Is an SFV purchase in South OC going to be ever possible again?

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Submitted by kev374 on July 16, 2008 - 10:45am

Currently Single Family Residences, 3bd, 1800sqft in MV, Laguna Niguel, Irvine etc. are around $600-650k. Even if we figure a 30% drop in the next few years that brings us down to $455k for an average home in a neighborhood good enough to raise kids.

For someone making around $100k/yr (we're talking about someone educated and experienced here..not someone working at Burger King!!), that is still unaffordable by a long shot.

Will prices drop sufficiently so that the average 100K/yr family will be able to buy a decent home in a decent neighborhood AFTER the drop or is this just a pipe dream that one should forget and move somewhere else.

‹ 5-07 MAJOR NEWS! Conforming Jumbo Rates Slashed At 150x rent, 100% financing, would you buy if cash negative $200/mo? ›
calculating a payment at 30%
Submitted by kev374 on July 16, 2008 - 11:03am.

calculating a payment at 30% of gross income, on $100k/yr that would be a maximum of $2,500 for PITI+HOA+Maintainence.

You should move. At $100K,
Submitted by no_such_reality on July 16, 2008 - 12:57pm.

You should move.

At $100K, you are literally median income for a family. Above median income for a household, however, the type of home you describe and the area you describe is probably 10-20% of the housing supply.

That's the rude awakening of South OC, Irvine or the coast. $100K+ income is median and can only afford a 'median' home. Which typically maps to a townhome.