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…… back to housing


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2006 Jul 16, 11:59am   19,645 views  312 comments

by Peter P   ➕follow (2)   💰tip   ignore  

All right guys, let's talking about housing again.

How is inventory growing in your area of interest? How are prices responding to inventory? Any observation you would like to share?

#housing

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54   Peter P   2006 Jul 17, 3:58am  

I second Peter P. You guys should really learn from Peter.

But I can move to B. and drive up to Vancouver for food every weekend. :)

Vancouver has all kinds of good food now, not only Asian food.

55   GallopingCheetah   2006 Jul 17, 4:04am  

B. is my retirement place. (I hate to use the word retirement for reasons I pointed out before.) It's close to the San Juans, one of the world's premier cruising ground.

Let us delete (or at least modify) our posts regarding B. Too many people are reading this blog.

56   edvard   2006 Jul 17, 4:18am  

As far as " Nirvanas ruined by newcomers", I don't think this kind of shift in population has happened, at least in a very long time, if ever. The reason being is that as recently as the 1940's, MOST of this country's population lived in the Northeast. The South, midwest, and even West Coast with the exception of parts of California were not heavily populated. I'm only 30, and I can recall a time growing up in rural Tennesee when the roads around our house were unpaved. That says a lot about the state of an entire region in the not so distant past.
These less populated regions have suddenly come into the spotlight. Why? Because the lifestyle that we expect to be dropped in our laps is no longer possible in some areas like NY, CA, etc. The irony is that California was the prime destination of out of work migrant farmers from the depression era. They found a new life here and were able to carve out a lifestyle that became the envy of most countries- a middle class society. Now we find ourselves in the same situation but in reverse. We aren't farmers by any means, but we are now in a situation where we must find another means to live the lifestyle we want, and that means going to a diffrent state- mabe even some of the states that those migrant farmers left long ago.
Simply put, these "other" areas of the country were ignored and underutilized for decades. Now that everyone knows about them, they are going to have incredible growth. That's where I'm placing my bets. California will either have a rich person paradise where everyone- even the neighbors has a million bucks in the bank, or it will have a sagging depressed economy with a sea of non-working policies that caused the housing bubble to happen that will probably stick around for a few more decades, causing even more economic woes until the generation that founded them die out.
If you want to know where the future of the country lies, it isn't here. I'd say any number of midswestern and southern states will be taking up the slack for the next foreseeable future.

57   DinOR   2006 Jul 17, 4:42am  

Returning to the BA,

Of course all our welcome to move to Portland and I believe you would like it. However just a few of the drawbacks are:

The weather, it's depressing not seeing the sun for 9 months and the older I get the faster the summers wizz by.

I'm told it's a terrible place to be single.

High state income taxes.

The weather.

Not nearly as good rest. as the BA.

People "think" this area is more prestigious than BA.

The weather.

HARM and I often kid that Portland is a great place. Just bring your job, spouse and plenty of money with you. Be prepared to get paid less (no matter what you do).

58   Peter P   2006 Jul 17, 4:48am  

High state income taxes.

But no state sales tax. Solution: live in Vancouver, WA and shop across the border. :)

59   GallopingCheetah   2006 Jul 17, 4:53am  

Great summary, DinOr, especially about the weather. I was going to say, the Weather, or more precisely, the long dark days. There's a reason why Starbucks was founded in Seattle. For those who love sunshine, PNW is going to depress you.

Portland has good beers, so said my home-brewer grad-school friend.

Seattle has a blue-collar, working-class root. I think the BA libs who want to move up here will be in for a shock. Better go somewhere else. I heard Minnesota is quite liberal, although the harsh winter is going to freeze your dog's dick dead if he decides to pee on the sidewalk.

60   GallopingCheetah   2006 Jul 17, 4:58am  

s/dick dead/dick off/

61   Peter P   2006 Jul 17, 5:01am  

I heard Minnesota is quite liberal, although the harsh winter is going to freeze your dog’s dick dead if he decides to pee on the sidewalk.

