Home prices are unbelievable

The value of my house has appreciated 225%
Grampa Don said:
Al, my neighbor a couple houses down, passed away a while back. His heirs put the house up for sale. It's a small house, 3 bedrooms, living room dining room combination, kitchen and a bath and a half. Built in 1954. They asked $900k. It sold in less than 2 weeks. Al paid $33k for it in 1977.

I guess what it really shows is how little the dollar is worth now.
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SoCal realtors have pushed hard in the past 60 years to drive up real estate prices, which of course equals greater commissions.
 
Grampa Don said:
Al, my neighbor a couple houses down, passed away a while back. His heirs put the house up for sale. It's a small house, 3 bedrooms, living room dining room combination, kitchen and a bath and a half. Built in 1954. They asked $900k. It sold in less than 2 weeks. Al paid $33k for it in 1977.

I guess what it really shows is how little the dollar is worth now.
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I see you are in Orange County. Few people can identify with your experience. Many people in Orange County probably can't identify with it. Even you are having trouble understanding it apparently. I feel like I'm living on Mars. I'm happy just being OK.
 
asp3 said:
One thing that almost no one brings up here in CA is the effect Prop 13 has had on the housing market. It was put in place to help older people get priced out of their houses with taxes so that taxes are only reassessed when a property sells. So folks who have houses put them in trusts and pass them on to relatives rather than sell them so the number of houses on the market stays down.

Unfortunately it also affects commercial real estate so a business that owns a building has it's tax base go up very slowly and doesn't have to pay what takes for government services that are paid for by taxes. So new businesses that acquire new real estate have a higher tax burden.

Here in the Silicon Valley the prices started going up in the late 60s and have been going up ever since because we have so many high paying jobs in the area.
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Hmm.... I've never heard that the Prop 13/19 tax base was preserved after original owners die if the title is held in a family trust. Not even from my trust attorney.
 
JustDave said:
I see you are in Orange County. Few people can identify with your experience. Many people in Orange County probably can't identify with it. Even you are having trouble understanding it apparently. I feel like I'm living on Mars. I'm happy just being OK.
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Oh, I understand it. When I was young, there was lots of empty space and the population was much smaller. There were orchards, vineyards, and fields of vegetables. In spring the hills would be covered with yellow wild mustard blossoms. All that is now developed and there are a lot more people. It's supply and demand.

The prices will continue to go up until they reach the point where nobody can or will pay them. At that point the bubble will burst and a lot of investors will lose money.
 
StarSong said:
Hmm.... I've never heard that the Prop 13/19 tax base was preserved after original owners die if the title is held in a family trust. Not even from my trust attorney.
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I've heard it. My house is in a trust, but not for that reason. I just want to make it easy for my son when I go. I'm sure he will sell the place and probably use the money to pay off his mortgage.
 
Grampa Don said:
Oh, I understand it. When I was young, there was lots of empty space and the population was much smaller. There were orchards, vineyards, and fields of vegetables. In spring the hills would be covered with yellow wild mustard blossoms. All that is now developed and there are a lot more people. It's supply and demand. The prices will continue to go up until they reach the point where nobody can or will pay them. At that point the bubble will burst and a lot of investors will lose money.
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I was born in downtown Los Angeles and lived in that urban regions while a tyke. Also lived in San Diego as a HS freshman. What urban Southern California has become is grotesque, permanently destroying vast areas of precious natural landscapes for the benefit of wealthy corporations, especially real estate corps, banks, and individuals while human populations have long passed the point of sustainable carrying capacities. Each new generation, people fail to see and experience what is being lost from below their time.
 
David777 said:
I was born in downtown Los Angeles and lived in that urban regions while a tyke. Also lived in San Diego as a HS freshman. What urban Southern California has become is grotesque, permanently destroying vast areas of precious natural landscapes for the benefit of wealthy corporations, especially real estate corps, banks, and individuals while human populations have long passed the point of sustainable carrying capacities. Each new generation, people fail to see and experience what is being lost from below their time.
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There are still many beautiful suburban neighborhoods in the Greater Los Angeles area, but the downtown commercial area has steadily sprawled further to accommodate businesses. That's the way of cities.
 
PeppermintPatty said:
You must have a really nice house.
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As I mentioned in another thread, it was built in 1905. but it has had at least 3 interior renovations over the years, including one in 2012 by B's son Mike. It has three living areas, so it would be attractive to investors as a rental income property. And it's location close to both a street car line and 3 bus lines, makes it attractive to those who work downtown and use public transit to get to work. The 2 tenants pay a combined $3000 a month in rent, which covers the costs of running the house for the year.

We are not going to sell....Unless I win the Blue Jays 50/50 lottery tomorrow, which should pay 4 million to the winner. JIMB>
 
David777 said:
I was born in downtown Los Angeles and lived in that urban regions while a tyke. Also lived in San Diego as a HS freshman. What urban Southern California has become is grotesque, permanently destroying vast areas of precious natural landscapes for the benefit of wealthy corporations, especially real estate corps, banks, and individuals while human populations have long passed the point of sustainable carrying capacities. Each new generation, people fail to see and experience what is being lost from below their time.
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I was also born in Los Angeles, East L.A. not far from civic center, and raised in a suburb. And, I agree that it is sad to see how the area has changed. Sure, developers are part of the cause. They've promoted Southern California for many years. There was money to be made.

And, people need jobs. My parents came here for that reason during the depression. So have a lot of other people and they need homes. And that continues. There are too many people here, but that's true for many other areas too.
 
Grampa Don said:
I was also born in Los Angeles, East L.A. not far from civic center, and raised in a suburb. And, I agree that it is sad to see how the area has changed. Sure, developers are part of the cause. They've promoted Southern California for many years. There was money to be made.

And, people need jobs. My parents came here for that reason during the depression. So have a lot of other people and they need homes. And that continues. There are too many people here, but that's true for many other areas too.
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My husband's family came from the Midwest during the Dust Bowl.
 
You can still get a house cheap in Detroit, but that's quickly changing with all the gentrification going on. By cheap, I mean $80,000. Granted, there's a lot of crime there, but as the poor people are forced out, the crime rate will decrease. A lot of those cheap houses are old Victorians that were once beautiful homes, but now they need a lot of work.
 
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