Dr. Housing Bubble 07/02/14

[Crewleader]

California’s dwindling middle class: California is gaining more renter households, a drop in homeownership, and housing affordability continues to be a problem.

The housing wealth effect is in full motion. There are many people in the market that see the rise in home equity and are now out buying bigger ticket items and also, upgrading their homes. You also have the flipper brigade being cheered on by house lusting cable television watchers. The Kardashians for the teens, the flipping shows for the Taco Tuesday adults. In California, a large group of “professionals” in the industry are disconnected from what it takes to build a quality home. Most have no sense of value and this is evident by the 1 or barely 2 toilet homes selling for ridiculous prices. On Main Street most people are brainwashed into now thinking real estate is a no brainer. You can only win, says the guy with veneers and pinstripe suit. The bread and circus is out in full fashion. Granite countertops, hardwood floors, and recessed lighting bamboozles the public from actually looking deeper into the bones of a property. If you look beyond all of this noise, the regular buyer is being screwed. Many can’t compete and are leaving the state. We have 2.3 million adults living at home with parents because they financially can’t even afford a rental let alone a home to purchase. A good portion of these folks are the BMW, latte drinking, iPhone crazed, and weekend partiers that want the L.A. nightlife but return after their escapades conclude to their parent’s home. Although inventory has risen this year and the mania has slowed down, the fever is still hot. For California’s shrinking middle class, you are seeing a state with a small section of growing affluence and a larger section of those struggling to hold on.

The shrinking homeownership rate

http://www.doctorhousingbubble.com/california-middle-class-housing-affordability-home-ownership-rate-renters/

[upaloopa]

1. There are so many pop up ads on the link page

It is too frustrating to try and read!