Speculation ‘Deluge’ In ‘Next Boomtowns’
Inman News reports on the continuing speculation in housing. “Economist Mark Dotzour said he gave a presentation earlier this year to a group of Texas mortgage professionals in which he asked how many of them had recently closed a mortgage loan for a California resident, about 75 percent raised their hands in response.”
“‘This is quite a deluge. It’s quite widespread,’ Dotzour said of the influx of California buyers to the Texas market. ‘We’re starting to see a pretty significant migration of California people not only buying property for investment but moving here to live.’”
“Several communities in Texas appear to be ripe for a boom as the national housing market winds down from its formerly feverish pace, he noted. Odessa and Midland led in home-price appreciation in the fourth quarter 2005, Dotzour said; Odessa had 15 percent year-over-year price growth for the quarter. Real estate markets in El Paso, San Antonio, Wichita Falls, Corpus Christi, Tyler and Brownsville, among others, are also on the upswing.”
“Mary Manry, broker in Fort Worth, Texas, said, ‘We see a big influx of California investors,’ Manry said, noting that Californians can buy a lot more house in Texas for a lot less than they could in their own state. ‘I think we will see the benefits of a lot of these overheated markets coming this direction.’”
“North Carolina is seeing an influx from Florida and other Eastern states, said Renee Hentschel, an associate broker in Hickory, N.C. ‘Sales have doubled for me, personally. A lot of that is due to a lot of folks from Florida. They’re cashing out on the homes they bought, taking the equity, and coming here. They’re actually getting more house for their money,’ she said.”
“Sharon Lyons, broker in Carolina Beach, N.C., said that properties in her market area dramatically appreciated in a short period of time last year, and she attributes the surge to increased interest by people from other states. Sales have slowed in the area this year, though, falling 24 percent in Wilmington in May compared to May 2006.”
“Trela Bird, a Realtor in Midvale, Utah, said the Greater Salt Lake City began to boom last year. ‘We’re seeing a lot (of buyers) from California, and a little bit from some of the East Coast states, some from Texas, Arizona and Nevada. I think the news has gone out, we’re number four in job growth right now and prices compared to a lot of places are still reasonable,’ Bird said.”
“‘We get people from California (who say), ‘Oh, wow. We can get twice the house for half the price,’ she said. Buyers from out of state seem most interested in new and newer homes, she said.”
I can’t tell if Inman is flogging a dead horse or what. Wasn’t there a report on the Carolina Beach market being dead recently? But there are some houses selling in these ‘formerly hot markets’ and I guess the RE crowd is hungry enough to keep pushing hte myth that the housing mania will eventually sweep into every corner of the globe.
How about this one:
‘For years buying property in Turkey was perceived as risky by many Westerners. The impression was changing until recent increases in interest rates in the United States and Europe diverted investments from emerging markets, including Turkey, and the lira lost 18 percent of its value in less than eight weeks.’
‘But some analysts say that the economic turmoil is temporary and offers opportunities for those ready to face uncertainty. ‘We have not seen any sharp drops yet’ in housing prices, said Vehbi Cemil Hariri, director of valuation and investment at the Istanbul offices of the global real estate firm CB Richard Ellis. ‘We could see some, but if you are buying in dollars you could buy cheaper.’
Buying property in Turkey is risky because the only thing keeping the Muslims in check is the military. Just try building a church there.
Tyler, Brownsville and Midland/Odessa, eh?
Did someone leave open the gates to Dumbass Ranch?
Right, Tyler has been dead for many years and Brownsville is in the poorest county in north America. I don’t think very many people could be suckered into that. Maybe sight unseen?
I bet if you walked into any RE office and ask, ‘have you had Californians buying here?’, they would almost all say, ’sure busloads of em’. Nothing like fanning a frenzy.
“I bet if you walked into any RE office and ask, ‘have you had Californians buying here?’, they would almost all say, ’sure busloads of em’. Nothing like fanning a frenzy.”
