A few quick things you need to understand about CA real estate:
- The typical time frame for a house to double in value is 30 years from date of purchase.
- Median income in CA went from $29,275 in 1969 to $47,493 in 1999. This is nearly a doubling of median CA income in 30 years.
- The two points above correlate to an “affordable” real estate market where prices double as incomes double over a specific period of time.
- An abnormal real estate bubble occurred and then burst in the mid 2000s due to no doc loans and “banks gone wild” financing.
- Even with this bursting of CA’s real estate bubble, house prices have doubled since 1999 (about 13 years ago)
- During this same timeframe, median income in CA only went from $47,493 to $57,664.
- Where in the #^T@# do you think demand is going to come from to keep feeding this real estate market? In a near fiscally bankrupt state where median income is contracting faster than anywhere else and the unemployment rate is sky high?
YOU HAVE TIME TO WAIT. HOUSE FEVER IS GOING TO CAUSE YOU TO DO SOMETHING STUPID. YOU’RE NOT GOING TO BECOME A MILLIONAIRE IF YOU SIGN UP FOR HUGE MORTGAGE PAYMENTS IN HOPES OF YOUR HOUSE DOUBLING IN VALUE.