“43% Overpriced”

[NeetaT]

NeetaT –
“Your implicit assumption is that median income households buy median price homes in San Diego.
Is this realistic ?”

“Probably not” OK, someone else give it a shot.

[NotCranky]

“construction stops entirely”

kewp this is not what happens at all. Contruction slows. Most everyone involved gets a smaller piece of the pie.Some don’t miss a beat. It is not like most 9-5’s where the gig is on or off. People have to compete a little more on price maybe take on jobs they didn’t normally do.People shuffle around a bit.Some leave for greener pastures. There usually has to be some precautionary or mandatory belt tightenting. Those who didn’t prepare may lose a car or a house, some will file bankrutcy, but life goes on and construction goes along at a liveable clip through a recession, at least the one’s we have had in my adult life. I think Rich’s charts, on the topic of levels of employment,when he posts them, support that too.

[NotCranky]

“construction stops entirely”

kewp this is not what happens at all. Contruction slows. Most everyone involved gets a smaller piece of the pie.Some don’t miss a beat. It is not like most 9-5’s where the gig is on or off. People have to compete a little more on price maybe take on jobs they didn’t normally do.People shuffle around a bit.Some leave for greener pastures. There usually has to be some precautionary or mandatory belt tightenting. Those who didn’t prepare may lose a car or a house, some will file bankrutcy, but life goes on and construction goes along at a liveable clip through a recession, at least the one’s we have had in my adult life. I think Rich’s charts, on the topic of levels of employment,when he posts them, support that too.

[NotCranky]

“construction stops entirely”

kewp this is not what happens at all. Contruction slows. Most everyone involved gets a smaller piece of the pie.Some don’t miss a beat. It is not like most 9-5’s where the gig is on or off. People have to compete a little more on price maybe take on jobs they didn’t normally do.People shuffle around a bit.Some leave for greener pastures. There usually has to be some precautionary or mandatory belt tightenting. Those who didn’t prepare may lose a car or a house, some will file bankrutcy, but life goes on and construction goes along at a liveable clip through a recession, at least the one’s we have had in my adult life. I think Rich’s charts, on the topic of levels of employment,when he posts them, support that too.

[NotCranky]

“construction stops entirely”

kewp this is not what happens at all. Contruction slows. Most everyone involved gets a smaller piece of the pie.Some don’t miss a beat. It is not like most 9-5’s where the gig is on or off. People have to compete a little more on price maybe take on jobs they didn’t normally do.People shuffle around a bit.Some leave for greener pastures. There usually has to be some precautionary or mandatory belt tightenting. Those who didn’t prepare may lose a car or a house, some will file bankrutcy, but life goes on and construction goes along at a liveable clip through a recession, at least the one’s we have had in my adult life. I think Rich’s charts, on the topic of levels of employment,when he posts them, support that too.

[NotCranky]

“construction stops entirely”

kewp this is not what happens at all. Contruction slows. Most everyone involved gets a smaller piece of the pie.Some don’t miss a beat. It is not like most 9-5’s where the gig is on or off. People have to compete a little more on price maybe take on jobs they didn’t normally do.People shuffle around a bit.Some leave for greener pastures. There usually has to be some precautionary or mandatory belt tightenting. Those who didn’t prepare may lose a car or a house, some will file bankrutcy, but life goes on and construction goes along at a liveable clip through a recession, at least the one’s we have had in my adult life. I think Rich’s charts, on the topic of levels of employment,when he posts them, support that too.

[sdrealtor]

I’ve expalined this many times but the median income HH does not, can not, should not and never will buy the median priced house in a given area again. The only exception was in the recent past when income was irrelevant due to liar loans and anyone could buy whatever they wanted if they had a good FICO score and enough nerve.

One last time:
Approximately 50 to 60% of households own their homes and they very heavily skew toward higher incomes. Thus a broad generalization (admittedly far from perfect but more accurate than not) is that the top 50% of HH buy homes. Of these HH the median income to look at is actually the 75th percentile not the 50th percentile. Add in a high cost area such as So Cal and we skew even higher toward higher income HH’s for home ownership. So if you want a better approximation of how overpriced we are compare the 75th percentile to the median price.

