Things Happen For A Reason
omega1,
thanks for the reminder to be patient and cautious. it says a lot about you, offering good advise to a total stranger, so thanks again.
i agree things happen for a reason. i think there's a number of reasons why cali prices are high. heres my list of reasons, those having the most impact ordered first.
1. access to income (jobs)
2. access to family, elderly or young not wanting to be far from their home.
3. entertainment, things to do
4. climate and beauty
Why is the state of Nevada growing the fastest? Jobs, inexpensive housing, relatively close to family in cali, entertainment. I used to think climate and beauty were high on the list, but not anymore, i think it's important to some but not the majority. The numbers have to pan out, income versus cost of housing, and this is why for the first time more are leaving cali than moving here, and why more multinationals are jumping on the bus to places like GA and NC.
what do you think, what's your list of reasons why some areas appreciate, while others dont?
Supply and Demand #1
Land, or lack therof, figures greatly into appreciation.
If you look at some of the most expensive markets in the U.S. (the Boston and New York metropolitan areas), you'll find a land shortage.
When there's nowhere left to build, existing home prices are bound to skyrocket.
Land...God's not making any more of it.
[addsig]
wheelerDealer. supply and demand true, but what influences demand?
monkfish. i bet there are many places where development is limited, but values are low. For example, an area bordering national forest, undeveloped, without job availability or easy access to a metro area.
Whatcha all think?
fuzzwich,
I think you, monkfish and WheelerDealer are pretty much saying the same thing. Demand (created by perception or influx of industry, advantages or amenities of the area, quality school system, etc.) is what drives the need for supply. You put your finger on it -- where there's a shortage of supply, there has to be a demand for values to go up. Shortage of supply isn't the whole answer.
Also, don't underestimate the influence of "perception" which can often be different from the reality. If people think an area is desirable, that will create demand which, in turn, will create the supply. Doesn't really matter if the area is, in fact, desirable. Only matters what the market perception is.
Nancy,
i agree AND dissagree with you.
Regardless of the perception there is only so much real estate in one area. If you cant spread out you have to go up and when you cant go up you have pay big.
Without demand you are dead.
Some places have supply but no demand. Montanna anyone?
WheelerDealer,
About the impact of perception..
What I was saying is that sometimes perception creates demand, not that perception is always the cause of creating demand. Demand can be created by several things, and perception is only one of those.
I have also seen perception work in a negative way relating to demand -- in other words, if people perceive X area to be undesirable, then the demand for that area plummets.