2018 Housing Prices, what are the indications?

[misme]

What's your source on that for the median Irvine household income? I am seeing a much lower number listed using google.

And your source for the median income of millenials living and/or working in Irvine?

Wikipedia: $90,585https://en.wikipedia.org/wiki/Irvine,_California

City of Irvine: $92,663http://www.cityofirvine.org/about-irvine/demographics

datausa.io: $93,781https://datausa.io/profile/geo/irvine-ca/

Trulia is $100,521.https://www.trulia.com/real_estate/Irvine-California/

Census.gov (based on 2016)
Median income in 2016 dollars: $93,823https://www.census.gov/quickfacts/fact/table/irvinecitycalifornia/PST045216


Let's just say $93K is the median household income, ya heard!?!   

If you have to ask this question, I'm guessing you're falling behind the rat race?  ;D

Yes that means household (all persons combined in the house) median is 90K...not individual. You multiplied 90K x 2 to arrive at 180K but that is not correct. It's 90K as you just sourced for couples in Irvine.

We've had this discussion before and median household income for Irvine is a little distorted due to the university students, and also due to FCB's that don't report income.  Even if you removed those two groups, I don't think the household median income would be close to $180k though.

Does it really matter what's the median household income of Irvine are since majority of household are not in the market buying a home?  The buyer pool's median income is all that matter but that info is really hard to come by.

Also if we look at median household income of Newport Beach, which is $106,333 according to wiki, that also doesn't explain how these household can afford the median home price of Newport Beach at $1,741,900 (according to Zillow).

A generation or two ago, Newport Beach was not that exclusive. Many of the long time residents had relatively normal jobs. East Bluff houses were built for normal workers in the aerospace industry in the 1960s, and now they go for 2 million and up.  Respectable people living in Pasadena and Santa Ana in the 1950s and 60s looked down upon the trashy people living year round in shacks by the beach in Newport! Laguna was started as a hippie artists colony.  You have to take a long term view of things. Neighborhoods change a lot. 

Lots of old people in Newport living in homes they've owned for ages, and bought when it wasn't that expensive. Or younger people living in a family home they inherited, but may have more "normal" jobs and likely wouldn't be able to afford to buy the same house if they had to do it on their own.  1.7M average purchase price in Newport is for the newly turned over homes, reflecting the income of the new buyers, and what they can afford. 100K household income seems incongruous, because it averages in all the retired seniors and long time owners who bought before the area became super expensive.

 

[Ready2Downsize]

What's your source on that for the median Irvine household income? I am seeing a much lower number listed using google.

And your source for the median income of millenials living and/or working in Irvine?

Wikipedia: $90,585https://en.wikipedia.org/wiki/Irvine,_California

City of Irvine: $92,663http://www.cityofirvine.org/about-irvine/demographics

datausa.io: $93,781https://datausa.io/profile/geo/irvine-ca/

Trulia is $100,521.https://www.trulia.com/real_estate/Irvine-California/

Census.gov (based on 2016)
Median income in 2016 dollars: $93,823https://www.census.gov/quickfacts/fact/table/irvinecitycalifornia/PST045216


Let's just say $93K is the median household income, ya heard!?!   

If you have to ask this question, I'm guessing you're falling behind the rat race?  ;D

Yes that means household (all persons combined in the house) median is 90K...not individual. You multiplied 90K x 2 to arrive at 180K but that is not correct. It's 90K as you just sourced for couples in Irvine.

We've had this discussion before and median household income for Irvine is a little distorted due to the university students, and also due to FCB's that don't report income.  Even if you removed those two groups, I don't think the household median income would be close to $180k though.

Does it really matter what's the median household income of Irvine are since majority of household are not in the market buying a home?  The buyer pool's median income is all that matter but that info is really hard to come by.

Also if we look at median household income of Newport Beach, which is $106,333 according to wiki, that also doesn't explain how these household can afford the median home price of Newport Beach at $1,741,900 (according to Zillow).

A generation or two ago, Newport Beach was not that exclusive. Many of the long time residents had relatively normal jobs. East Bluff houses were built for normal workers in the aerospace industry in the 1960s, and now they go for 2 million and up.  Respectable people living in Pasadena and Santa Ana in the 1950s and 60s looked down upon the trashy people living year round in shacks by the beach in Newport! Laguna was started as a hippie artists colony.  You have to take a long term view of things. Neighborhoods change a lot. 

