California homes sales crashing... so goes the nation

originally posted by: rickymouse
The prices of homes in California is not justifiable. They also have so many local property taxes in some area that people should not be able to afford to live there. California housing collapsing does not have to mean the rest of the country is going to flop. But if enough people believe it will, I guess we are in line for a crash.

Our economy is too susceptable to crash because it is built to tightly on false beliefs instead of stable economic practices.

I agree because one reason way to many people think they can grasp complex issues in a 20 second sound byte or a tweet. A lot of this again in my uneducated view is part of the natural cycle of our economy and the movement of the population, nothing remains static. Populations shift , economies falter in one area but tend to grow in another. Of course the local,state and federal government can mitigate or worsen these natural conditions. As long as people dont freak out and over react, or believe the likely coming media hysteria. Save your money where you can and buy local when you can. We are seeing a large portion of the population get older and spending less along with different more divergent economic dynamics than we have ever seen before.

a reply to: burdman30ott6

Not to mention the subprime crisis was because banks were directed to loan to "vulnerable" populations because of "disparate impact" so anyone with a crayon to sign their names were approved for mortgages regardless of employment/income status. Then when they predictably failed people don't blame the idiots that took the loan out but blamed banks for pushing mortgages on those poor illiterates -the same ones they were literally forced to serve.
People love to blame the financial institutions that serve the "vulnerable" like payday loans, but not the people that eschew financial responsibility and ride off everyone else.

a reply to: burdman30ott6

Not to mention the subprime crisis was because banks were directed to loan to "vulnerable" populations because of "disparate impact" so anyone with a crayon to sign their names were approved for mortgages regardless of employment/income status. Then when they predictably failed people don't blame the idiots that took the loan out but blamed banks for pushing mortgages on those poor illiterates -the same ones they were literally forced to serve.
People love to blame the financial institutions that serve the "vulnerable" like payday loans, but not the people that eschew financial responsibility and ride off everyone else.

originally posted by: toysforadults
a reply to: atsgrounded

The majority of our market is built on manufacturing and real estate. Speculative investments is not how the average American experiences the market

The US (and a large part of CAs) economy is largely built on FINANCIALIZATION.

a reply to: toysforadults

It's because they are all moving to Las Vegas. For half the price they sell their house in Cali for, they can get a house 3x the size out here.

Housing here in Vegas is currently on par with, or has exceeded, the rate of growth the city was experiencing around '06-'07, just before the housing market crash.

It's annoying...lol

I've been saying for a while that the housing market in & around Grand Rapids is going to pop sooner or later based purely on demand and skyrocketing prices. The "gouging effect" does it every time a hot market crosses the threshold from tolerable prices to outrageous for it's respective area.

Here, occupancy rates are quite high -- there's very little in the way of vacant rentals, and true to form, house prices shot up really quickly to unattainable prices since we moved here barely 4 years ago. My husband works with a lot of out-of-state transplants living in hotels & motels because they just can't afford the rent or mortgages around here. We totally understand, those prices have effectively nixed any buying plans on our part until the bubble bursts.

Several neighbors have sold their homes at jacked up prices recently, one more neighbor on the street has decided to list theirs, and in all honesty, I think they'll probably be one of the last higher priced homes around here for some time. They're not selling at as steep a price as others have here, but it's still a sticker shock either way.

California ain't got s# to do with our market here. That's a bed Michigan flippers & gouge-y owners made for themselves.

a reply to: toysforadults

Doesn't seem to be any unusual drop in real estate sales,it's just that 1 home in Calif can buy you 7 in most other states,cost's a lot to live here,but yes all of the US is set to have a reset of mortgages,the socialist elite don't like individual ownership,got a lot of problems in California,people wanting to live here hasn't changed a bit,it's the best state in the US,who wouldn't want to live here,other states seem worse off to me,and the weather is great here

So bundling bad debts with good debts and the crooked SEC looking the other way could have been seen by the plebs?
Agreed peeps gotta be blamed but damn....lots of smart people got hung out to dry. I am STILL 90k down on my house in NW Florida from 2005!!!!!