Who would actually believe a lie like that? Californians taking a bus? If there’s 50 California investors in your town you’ll also have at least 50 BMW’s.
txchick
You always have the best lines. “dumbass Ranch” I love it!
Did someone leave open the gates to Dumbass Ranch?
Apparently right after a big lunch of retard sandwiches to boot. I spent a year going through naval flight training in that area of the state (Corpus, Brownsville,etc) in the early 80’s and all I remember thinking when I flew over it was that this area had to be what hell is modeled after. I can’t imagine why anyone would ever live there.
Sorry Texas, it’s your turn to get bent over and Californicated! Pass the lube please…….
“Sorry Texas, it’s your turn to get bent over and Californicated! Pass the lube please…….”
Wow, reading that I just had a deja vu of the tech boom/bust. It is like areas taking turns becoming the next “boom town” where people from Cali. or other bubble cities are trying to keep the equity bonanza going, just like it was in the late 90’s where people with no business or stock market experience (maybe not even much education at all ) became day traders to make easy money. These people think they will buy a house for 100K and it will go up 50% in 1 year-they still believe this although there is no underlying reason for this appreciation, zero fundamentals (sounds like the tech boom -no?).
And why do they think this will work out? Because it must or else how will they go on living the way they do with out working. Yes kids it is all coming to an end-my guess for the big bust Jan. 2008-groud zero!!!
just like it was in the late 90’s where people with no business or stock market experience (maybe not even much education at all ) became day traders to make easy money.
Buddy of mine did, too. Over his wife’s objections, he quit his job as the returns grew and grew. In all, he made 900k. Not bad for a guy used to a 50k salary. He also became impossibly happy and insufferably wise about everything.
Then I watched as he became tense and strained and later paranoid and finally depressed and reproachful as he lost some, then some more, and then all of it including the second mortgage that started him on his new “career.” He was screaming on the phone the last time we talked in 1999.
Just how stupid are these people?? Texas is an open-sewer hellhole! I lived there 9 years! The weather sucks and the people are awful! Money isn’t everything. There is a lot to say about quality of life which you definately do not have in Texas!
I agree that the weather sucks but, I think Texans are some of the nicer people I have met, I think alot nicer than people in LA. As a matter of fact the only thing I do like about LA any more is the weather.
actually the people in calif were pretty nice until about 20 years ago when everyone on earth came here.i am native cali and would all you people please go home.
Amen! Total dumpster. I wouldn’t move to Texas at gunpoint!
And the LA quality of life is for average middle-class people is… what, exactly?
Diminishing!
“And the LA quality of life is for average middle-class people is… what, exactly?”
low quality, UNLESS…you are single and renting a 1 bdr on the beach and carry no debt. Then California quality of life is awesome! Buddy of mine earns $300k to $400k annually and rents a 1 bedroom walking distance to Hermosa Beach Sand for only $1400 per month. When I move back to the South Bay, I’m going to rent an apartment with ocean view on the Esplanade in Redondo Beach. Very high quality of life. The women on Hermosa Beach Pier last weekend were wearing bikinis and many of them were very scenic!
Don’t know nmuch about the quality of life, but I’ve got to stick up for the Texans here. All the ones I’ve personally known have been decent people.
Lived in Huntington Beach CA from 85 to 95. Lived in TX from 95 to 05.
And the winner (in a good way) is:
Weather - CA
Traffic - TX
People - TX
Outdoor Activities - CA
Indoor Activities - tossup
Crime - TX
Car Ins - CA
Property Tax - tossup (3% of 150K or 1.5% of 300K)
House Cost - TX
Utilities - TX
Everything Else - TX
Fall - Tossup
Winter - TX
Spring - CA
Summer - CA
Beaches - CA
Overall I’d have to give TX the nod. CA has more potential but the sheer density of people ruined it for me. TX has 5 months out of the year where it is “hot as hell” but the rest of the year is pretty nice.
Mountains - CA
Food - CA
You forgot two. In any case, I see what you mean.
