Less than 20% fall in home prices will destroy the banking system?

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Quote from IanMacQuaide:

TX/CA comps.
My Mother in law's house, right outside of Hayward CA is just a few ft shy in sq footage, of our house, and we live just north of Houston.
Her house last appraised, by a bank no less, for $680,000.00.

Our neighborhoods are quite similar.

Ours appraised, by a bank, for $85,000.00

So when home prices in CA come down 800%, they'll stop moving to TX.

I don't see that happening in this century, but I could be wrong.
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Thanks for the comparisons...The lifestyle in California is also part of the sale. We live in NYC and pay 10X or more what you guys pay for rent in Texas or even in Oregon where we moved from...but the cultural aspect is great.

Hayward(don't take offense) is a pretty big shithole too. Close proximity to San Francisco I guess.

I don't think your mother-in-law would have an easy time selling her house right now for bank appraisal prices...that's just a guess though.

cheers and thanks.
 
Yeah, but there jobs paying good money in Hayward. Not everyone can get a job, but those who do, get paid twice as much as those in Texas, and the chance of finding a job is several times higher. That's key.
Plus weather in SF Bay area is several times better.
 
Quote from Adobian:

Yeah, but there jobs paying good money in Hayward. Not everyone can get a job, but those who do, get paid twice as much as those in Texas, and the chance of finding a job is several times higher. That's key.
Plus weather in SF Bay area is several times better.
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What good is getting paid twice as much in Cali when your housing cost is 5 times as much and you have to pay a state income tax as well and pay a dollar more per gallon for gas ?
 
I"d argue the pay is twice what it is in TX.
Lets say for arguments sake that in TX I get a job at $20 pr hr.
In Hayward, I'll make $28 pr hr.

How the heck do I buy a house for $450,000, with a commute time from Tracy (cuz I can't find a decent neighborhood in Hayward and a house I"d live in for $450,000 so I buy in Tracy) over the Altamont hills, at 1hr 15 mins on a GOOD day which puts my gas bill at $400 a month, on $28.00 an hour?

In TX, I can get a decent little house for 80K, and less than 1hr commute time- and get by on $20 an hour, providing my wife works pt time.

Where can you buy a house in CA for 80k ??

Blast"Hayward(don't take offense) is a pretty big shithole too. Close proximity to San Francisco I guess. "

Yup, all very true. And no, Momma in Law ain't gonna get 650K for that house right now. But I"d bet she could get 500K tonite!
They bought it in 1964 for 29K !!
And the day my house sells for 500K will be in my dreams.HA!
 
do you get a good sleep as I do, every night in San Francisco ? I wake up with freshness in my body. Can you afford to have that in TX ?

You also forget that the chance to get a $28/hr job in SF Bay Area is five times that getting a job for $20/hr in TX. What about education for your kids ?
 
Quote from Adobian:

do you get a good sleep as I do, every night in San Francisco ? I wake up with freshness in my body. Can you afford to have that in TX ?

You also forget that the chance to get a $28/hr job in SF Bay Area is five times that getting a job for $20/hr in TX. What about education for your kids ?
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Adobian, you make some valid points and I'm on par with you.

Having never lived in Texas I might sound biased...but I'd rather be poor in California than wealthy in Texas. The weather in California is great as are the forests, mountains, beaches, sights, etc. Texas doesn't offer much in the way of nature that is as appealing. California has a lot to offer. Its price is in the lifestyle and weather. I'm one to say that's worth paying for. Others won't. Apparently you're of the same mind as me.

I never understood the people who moved to Bakersfield to save a little money on a house...that's like Texas heat and aaridness in California sort of.
 
Quote from blast19:

Adobian, you make some valid points and I'm on par with you.

Having never lived in Texas I might sound biased...but I'd rather be poor in California than wealthy in Texas. The weather in California is great as are the forests, mountains, beaches, sights, etc. Texas doesn't offer much in the way of nature that is as appealing. California has a lot to offer. Its price is in the lifestyle and weather. I'm one to say that's worth paying for. Others won't. Apparently you're of the same mind as me.

I never understood the people who moved to Bakersfield to save a little money on a house...that's like Texas heat and aaridness in California sort of.
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That cali smog is sure refreshing in the morning eh ? You've got us beat on the humidity problem but that seems like small trade off for 500 Sqft housing, $ 1 per gallon more per gas, and a state income tax. As far as scenery, you can find pretty much everything in texas from mountains to sandy beaches. I know of some larger ranches that will blow your mind with breath taking bluffs and spring fed creeks.
 
Quote from Adobian:

do you get a good sleep as I do, every night in San Francisco ? I wake up with freshness in my body. Can you afford to have that in TX ?

You also forget that the chance to get a $28/hr job in SF Bay Area is five times that getting a job for $20/hr in TX. What about education for your kids ?
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I sleep quite well when I am not up trading ES during the night. Where do you get your statistics from ? I know quite a few " laborers" that make 18 to 20 framing and painting houses and they never even went to highschool. Hell I know a plumber who made 6 figures last year and never went to college. His lowest helper make 15 an hour and all he does is grunt work. I know a 50 year old hispanic guy who paints cars at a Ford dealer. He averages 900-950 take home after taxes each week and never went to highschool. Don't get me wrong, I have always liked cali ever since my visit. Each state has its pros and cons. I would love to have the same time zone over here.
 
If I lived in Cali, I would think the smart bet would be to sell now, and either rent there until the housing correction grows in speed and severity (which I think it will), and then either repurchase closer to the bottom, or take my cash, and roll it over into a more affordable area of the country (up to 500k of gains is tax exempt, so moving to an affordable place like Austin, Texas, which has a very high quality of life, might make great sense).
 
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