Is 25 – 30% off a good deal?

[Ex-SD]

San Diego Median Income (family of four): $64,900

Now that sanity has returned to the lending business for home mortgages, housing prices will eventually drop to where median income translates to median house prices. It’s that way in most parts of the country and I think it will happen in SoCal. I’m not trying to gore anyone’s ox but to me, it’s just common sense. Buyers have to be able to get a loan to buy a home and to do that, they must qualify by meeting income, debt and credit history requirements to buy a home that equates to their income. The only thing that threw this fundamental out the window and allowed prices to escalate into crazydoom was the lowering of borrowing criterion to anyone who could fog a mirror, claim that they made $150k+ per year and sign their “X” where it said “buyer”. It was absolute lunacy and now that it’s gone bye-bye, there are too many homes on the market and the inventory will continue to grow until median income equates to median price.
(Alex Angel. are you paying attention?)

p.s…….There are a bunch of homes in the Sacramento area (geographically much closer to SoCal than Florida) that are REO’s and that were built within the last four years. They are being offered at 50% less than they sold for when new which has driven the property values down the tube. If it can happen in Sacramento, Ft. Lauderdale, Miami, Fort Myers and Tampa. not to mention Baltimore and the Inland Empire of Los Angeles…………..it can happen in San Diego.

[Anonymous]

I agree with Kemp and the others who suggest waiting for the ’99 prices. Actually, I’d wait for the ’97 prices. They’re going to get there. Easy.

[Anonymous]

I agree with Kemp and the others who suggest waiting for the ’99 prices. Actually, I’d wait for the ’97 prices. They’re going to get there. Easy.

[Anonymous]

I agree with Kemp and the others who suggest waiting for the ’99 prices. Actually, I’d wait for the ’97 prices. They’re going to get there. Easy.

[Anonymous]

I agree with Kemp and the others who suggest waiting for the ’99 prices. Actually, I’d wait for the ’97 prices. They’re going to get there. Easy.

[Anonymous]

I agree with Kemp and the others who suggest waiting for the ’99 prices. Actually, I’d wait for the ’97 prices. They’re going to get there. Easy.

[(former)FormerSanDiegan]

1997 prices in a good neighborhood in San Diego? As much as I’d like to see that, it’s not going to happen. Incomes are up 30-40%, interest rates are lower than in 1997, and there was not enough overbuilding to drive prices down.

esmith makes a point that the uber-bears seems to miss. Even in a relatively flat inflation environment, a decade of mediocre wage increases can add up.

Take 1995-97 prices, account for salary increases measured in nominal dollars and you’ll probably get pretty close to guessing the bottom of the market.

[(former)FormerSanDiegan]

1997 prices in a good neighborhood in San Diego? As much as I’d like to see that, it’s not going to happen. Incomes are up 30-40%, interest rates are lower than in 1997, and there was not enough overbuilding to drive prices down.

esmith makes a point that the uber-bears seems to miss. Even in a relatively flat inflation environment, a decade of mediocre wage increases can add up.

Take 1995-97 prices, account for salary increases measured in nominal dollars and you’ll probably get pretty close to guessing the bottom of the market.

[(former)FormerSanDiegan]

1997 prices in a good neighborhood in San Diego? As much as I’d like to see that, it’s not going to happen. Incomes are up 30-40%, interest rates are lower than in 1997, and there was not enough overbuilding to drive prices down.

esmith makes a point that the uber-bears seems to miss. Even in a relatively flat inflation environment, a decade of mediocre wage increases can add up.

Take 1995-97 prices, account for salary increases measured in nominal dollars and you’ll probably get pretty close to guessing the bottom of the market.

[(former)FormerSanDiegan]

1997 prices in a good neighborhood in San Diego? As much as I’d like to see that, it’s not going to happen. Incomes are up 30-40%, interest rates are lower than in 1997, and there was not enough overbuilding to drive prices down.

esmith makes a point that the uber-bears seems to miss. Even in a relatively flat inflation environment, a decade of mediocre wage increases can add up.

Take 1995-97 prices, account for salary increases measured in nominal dollars and you’ll probably get pretty close to guessing the bottom of the market.

[(former)FormerSanDiegan]

1997 prices in a good neighborhood in San Diego? As much as I’d like to see that, it’s not going to happen. Incomes are up 30-40%, interest rates are lower than in 1997, and there was not enough overbuilding to drive prices down.

esmith makes a point that the uber-bears seems to miss. Even in a relatively flat inflation environment, a decade of mediocre wage increases can add up.

Take 1995-97 prices, account for salary increases measured in nominal dollars and you’ll probably get pretty close to guessing the bottom of the market.

[4plexowner]

(at least) 25% of our local economy is real estate related

how could a real estate downturn not spill over into the rest of the economy?

when General Dynamics left town the statistic being floated was that every engineering job that left town meant that two 7-11 clerk type jobs (retail/service industry) left town as well

people working in the RE industry have been making engineering-level incomes (or better) for several years – when they lose their income stream there WILL be a spillover effect

[4plexowner]

(at least) 25% of our local economy is real estate related

how could a real estate downturn not spill over into the rest of the economy?

when General Dynamics left town the statistic being floated was that every engineering job that left town meant that two 7-11 clerk type jobs (retail/service industry) left town as well

people working in the RE industry have been making engineering-level incomes (or better) for several years – when they lose their income stream there WILL be a spillover effect

[4plexowner]

(at least) 25% of our local economy is real estate related

how could a real estate downturn not spill over into the rest of the economy?

when General Dynamics left town the statistic being floated was that every engineering job that left town meant that two 7-11 clerk type jobs (retail/service industry) left town as well

people working in the RE industry have been making engineering-level incomes (or better) for several years – when they lose their income stream there WILL be a spillover effect

[4plexowner]

(at least) 25% of our local economy is real estate related

how could a real estate downturn not spill over into the rest of the economy?

when General Dynamics left town the statistic being floated was that every engineering job that left town meant that two 7-11 clerk type jobs (retail/service industry) left town as well

people working in the RE industry have been making engineering-level incomes (or better) for several years – when they lose their income stream there WILL be a spillover effect

[Author]

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