rough guide is that the median price should be 2.5 (on the low end) to 4 (on the high end) times median HH income. We are currently between 7.5 to 10 times here in SoCal depending on area.
I would be judicious towards a value of 4..perhaps buy if I were in it for the long term, but just wouldn’t buy anything over 4.
Currently median HH income hovers somewhere around $80-85k for South OC. 4 x 80-85k = $320-340k or so is the upper limit for median home price, so we’re at just under a 2X overvaluation.
*In my opinion*, South OC commands a median home price of $280-320k, nothing more! Even this price point requires STRONG income at reasonably conservative guidelines 35% DTI, 90% LTV.