Lots of old people in Newport living in homes they've owned for ages, and bought when it wasn't that expensive. Or younger people living in a family home they inherited, but may have more "normal" jobs and likely wouldn't be able to afford to buy the same house if they had to do it on their own.  1.7M average purchase price in Newport is for the newly turned over homes, reflecting the income of the new buyers, and what they can afford. 100K household income seems incongruous, because it averages in all the retired seniors and long time owners who bought before the area became super expensive.

Young people who inherited homes there were able to keep the property taxes their parents had. Why bother and sell something that has such low property taxes?

 

[noMoneyBackin2011]

What's your source on that for the median Irvine household income? I am seeing a much lower number listed using google.

And your source for the median income of millenials living and/or working in Irvine?

Wikipedia: $90,585https://en.wikipedia.org/wiki/Irvine,_California

City of Irvine: $92,663http://www.cityofirvine.org/about-irvine/demographics

datausa.io: $93,781https://datausa.io/profile/geo/irvine-ca/

Trulia is $100,521.https://www.trulia.com/real_estate/Irvine-California/

Census.gov (based on 2016)
Median income in 2016 dollars: $93,823https://www.census.gov/quickfacts/fact/table/irvinecitycalifornia/PST045216


Let's just say $93K is the median household income, ya heard!?!   

If you have to ask this question, I'm guessing you're falling behind the rat race?  ;D

Yes that means household (all persons combined in the house) median is 90K...not individual. You multiplied 90K x 2 to arrive at 180K but that is not correct. It's 90K as you just sourced for couples in Irvine.

We've had this discussion before and median household income for Irvine is a little distorted due to the university students, and also due to FCB's that don't report income.  Even if you removed those two groups, I don't think the household median income would be close to $180k though.

Does it really matter what's the median household income of Irvine are since majority of household are not in the market buying a home?  The buyer pool's median income is all that matter but that info is really hard to come by.

Also if we look at median household income of Newport Beach, which is $106,333 according to wiki, that also doesn't explain how these household can afford the median home price of Newport Beach at $1,741,900 (according to Zillow).

A generation or two ago, Newport Beach was not that exclusive. Many of the long time residents had relatively normal jobs. East Bluff houses were built for normal workers in the aerospace industry in the 1960s, and now they go for 2 million and up.  Respectable people living in Pasadena and Santa Ana in the 1950s and 60s looked down upon the trashy people living year round in shacks by the beach in Newport! Laguna was started as a hippie artists colony.  You have to take a long term view of things. Neighborhoods change a lot. 

Lots of old people in Newport living in homes they've owned for ages, and bought when it wasn't that expensive. Or younger people living in a family home they inherited, but may have more "normal" jobs and likely wouldn't be able to afford to buy the same house if they had to do it on their own.  1.7M average purchase price in Newport is for the newly turned over homes, reflecting the income of the new buyers, and what they can afford. 100K household income seems incongruous, because it averages in all the retired seniors and long time owners who bought before the area became super expensive.

Young people who inherited homes there were able to keep the property taxes their parents had. Why bother and sell something that has such low property taxes?

See this I don't like....inheriting a house and maintaining 1960s and 1970s property taxes.

 

[Burn That Belly]

x

 

[Kings]

What's your source on that for the median Irvine household income? I am seeing a much lower number listed using google.

And your source for the median income of millenials living and/or working in Irvine?

Wikipedia: $90,585https://en.wikipedia.org/wiki/Irvine,_California

City of Irvine: $92,663http://www.cityofirvine.org/about-irvine/demographics

datausa.io: $93,781https://datausa.io/profile/geo/irvine-ca/

Trulia is $100,521.https://www.trulia.com/real_estate/Irvine-California/

Census.gov (based on 2016)
Median income in 2016 dollars: $93,823https://www.census.gov/quickfacts/fact/table/irvinecitycalifornia/PST045216


Let's just say $93K is the median household income, ya heard!?!   

If you have to ask this question, I'm guessing you're falling behind the rat race?  ;D

Yes that means household (all persons combined in the house) median is 90K...not individual. You multiplied 90K x 2 to arrive at 180K but that is not correct. It's 90K as you just sourced for couples in Irvine.

We've had this discussion before and median household income for Irvine is a little distorted due to the university students, and also due to FCB's that don't report income.  Even if you removed those two groups, I don't think the household median income would be close to $180k though.

