“43% Overpriced”

[sdrealtor]

Bigmoneysalsa,
As I said these are rough figures but at least you followed the logic. I dont necessarily believe the figure is exactly the 75th percentile but I believe it’s alot closer to that than the 50th percentile.

What you missed is that we are in one of the highest cost markets in the country so our stats will skew even higher than what would be typical for most markets. I dont beleive that the median income HH bought the median priced home in San Diego anytime in the last couple decades. Feel free to prove me wrong. In fact, I beleive that the median income HH was more likely to purchase the median priced home during the bubble than what would be typical because all they had to do is have enough nerve to state their income was high enough to do so. Now that they actually have to prove their income, it will be harder than ever.

BTW, the median HH income in 200 was 47,067 on the census website. I dont consider buying approx 5 times your HH income to be affordable. You also conveniently said values were booming the last 4 years prior to 2000 but failed to mention incoems were also.

FYI, I bought a couple homes during those years and they were oversold (i.e. artificially low) in 1996 which was the bottom. The house I bought in 97 was about 2X my annual income at the time and it felt expensive. That house went up about 20% in 3 years. The one I bought after that was 2.5X my annual HH income at the time and it felt obscenely expensive. 5X annual incoem is not affordable.

[drunkle]

sdr:

i asked some simple questions, if you dont feel like answering, dont. but dont waste your vitriol on me. whatever hair crawled up your ass today was not my doing.

[drunkle]

sdr:

i asked some simple questions, if you dont feel like answering, dont. but dont waste your vitriol on me. whatever hair crawled up your ass today was not my doing.

[drunkle]

sdr:

i asked some simple questions, if you dont feel like answering, dont. but dont waste your vitriol on me. whatever hair crawled up your ass today was not my doing.

[drunkle]

sdr:

i asked some simple questions, if you dont feel like answering, dont. but dont waste your vitriol on me. whatever hair crawled up your ass today was not my doing.

[drunkle]

sdr:

i asked some simple questions, if you dont feel like answering, dont. but dont waste your vitriol on me. whatever hair crawled up your ass today was not my doing.

[sdrealtor]

Thanks Bugs for providing the 75th percentile figure. I think you are pretty much spot on with the figures. With a $80,000 income you should be able to buy the median priced home in San Diego. I’ve seen a bunch of homes which I would put in that category and they are still a shade over $400,000. In a 3 years they should be down 20 to 25% and the income figure should be up about 10%. That would put someone with a 90,000 HH income in a home between $325K and $350K which would be doable.

[sdrealtor]

Thanks Bugs for providing the 75th percentile figure. I think you are pretty much spot on with the figures. With a $80,000 income you should be able to buy the median priced home in San Diego. I’ve seen a bunch of homes which I would put in that category and they are still a shade over $400,000. In a 3 years they should be down 20 to 25% and the income figure should be up about 10%. That would put someone with a 90,000 HH income in a home between $325K and $350K which would be doable.

[sdrealtor]

Thanks Bugs for providing the 75th percentile figure. I think you are pretty much spot on with the figures. With a $80,000 income you should be able to buy the median priced home in San Diego. I’ve seen a bunch of homes which I would put in that category and they are still a shade over $400,000. In a 3 years they should be down 20 to 25% and the income figure should be up about 10%. That would put someone with a 90,000 HH income in a home between $325K and $350K which would be doable.

[sdrealtor]

Thanks Bugs for providing the 75th percentile figure. I think you are pretty much spot on with the figures. With a $80,000 income you should be able to buy the median priced home in San Diego. I’ve seen a bunch of homes which I would put in that category and they are still a shade over $400,000. In a 3 years they should be down 20 to 25% and the income figure should be up about 10%. That would put someone with a 90,000 HH income in a home between $325K and $350K which would be doable.

[sdrealtor]

Thanks Bugs for providing the 75th percentile figure. I think you are pretty much spot on with the figures. With a $80,000 income you should be able to buy the median priced home in San Diego. I’ve seen a bunch of homes which I would put in that category and they are still a shade over $400,000. In a 3 years they should be down 20 to 25% and the income figure should be up about 10%. That would put someone with a 90,000 HH income in a home between $325K and $350K which would be doable.

[NotCranky]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate.

In this scenario I don’t understand the “no move up equity provision.” The 75% percentile household income earners I have known through life and currently had and have money and equity.Many people in the lower percentiles do also.I would think it fair to expect a good portion of those households bring move up money and could push the median.

In the scenario where the median house has an after tax expense of $1666 dollars a month and is a 3/2 townhome in a decent neigborhood rents start to put a floor if nothing else does.

In any case I agree that incomes do not set housing prices in the long run, competition for them to the extent that an economy and the previously aquired wealth of the populace will allow for does. We have to see where that is at when the funny money effect plays out. This bubble sure did make real estate hard to talk about.

[NotCranky]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate.

In this scenario I don’t understand the “no move up equity provision.” The 75% percentile household income earners I have known through life and currently had and have money and equity.Many people in the lower percentiles do also.I would think it fair to expect a good portion of those households bring move up money and could push the median.

In the scenario where the median house has an after tax expense of $1666 dollars a month and is a 3/2 townhome in a decent neigborhood rents start to put a floor if nothing else does.

In any case I agree that incomes do not set housing prices in the long run, competition for them to the extent that an economy and the previously aquired wealth of the populace will allow for does. We have to see where that is at when the funny money effect plays out. This bubble sure did make real estate hard to talk about.

[NotCranky]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate.

In this scenario I don’t understand the “no move up equity provision.” The 75% percentile household income earners I have known through life and currently had and have money and equity.Many people in the lower percentiles do also.I would think it fair to expect a good portion of those households bring move up money and could push the median.

In the scenario where the median house has an after tax expense of $1666 dollars a month and is a 3/2 townhome in a decent neigborhood rents start to put a floor if nothing else does.

In any case I agree that incomes do not set housing prices in the long run, competition for them to the extent that an economy and the previously aquired wealth of the populace will allow for does. We have to see where that is at when the funny money effect plays out. This bubble sure did make real estate hard to talk about.

[NotCranky]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate.

In this scenario I don’t understand the “no move up equity provision.” The 75% percentile household income earners I have known through life and currently had and have money and equity.Many people in the lower percentiles do also.I would think it fair to expect a good portion of those households bring move up money and could push the median.

In the scenario where the median house has an after tax expense of $1666 dollars a month and is a 3/2 townhome in a decent neigborhood rents start to put a floor if nothing else does.

In any case I agree that incomes do not set housing prices in the long run, competition for them to the extent that an economy and the previously aquired wealth of the populace will allow for does. We have to see where that is at when the funny money effect plays out. This bubble sure did make real estate hard to talk about.

[Author]

Posts