Is it true that liberals tend to be dog people while conservatives tend to be cat people? Just wondering.

62   DinOR   2006 Jul 17, 5:10am  

Peter P,

You certainly wouldn't be the first to suggest and do exactly that! Then to go one better many apartment building complexes in Vancouver, WA have almost ALL OR Lic. plates b/c we charge $40 for two years. It also makes for a "big city" commute everyday coming south into Portland and then northbound at the end of the day. There are only a few square blocks out of all of Portland that are on a par with most other major cities. However, much of the balance of the city is unremarkable. IMO.

63   GallopingCheetah   2006 Jul 17, 5:14am  

$40/twoyear is cheap. Up here, they charge me $150 a year. And then the sales tax. It's robbery.

64   Peter P   2006 Jul 17, 5:14am  

Those are probably my biggest concerns. I dislike the greed and cramped feel of the Bay Area.

Bay Area is not cramped at all. In Tokyo, it is scary.

65   DinOR   2006 Jul 17, 5:19am  

Returning to the BA,

Portland takes pains to remind everyone that he who develops last develops best. The city council is filled with self important dickheads that do exactly as they please (without respect to the voters).

But we still have "big city" style politics. Our former Chief of Police (pretty good guy) was dumped from office over a FIVE YEAR OLD AFFAIR w/former co-worker. The Chief had just gotten divorced and did a few dumb things. NOW 5 years later this comes up just as he is trying to get all of our poor former law enforcement officers OFF of disability and back on a desk job to save the city money! Funny how that came up just as he was trying to clean up a situation of people that "threw their back out" 5 or 10 years ago and are still collecting a FULL paycheck on disability! Anyone attempting to move to Portland b/c they think they will escape that brand of politics is kidding themselves. Sorry.

66   HARM   2006 Jul 17, 5:31am  

@Returning,

L.A. until I can make my own move to one of those nice mid-sized cities in either the Pacific NW or the South. Naturally, I will try to shut to shut the door behind me. :twisted:

I wonder if residents of these CA-exodus destinations will begin to organize their own "Minuteman" border brigades to keep out Kalifornicators?

"So... you say you're from San Dieg-ho, eh...? Sorry, we don't recognize CA drivers licenses here --too much fraud down there. What makes you think you can come here and f@ck up Portland too? "

67   Sylvie   2006 Jul 17, 5:32am  

What is th prognosis for the southern cal area? I left the inland empire area of western san bernardino county. The same crap happening there to a lesser extent. I moved to SC for the time being I'd like to go back but homes tripled in the last five years. Alot of flipping in the LA metro area on dumpster houses in some of the worst areas. Amazingly! they are getting over 500k fr some of this "s'it". The real estate business is scamming consumers here big time..

Your right on with income not keeping up with the cost of living that is why I left. The condo I rent here for $695 would cost me $2000 in california. If the levels ever dropped significantly like pre 2000 prices I may have incentive to return. I remember in 2000 you could still get a decent condo for 150k two years later 225k presently 400k all in a five year span.

The real estate industry in california is saying million dollar homes will be the norm in the next few years. Some of the first 40 year morgage programs are originating from southern cal. So if a million is the norm who are all these people who will be buying at that level? Will companies be paying salaries to suppport that regional market? I think alot of people are in big denial the whole lifestyle there is unsustainable.

I didn't even touch on gas prices and gridlock. That's another problem in itself...

68   speedingpullet   2006 Jul 17, 5:37am  

Re: HARM Said...(paraphrase)

"This is a LOCAL shop,
for LOCAL people.."

{Edward and Tubbs, Royston Vasey residents, 'League of Gentleman'...}

Ah...OK....none of you has the foggiest what I'm on about....

(I'll get me coat......)

69   skibum   2006 Jul 17, 5:39am  

Returning to Bay Area Says:

Every blog I read is full of people who live in Portland clamoring for new comers to not come. They claim Portland is already overbuilt and that paradise will be lost if people continue to move there.

