Want to Buy a House? Too Freaking Bad.

I’ve said before that I’m waiting for the next earthquake to scare a bunch of people off and make home prices drop here in LA so that I can actually consider buying something but Mack Reed isn’t helping with that encouragement. He says “Stats in today’s California Ass’n. of Realtors report say that 82% of the people in Los Angeles cannot afford home ownership – up from 77% of us who couldn’t afford it last year.” You can go read the rest of his story if you want more details but I’m leaving it at that because it’s just too damn depressing.

2 Replies to “Want to Buy a House? Too Freaking Bad.”

  1. Hang in there Sean! Rome was not built in a day. Buy a condo now, sale it in two years, buy something slightly bigger with the equity, and do it again periodically unitl you are comfortable with what you own. Look at me; from a one-room walk-up in South LA to a spread in Mailbu where one day aspiring porn thespians will blanket into the air with wild abandon. It all depends on how bad you want it.

    JT

  2. Hey, I know it’s difficult but the longer you wait and are not “in the game”, the more difficult it will be to get in. Right now there are ways where just about anyone can buy a home, it just takes effort and knowing some of the right helpful people. L.A. has finally hit “Saturation Impact”. Basically this means no more available land in reasonable distance to build new housing to meet buyer demand. When a city hits this stage, usually greater density helps fill the need, but not here. Too many are opposed to density, and the extreme lack of public transportation helps prohibit it. But yet, demand is still increasing. Inventory levels (homes for sale) are at near historic lows with very strong buyer demand. We are starting to see bidding wars again. The bottom line is, you will be way better off finding a way to “get it together” and get in now, because you will appreciate the equity you will build. Not only that, but low interest rates have kept rents artifically low for too long (from a market cycle perspective – not a moral one) and rents are projected to be increasing significantly over the next three years. And yes, there are people out there willing to help… just be aware…

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