“43% Overpriced”

[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.

[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.

[SHILOH]

It would be useful to know what % of households have $52K median income and what % of homes are priced at the median.

Fundamentals are a better gauge of affordability aren’t they?
I read somewhere that a home should not cost more than 3X income.
I cannot see how a household income of $52K can support a mortgage of $335K, which would be around 6X the income.

It would be useful for someone to break down the expenses to see if that 6X ratio is workable without making the borrower house-poor. People spend elsewhere to support the economy -i.e., cars and other discretionary spending like dining out and buying unnecessary items.

[SHILOH]

It would be useful to know what % of households have $52K median income and what % of homes are priced at the median.

Fundamentals are a better gauge of affordability aren’t they?
I read somewhere that a home should not cost more than 3X income.
I cannot see how a household income of $52K can support a mortgage of $335K, which would be around 6X the income.

It would be useful for someone to break down the expenses to see if that 6X ratio is workable without making the borrower house-poor. People spend elsewhere to support the economy -i.e., cars and other discretionary spending like dining out and buying unnecessary items.

[SHILOH]

It would be useful to know what % of households have $52K median income and what % of homes are priced at the median.

Fundamentals are a better gauge of affordability aren’t they?
I read somewhere that a home should not cost more than 3X income.
I cannot see how a household income of $52K can support a mortgage of $335K, which would be around 6X the income.

It would be useful for someone to break down the expenses to see if that 6X ratio is workable without making the borrower house-poor. People spend elsewhere to support the economy -i.e., cars and other discretionary spending like dining out and buying unnecessary items.

[SHILOH]

It would be useful to know what % of households have $52K median income and what % of homes are priced at the median.

Fundamentals are a better gauge of affordability aren’t they?
I read somewhere that a home should not cost more than 3X income.
I cannot see how a household income of $52K can support a mortgage of $335K, which would be around 6X the income.

It would be useful for someone to break down the expenses to see if that 6X ratio is workable without making the borrower house-poor. People spend elsewhere to support the economy -i.e., cars and other discretionary spending like dining out and buying unnecessary items.

[SHILOH]

It would be useful to know what % of households have $52K median income and what % of homes are priced at the median.

Fundamentals are a better gauge of affordability aren’t they?
I read somewhere that a home should not cost more than 3X income.
I cannot see how a household income of $52K can support a mortgage of $335K, which would be around 6X the income.

It would be useful for someone to break down the expenses to see if that 6X ratio is workable without making the borrower house-poor. People spend elsewhere to support the economy -i.e., cars and other discretionary spending like dining out and buying unnecessary items.

[sdrealtor]

Shiloh,
Forget the analysis, I know what it is like on a real life basis. I wouldnt buy a house with loan more than the 3X my income. The rest depends on how much you have to put down.

[sdrealtor]

Shiloh,
Forget the analysis, I know what it is like on a real life basis. I wouldnt buy a house with loan more than the 3X my income. The rest depends on how much you have to put down.

[sdrealtor]

Shiloh,
Forget the analysis, I know what it is like on a real life basis. I wouldnt buy a house with loan more than the 3X my income. The rest depends on how much you have to put down.

[sdrealtor]

Shiloh,
Forget the analysis, I know what it is like on a real life basis. I wouldnt buy a house with loan more than the 3X my income. The rest depends on how much you have to put down.

[sdrealtor]

Shiloh,
Forget the analysis, I know what it is like on a real life basis. I wouldnt buy a house with loan more than the 3X my income. The rest depends on how much you have to put down.

[TheBreeze]

Overall incomes can go up during recessions, even bad ones.

Consider that during the last prolonged recession in San Diego the median household income increased from about 32K in 1990 to about 37K in 1995.

Interesting. Why do incomes go up during a recession? Is it because more low-wage folks get laid off and don’t get figured into the median?

In the upcoming recession, I would expect that several of the hundred-thousand dollar former RE pros will get laid off/go out of business. This is why I would expect the median income in San Diego to go down over the next few years. Guess we’ll have to wait and see what happens.

[TheBreeze]

Overall incomes can go up during recessions, even bad ones.

Consider that during the last prolonged recession in San Diego the median household income increased from about 32K in 1990 to about 37K in 1995.

Interesting. Why do incomes go up during a recession? Is it because more low-wage folks get laid off and don’t get figured into the median?

In the upcoming recession, I would expect that several of the hundred-thousand dollar former RE pros will get laid off/go out of business. This is why I would expect the median income in San Diego to go down over the next few years. Guess we’ll have to wait and see what happens.

[Author]

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