Every place has NIMBY losers like that. The minute you move into town, you join right in with the rest of the NIMBY crowd and cry about how the place is getting overrun with people moving in from XX. PNW uses the BA as a scapegoat, the desert SW uses LA, VT and NH use Boston or NY, etc etc. It's one of the many annoying aspects of human nature.

70   Peter P   2006 Jul 17, 5:42am  

It’s one of the many annoying aspects of human nature.

There is no annoying aspect in human nature. Humanity is the annoying aspect of the universe.

71   DinOR   2006 Jul 17, 5:42am  

HARM,

LOL!

Yes, you'll want to make sure you can get your hands on plenty of Prozac!

As I've always said, I'm not a "Native Oregonian". I grew up on the south side of Chicago. (It's a great place to be FROM)! Since I'm from a "lower caste" than "Native Oregonians" it's not my place to invite or dissuade others to or from our "special" Oregon. When you get your voters pamphlet you'll notice that most of our aspiring candidates list a Cali school under their education credentials. So like I say, you won't be escaping much of anything. Even with a bubble here you can still find decent values. I've lived here off and on since the late 70's and the rain STILL BUGS ME! I was at the coast yesterday and it was 61 degrees. They were having this "Blues and Bar-b-que at the Beach" and it was gusty and chilly. Now on the ride back though it quickly warmed up to 88 degrees within about 30 miles inland.

Assuming you're an "equity locust" keep a little of your powder dry and get a place here and one in LV (just in case).

72   GallopingCheetah   2006 Jul 17, 5:45am  

Hold your judgement.

Generally speaking, the bulk of the migrants (from BA to PNW, from Boston to VT+NH) are average-income families. They just earn more by being in certain high-income locations. They will not bring anything of special values to the communities they move into. Let me repeat. They are just average folks who lose out in their respective environs.

The communities that they move into actually welcome a different set of people, those who can bring something special to the table: Lots of money or special talents or business startups.

73   skibum   2006 Jul 17, 5:51am  

Speaking of this Money magazine survey:
http://money.cnn.com/magazines/moneymag/bplive/2006/index.html

This is an interesting juxtaposition. The first list below is their top 25 cities to live in (based on their measures of jobs, crime, culture, housing, and all that usual stuff-let's assume their methodology is useful for the sake of this argument). The second list is the list of the most expensive towns from the same survey. Note how Santa Clarita is the only CA town to make the best-of living list, while Greenwich, CT and Bethesda, MD are the only NON-CA towns to make it to the most expensive list? In other words, we Californians pay too much to live in places that aren't worth the money.

But we knew that already, didn't we?

Best Places to Live:
(Rank, City, population)
1 Fort Collins, CO 128,000
2 Naperville, IL 141,600
3 Sugar Land, TX 75,800
4 Columbia/Ellicott City, MD 159,200
5 Cary, NC 106,400
6 Overland Park, KS 164,800
7 Scottsdale, AZ 226,000
8 Boise, ID 193,200
9 Fairfield, CT 57,800
10 Eden Prairie, MN 60,600
11 Plano, TX 250,100
12 Eagan, MN 63,700
13 Olathe, KS 112,100
14 West Bloomfield , MI 65,000
15 Richardson, TX 99,200
16 Gilbert, AZ 178,100
17 Parsippany-Troy Hills, NJ 51,600
18 Santa Clarita, CA 172,500
19 Carrollton, TX 124,700
20 Henderson, NV 232,100
21 Bellevue, WA 117,100
22 Newton, MA 83,200
23 Sandy, UT 89,700
24 Westminster, CO 105,100
25 Ann Arbor, MI

