Rob showed a stripped 6-bedroom McMansion in the desert that's listed for $150k. But the house above is much more practical for the average real-world family. A typical "snout house," 1900 square feet, 4 bedrooms. Granted, it's out in the boonies, but it looks OK. It's also fairly new.It sold for $344,000 in 2006. Now? They're asking $90k. That's a nice, tidy haircut and at $47/square foot those are Katy (north of I-10) prices. With that first-time buyers credit and a boring 30-year loan, it works out to $440/mo.
We are finally seeing rationality make a comeback. I said back in January that many of the more grotesque bubblezones around the country will bottom out this year and I stand by my prediction.
Californians are no longer insane. At least inland.
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These generic snouties also carry annual tax bills of $1200 or less. I think the $90k Katy houses run a bit higher? Like $150/mo higher?
BTW, California is still insane and what ails it ain't gonna be cured by home prices.
In Texas, figure 3% across the board for property taxes. At $90k that's about $2700 for a typical snout house. That's all property taxes together (county, ISD, MUD). Insurance runs about $900/yr along the Gulf coast. We don't have any Mello-Roos type stuff here.
So, for less than $800/mo PITI, Californians can own a decent, plain-vanilla house. I think that is reasonable.
Rob, I am definitely not qualified to judge because you are personally familiar with what is happening in your state. I am just an occasional visitor every two years or so.
That commute must be a bitch, though. I checked it on Google Maps. Holy crap, that is one long haul to the job centers.
The higher end houses in more desirable areas (not Beverly Hills yet) are on their way down finally. Sherman oaks, Woodland Hills. Foreclosures here too.
This house, and others like it, are still RARE anomolies. It's a bit premature to give the all-clear on Cali sanity!
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