Does it really matter what's the median household income of Irvine are since majority of household are not in the market buying a home?  The buyer pool's median income is all that matter but that info is really hard to come by.

Also if we look at median household income of Newport Beach, which is $106,333 according to wiki, that also doesn't explain how these household can afford the median home price of Newport Beach at $1,741,900 (according to Zillow).

A generation or two ago, Newport Beach was not that exclusive. Many of the long time residents had relatively normal jobs. East Bluff houses were built for normal workers in the aerospace industry in the 1960s, and now they go for 2 million and up.  Respectable people living in Pasadena and Santa Ana in the 1950s and 60s looked down upon the trashy people living year round in shacks by the beach in Newport! Laguna was started as a hippie artists colony.  You have to take a long term view of things. Neighborhoods change a lot. 

Lots of old people in Newport living in homes they've owned for ages, and bought when it wasn't that expensive. Or younger people living in a family home they inherited, but may have more "normal" jobs and likely wouldn't be able to afford to buy the same house if they had to do it on their own.  1.7M average purchase price in Newport is for the newly turned over homes, reflecting the income of the new buyers, and what they can afford. 100K household income seems incongruous, because it averages in all the retired seniors and long time owners who bought before the area became super expensive.

Young people who inherited homes there were able to keep the property taxes their parents had. Why bother and sell something that has such low property taxes?

See this I don't like....inheriting a house and maintaining 1960s and 1970s property taxes.

Do other states have similar laws to Prop 13?  Is Prop 13 sabotaging the rest of CA's economy by inflating taxes on businesses and individuals?

 

[freedomcm]

Do other states have similar laws to Prop 13?  Is Prop 13 sabotaging the rest of CA's economy by inflating taxes on businesses and individuals?

It is just the opposite, businesses are generally better at preserving their 1970s prop13 rates, so residential, particularly newer purchasers, are subsidizing biz much more than old folks and their heirs.

most other states do not freeze assessments at the purchase price plus, but re-assess semi-regularly.

 

[aquabliss]

I thought inherited homes are reassessed to the current market value at the time of inheritance and taxes are based on that value?

 

[Ready2Downsize]

I thought inherited homes are reassessed to the current market value at the time of inheritance and taxes are based on that value?

The basis is stepped up so if they sell down the road the gain is minus what it was worth at the time of inheritance but at the same time they get the property taxes not reassessed.

I wanted to keep my mom's house when she passed away because it would have been very good income for my sisters and I (completely paid off, less than $900 a year in prop taxes, stepped up basis for depreciation, no HOA, 4 br home in Fountain Valley which isn't Irvine but still decent) and down the road we could have split the gain still but they were desperate to get their hands on the money so it was sold.

My kids won't have the same opportunity with the house I own now because we took the basis from our old home which now disqualifies them from keeping the basis when we die. But who wants the mello anyway?

 

[aquabliss]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

 

[usctrojancpa]

Do other states have similar laws to Prop 13?  Is Prop 13 sabotaging the rest of CA's economy by inflating taxes on businesses and individuals?

It is just the opposite, businesses are generally better at preserving their 1970s prop13 rates, so residential, particularly newer purchasers, are subsidizing biz much more than old folks and their heirs.

most other states do not freeze assessments at the purchase price plus, but re-assess semi-regularly.

They are actually talking about putting a ballot out there for vote to exempt all commercial properties from Prop 13...should be on the ballot this Nov.

 

[fortune11]

Do other states have similar laws to Prop 13?  Is Prop 13 sabotaging the rest of CA's economy by inflating taxes on businesses and individuals?

It is just the opposite, businesses are generally better at preserving their 1970s prop13 rates, so residential, particularly newer purchasers, are subsidizing biz much more than old folks and their heirs.

most other states do not freeze assessments at the purchase price plus, but re-assess semi-regularly.

They are actually talking about putting a ballot out there for vote to exempt all commercial properties from Prop 13...should be on the ballot this Nov.

Just taking this to its conclusion -- assuming the ballot measure passes, wouldn't this be a huge windfall for the state ?  unless it is phased in gradually.  Cant imagine them cutting any spending to offset it , so probably it just goes to some new state mandated projects. 

It may also be a big negative for many of the commercial REITs since no one is increasing rents anytime soon with so many vacancies.

Let me know if I am not thinking about this the right way.   

 

[Kings]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

What about putting children in the deed prior to death with right of survivorship? Still reassessed?

