Entry level California home costs up 88% since 2020.

[RSKY]

THIS is scary!!

GULP: Entry-Level California Home Costs Up 88% From 2020 and Now the Fires

hotair.com

 

[ericm979]

It's the payments that have gone up 88%, not prices, and half of that is due to interest rates rising quite a bit since 2020. It's in the report. The average California house is expensive for sure, but the house price rise is not as much as the headline would have you believe.

There's a lot of people who want to live in the population centers of CA. That's been true since the '70s at least.

 

[jyoutz]

For example, I refinanced my mortgage in 2021 at 2.75%. I think the rates are over 7% currently.

 

[Eagle1]

For example, I refinanced my mortgage in 2021 at 2.75%. I think the rates are over 7% currently.

I paid off my mortgage around that time
Happy Day....

 

[jyoutz]

I paid off my mortgage around that time
Happy Day....

I could have paid it off but invested those funds at a higher interest rate than 2.75%.

 

[Eagle1]

I could have paid it off but invested those funds at a higher interest rate than 2.75%.

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

 

[CloverKnollFarms]

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

Same. Paid off in 2014.

It will be interesting to see what the rebuild in California looks like after the fire. High building costs, red tape and 7% mortgages to people who had no fire insurance?

Maybe they will go back to an agrarian society

 

[jyoutz]

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

I’m comforted by that fact that on any day I can pull my investments and pay off the mortgage. Meanwhile they are earning far more than 2.75%.

 

[CloverKnollFarms]

3% this week alone

 

[ultrarunner]

I have one of those 2.75 mortgages and can't bring myself to let it go as the money I would use to pay it off is currently 4.5 in the same credit union.

I'm very attuned to local home values and here in Oakland prices have dropped and commercial is dead selling for pennies on the dollar as 7 fire stations close in extreme fire areas and the city has a 110 million budget gap and the recalled mayor under indictment.

Three years ago property here was on fire metaphorically...

A 1500 square feet rancher circa 1960 was expected to sell for a million and was overbid 40% to 1.4 m by a 30 something professional couple... today a million is realistic.

The pandemic skewed the market in many ways...