North park flips… relatistic prices?

[CA renter]

[quote=sdrealtor]

I also think that 3X income is a bit dated and needs to be adjusted for different areas also. The first problem is with low interest rates (4.5%), a 3X income mortgage is extremely affordable at 18% of gross income. At a 7% interst rate it jumps to 24% of gross income which is a different matter. The other problem is regional variances. In 92009 a decent 4BR home starts around 650K and comes with a $7,000 annual tax bill. With 20% down PITI is about $3400. Where I grew up back east a decent 4BR home starts around 350K which sounds much better but comes with a $20,000 annual tax bill. With 20% down PITI is about $3100/month.[/quote]

While interest rates certainly play a part, the 3X income rule existed during much better economic times — more job stability, more defined-benefit pensions, more employer-paid healthcare, wage inflation, etc. Perhaps it is dated because it’s too optimistic and assumes that people will have stable jobs and increasing wages? I think we should use 2X income. 🙂

[sdrealtor]

We cant use the bottom end incomes because those people arent in the home buying pool, they are in the section 8 renting pool. Of course we should use the hioghest incomes because they are part of the pool of homebuyers. When comparing household incomes to home prices, we should look at household incomes of homebuying households not all households.

BTW, Who said anything about people not living here. They do but they dont have to own homes.

[sdrealtor]

We cant use the bottom end incomes because those people arent in the home buying pool, they are in the section 8 renting pool. Of course we should use the hioghest incomes because they are part of the pool of homebuyers. When comparing household incomes to home prices, we should look at household incomes of homebuying households not all households.

BTW, Who said anything about people not living here. They do but they dont have to own homes.

[sdrealtor]

We cant use the bottom end incomes because those people arent in the home buying pool, they are in the section 8 renting pool. Of course we should use the hioghest incomes because they are part of the pool of homebuyers. When comparing household incomes to home prices, we should look at household incomes of homebuying households not all households.

BTW, Who said anything about people not living here. They do but they dont have to own homes.

[sdrealtor]

We cant use the bottom end incomes because those people arent in the home buying pool, they are in the section 8 renting pool. Of course we should use the hioghest incomes because they are part of the pool of homebuyers. When comparing household incomes to home prices, we should look at household incomes of homebuying households not all households.

BTW, Who said anything about people not living here. They do but they dont have to own homes.

[sdrealtor]

We cant use the bottom end incomes because those people arent in the home buying pool, they are in the section 8 renting pool. Of course we should use the hioghest incomes because they are part of the pool of homebuyers. When comparing household incomes to home prices, we should look at household incomes of homebuying households not all households.

BTW, Who said anything about people not living here. They do but they dont have to own homes.

[sdrealtor]

Missing the point. The two areas I referenced are demographically similar and the median incomes are similar ($104K in 92009 and $111K in my hometown). Prices may be almost half in one area yet the monthly PITI are very similar.

BTW,last i checked nominal incomes have steadily increased for decades despite a changing a change in job stability, pensions and employer paid healthcare.

One of these days you will find something to be happy about instead of looking at everything as half empty.

Still waiting to hear about all the places in the country where housing isnt affordable for middle and upper middle class households.

[sdrealtor]

Missing the point. The two areas I referenced are demographically similar and the median incomes are similar ($104K in 92009 and $111K in my hometown). Prices may be almost half in one area yet the monthly PITI are very similar.

BTW,last i checked nominal incomes have steadily increased for decades despite a changing a change in job stability, pensions and employer paid healthcare.

One of these days you will find something to be happy about instead of looking at everything as half empty.

Still waiting to hear about all the places in the country where housing isnt affordable for middle and upper middle class households.

[sdrealtor]

Missing the point. The two areas I referenced are demographically similar and the median incomes are similar ($104K in 92009 and $111K in my hometown). Prices may be almost half in one area yet the monthly PITI are very similar.

BTW,last i checked nominal incomes have steadily increased for decades despite a changing a change in job stability, pensions and employer paid healthcare.

One of these days you will find something to be happy about instead of looking at everything as half empty.

Still waiting to hear about all the places in the country where housing isnt affordable for middle and upper middle class households.

[sdrealtor]

Missing the point. The two areas I referenced are demographically similar and the median incomes are similar ($104K in 92009 and $111K in my hometown). Prices may be almost half in one area yet the monthly PITI are very similar.

BTW,last i checked nominal incomes have steadily increased for decades despite a changing a change in job stability, pensions and employer paid healthcare.

One of these days you will find something to be happy about instead of looking at everything as half empty.

Still waiting to hear about all the places in the country where housing isnt affordable for middle and upper middle class households.

[sdrealtor]

Missing the point. The two areas I referenced are demographically similar and the median incomes are similar ($104K in 92009 and $111K in my hometown). Prices may be almost half in one area yet the monthly PITI are very similar.

BTW,last i checked nominal incomes have steadily increased for decades despite a changing a change in job stability, pensions and employer paid healthcare.

One of these days you will find something to be happy about instead of looking at everything as half empty.

Still waiting to hear about all the places in the country where housing isnt affordable for middle and upper middle class households.

[CA renter]

Truce! 🙂

You think prices here are going to hold steady, while I think they are going to drop. We still have our bet and it’s good until the end of 2012.

[handshake and hug]

CAR 🙂
————-

edit: can we all just go drink a beer already?

[CA renter]

Truce! 🙂

You think prices here are going to hold steady, while I think they are going to drop. We still have our bet and it’s good until the end of 2012.

[handshake and hug]

CAR 🙂
————-

edit: can we all just go drink a beer already?

[CA renter]

Truce! 🙂

You think prices here are going to hold steady, while I think they are going to drop. We still have our bet and it’s good until the end of 2012.

[handshake and hug]

CAR 🙂
————-

edit: can we all just go drink a beer already?

[CA renter]

Truce! 🙂

You think prices here are going to hold steady, while I think they are going to drop. We still have our bet and it’s good until the end of 2012.

[handshake and hug]

CAR 🙂
————-

edit: can we all just go drink a beer already?

[Author]

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