Furthermore, at least in Texas as it appears to me, there isn’t that “smug” problem we have here in the San Francisco Bay Area.
Oh, and I forgot a favorite of one of our Marin bubble bloggers:
“Can play golf in shorts in January and drive four hours to skiing…” - CA
Mountains - agree (CA)
Food - Whole Foods started in Austin (I am a vegan and I call it a tossup)
You’re telling me that car insurance is even more expensive in Texas than in California??
(Tyler, Brownsville and Midland/Odessa, eh?)
Yuck. I’m not a big Texas fan, but I could see living in Austin or San Antonio. Those places are not garden spots.
Have you ever flown over Midland at night?
I once flew to Midland for a weekend, for hiking/camping. Why in God’s name anyone would want to move there, though, I cannot imagine, unless you work for an oil company. Even a nice, big house is, well, just a nice, big house in Midland. Middle of Nowhere. Maybe if you really like mesquite and creosote bush a lot…
OK, I’ve got to ask; hiking/camping around Midland?
(hiking/camping)
Uh, yeah… but not right near Midland, though. After a day in/around Midland, we took a short drive west to the Guadalupe Mountains, which are a nice break from the flatness of Midland (or where I lived at the time in Dallas). A college hiking pal was on his first job was in Midland, and boy was he depressed there, but he promised me the Guadalupes are nice. I was pretty skeptical as my plane came in, and even more so as we later drove out through hours of endless dry scrubland, through Kermit, Mentone(?), and Orla. Nothingness.
But the Guadalupes were indeed good, perhaps partly because of the sharp contrast with the flat wasteland to the east and cool temps at the top (8,000 feet?). Highly recommended, if you happen to find yourself stuck out that way — and don’t mind a 5,000 foot climb carrying your own water and gear.
I also flew to Lubbock once for hiking. Now that was sad. I forget the name of the park, NE of Lubbock I think, but it turned out to be pretty much just endless, boring walking through horseflies and mesquite for a day of swearing, sweating misery. I still have a photo of that on my desk, a sad, sad view of endless miles of mesquite and dirt, which is very typical of that part of Texas.
But you know… they’re not making anymore land like that, are they? Better buy now! (grin)
OK, I understand now. I have camped in the Guadalupes before, as well. Very scenic. Part of an ancient coral reef I believe.
think we will see the benefits of a lot of these overheated markets coming this direction.’”
____________________________
Benefits??? Like sex with a Hot Chick who has AIDS!
crispy,
Didn’t you say you were in Dallas recently and got approached by some realtors, at the airport or something?
Actually, they were Hare Krishnas but he couldn’t tell the difference . . .
Sure you can, the Hare Krishnas are the ones making sense.
I was staying at the 4 Seasons Las Colinas - In the bar at the hotel a realtor noticed us looking at the local ads for homes and starting talking up the market. Blah, Blah, homes only go up, Texas is undervalued, good time to buy.
I will say, however, I was very surprised at the reasonable prices (realtive to CA). If I could get use to the humidity and convince my wife I would consider moving there. I was told the nice area is Plano?? - NO I AM BEING SUCKED INTO THE REALTOR SPIN!
Las Colinas isn’t bad if you’re stuck in Dallas. A little corporate-headquartersy but the houses tend to be better quality.
The prices may seem ‘reasonable’, but that’s because most Texans can remember the last bust and are snake-bit. Only out-siders would bid up residential proerty in Texas, IMO.
I hope Californians get snake-bit after this run-up!
Alot of places seem that way when your comparing Cali RE prices… But its not that way when you compare local incomes to RE. Its a whole another story… Try asking what people make in those parts of Texas… not to mention what is the local economy based like. Its more sober that way.
Plano is a nice place to live, but whatever you do DON’T buy a house there!! You will never make any money on it! I took $30k to closing just to get rid of a house there which took 2 years to sell due to a job transfer!! Too much land and too many houses! Plus NO restrictions on building!
