“43% Overpriced”

[sdrealtor]

Ditto that FSD,
I dont necessarily believe the 75th percentile figure but knew we should be closer to that than to the 50th. I can live with the 68th percentile as being reasonable on an intuitive level.

One additional refinement we should concisder is that we should try to look at this ZIP code if possible. A shift in the mix of homes sold could wreek havoc on the analysis. Limiting the geography would seem to make more sense to me.

Thanks again WhyBuy

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[bigmoneysalsa]

Good stuff FSD, whybuy. So it seems like the last bottom was around 4.6 * median income. Not affordable by conservative measures, but way better than anything we’ve seen in a while.

Is there any good reason to think we won’t get down to at least 5 * income at the next bottom? I don’t see any.

sdrealtor, don’t get me wrong I agree with your overarching point that prices aren’t determined by incomes. SD is an expensive place to buy, but it’s also an expensive place to rent. Ultimately its the PE ratio that shows how out of whack prices are. I wish people would focus more on that than on incomes.

[(former)FormerSanDiegan]

bigmoneysalsa –

I also like comparing ownership carrying costs to rent as the best metric.

I think 5x median family income would put us around 350-400K for the median house price.

That’s also consistent with rent/buy equilibrium for a lot of places in San Diego.

[(former)FormerSanDiegan]

bigmoneysalsa –

I also like comparing ownership carrying costs to rent as the best metric.

I think 5x median family income would put us around 350-400K for the median house price.

That’s also consistent with rent/buy equilibrium for a lot of places in San Diego.

[(former)FormerSanDiegan]

bigmoneysalsa –

I also like comparing ownership carrying costs to rent as the best metric.

I think 5x median family income would put us around 350-400K for the median house price.

That’s also consistent with rent/buy equilibrium for a lot of places in San Diego.

[(former)FormerSanDiegan]

bigmoneysalsa –

I also like comparing ownership carrying costs to rent as the best metric.

I think 5x median family income would put us around 350-400K for the median house price.

That’s also consistent with rent/buy equilibrium for a lot of places in San Diego.

[(former)FormerSanDiegan]

bigmoneysalsa –

I also like comparing ownership carrying costs to rent as the best metric.

I think 5x median family income would put us around 350-400K for the median house price.

That’s also consistent with rent/buy equilibrium for a lot of places in San Diego.

[sdrealtor]

BMS,
I agree only entered the fray to debunk the myth that median income HH’s should be able to buy the median priced home and that prices MUST return to that level.

[sdrealtor]

BMS,
I agree only entered the fray to debunk the myth that median income HH’s should be able to buy the median priced home and that prices MUST return to that level.

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