Menu

Home › Forums › Housing › mainstream advice changing?

Viewing 91 post (of 91 total)
1 2 3 … 5 6 7
  • Author
    Posts
  • February 2, 2010 at 1:59 PM #508288
    DWCAP
    Participant

    So, is this a tact way of saying there is something to this formula? Cause 17 posts later I still dont see one of the standard ‘it is different here’ rationals being used to discredit this.

    Best I can figure, Median SD income is right around 70k (http://www.sandag.org/resources/demographics_and_other_data/demographics/fastfacts/sand.htm)

    And average interest rates are right around 5%. (http://signonsandiego.interest.com/)

    SO….

    70k*4.3466= 304262. Obviously this isnt perfect because interest rates move daily and layoffs/hires effect the job market, but add a +/- 5% so between 290k and 320k seem reasonable?

    If so then we could, atleast in theory, compute what an interest rate surge would do to housing prices.

    4.75% would =313k
    5.50% would =288k
    5.75% would =280k
    6.00% would =272k

    Basically every .25% would be 8k in housing price movement.

  • Author
    Posts
Viewing 91 post (of 91 total)
1 2 3 … 5 6 7
  • You must be logged in to reply to this topic.