Brings up a bigger question. If you don’t expect your house (place to live) to rise (as an investment), but know prices are stable, doesn’t that give you more mobility if you really like that particular area?
Less transaction costs, of course. But if you are good at saving money, isn’t that a much better environment to move up in, especially when you consider tax assessments?
BTW, I visited a great website I found from a link on this blog. It tells the net tax burden by state. I think I bookmarked it, and I will look for it. I’m sure others on this blog will beat me to the post! If I can’t find it, I’ll google it.
I thought John Law, with his excellent archives, would beat me to it. So far, no. Try this googled link for tax burden by state:
http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html
Very interesting link Robin. I was blaming inflation but now I see that remembering my early 20s in NH with all the extra money I seemed to have hanging around was about moving from the 2nd best tax burden state to the 2nd worst. Job market was better in NH too. At least on the coast where I was from.
As the country song went, “God Bless Texas.” It looks like the real estate industry won’t.
I wouldn’t discount that ZERO state income tax as an incentive to draw the attention of CA buyers. Remember, CA state income tax is around 10%. That adds up quickly, especially when you consider what it is you get for that involuntary contribution…
But that 10% california income tax guarantees that California has the best public school system in the country, as well as the best maintained roads and most business-friendly atmosphere.
Oh, hell, I couldn’t even type that without laughing.
You’re too funny!!
For that wonderful road system you get to pay the highest gasoline tax in the entire nation. The state disability and unemployment taxes also rank among the highest paid in the nation.
Many CA school systems rank the lowest in the country.
It’s a huge rip-off to support the Watts Towers restoration effort, handouts to anyone that is willing to stand in line and a huge wasteful state government.
LAUSD’s HS graduation rate is 44%, sixth worst in the nation. Just for emphasis, that means that 56 out of every 100 high schools students do not get diplomas.
Sales tax is 8.25%, income tax is 10%. Oh, and some cities take as much as 5% of gross revenues from businesses.
Credibility of government is 0%. Usability of freeways is 20%. Probability of implosion is 100%.
SM, don’t sugarcoat it for these nice folks.
And that is the graduation rate BEFORE the exit exam was enforced (after Mexicans challenged it in court) for the first time this year. Plus, others say that the graduation rate is actually lower because LAUSD has been doing everything they can to pad the numbers.
Robert, I didn’t have time to write the Mogambo Rant Of Doom (MROD) on the subject, so the sugercoated version will have to do for now
If it comes up again when I have a bottle of Ludicrously Expensive California Wine (LECW) open, I will present the Unexpurgated Mogambo Madman Version (UMMV).
ggbtw
I have a Magnum of ‘97 Cakebread Cellars Chardonay starting to make those little whispery noises to me. And no, as a Magnum and because of the vintage and intent it has not “gone over” even after 8 years.
Next time I’m headed up your way, I should pack a couple of bottles of Duckhorn and stop by for a chat. It would be interesting to compare notes
Right now I’m looking forward to finishing that ‘04 Cuvaison ATS and the Hannah Zin that I opened on the fourth. Unfortunately my week is not over yet.
But you shouldn’t wait too much longer on that ‘97 - it’s whispering because it’s ready…
nothing like a good bottle of port
Uh, yea. I think I have some beer in the fridge.
go to florence and normandie at 10 pm and say that.remember reginal denny
Why does it take more than a year to close off two lanes of an overburdened freeway (not tollroad) to add just one more lane? Net effect is more than one year of pain and suffering to get back to the same slow traffic due to the growth that occurred while the freeway was restricted. More infill, please!
I totally agree with you. I did about 1500 miles in June through southern California from LA to El Centro to SD, and the roads were amazingly good, even in remote areas of the Mojave and Colorado Desert. I have not seen better roads anywhere in the nation. Here in Virginia, they don’t even fix Route 1, which is in mess for good 10 years.
