So, is this a tact way of

[DWCAP]

So, is this a tact way of saying there is something to this formula? Cause 17 posts later I still dont see one of the standard ‘it is different here’ rationals being used to discredit this.

Best I can figure, Median SD income is right around 70k (http://www.sandag.org/resources/demographics_and_other_data/demographics/fastfacts/sand.htm)

And average interest rates are right around 5%. (http://signonsandiego.interest.com/)

SO….

70k*4.3466= 304262. Obviously this isnt perfect because interest rates move daily and layoffs/hires effect the job market, but add a +/- 5% so between 290k and 320k seem reasonable?

If so then we could, atleast in theory, compute what an interest rate surge would do to housing prices.

4.75% would =313k
5.50% would =288k
5.75% would =280k
6.00% would =272k

Basically every .25% would be 8k in housing price movement.