Here are the cities with the highest median home price.
(Rank, city, median home price 2005)
1 Newport Beach, CA $1,362,500
2 Greenwich, CT $1,129,000
3 Santa Barbara, CA $979,500
4 Palo Alto, CA $929,000
5 Cupertino, CA $880,000
6 Goleta, CA $870,000
7 San Clemente, CA $848,500
8 Bethesda, MD $790,000
9 Pleasanton, CA $785,000
10 Santa Monica, CA $784,000
11 Redondo Beach, CA $777,500
12 Redwood City, CA $767,500
13 San Francisco, CA $755,000
14 Yorba Linda, CA $750,000
15 San Rafael, CA $745,000
16 Encinitas, CA $742,500
17 San Ramon, CA $725,000
18 San Mateo, CA $720,000
19 Arcadia, CA $703,000
20 Santa Cruz, CA $690,000
21 South San Francisco, CA $690,000
22 Berkeley, CA $683,500
23 Alameda, CA $682500
24 Carlsbad, CA $680,000
25 Huntington Beach, CA $678,500

74   HARM   2006 Jul 17, 5:53am  

Skibum,

Considering what NIMBY anti-development policies combined with pro-illegal "all population growth is good" politics have done to CA, I wouldn't be too quick to label these people "losers". Some of them may be trying to preserve what makes these places worth moving to.

That said, I believe the quality of immigration matters just as much to the locals as quantity. As GC said, if you bring something special to the table, you will probably be welcomed with open arms wherever you go.

75   skibum   2006 Jul 17, 5:55am  

Hold your judgement.

Generally speaking, the bulk of the migrants (from BA to PNW, from Boston to VT+NH) are average-income families. They just earn more by being in certain high-income locations. They will not bring anything of special values to the communities they move into. Let me repeat. They are just average folks who lose out in their respective environs.

The communities that they move into actually welcome a different set of people, those who can bring something special to the table: Lots of money or special talents or business startups.

GC,
I'm trying to understand your point. Are you saying don't blame the equity migrants, they're just trying to get by and moving to cheaper regions is their response to overpriced cost of living, or are you saying, the locals in these communities are selfish and only want you to move there if you're loaded or will create jobs?

76   GallopingCheetah   2006 Jul 17, 5:57am  

skibum, HARM got it right.

77   Peter P   2006 Jul 17, 5:58am  

No wonder I’m confused. I have a cat AND a dog.

We have a dog-like cat. :)

78   skibum   2006 Jul 17, 6:00am  

That said, I believe the quality of immigration matters just as much to the locals as quantity. As GC said, if you bring something special to the table, you will probably be welcomed with open arms wherever you go.

That's a fine aspiration to have, but as of now, you can't restrict which people move into your region based on whether they will be positive or negative for your community. It's a free country still, and a young brilliant guy/gal wanting to create a startup in your town has the same right to move there as a retiring boomer couple that will buy up a historic home, tear it down and build a McMansion in its place (aside from any preservation laws, etc). Of course, the local community can legislate all they want in terms of "smart growth" and limiting sprawl - I'm all for that. My point is that I've seen in more than one instance that some of the most vocal NIMBYists are the most recent migrants to that region.

79   DinOR   2006 Jul 17, 6:01am  

Skibum,

Assuming that article is accurate then 23 of the top 25 median priced home markets are in CA? Did I read that right?

80   Peter P   2006 Jul 17, 6:03am  

So…you’re liberally conservative????
or
Conservatively liberal???

I definitely like to eat liberal food. :)

81   Peter P   2006 Jul 17, 6:04am  

Assuming that article is accurate then 23 of the top 25 median priced home markets are in CA? Did I read that right?

And Cupertino is #5! Ha Ha.

82   Peter P   2006 Jul 17, 6:07am  

1 Newport Beach, CA $1,362,500 - Nice beach and weather

2 Greenwich, CT $1,129,000 - Hedge funds

3 Santa Barbara, CA $979,500 - Nice beach and weather

4 Palo Alto, CA $929,000 - Stanford

5 Cupertino, CA $880,000 - Huh???

83   skibum   2006 Jul 17, 6:09am  

DinOR,

Yup, sad to say it is true. What this list doesn't even tell you is the value/quality of those median priced homes. I'll bet a median priced home in Bethesda, MD is a heck of a lot nicer to live in than the median priced home in Cupertino.

