yahoo finance: LA median home price predicted to hit 270k median. (Los Angeles: for sale, foreclosed)

[EscapeCalifornia]

Originally Posted by alexanderaf

I make $80k a year, and I've been saving for a downpayment on a house for quite some time. However, I never stand a chance of actually 'owning' a house in LA. I could 'live' in a house if I pulled out a ridiculous mortgage, but in all reality the bank owns it more than I do. If one day it is like this all across America, I would forget the dream of owning a house. What's a $50k downpayment when your average house starts at $500,000! Sorry, I can't live with a $3k/month payment for the next 30 years.

Dare I say it, but...if indeed housing prices are in the decline, is this a bad thing?

That $50k is a 20% down payment on a decent house in most parts of the country outside the California coast and the Northeast. Take a 30 year loan, pay it off in 15, enjoy life. Or stay in California, pay twice as much, and be a slave to your mortgage like you said.

[stickybit]

Originally Posted by alexanderaf

I make $80k a year, and I've been saving for a downpayment on a house for quite some time. However, I never stand a chance of actually 'owning' a house in LA. I could 'live' in a house if I pulled out a ridiculous mortgage, but in all reality the bank owns it more than I do. If one day it is like this all across America, I would forget the dream of owning a house. What's a $50k downpayment when your average house starts at $500,000! Sorry, I can't live with a $3k/month payment for the next 30 years.

Dare I say it, but...if indeed housing prices are in the decline, is this a bad thing?

Do dare! Since 1999, home prices in major metropolitan areas increased by about 185% at their peak, while median income rose only 1%. House prices CANNOT remain inflated, and must return to prices in line with what should have been modest gains over the last 9 years. If they don't, it will just be another step towards turning working people into serfs.

[AnUnidentifiedMale]

Originally Posted by EscapeCalifornia

That $50k is a 20% down payment on a decent house in most parts of the country outside the California coast and the Northeast. Take a 30 year loan, pay it off in 15, enjoy life. Or stay in California, pay twice as much, and be a slave to your mortgage like you said.

I like you're thinking, EC. You sound like a very level-headed person. We need more of that. Hell - I need to be more like that!

[harhar]

I don't think, just like the ones who say love it or leave it, that I should have to move from a place I've lived all of my life. Not to mention it's a place that I like to be.

I understand that prices will always be higher in California than in other places, but in 2006 I was complaining about not being able to afford a house. Now that we all know why these prices were artificially high they SHOULD correct and in due time.

[EscapeCalifornia]

Originally Posted by harhar

I don't think, just like the ones who say love it or leave it, that I should have to move from a place I've lived all of my life. Not to mention it's a place that I like to be.

I understand that prices will always be higher in California than in other places, but in 2006 I was complaining about not being able to afford a house. Now that we all know why these prices were artificially high they SHOULD correct and in due time.

It would be nice if you didn't have to leave where you're from to afford housing, but that's what if comes down to for a lot of people. Even if housing prices come down historic averages, the decent parts of SoCal have always been expensive relative to the rest of the county. They just happened to go from expensive to crazy, insane, expensive over the past few years. With the bubble bursting, the crappy areas will be somewhat affordable again, but who wants to live in a crappy area?

Then there's demographic change. If I stay in the city I grew up in and still love, in 20 years (probably less), I'll be a foreigner. That's just the trend and its not going to turn around. I wish I could turn back the clock and buy a nice little 4 bedroom house in my home town on one income but its not going to happen. So its off to greener pastures.

[ebuch]

What are considered the best middle class neighborhoods now in the LA area? And what do these average middle class homes cost?

[the one]

the best thing to do is check out the sunday business section of the LA times and it will show you, by zip, which areas are the lowest and which are the highest. it will also include the decrease by percentage from a year ago.

as it stands lancaster and palmdale houses are going for 100K. compton about 200k. bell about 300k. echo/SL 400k. and the nicer parts are still up there. 400/500k plus. some areas havent gone down. its the places that saw ridiculous increases that have also seen awful drops.

[the one]

Originally Posted by alexanderaf

I make $80k a year, and I've been saving for a downpayment on a house for quite some time. However, I never stand a chance of actually 'owning' a house in LA. I could 'live' in a house if I pulled out a ridiculous mortgage, but in all reality the bank owns it more than I do. If one day it is like this all across America, I would forget the dream of owning a house. What's a $50k downpayment when your average house starts at $500,000! Sorry, I can't live with a $3k/month payment for the next 30 years.

Dare I say it, but...if indeed housing prices are in the decline, is this a bad thing?

houses are not that expenive right now. and unless you have kids or some serious debt then 80k would easily cover a 3g house note. i know plenty of people that do it on less.
a cousin earns about 60k and has a 350k home in a decent area.
they have good money mgmt skills.

its all possible folks. i have another cousin that foresaw this downturn and waited to buy. now he's buying 2 properties. its all a game folks. kinda like monopoly.

[EscapeCalifornia]

Originally Posted by the one

houses are not that expenive right now. and unless you have kids or some serious debt then 80k would easily cover a 3g house note. i know plenty of people that do it on less.
a cousin earns about 60k and has a 350k home in a decent area.
they have good money mgmt skills

$3000/mo for a mortgage payment is already 45% of that $80k gross income. Now add in taxes, insurance, and utilities. That's called being house poor.

[alexanderaf]

My dream in life would be to get a simple house in El Segundo or Manhattan Beach. Nothing fancy, just a clean house in a sleepy neighborhood.

I'm sure a bank could arrange that. I could live in the house of my dreams. But in all reality I would be feeding the fat baby bank icing on the gerber cake.

El Segundo, $799,000.
637 Virginia, El Segundo, CA, 90245 - Single Family Home Real Estate - REALTOR.com® (http://www.realtor.com/search/listingdetail.aspx?loc=el+segundo&sid=209f106728a1 41909ea79deea6207d63&pg=3&fhpg=1&lid=1095383264&ls n=26&srcnt=60 - broken link)

Dallas, $799,900.
407 E Hickory Ridge Circle, Argyle, TX, 76226 - Single Family Home Real Estate - REALTOR.com® (http://www.realtor.com/search/listingdetail.aspx?loc=dallas%2c+texas&ml=4&mxp=79 9900&typ=3F&sid=d99e517c3fd94391b37f4fb2ec6bdb05&l id=1100694458&lsn=4&srcnt=34658 - broken link)

Look what $900.00 more can get you?