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Demovictory9

(32,324 posts)
Mon Nov 30, 2020, 06:57 PM Nov 2020

California's median home price in September reached record $712,430

Fueled by low interest rates and a historic housing shortage, California’s median home price in September reached $712,430, closing out four straight months of record highs.

The state’s 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/

11 replies = new reply since forum marked as read
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California's median home price in September reached record $712,430 (Original Post) Demovictory9 Nov 2020 OP
Good Lord Delarage Nov 2020 #1
My neighbor is doing that right now... Rollo Nov 2020 #2
Every time he is showing the house, you should stumble over there, stand Blue_true Nov 2020 #3
Hah! Rollo Nov 2020 #4
People flip in California because it is more profitable. tinrobot Nov 2020 #6
That's good Delarage Nov 2020 #8
The eviction moratorium... Xolodno Nov 2020 #5
I paid off my mortgage about three years ago... Rollo Nov 2020 #7
I often see jobs in CA in my field and job level, but the salaries can't pay a $700K mortgage. aikoaiko Nov 2020 #9
Well, it is nice out here. Ligyron Nov 2020 #10
I used to see on HGTV KentuckyWoman Dec 2020 #11

Delarage

(2,182 posts)
1. Good Lord
Mon Nov 30, 2020, 08:44 PM
Nov 2020

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)
2. My neighbor is doing that right now...
Mon Nov 30, 2020, 09:40 PM
Nov 2020

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)
3. Every time he is showing the house, you should stumble over there, stand
Mon Nov 30, 2020, 09:49 PM
Nov 2020

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)
6. People flip in California because it is more profitable.
Mon Nov 30, 2020, 10:42 PM
Nov 2020

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.

Xolodno

(6,341 posts)
5. The eviction moratorium...
Mon Nov 30, 2020, 10:31 PM
Nov 2020

...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)
7. I paid off my mortgage about three years ago...
Mon Nov 30, 2020, 10:51 PM
Nov 2020

...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.

KentuckyWoman

(6,666 posts)
11. I used to see on HGTV
Tue Dec 1, 2020, 12:16 AM
Dec 2020

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.

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