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Answers (3)
- Nathaniel8
- Contributions:1
I'm sorry, I didn't intend to give such a long opinion on this:
That is a very good question! I'm a local in the SB/Goleta area as well and I am frustrated with the astronomical cost of housing in the area. I think it's really bad for the area. I think the high cost shuts out young families and nobody's kids can afford a home nearby. Historically, the area has been affordable and I believe it will return to affordability. To me, it looks like the housing market right now is very dysfunctional. Goleta and SB are not rich communities; average household income is about $45-47k/year. In my opinion, I think almost nobody in the area can afford to buy a home here at current prices with non-insane mortgages. I think the true root of the problem you see with pricing now is that many who already have homes have refinanced them to cash out ton$ of equity during the boom. The result is a bit of a stalemate at the moment.
Prices are dropping but not that quickly. Unfortunately these cash buyers that Rich mentions are usually investors that do not intend to live in the home, but plan to sell it later for a profit. They certainly can't rent it out for a profit yet. Hang in there Confusedinthe805, it might take about 3 years or so, but prices will drop back to an affordable level. They must. I would not be in a rush to buy...
That is a very good question! I'm a local in the SB/Goleta area as well and I am frustrated with the astronomical cost of housing in the area. I think it's really bad for the area. I think the high cost shuts out young families and nobody's kids can afford a home nearby. Historically, the area has been affordable and I believe it will return to affordability. To me, it looks like the housing market right now is very dysfunctional. Goleta and SB are not rich communities; average household income is about $45-47k/year. In my opinion, I think almost nobody in the area can afford to buy a home here at current prices with non-insane mortgages. I think the true root of the problem you see with pricing now is that many who already have homes have refinanced them to cash out ton$ of equity during the boom. The result is a bit of a stalemate at the moment.
Prices are dropping but not that quickly. Unfortunately these cash buyers that Rich mentions are usually investors that do not intend to live in the home, but plan to sell it later for a profit. They certainly can't rent it out for a profit yet. Hang in there Confusedinthe805, it might take about 3 years or so, but prices will drop back to an affordable level. They must. I would not be in a rush to buy...
- Rich Bosselmann, "rbosselmann"
- Contributions:37
You have quite a few variables working here. For similar floor plans in the same subdivision the selling prices should be similar. Of course upgrades, views, location in the subdivision, and purpose of sale (short sale/reo) will have an influence on price. Many sellers will list the home far above market value because they remember what it may have been worth years ago and are hoping for a miracle buyer.
The problem is that even if a willing buyer stumbles through the door, in order to get financing, the lender will require an appraisal and even then it has to make it through an appraisal review process. As you may have heard, lenders are tough these days too. Cash buyers do not need to go through this process but as the saying goes, they didn't get all that cash by being stupid.
Rich Bosselmann
www.RichBosselmann.com
- HousePoorAmerica
- Contributions:117
Simple... You only have two kinds of people, those who have to sell, "short sell, or bank owned", and those that are still in bubble land and think their house is worth what it was 4 years ago. Thus the big gap in price.
Why are prices so high and so varied?
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