General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCalifornia's median home price in September reached record $712,430
Fueled by low interest rates and a historic housing shortage, Californias median home price in September reached $712,430, closing out four straight months of record highs.
The states housing market briefly cooled in the early months in the coronavirus pandemic, but by June, they were fully on the rebound, with the median sales price reaching $626,200, the highest ever at the time, according to a report from the California Department of Finance. For the next three months, as mortgage rates stayed below 3 percent and many buyers looked to upgrade to larger homes, that number would continue to climb. In August, it exceeded $700,000 for the first time in history.
https://dnyuz.com/2020/11/30/median-home-price-sets-new-record-in-california/
Delarage
(2,182 posts)I watch those flipping shows on HGTV and I'm always stunned... They will buy some dump for like $400,000, put $200,000 into it, and then sell it for one point five million dollars
Rollo
(2,559 posts)He bought the place a year or two ago and has been busy "upgrading" it, in hopes he can sell it for a big profit and then buy a house elsewhere, probably in Texas where he came from. When I comment on some of the materials he's using, with concern they might not last, his response often is, "I won't be around here when that happens"...
Somehow I don't think he's going to get the profit he thinks he might get. After all, I'm his neighbor.
But, you never know.
There is one born every minute.
Blue_true
(31,261 posts)on the lawn with a partially empty liquor bottle in your hand and your hair messed up, and yell at the top of your lungs are they going to be my new neighbors. It would help is you have on dirty cloths that you had earlier used when doing your garden or lawn.
tinrobot
(10,848 posts)Remodel costs are pretty much the same in most parts of the country. The price of drywall, tile, plumbing, fixtures, appliances, and other items isn't all that different in California than Iowa. Labor and permits may be a bit more in California, so that's a factor. But, the return is so much more here.
Let's say a kitchen remodel increases the price of a house by 10%. However, that kitchen costs approx. $30k no matter where you are. It makes much more sense to put that $30k into a kitchen for a $700k California house than a $200k house elsewhere. That 10% return pays back a lot more on the higher priced house.
Delarage
(2,182 posts)If you can afford the fixer-upper in the first place.
Xolodno
(6,341 posts)...is artificially keeping the housing market up. I suspect it will be extended, but sooner or later, it will lapse and real estate prices will head south. People buying now due to the low interest rates are going to find themselves upside down next year. Which is no big deal if your intent is to stay for some time and can ride it out.
Rollo
(2,559 posts)...it has made my retirement finances a lot more manageable. The only cloud on the horizon is the prospect of needing a new roof in a few years. The current one is cedar wood shake and I go up there ever few years to replace worn out shakes. When it gets replaced I'm thinking of asphalt combined with solar. There is a company that will do solar shingles but it's a bit pricey. And it probably locks you into their product. So I'm thinking of more traditional solar panels instead. Plus, there's other roofing on the property where I could put up solar panels.
aikoaiko
(34,127 posts)Ligyron
(7,592 posts)But Im only visiting so...
KentuckyWoman
(6,666 posts)A couple looking in California. Husband Chad has a job licking stamps and the missus owns a blog about succulents. Their budget is a half million.
Then they would look at 800 sq ft houses priced at $400K in need of $200K in renovations. Over budget but Chad plans to market his new line of stamp sponges expecting to bring in an extra $92K a year.
At the time my house in Kentucky was valued around $62K. My Mr would say, why do you watch that.