OC Register: Median should be $300,000

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Submitted by kev374 on September 28, 2008 - 2:48pm

http://www.ocregister.com/articles/loans...

According to IMARC president, the median price in Orange County according to fundamentals should be around $300,000...a 31% drop from the current median of $440,000

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Unless the household average
Submitted by orthofrancis on September 28, 2008 - 10:22pm.

Unless the household average income is 100,000 dollars, then it should be even lower than that.

orthofrancis wrote:Unless the
Submitted by SDEngineer on September 29, 2008 - 10:21am.

orthofrancis wrote:
Unless the household average income is 100,000 dollars, then it should be even lower than that.

That's assuming that all households can be owners, which hasn't historically been true in So Cal. So Cal real estate has always been a bit higher relative to household average income than nationally, which is why, also historically, the ratio of renters to owners in So Cal is higher (San Diego and LA generally are right around a 50% renter/50% owner split, compared to, for instance, the midwest which is about a 33/67 split).

I did a workup based on available census statistics a few months past that came to the conclusion that the average household income in San Diego for homeowners is right about $95000. OC I think would be a little bit higher overall, so this sounds about right to me.

Sounds about right to me. But
Submitted by peterb on September 29, 2008 - 10:56am.

Sounds about right to me. But I stil wouldnt pay that much for a house in Anaheim or Fullerton, etc....Actually, I wouldnt live there even it were free.

One quick caveat...what if one of the household's employed persons was to lose their job? Oops, HH income now down to $50K....house now worth $150K.
And so it goes.....