Yeah, but property taxes in TX are around 3%. If they’re “investing” in Texas property but still living and working in CA, then they’ll be paying CA income tax and Texas property taxes.
Which leads to the question, what will happen to these homes over the next few years? I expect these out of state buyers will be shocked when prices drop after the bidding stops.
1.25% of $1M is $12,500/yr
3% of $200K is $6K/yr
What would YOU rather pay? The only way to figure this out is to get the median income person’s NET ANNUAL TAX, inclusive of everything that varies by state. I am willing to bet CA residents get screwed the most (probably closely followed by RI, MA, NY, CT & DE not necessarily in that order).
Iffen you all are a gonna be a talkin’ ’bout dem taxes; CA 9.3% income tax. ‘Nuff said pardner?
Don’t forget the extra 1% to fund mental health if you make over $1,000,000 per year.
That tells you a lot about California voters: All head cases.
I voted against that. CA voters don’t realize that the rich can easily rearrange their affairs to make them appear as residents of another state. The top 5% supports a huge share of the tax burden — If we lose them, we’re screwed.
“RI, MA, NY, CT & DE”??
Waitasecond - what about Vermont?
Somebody around here say… about six months ago, posted the highest individual tax burdens by state. The Socialist Paradise of Vermont ranked # 1 or # 2, if I recall.
Posted late, but above…
http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html
“I voted against that. CA voters don’t realize that the rich can easily rearrange their affairs to make them appear as residents of another state. The top 5% supports a huge share of the tax burden — If we lose them, we’re screwed.”
In April I changed my permanent residence to California (Hermosa Beach) and am working in AZ. It’s all due to a particular tax break my company is giving me. Next March I will trade places and make my permanent residence in Arizona and consider myself a vacationer working in California. Also buying government securities is a good idea for avoiding state taxes. I get better tax breaks than the mortgage interest tax breaks. My rent is 1/40 of my income (I pay rent on 2 apartments, each with a roommate, and never intend to set foot in one of those 2 apartments!). Renting is far better!
Maybe we’re talkin’ about Tyler, Taxes.
Well, we are #1 for diversity! You can’t put a price on that.
Yeah, but you depreciate (or deprecate) that.
Just returned from a box company in Canoga Park CA.
Asked the manager how business was:
“We are busy with old people moving out of California”
“Many old people are moving out of CA and buying something cheap else ware.”
Observation: Not much business-Business sales.
I wonder if single women are also speculative buyers as well? All I can say is it sounds like this group will get hi very, very hard! See http://www.bankrate.com/brm/news/real-estate/20060706a1.asp
Are you trying to promote that stereotype of women’s nesting instincts and poor money handling skills? Sheesh, next we’ll be talking about how they need 4 bedrooms so they can convert 3 of them into walk-in closets for their shoes.
Wait a second! How do you know my wife?
Turnout — she was a hell of a girlfriend — ’till she got uppity about this property-ownership BS. When did you get transfer of title?
Being a native Californian, I cringe when I see articles like this.
I wish the media would differentiate between native Californians and clowns that move here from somewhere else. These Clownfornians live her for 5-10 yrs and then move on to foul a newer place that offers some glimmering trinket of a novelty.
SunsetBeachGuy…
I too am a native and get the same cringe… no one was behaving this way. I see lots, as you point out, living here for 5-10 yrs calling themself Californian… These greedy toads make me sick. Its all about their money or this or that.
Actually I grew up in So Cal and am moving out. Young families simply can’t afford it. My wife and I are both professionals earning good salaries and the math doesn’t add up right now. It may (hopefully) in a year or two.
Hell I’m from the mountain states and half considering returning to some out of the way town in CO, UT, or ID but it appears the reach of the Californians knows no bounds. At one time a middle class person could expect a reasonable standard of living here in LV but apparently those days are over.
