November 28, 2007

California beats New York in being unaffordable! WOOT!

Recordnet.com: S.J. sales prices holding steady
Statewide, just 12.6 percent of all the homes sold could be afforded by a median-income family, up from 11.7 percent in the second quarter, the group said.

Of 65 metropolitan areas ranked for affordability across the nation, San Joaquin County ranked 22nd, with 11.3 percent of median income families – at a median annual income of $60,300 – able to afford a median-priced house of $348,000.

California accounted for nine of the 10 least affordable metro areas in the country: Napa, Los Angeles, Salinas, Anaheim, San Luis Obispo, San Francisco, Santa Cruz, Merced and Santa Barbara.

Only outsider New York City made it into that group at the No. 7 spot.

This is a classic case of good news/bad news.

The good news is that California holds 9 of the 10 least affordable metro areas in the country. That’s 90%. New York City, which has nothing compared to California is at mere #7 HAH. Take that. We rule unaffordableness! Golden State stomps on the Big Apple and turns it into applesauce!

The bad news is that California became more affordable – going from 11.7% to 12.6%. I was really hoping that Santa would deliver a single digit affordability rate this year. Like 9.8%.

Here’s to hoping that 2008 will bring us there. I think there’s a good chance after the Superbowl – everyone knows that prices go up after the Superbowl.

What do you think?

Comments (6) -- Posted by: burbed @ 4:32 am






May 4, 2007

WSJ claims you aren't always happier in California – LIES!

Getting Going – WSJ.com
We’re bad at forecasting. Consider a study by academics Daniel Kahneman and David Schkade.They asked university students in the Midwest and Southern California where they thought someone like themselves would be happier — and both groups picked California, in large part because of the better weather. Yet, when asked how satisfied they were with their own lives, both groups were equally happy.

“When you’re thinking about moving to California, you’re thinking about the beaches and the weather,” says Mr. Schkade, a management professor at the University of California at San Diego. “But you aren’t thinking about the fact that you’ll still be spending a lot of time in the grocery store or doing chores. People emphasize differences that are easy to observe ahead of time and forget about the similarities.”

When we predict what will make us happy, we’re also influenced by how we feel today. If we buy the weekly groceries just after we’ve had lunch, we will shop much more selectively. The downside: A few days later, we will be staring unhappily into an empty refrigerator.

What the hell is this writer talking about?

Everyone knows that you can only be truly happy when you live in California!

That’s why it’s special here. Because everyone here is happy! If it weren’t special and if people weren’t happy, would home be more expensive here than anywhere else in the nation?

And what’s this about groceries or chores? People in the Bay Area spend all of their time in the great hot weather and at our fine beaches like Ocean Beach and Santa Cruz Boardwalk. And it’s just a short few minute drive without any traffic.
To think that people could possibly be happier somewhere else. Sure. I guess it’s possible. If you want to live somewhere CHEAP (which means its undesirable.)

$.5 million condos, baby. That’s the way we roll, Cali style.

Click here to post a comment -- Posted by: burbed @ 6:32 am

September 28, 2006

"their mortgage payments are more than their income"

Central Valley Business Times
More foreclosures loom as pace of mortgage defaults quickens

A softening home market is not by itself to blame for the jump in California home foreclosures says a San Diego attorney who specializes in helping those faced with losing their homes.

The most common reason is an event such as loss of job or illness to a family’s major income producer. But attorney John Brady says there are other causes that he is seeing more often.

“It could be predatory lending,” he says.

“I’ve had a number of people in this last month – this is completely unbelievable and so foreign – their mortgage payments are more than their income,” Mr. Brady says.

Why don’t people understand that you need to pay to live in a place as special as California?

Besides, everyone knows real estate only goes up in the long run. So if you wait long enough, you’ll be able to sell and be a millionaire.

Click here to post a comment -- Posted by: burbed @ 5:31 am

September 3, 2006

Santa Barbara OKs Housing Aid for Folks Making Up to $160,000

Santa Barbara OKs Housing Aid for Folks Making Up to $160,000 a Year – Los Angeles Times
Santa Barbara OKs Housing Aid for Folks Making Up to $160,000 a Year
In a city where the median home price is over $1 million, a planned condo project’s units will be priced below market from $495,000 to $595,000. Teachers, nurses, police are among the expected buyers.

Wow. Will Palo Alto follow suit?