84   GallopingCheetah   2006 Jul 17, 6:09am  

skibum,

The key is to carve out a place in the community. I don't mean a dwelling place, but a purposeful position in your community, be it public service or business or employment. One has to serve a function in the community.

Let us analyze the situation.

1. You are a middle-income worker who decides to take the money that you saved from your high-paying BA job and buy a house in PNW.

2. Suppose you cannot buy the house outright. You will have to work to pay off the mortgage. You will just be like an average worker in PNW, except your added savings will jack up the housing costs here and your daily commute will add to the worsening traffic jams. In other words, you don't really win and local people lose a little.

3. Suppose you have just enough money to buy an average single family house to retire. Then what? How are you going to spend the rest of your life? You are not rich enough to support the local community. All you can contribute is to pay property taxes and sales taxes. You, though taking up a single-family dwelling that should have belonged to a contributing adult, are irrelevant in the community that you move into. You are nobody, worse than the ones who are making minimum wages.

4. Now, suppose you are a hot-shot ballarina who happens to like PNW. You come here and help improve the cultural life in PNW. People love you, even though you don't rake in as much as a Silicon Valley software engineer. You enjoy your life here, becuase you are part of the community and are respected.

5. Now, suppose you are a successful enterpreneur and you love PNW. You move your company here from Alberqueuque, NM and create many, many jobs in this area.

Do you get my point?

You have to pick a place that you like, stay and fight for your existence.

85   Peter P   2006 Jul 17, 6:12am  

You have to pick a place that you like, stay and fight for your existence.

Another option: telecommute from Vancouver WA, shop in Portland, OR and keep the BA salary. Maximum arbitrage.

86   DinOR   2006 Jul 17, 6:19am  

GC,

Good points. I for one am tired of hearing that the retirees/boomers are "the goose that laid the golden egg"! Some will have a positive impact by making some form of contribution but no, your unshaven face, baggy shorts, a hat with droppings on it that says "Damn I hate seagulls", shirt that says "Don't ask me for Money I'm Retired" and the occasional purchases you make do not constitute a "contribution".

87   Peter P   2006 Jul 17, 6:20am  

If I moved to Portland, then purchased a home in a beautiful area with a nearby lake and copses of trees, then builders came in and tore down the trees and emptied the lake for new construction, then I would be mad as hell. Who wouldn’t?

I am pro-development. If I buy a house next to a park I would always keep in mind the possibility that it may be developed someday.

Moreover, if you want to preserve your environment, you can always buy the lake, the trees, and the land around you.

88   skibum   2006 Jul 17, 6:26am  

GC,
I did get your point from the get-go. I'm not an idiot and your "Do you get my point?" comment is borderline condescending. Of course your examples make sense. In fact I agree with you. In the ideal world, every member of your local community should add to the community, making it a better place to live for everyone (your ballerina example). We would all love that.

However, you have yet to acknowledge my 2 points about this. First, you as a "local" can clamor all you want on message boards, but people who are merely going to be social/community ballasts are still going to move in to a place they perceive as "nirvana." In fact, the more you clamor, the more people will get the notion that this place is a "great place to live." Until you secede from the US and impose strict immigration standards (turn the PNW into Switzerland, for example), it is difficult to stem the tide of migration. Second, to reiterate again, my now obscured other point was merely that my observation is that many of the most vocal NIMBYists are the most recently moved to that area.

89   GallopingCheetah   2006 Jul 17, 6:28am  

WoW, I sense a war has come my way.

90   Peter P   2006 Jul 17, 6:30am  

I sense a war has come my way.

No war for you. It is all in the middle east now.

91   skibum   2006 Jul 17, 6:31am  

GC,
Not war, just clarification. You're just much more idealstic than I am about this whole thing.

92   skibum   2006 Jul 17, 6:32am  

Peter P Says:

5 Cupertino, CA $880,000 - Huh???

You are paying to live within the Google sphere of influence.

93   Peter P   2006 Jul 17, 6:33am  

You are paying to live within the Google sphere of influence.

LOL :lol:

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