Anyway that movie The Big Short really explained it for me. Most of those mechanisms are still in play.

a reply to: thegeneraldisarray

a reply to: FyreByrd

I agree and that's not good overall.

In PA it is a seller's market right now. There is not enough housing inventory to keep up with demand.
There is new housing construction everywhere in my area - everything from developments with large homes to condominiums.

It is the high costs in California, as well as people wanting to leave the insane government that is likely the cause of their issues.

a reply to: BlueAjah

I live in PA where I'm at is da hood.

PA is in the top 5 states along with CA where people are fleeing in the US. Especially in my age range.

The problem here is the same in CA.

Taxes go up every.. Single... Year... Wages stay EXACTLY the same or decline in most areas.

The bottom has almost caught up with the middle. Even the union crew for a company I work for once in a while has most of its guys making 45k-60k a year on a really good year.

The isolated mountain communities where rich New Yorkers keep moving too keep this state afloat.

a reply to: toysforadults

In must depend where you are in PA.
In my area, not only housing is booming. Business and industry is moving in constantly. New construction is everywhere, and unemployment is at an all time low.

a reply to: BlueAjah

There is a ton of jobs where I live. I just finished up a job in Stroudsburgh where things are doing a lot better than where I'm at.

Overall however the state is experiencing a net loss of population and has been for a while.

Property taxes are VERY high here and native born millenials leave for better job prospects in different states.

There's very few technology jobs here

a reply to: BlueAjah

Heres an anecdotal experience...

There's 3 apprentice tile setters working on the last crew I worked on for around 2 weeks.

I'm an independent contractor but the job I was suppose to be on got lushed back a few weeks due to delays.

So I know the owner of a huge union comlany he needed a tile crew to help out on a job because the union tile crews are under staffed.

The problem is that the unions cant keep guys busy

So you get an apprentice.. Like one of the guys on the crew who I worked with around 2 years ago when he first start.

They will work on a job for 3-4 months. Then be out of work for 4-5 months before they land the next job.

On the union crew for my buddies company they have a crew of about 10 guys but only the Forman stay employeed all yeae.

Well apprentice wages are to low (hint they take home around $400 a week) to comensate for the off time even though they get unemployment.

So younger people can't afford to get into the trade so they are short staffed on bigger jobs but over staffed during down times

California homes sales crashing.

Market correction.

California real estate is over priced as it is.

a reply to: anonentity

That's because neither the UK or Cali are capitalist. Cali is as close to social democracy as you get over here and that's what the UK actually is.

If it's failing, it's not because of capitalism. It's because you ran out of other people's money and have too much government making things awesome for you.

a reply to: ketsuko

There isn't a state in the US that's capitalist.

California isnt that much different than the rest of the US.

a reply to: neo96

Actually the entire country should have gone into a deflationary period during the 08 crash and the banks should have been allowed to fail.

But we continued to create another housing bubble after practically nothing changed with massive speculative investments in real estate

Really prices across the board should be way lower

I know you guys dont like actual economic data because it challenges the narrative you have comfortably fit into your world view but nearly all of the economic data says we are in a MASSIVE bubble

But anyway... Back to Fox News and my narrative.

they will just print another 21 trillion dollars to save the "Too big to fail" banks from people who can't pay their mortgages.

This will cause hyperinflation forcing more people to not trust the banking system which will in turn boost the price of cryptocurrencies.

Cryptocurrencies will skyrocket, housing prices will collapse, and i will hopefully be able to by buy a couple houses and plots of land for really cheap.

Thats my plan anyway.

originally posted by: MisterSpock
Pretty sure it will just be California all on it's own crashing. The nation will sit by and watch, largely unaffected.

California housing is preposterous, 400 grand for what would be a hovel in most inner city neighborhoods. Large billion dollar corporate hqs literally surrounded by third world # covered streets.

This round is all California, it's going to be a solo act.

Don’t need to tell me. I’m from the Bay Area originally, and just got back from there Tuesday. Houses around my parents’ house about 20 miles from SF are going for $2 million.