Click here to post a comment -- Posted by: burbed @ 9:45 am

August 19, 2006

Congrats CA! Affordability at a record low! 23%!

2Q 06 First-time Buyer HAI
The percentage of first-time buyers in California able to afford a median-priced home stood at 23 percent in the second quarter of 2006, compared with 30 percent for the same period a year ago, according to a newly developed index released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of first-time buyer households that can afford to purchase a home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income first-time buyers needed to purchase a home at $482,000 in California in the second quarter of 2006 was $98,720, based on an adjustable interest rate of 6.48 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $3,290 for the second quarter of 2006.

Congrats California! Let’s try to aim for 10%!

Click here to post a comment -- Posted by: burbed @ 5:22 am

July 17, 2006

‘The Unstoppable Ascent Has Stopped’ In San Diego

The Housing Bubble Blog » ‘The Unstoppable Ascent Has Stopped’ In San Diego
“San Diego had the wildest run-up among major California cities. The boom was stoked by cheap loans, changes in tax law, creative financing and a generalized mania that fed upon itself. The market also began to fade first in San Diego. Whatever happens here, optimists and pessimists agree, will happen later in the rest of the state.”

“At a sales office in the Ocean Beach neighborhood, broker David Davis said the market had already bottomed out. ‘Our No. 1 industry is now tourism,’ Davis said. ‘Unless they take away the sun, we’ll be fine.’”

“If Davis radiates cheer, the fliers taped to the window outside the office door tell a different story. ‘Huge Price Reduction,’ one says. Another says both ‘Reduced’ and ‘$15,000 Credit.’”

“In some cases, the prices are dropping faster than the fliers can be reprinted. A two-bedroom town home has its price of $324,900 crossed out with a marking pen, replaced by $309,900. Another house, a four-bedroom in suburban La Mesa, has a printed price of $575,000. Below that is handwritten $549,000. Scribbled below that is a new minimum: $499,000.”

This will never happen in the Bay Area. Two reasons:

1) The Bay Area is special.

2) They’re not making any more land.

Click here to post a comment -- Posted by: burbed @ 9:56 pm

May 29, 2006

Great Video: The California Economy — Housing Boom or Bubble?

Economics Roundtable: The California Economy — Housing Boom or Bubble? – Google Video
Christopher Thornburg, senior economist at UCLA’s Anderson School of Management, offers his perspective on whether the recent cooling trend … all » in residential real estate indicates an imminent bubble burst or just a lull in California’s otherwise booming housing market in this edition of the Economics Roundtable at the University of California, San Diego. Series: “Economics Roundtable” [Public Affairs]

This is well worth the watch. Chris is pretty funny – including the only joke you’ve heard that has both Rafael Palmeiro and Alan Greenspan!

Click here to post a comment -- Posted by: burbed @ 2:35 pm

May 14, 2006

Housing Boycott

Housing Boycott
Housing Boycott
San Francisco Bay Area

send suggestion | mailing list

What is this?
My wife and I are tired of the insanity of Bay Area housing prices, and want to fight back. Most of our friends — and we suspect, you — do too. So we created this website to start a grass roots movement to stop the insanity, through a synchronized boycott, and through education. We CAN make a difference. Read more here.

This reminds me of those “If we all stop buying gas, they’ll have to lower the prices!” campaigns.

I’d rather just make fun of the bubble.

Click here to post a comment -- Posted by: burbed @ 5:03 am

March 27, 2006

50-Year Mortgages are -hot- -hot- -hot-

After Friday’s reality check, it’s time to go back to unreality…

Sacramento Land(ing): 50-Year Mortgage a Penny Saver?
A reader noticed this ad in a local PennySaver. Is this a sign of the end of the housing boom or is this the beginning of a brave new world of multi-generational mortgages?

50yearloan.0.jpg

Wow! I don’t think people even get 50 year mortgages to live in New York City!

But then again, New York City is no Lodi.

Comments (1) -- Posted by: burbed @ 5:00 am

February 15, 2006

WSJ.com – Share of People Owning Homes Is Leveling Off

WSJ.com – Share of People Owning Homes Is Leveling Off
After climbing steadily for a decade, the nation’s homeownership rate appears to have leveled off.

PJ-AH107A_HOMEj_20060215202557[1].gif

I’m semi-surprised that the Bay Area was only 4th. But the other 3 are California… so that makes sense.

Click here to post a comment -- Posted by: burbed @ 9:59 pm