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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (4998)	7/25/2002 2:31:07 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

The housing price rise in California is across the board. It's inflation pure and simple. California represents something like 15% of US GDP. If the real estate bubble bursts, it will have profound effect everywhere. The bubble may not burst, but it will certainly deflate, hopefully slowly. If the stock market continues down, other financial factors will come into play and send California housing prices into collapse.

To: GraceZ who wrote (4998)	7/25/2002 2:47:01 PM
From: Ahda	Respond to of 24758

In the county where I live, what is causing the median selling price of houses to rise so fast is the fact that the new housing is 5000-8000 square feet with luxury interiors while the older existing housing is 20-30 year old 1200-3000 sq feet of ugly. So you have a lot of people who are staying put in their old houses because they can't buy anything better with their current incomes and lots of new wealthier people moving into the few new houses that severe restrictions on growth will allow the developers to build. So the only housing that is selling is the higher end. It skews the statistic. Well that can be taken as two ways incomes are not increasing for the moderate and they are for the upper. The total upkeep cost for a 5000sq ft up is much higher. If this is the case we really are in trouble. I was looking at North Dakota property as ND is not a high wage state and it appears mid price is around $134. In LA right now I think income level probably has to be darn close to that house price before one can purchasing a house.