When I read these sob stories of how everyone is suffering I just laugh. The median home price in Orange County is currently $550,000…over HALF A MILLION DOLLARS for the 50th PERCENTILE!!! What should be the median household income be then? If you take the typical ratio of limiting total home price to 1/3rd of gross yearly which is considered the metric most financial conservatives use, the median household income county wide should be $183,000/yr.
Also considering that a $550k home would need a 20% down amounting to a pretty staggering $110,000 in addition to closing costs AND move-in expenses AND financial reserves the total would be cash on hand of $150,000 or more.
So, do you expect me to cry tears for the median household that is earning close to $200,000 and has $150,000 in savings?
Apparently people are not only buying these homes in droves, both the media and economists calls the market as being in a state of “historic affordability” relative to incomes. So, incomes must be staggeringly strong which is in direct contradiction to the sob articles of poverty you have posted.
Now, IN ADDITION, not only are people buying these homes in droves, they are also spending money at a brisk pace – the restaurants here in Orange County are all packed and have you eaten out lately? It has become shockingly expensive to eat out and yet the establishments are all packed. If incomes are not fueling this then what exactly is?
