HOLY COW, you going to build houses about ready to tumble on a hill like that? That s*** is going to slide in a earthquake more than James Brown at the Apollo 68’. 😳

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.

“A lot of people think the pandemic equals the market is suffering, but that’s just not the case,” said Ryan Lundquist, an appraiser based in Sacramento. “It’s the perfect storm of low rates, a housing shortage that we already had and is getting worse, plus heightened demand.”

There has been much talk of the exodus triggered by California’s inflated cost of living, which has seen Californians trickle outward to states with a lower cost of living — states like Texas, Nevada, and Arizona — for more than a decade. But while the state did lose 650,000 residents last year, “We have 39 million people here,” Mr. Lundquist said. “It’s a drop in the bucket compared to how many people are here, and builders haven’t been able to build fast enough to satisfy our population.”

Those builders also haven’t been able to — or haven’t chosen to — build the kind of properties that the majority of the population needs.

“New home construction skews luxury. We aren’t building enough affordable new homes,” said Jonathan Miller, of the appraisal firm Miller Samuel. “Most of the sales growth in single family homes in California is above the $600,000 mark. When it comes to inventory, there is more lost in affordable and modest-priced housing, year over year, than in the upper-level housing market.”

In Los Angeles alone, the contraction of the lower end of the condominium market speaks volumes. Condos priced above $500,000 are flooding the market; those priced below are becoming significantly more scarce. It’s a trend, Mr. Miller said, that isn’t unique to California, but is more pronounced there.

“California is a proxy for what we’re seeing nationally,” he said. “Since the pandemic, the action has been on the higher end. And that makes sense because the unemployment picture is heavily skewed against lower wage earners, which tend to be starter-home buyers, or renters.”

It has been a whiplash year for the Golden State, where the pandemic pushed unemployment numbers to a staggering 16.4 percent in April. By October, however, employers had added 145,500 jobs — the third-highest single-month job gain since 1990 — and the unemployment rate dropped down below 10 percent for the first time since the pandemic began. The median home price cooled slightly in October, as well, slipping 0.2 percent to $711,300.
Such small adjustments are not enough, Mr. Miller said.

“The housing market needs disruption,” he said. “This cocktail of mortgage rates below 3 percent and some of the lowest inventory rates in history is reducing the affordability of housing at an alarming rate. This picture is not sustainable.”

That there don’t make no damn sense boy smh what the hell they doing to make the price that high?

Keeps the undesirables away

Trying to get wealthy in a few listings from some suckers

Only rich people buying houses rn

California housing market is ridiculously expensive. I can’t imagine living there if you ain’t loaded. You’re just wasting your money

Zoning laws

From a financial standpoint, even if you can afford it, it isn worth it.

I will tell you what’s going to happen. One of these dumb tik tokker type’s (or insert trendy social media ) is going to buy it, he’s going to have a stellar year, the second year is going to be abysmal. Maybe due to a flesh parasite from deer that passes to a human, earthquake or maybe because their content isn’t catching. Who really knows what it will be in 2020/2021?

Then who ever is holding his mortgage is going to say “ according to our records”

He’s going to find out real soon the money he spent for that house & all the expenses, he could’ve weathered it out 5+ in a modest house with nice furnishings & still be partying.

But it ain’t going to happen, because Tik Tokker spent it all on great gatsby jake Paul parties he can’t remember.

That’s what usually happens with a house like that. Rich people move in, wealthy people use it for a storage for their collections of lamps or some s*** until it’s time to sell because the house is too small for their Tiffany lamp collection.

And then when a wealthy person does sell it, guess who picks it up?

Thattttttsssss the circle of life (Elton John voice)

Rogan was smart to move. He kept his income tax & Spotify horde money

Now he can start a club in Texas after the lockdown. Probably be more lucrative than comedy store.

People crying they can’t leave l.a. . oh don’t worry, you will probably change your tune when you see the expenses are never coming down.

they had a chance at attempting to repair the market with SB50. i guess they're going to keep trying rent control and act like the issue is fixing itself.

Yes it’s truly awful. Please don’t ever move here!

If you're in the film industry, your options are limited. I know this firsthand

Chicago, NYC (not any cheaper) or Atlanta are about it and there aren't as many opportunities available

Outside of that, there's not much point

everyone's moving to ohio and Texas now🤷‍♂️

It’s not awful by any means. But from a financial standpoint, if you’re doing well in California, you’d probably do even better in Texas or Georgia (assuming that you had a similar job, that brings a similar income).

my mom has a shack in the booneys in la. she still payin off 400k i moved to houston and buying my first 4bdr home next year at 22. no cap

Does Cali even have a middle class?

fye

wonder how much of this is skewed by SF

Easy way to make it better, build more housing

Cali is the early stages of that movie Elysium in real life.

I’m sure not that much tbh

@proper yo imma need a loan, I know you good for it