I may not be a native but my children are 3rd generation natives. We could rent our homes for 60x - 80x the cost basis meaning a couple grand a month just for leaving but where would we go? Well, my wife was just offered a $20,000 signing bonus for TN. We could buy outright with half the proceeds of our last investment property sale and live off the other half and the CA rental income indefinitely. THat’s just too wierd/sick/whatever. What that would mean for CA is they lose our productivity, the school test scores go down (6th grader passed the CA high school exit exam), our income taxes are lost and a couple grand go off to TN every month as well. If not us then our neighbors, doesn’t matter CA is toast.
If you married a native CA, you are fine in my book, as long as you regard CA as your home and not some waystation onto the next stop.
Ventura County is very different from OC.
Thanks. For the last quarter century this has been a sensitive issue with me. I dropped off my thesis in MA, rode my motorcycle through every state on the eastern seaboard and southern border of the USA. I could literally get a job on my terms in any developed portion of the world. I chose SoCal in 1983. Met my wife playing volleyball on Huntington Beach. Brief stops in Torrance and Santa Monica before choosing VenCo. I picked yet somehow my ties to the community are presumed to be lesser than those whose parents with poor family planning practices and poor prenatal care managed to squeeze out a kid during the sugar beet picking season.
Ventura County is very different from OC.
This is a subject worthy of its own blog. VC voted for Bush. In 1965 you would be hard pressed to tell the difference twixt VC and OC. Same population, same demographics, same agriculture and general economies. Now look at them, OC 3.5x population and VC still has agriculture as its #1 industry. Not bad for a place that hosts Amgen and Countrywide corporate HQs (for now at least).
Dear Robert C,
I am an OC native, yet my wife is from Japan. We are equally proud (diminshing over time) to be OC residents. Used to have an account route that took me throughout California on a monthly basis.
I loved Ventura County, and even more loved points further north. Prices got crazier and development inevitably reduced the quality of life throughout the state. I settled in the town I was born in, in the OC.
My question to you is how different is Ventura from the OC now, and I ask you to consider how many more years you think that will last.
As Countrywide goes down, that’s far from being a poster-boy. As OC is the capital of subprime, we MAY drop faster, but perhaps not. I think the OC economy is better diversified.
It seems that no matter how high our esteem is for our respective counties, we agree that the projection for any improvement in quality-of-life is nonexistant. Maybe that’s why we are actually reading about Plano, TX and Alberquerque, NM instead of skipping the posts.
Sad, huh?
I’m a native too. I have to say, nearly everybody I know personally buying into the bubble was not born here, with only one exception. Those I do know here were born here are not playing into the bubble, as a rule. Home equity loans might be another story as people are quiet about those. Hardly a huge statistical sample, but is what I’ve seen.
Realtors and car sales people must keep Glamour Shots in business.
‘I think we will see the benefits of a lot of these overheated markets coming this direction.’
So, exactly how is it a benefit when first-time homebuyers who were born and raised in a locality have their opportunity to buy taken away by some dub-ass, dually drivin’, beer-guzzling piece of California trash “equity locust?”
Actually, in the long run they will benefit. It’s called “staying power”, and they’re betting that these newbies don’t have what it takes.
Right. This whole fiasco is going to hurt a lot of local economies. It’s one thing for “investors” to suffer their own foolishness, but now they’re screwing up everyone’s lives. I won’t feel much pity when they get slammed.
how was it *taken* away? i always hear in the blog that californians are the ones doing this sort of thing to other places. as californians, are we not entitled to the same rant?
don’t let the numbers fool you (its probably a lot worse out there than most realtors will have you believe)…keep the fooling in mind..
Say the price of a home is $100,000 and it goes up 100% then the new price of the home now $200,000.
However, for the house value to come back down to $100,000 from $200,000, home values need only fall 50%. Therefore, when you see price reductions in homes, keep in mind this math..
Also, keep in mind that local economies are benefitting from the taxes, maintenance, closing costs, and commissions these “investors” must pay. Sure no locals are buying homes for a couple of years, but in the meantime, some specuvestor is funnelling all the profits he made from greater fools into your community. Of course the downside is that your local douchebag Realtors are making most of this money…
Anyone want to help my firend?