I know this is far from perfect but I believe it will give you a far more realistic figure than comaring the median income with the median priced home.

[sdrealtor]

I’ve expalined this many times but the median income HH does not, can not, should not and never will buy the median priced house in a given area again. The only exception was in the recent past when income was irrelevant due to liar loans and anyone could buy whatever they wanted if they had a good FICO score and enough nerve.

One last time:
Approximately 50 to 60% of households own their homes and they very heavily skew toward higher incomes. Thus a broad generalization (admittedly far from perfect but more accurate than not) is that the top 50% of HH buy homes. Of these HH the median income to look at is actually the 75th percentile not the 50th percentile. Add in a high cost area such as So Cal and we skew even higher toward higher income HH’s for home ownership. So if you want a better approximation of how overpriced we are compare the 75th percentile to the median price.

I know this is far from perfect but I believe it will give you a far more realistic figure than comaring the median income with the median priced home.

[sdrealtor]

I’ve expalined this many times but the median income HH does not, can not, should not and never will buy the median priced house in a given area again. The only exception was in the recent past when income was irrelevant due to liar loans and anyone could buy whatever they wanted if they had a good FICO score and enough nerve.

One last time:
Approximately 50 to 60% of households own their homes and they very heavily skew toward higher incomes. Thus a broad generalization (admittedly far from perfect but more accurate than not) is that the top 50% of HH buy homes. Of these HH the median income to look at is actually the 75th percentile not the 50th percentile. Add in a high cost area such as So Cal and we skew even higher toward higher income HH’s for home ownership. So if you want a better approximation of how overpriced we are compare the 75th percentile to the median price.

I know this is far from perfect but I believe it will give you a far more realistic figure than comaring the median income with the median priced home.

[sdrealtor]

I’ve expalined this many times but the median income HH does not, can not, should not and never will buy the median priced house in a given area again. The only exception was in the recent past when income was irrelevant due to liar loans and anyone could buy whatever they wanted if they had a good FICO score and enough nerve.

One last time:
Approximately 50 to 60% of households own their homes and they very heavily skew toward higher incomes. Thus a broad generalization (admittedly far from perfect but more accurate than not) is that the top 50% of HH buy homes. Of these HH the median income to look at is actually the 75th percentile not the 50th percentile. Add in a high cost area such as So Cal and we skew even higher toward higher income HH’s for home ownership. So if you want a better approximation of how overpriced we are compare the 75th percentile to the median price.

I know this is far from perfect but I believe it will give you a far more realistic figure than comaring the median income with the median priced home.

[sdrealtor]

I’ve expalined this many times but the median income HH does not, can not, should not and never will buy the median priced house in a given area again. The only exception was in the recent past when income was irrelevant due to liar loans and anyone could buy whatever they wanted if they had a good FICO score and enough nerve.

One last time:
Approximately 50 to 60% of households own their homes and they very heavily skew toward higher incomes. Thus a broad generalization (admittedly far from perfect but more accurate than not) is that the top 50% of HH buy homes. Of these HH the median income to look at is actually the 75th percentile not the 50th percentile. Add in a high cost area such as So Cal and we skew even higher toward higher income HH’s for home ownership. So if you want a better approximation of how overpriced we are compare the 75th percentile to the median price.

I know this is far from perfect but I believe it will give you a far more realistic figure than comaring the median income with the median priced home.

[(former)FormerSanDiegan]

Thanks sdr. I asked the question because I was sick of addressing the fallacy that equates median homes to be afforded by median incomes.

[(former)FormerSanDiegan]

Thanks sdr. I asked the question because I was sick of addressing the fallacy that equates median homes to be afforded by median incomes.

[(former)FormerSanDiegan]

Thanks sdr. I asked the question because I was sick of addressing the fallacy that equates median homes to be afforded by median incomes.

[(former)FormerSanDiegan]

Thanks sdr. I asked the question because I was sick of addressing the fallacy that equates median homes to be afforded by median incomes.

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