tag:blogger.com,1999:blog-22169920.post2752318514703326861..comments2023-12-20T03:39:11.359-08:00Comments on San Fernando Valley Real Estate: From Time housing still has a ways to goJudy Graff, Broker Realtorhttp://www.blogger.com/profile/18318238524166896069noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-22169920.post-56763398857307209042011-02-05T09:20:47.473-08:002011-02-05T09:20:47.473-08:00FYI, $200K a year is not middle class per se...no...FYI, $200K a year is not middle class per se...not even in Los Angeles. Ostensibly, that is the income needed to properly purchase a $600K home. And in areas like Burbank, Studio City, etc. that is the line it seems of what will buy you a "normal" home in move in condition(ie 1750+ sq ft, 3 bd/2ba. <br /><br />Point being that at least most of Burbank, and I'd argue much of Valley Village, Glendale, etc...are supposed to be middle class areas. But the real estate in those areas basically starts at a price range that is only affordable to the upper middle class and wealthy. Simply put, a family of two wage earners each making $60K a year(IMO the true def of middle class in LA County), could not afford to purchase a home in any of these areas. At least not without outside help. <br /><br />Bottom line is those areas function and appear to be middle class areas, but are priced like wealthy areas. And as a result, I'm pretty positive there are major corrections to come. Note that this is very similiar to West LA where $600K gets you a 60 year old cracker box and horrible schools. Bubbleicious IMO. <br /><br />As to why the corrections haven't yet arrived to this area? The most basic reason is that supply is being artificially restricted by a number of means.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22169920.post-34958546843696277102011-02-04T12:56:15.561-08:002011-02-04T12:56:15.561-08:00You're welcome. We are in agreement on all ma...You're welcome. We are in agreement on all markets are local, sometimes down to the level of the block. My overall point is that is a very unstable market right now being significantly influenced by government policy. The housing market may in fact go up, may in fact go down, may in fact skip along the bottom as it has been doing for some time now.<br /><br />I certainly don't know the answer to it, nor do those economist. We are sort of in uncharted waters what with gov intervention, unemployment, lending requirements, State budget concerns, etc...<br /><br />You've got a good blog. :)T.M.noreply@blogger.comtag:blogger.com,1999:blog-22169920.post-69745613725617405242011-02-04T12:31:53.710-08:002011-02-04T12:31:53.710-08:00Thanks for reading and commenting. However, my po...Thanks for reading and commenting. However, my point at the beginning is that all markets are local. Some will go down (although I think 20% is WAY high) and some will go up. Pasadena 91101 is seeing quite a little rise, for example. There's no real way to "time" the market -- only ways to time it for you.sfvrealestatenoreply@blogger.comtag:blogger.com,1999:blog-22169920.post-85932515949551703752011-02-04T10:51:44.288-08:002011-02-04T10:51:44.288-08:00Glad to see a Realtor admitting prices are unlikel...Glad to see a Realtor admitting prices are unlikely to increase in the near future. Prices in "middle class" areas could fall another 10-20% IF: 1) interest rates were to rise, limiting monthly mortgage loan qualifying power 2) If middle upper, or upper, areas fall it will put downward pressure on the middle. Why buy 3/2 1,400 sq ft for 450k, when now for 525k one can get 3/2 1,700 sq ft in a better area. The 525k dropped from 650k, putting downward pressure on the 450k. 3) if the gov/banks decide to move on the record breaking NOD's .<br /><br />It's a very unhealthy market, with few historical norms to it, which is why I continue to sit on the side lines.T.M.noreply@blogger.com