He’s been told and showed that houses on the market have been selling every 60days In Irvine California. He’s been showed this on MLS from a realitors.
So to him there still selling he’s a believer can you prove me wrong or him?
HELP!!!
Send him to TxChick — she’ll sort him out. I hear that Eric Estrada is considering a stint promoting Dumbass Ranch. Probably not true, since he’s tied up with that place in Arkansas.
Nope, Eric is selective. He only promotes god-forsaken wildernesses outside of Texas.
Dumbass Ranch is actually headquartered in California. Many outlets around the corner. If someone that has been living in California wishes to wise up and go live elsewhere. They may buy one house and live and be a contributing member to the new community, I wish them the best of luck in new life.
Anyone that is a Clownifornia flippin’ flopper ruining other markets, I wish them to lose everything - and then some.
Mike OC - send your friend my way. I will ‘educate’ them about CA.
i’de give you his email but I dont want to start stuff for him!!!
But I couldn’t believe what i was hereing from him how MY realitor showed me this and I was dude you need to open your eyes.
He was getting mad, then I asked if he needed an ass wipping too he said NO, see these IT guy’s are smart In some ways!!!
Does anyone know of statistics that talk about the people that have sold their homes during the past few years? As in, did most of them trade up, or are they now renting? How many of them left a booming area for somewhere less expensive?
I doubt it… you’d have to commission and poll for that. Might be interesting, but depends on somebody willing to fund it. I strongly doubt that information would be in any real estate data base.
“‘We get people from California (who say), ‘Oh, wow. We can get twice the house for half the price,’ she said. Buyers from out of state seem most interested in new and newer homes, she said.”
Some people have never heard of the hedonic model. They think a lower price means a better deal, no matter what kind of dump they happen to be purchasing in however desolate of a location.
I think it’s hard to get a sense of a new place without living there for a few months. If you get on a plane in LAX in the morning and get off in TUL in the afternoon and go to an open house and discover that that house cost 1/10th of your clone ranch in CA the shock and awe is pretty intense. After you live in TUL or wherever for a few months your attitude totally changes…they want $120K for that!!! hahaha who are they kidding!?!
After living in a $1.5M ranch house in CA (sold Oct ‘05) and finding the EXACT same house (but with a basement) in the midwest for $120K I gotta tell you that it’s weird. Yeah, the environment outside the house it COMPLETELY different but still, it’s weird.
Maybe if the difference were 3X it would make sense but 10X seems surreal.
Location, location, location
???
MikeOC - email ambell1@iwon.com
My family is similiar to Jerry - 2 professional incomes and feel locked out of CA. So we left. I did not grow up in CA, but spent the last 16 there - with time both in SF and LA areas.
So what does the flight of young families and young professionals mean for the medium- and long-term future of California? Perhaps this deserves its own discussion thread. In the age of the Internet (that is–to use a buzz term–living in a “flat” world), does it matter for career purposes where you live? If you can make $100k in Utah/Nevada/Arizona, why would you choose to live off a $130k salary in California?
“So what does the flight of young families and young professionals mean for the medium- and long-term future of California?”
T-o-a-s-t.
Speaking as a born-and-raised Californian who will probably have to move, it means the feudalization of the state, I’m sure. There will be the very rich, the poor who serve them, and the older people who bought before California became CaliNotAffordYa.
Sadly, I see this happening more and more in the country as a whole, and that is *very bad* for democracy. No middle class = no democracy. If you have naught but rich and poor you have a feudal economy/czarist Russia/a banana republic.
If you have a household income of $150k (two “professionals”) you can probably buy a house for $450 to $500k, maybe more, these days. That will still buy a pretty decent house here in Sacto, and will probably buy an even better house here in a couple of years.
Uhaul 26 foot truck one way from Irvine, CA to Midland, TX: $2,484.
Uhaul 26 foot truck one way from Midland, TX to Irvine, CA: $1,042.