 

[usctrojancpa]

Do other states have similar laws to Prop 13?  Is Prop 13 sabotaging the rest of CA's economy by inflating taxes on businesses and individuals?

It is just the opposite, businesses are generally better at preserving their 1970s prop13 rates, so residential, particularly newer purchasers, are subsidizing biz much more than old folks and their heirs.

most other states do not freeze assessments at the purchase price plus, but re-assess semi-regularly.

They are actually talking about putting a ballot out there for vote to exempt all commercial properties from Prop 13...should be on the ballot this Nov.

Just taking this to its conclusion -- assuming the ballot measure passes, wouldn't this be a huge windfall for the state ?  unless it is phased in gradually.  Cant imagine them cutting any spending to offset it , so probably it just goes to some new state mandated projects. 

It may also be a big negative for many of the commercial REITs since no one is increasing rents anytime soon with so many vacancies.

Let me know if I am not thinking about this the right way.   

Yeah, counties would be able to raise property taxes on commercial properties overnight.  As most commercial properties pass along their common area expenses (including property taxes) to their tenants that would mean that rents would go up and any increase on vacant space will be absorbed by the owners, including REITs like you mentioned.  I think you are going to get a lot of businesses come out opposing this possible ballot measure.

 

[Liar Loan]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

What about putting children in the deed prior to death with right of survivorship? Still reassessed?

That thread has nothing to do with property taxes.  It's talking about "stepped-up basis" for calculating capital gains taxes on a Federal return should the kids sell the house. 

In California, property taxes are not reassessed when children inherit a house.

 

[Kings]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

What about putting children in the deed prior to death with right of survivorship? Still reassessed?

That thread has nothing to do with property taxes.  It's talking about "stepped-up basis" for calculating capital gains taxes on a Federal return should the kids sell the house. 

In California, property taxes are not reassessed when children inherit a house.

Is your basis for capital gains taxes still reassessed if children have ownership prior to the parent's death?

 

[Liar Loan]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

What about putting children in the deed prior to death with right of survivorship? Still reassessed?

That thread has nothing to do with property taxes.  It's talking about "stepped-up basis" for calculating capital gains taxes on a Federal return should the kids sell the house. 

In California, property taxes are not reassessed when children inherit a house.

Is your basis for capital gains taxes still reassessed if children have ownership prior to the parent's death?

They will owe taxes at the original basis since they took ownership before the parents' death.

This article explains it: http://modernwealthlaw.com/gift-tax/adding-your-child-to-title/

 

[lnc]

https://www.cnbc.com/2018/02/12/heres-what-a-5-percent-mortgage-rate-would-mean-to-buyers.html

Mortgage rates are now at their highest level in four years and poised to move even higher. The timing couldn't be worse, as the usually busy spring housing market kicked into gear early this year amid higher home prices and strong competition for a record low supply of homes for sale.

Add it all up, and affordability is starting to hurt.

The average rate on the popular 30-year fixed is now right around 4.50 percent, still low when looking historically, but buyers over the past six years have gotten more used to rates in the 3 percent range. Mortgage rates have not been at 5 percent since 2011.

Despite rate concerns, the bigger issue for buyers is changes to tax laws that had lowered the cost of homeownership. Specifically, the deduction on property taxes is now limited to $10,000. While that does not affect homeowners in the majority of the country, it does hit those in high-cost states like New York, New Jersey and Illinois, and those in higher-priced housing markets like California.

"Tight credit, lack of inventory and high demand are the major factors that tell us there's no housing bubble, despite rapid price increases," said Redfin's chief economist, Nela Richardson. "There are still many more buyers than the current housing supply can support, with no major relief in sight."

 

[Ready2Downsize]

Property taxes are not reassessed?

But here:https://ttlc.intuit.com/questions/2...d-from-the-sale-of-inherited-property-taxable

It says:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

When it is sold the gain is calculated using the stepped up basis but the property taxes remain the same. Only kids, spouse (I think maybe grandkids too) get to inherit the lower property taxes.
http://articles.latimes.com/2005/sep/25/realestate/re-inheritside25

The 35 years they mention in the article is just as an example showing kids can really get super low property taxes just because they inherit the home.

 

[shahshah]

INFLATION!  Listing for SFR are creeping up it seem?

 

[irvineband]

Does anyone have a pulse on what this looks like now that we are in the middle or peak buying season?