo]

No but it does come with a 20 minute drive to the beach or downtown people are just now figuring out.

Your home is in the inland empire and you only have a 20 minute ride to the beach???

Traffic must changed since I lived there....unless you have a lear jet.

[hoppity]

Compton isn't in the Inland Empire. It's in L.A.

[babaloo]

We do not live in a huge house but our master bedroom is bigger than 700 square feet. (Craftsman style house with a full 2d floor in the Midwest.) I would think the property taxes would eat those people alive.

[babaloo]

We do not live in a huge house but our master bedroom is bigger than 700 square feet. (Craftsman style house with a full 2d floor in the Midwest.) I would think the property taxes would eat those people alive.

[Smogger]

I was talking about a house in Compton. No my drive is about 45 minutes to the beach with no traffic, 35-40 minutes from my door to Staples Center.

[.38sw]

Glen Cove is still on the low side price wise for the bay area at large. I've not heard anything near like what you are talking about yet except when sellers get ridiculous. I follow the bay area housing market as a very interested amateur and I'm seeing well priced houses still going in one week and often in days. I'm still hoping for a very easy slowdown and then sideways will be great.

I had overhead this from someone I've known for years who's lived in Glen Cove for around 10 years. I haven't noticed the homes sales in my neighborhood, which is a little more upscale than Glen Cove. Homes here have been selling in days, with multiples bids. I'll have to snoop around and see what's happening. I haven't really paid attention, since we have no need nor no plans to leave.