Hell, try a few other combinations. I’ve seen 6:1 ratios.
What is it for Homer, AK?
Here’s an amazing one, 26 foot truck:
Charlotte, NC to Boca Raton, FL = $278
Boca Raton To Charlotte = $2,952
I lived in california for six years in the 1990’s and married a native…she grew up in Glendale, CA and lived in Orange County when I met her (so did I)…I was kind of neutral on staying in California…she insisted upon leaving…we moved to Scottsdale, AZ (which she loves) and are in the process of selling two properties (one closing next week) and relocating to Missouri….of all places.
California had the usual stuff I see discussed here - too much traffic, too crowded in general, pollution…We lived in Laguna Beach but the traffic getting in and out to go to and from work was a pain…I got a better job in Scottsdale and we bolted.. My wife stays at home with the kids…and I will be semi-retiring when we move…could not pass up the opportunity to purchase a nice house on 10 acres with a pond for 1/2 the price of the house we are selling in Scottsdale…we both (coincidentially) have family in the Kansas City area…so we shall see how we like it… If we do not like it…we can always move! My wife has only lived in CA and AZ…and I have not lived in the midwest for about 20 years…so we shall see!
I hear Kansas City is a great place.
Oh man, you left Laguna Beach for Scottsdale? I’m from Laguna Beach and had to leave. I’m aching to go back to that beautiful place but not with the prices which have gone throught the roof. I don’t think I’ll ever be able to go back there because with prices so high even if they declined 50% it would still be way too expensive.
Tornados, dust storms (a bi weekly occurance during the spring, summer, fall), unbearable heat in the summer, snow in the winter, oil wells every 100 yards, mesquite bushes with 5 inch thorns…..I could go on….
Midland living at its finest!
I am a native San Diegan who spent the worst 5 years of my life in that hell hole….I’ll rent in San Diego till I die before I would EVER buy a house in Midland.
Bye, bye California! I have been reading this blog for a long time and kept in mind all the postings when I put my house up forsale. I priced my home higher than it should have been using the psychology that people want to see a price reduction so that they feel that they are getting a deal - since everyone on this blog wants a deal. We received an offer for the house $25,000 below the asking price and of course we accepted the offer because it was right at what we thought the house should sell for and it was still $60,000 more than we could have sold the house for last year - a great deal for us. We have a combined income of $165,000 and at that I could not afford to buy my house. We are lucky that we purchased the property in 1992. The people buying the house are putting $350,000 down from the sale of their prior property and financing the rest, how are the buyers going to make that payment??? Who knows and it won’t be my problem. I just want the heck out of California but that will have to wait until Spring, in the mean time we have rented a large townhouse to live in while we work on getting everything set up in Texas. We have lived in OC for 20 years and a side from the weather, there is nothing good I can say about living in Orange County. It’s crowded, it’s expensive and the people are rude! We will move back to Texas and to the Houston area. I lived there for 10 years and loved it and my husband lived there for 30 years! I know the Tx Chic will say all kinds of things but not everyone has had bad experiences in Texas. In fact, a lot of good people call it home! Not everyone in Texas is looking to make a lot of money off of their home because it is there home and not an investment! We will pay cash for a new home and no, they will not be able to take advantage of us because we are coming from California. We know the areas and we know the Houston market. Pay cash for a new 1 story house 3000 square foot house, put the rest of the money from the sale of our house into CD’s, collect my husband’s pension, make the interest off the CD’s and we will both continue to work but only part-time by choice. Both of us will be close to our families. By the way you can make good money in Texas. I have 7 uncles in Houston and 5 out of the 7 make over a $100,000 a year and live in modest homes. I have one uncle that makes over $250,000 a year and his home is only $400,000 on an acre lot and the house is 6000 sq. ft. with a 4 car garage! Yes, it can be humid but that’s good for your skin…after all, the women in Texas have younger looking skin than those living in the beach areas of OC. They are not dried up looking like a prune!