No Cheap Inventory. Sales Falter

[Terrel L. Shields]

Quite a few listings under contract are returned to market because the buyer's financing falls through and they cannot perform.

interesting... but sellers unwilling lower prices for the most part.

 

[jay trotta]

Playing with the real estate industry, is Not like playing with automobile makers or FNMA/FREDDIE MAC, those area's saw Billions of Bailout money, Real Estate not so much. When you can offer 2-4% Mortgage rates and no one can afford to Buy, it should be a major concern to the Leaders and Captain of the ship.
Always interesting how the political parties view the Industry that grew the country; as always curious George.

 

[Tim The Enchanter]

Nothing "affordable" here unless you are poor and get subsidized, or are really poor and live in a tent on the street.

I checked my middle of the road type hoods 91335 zip, there are 4 listings between $225k and $300k and nothing lower.
Two 2 bedroom fixer condos, or 2 scraper houses.
Upping the limit to $400k gets a total of 23 active or pending, almost all condos.
Rent a 3 bedroom house you are looking at $2800 - $3000 ish per month. Lots of people don't even make that much. Not fitting the definition of affordable.

But, people keep coming here and staying. Employment is apparently not hard to find, and construction is everywhere. Little jobs and really big ones. Sales of condos and houses keep chugging along at a decent clip.
This is def not a declining population, circling the drain kind of place, like some others.
Oops, sorry I meant.

Point is I have no faith in those national numbers. Imho they are borderline meaningless and misleading.
The sky is falling! No, break out the champagne and bottle rockets!
One size does not fit all, not even close.

 

[Joe Flacco]

The compensation for new jobs being created in a market is probably better for measuring affordability than median income for the market.

 

[Tim The Enchanter]

The compensation for new jobs being created in a market is probably better for measuring affordability than median income for the market.

Some areas new jobs being created pay big bucks, software, tech, etc. Affordable means something different to someone making 7 figures than someone making minimum wage. What happens to all the old economy people? The waiters, grocery clerks, blue collar Joe and Jose of all trades whose services are also needed?
Blue collars matter!

So, Ima disagree with that.

 

[Joe Flacco]

Part of the problem is that land use restrictions have artificially severely reduced the amount of available land for development in many jurisdiction, creating a shortage and severely driving up the price of housing in those jurisdictions. This problem is particularly acute in some areas of California, but is also a big issue in many other areas (such as Montgomery County, MD where you live).

You can find affordability in the DC area if you try. But you have to sacrifice schools, commute time, or both. Depending on how much affordability you want.

 

[Tim The Enchanter]

You can find affordability in the DC area if you try. But you have to sacrifice schools, commute time, or both. Depending on how much affordability you want.

That idea works here too. Moving to a sketchy hood such as Compton or Watts, is more affordable than other parts of the metro area.
But moving out to the desert gets you the most bang for your back. Also the longest commute, hottest heat, coldest cold, most blowing dust, and windiest wind.
So, you get it all.

 

[Tim The Enchanter]

Addendum. Except you live in a trailer park outside Rosamond or something.
Now we are talking bleak. As Larry Miller said, There are 5 levels of drinking. Six if you live in a trailer park.

 

[timd354]

You can find affordability in the DC area if you try. But you have to sacrifice schools, commute time, or both. Depending on how much affordability you want.

Living in a crap neighborhood with crap schools and/or with a crappy commute is not really a good alternative.

 

[Joe Flacco]

Living in a crap neighborhood with crap schools and/or with a crappy commute is not really a good alternative.

People don't live in those neighborhoods because they want to. I don't know what the answer is. That's just life. Gotta make choices.