Cali Real Estate Premium Now Gone

Posted by $ Abaco 6 years, 2 months ago to Economics
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I was talking with a buddy last night out in front of my place about this. Almost all of my life I've lived in California. My folks made very good money on real estate here years back...mainly by mostly hanging on to homes we lived in, rather than selling, when we'd move up to the next one. The one thing that always stayed true until now is this: If you owned a nice home in the suburbs in California you always had the option to move to a nice rural place anywhere else in the US and trade up to acreage, a larger home, lake views...etc. Not any more. I pointed to my home last night and said, "That home? That home is $580K in Sparks." (It's $400k in my hood, at most) I know, because in looking at real estate in the Reno area I made the sobering realization that I'll have to sell two homes here to buy one comparable one there.

The same applies on a macro scale, too. Want a nice house in Panama? Landscaped yard? Quiet street? Several hundred thou$and. I've been a econ geek my whole life and I've never seen this. I find it very interesting...


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  • Posted by RobMorse 6 years, 2 months ago
    Reno, and to an extent Las Vegas, are driven by the CA economy. Cough. I left CA and moved to the gulf states..and never looked back. We bought a slightly smaller house for half the price. This is in the fastest growing county in the US.
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  • Posted by freedomforall 6 years, 2 months ago
    When I was searching overseas for a place to live it was clear that you could buy a cheap place but if you wanted a US style place they were being built and sold by people with roots in the US at US pricing. Why buy a beachfront condo in a 3rd world country that costs the same as one you can find in the US? Didn't make sense to me.
    But there are cheaper properties for sale, for example, on beachfront near Merida Mexico, but the neighbors might include houses that were storm damaged and won't be repaired for decades.
    California real estate is so far overpriced I don't think there are any decent properties at a fair price (for me.) I wouldn't buy there even if I won the lottery (because I would be creating a real Gulch with lottery proceeds;^)
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