Many areas of Cali are not exactly slowing down. IT is still insanely expensive. Salaries are not in line with housing for the most part - there is a huge gap. I don't see wages slowing down at all (except due to a lower economy in general - but not because hoses are suddenly "affordable" - since they aren't affordable at all - hehe).
In Sacramento where we live houses have come down considerably. I still can't get over though that dh's cousin paid $100k for his 4-bedroom on 1/2 acre. Today it would still fetch $300k-$350k. What, a whopping 7 years later????? Prices are still moving downward but a LONG way to go to any sense of normalcy. We moved here a couple of years later and paid $300k for our home. The locals thought we spent way too much. IT was at the beginning of the run up. It fetched $650k for a while and is down to $450k. Still a long way in that regard too.
In the insanely expensive Bay Area prices have not really dropped. I am not sure how So Cal is.
Those places have always been very expensive (people willing to pay 50% - 75% of their income to mortgage or rents). So I am not sure how much things will really slow down. I imagine with ARM resets in the next few years many people will be in trouble though. I just don't expect it to be a huge adjustment for the most part. Curious to see... I'd certainly wait on any moves to Cali until the ARM resets start to play out a lot more. As they reset prices will drive down. You can buy a 2-bedroom starter home for $500k then instead of $800k. If that sounds good to you.
About the point housing was on before it went off on this wild trajectory. we got the hell out at $500k. & then I got friends telling me they paid close to $1 mil for their fixxer uppers in recent years. IT's just insanity out here.
10-06-2007, 06:55 AM
