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scaredyclassic.
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April 5, 2011 at 10:48 PM #685091April 6, 2011 at 2:27 AM #683938
CA renter
Participant[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.222000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.7251990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
April 6, 2011 at 2:27 AM #683989Participant[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.222000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.7251990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
April 6, 2011 at 2:27 AM #684618Participant[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.222000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.7251990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
April 6, 2011 at 2:27 AM #684759Participant[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.222000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.7251990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
April 6, 2011 at 2:27 AM #685111Participant[quote=AN]Here are the data for 2010, 2000, and 1990.
2010:
Median income – 62.7k
median housing price = 328k
median housing price/median income = 5.222000:
Median income – 47.2k
median housing price = 223k
median housing price/median income = 4.7251990:
Median income – 35k
median housing price = 188k
median housing price/median income = 5.36So, we’re worse off than 2000 but better off than 1990. This does not account for interest rate at all.[/quote]
The last RE cycle topped in ~1989/1990, so that ratio would make sense for 1990. Prices in some very desirable areas crashed ~40% during the downturn of the early 90s, at they didn’t have this massive credit bubble to contend with.
To be sure, things are MUCH better today than they were in ~2004-2007, but when you consider the very large risks to our economy, I think things are still priced optimistically.
April 6, 2011 at 2:29 AM #683943Participant[quote=sdrealtor]CAR
No snark intended but we now live in a place that is very different than it was a few decades ago. Hell its different than it was a decade ago. The profile of relative desireability of the NCC has gone up exponentially since you were a kid. We have discussed this over the years ad naseum. If you are not willing to accept that reality you will have to stay where you, which isn’t exactly a bad place. Nothing that you have described about yourself and your lifestyle entitles you to the house you want. It is all driven by supply and demand.This weekend I met with some new clients in their mid 50’s. They got re-married a few years ago and both have very good incomes bigger than your DH. Her house is owned free and clear. They will rent that one out for a year or two because the income will be great and then sell within the 2 out of 5 years rule. His house is on the edge but rent just about covers PITI. As soon as they can sell without paying anything out of pocket they will get rid of that one. They have enough to buy a couple houses all cash but only want one and will finance because rates are so good. They are looking for pretty much what you are. There are plenty of others just like them. That is your competition. And they have better representation;)[/quote]
I have absolutely no doubt that there are plenty of qualified buyers out there. I know a number of VERY well-qualified bubble sitters, myself. That being said, there have always been very well-qualified buyers in Southern California; that doesn’t mean that prices can’t go down. Those buyers tend to be far smarter than their NINJA counterparts who pushed up prices with OPM during the bubble.
April 6, 2011 at 2:29 AM #683994Participant[quote=sdrealtor]CAR
No snark intended but we now live in a place that is very different than it was a few decades ago. Hell its different than it was a decade ago. The profile of relative desireability of the NCC has gone up exponentially since you were a kid. We have discussed this over the years ad naseum. If you are not willing to accept that reality you will have to stay where you, which isn’t exactly a bad place. Nothing that you have described about yourself and your lifestyle entitles you to the house you want. It is all driven by supply and demand.This weekend I met with some new clients in their mid 50’s. They got re-married a few years ago and both have very good incomes bigger than your DH. Her house is owned free and clear. They will rent that one out for a year or two because the income will be great and then sell within the 2 out of 5 years rule. His house is on the edge but rent just about covers PITI. As soon as they can sell without paying anything out of pocket they will get rid of that one. They have enough to buy a couple houses all cash but only want one and will finance because rates are so good. They are looking for pretty much what you are. There are plenty of others just like them. That is your competition. And they have better representation;)[/quote]
I have absolutely no doubt that there are plenty of qualified buyers out there. I know a number of VERY well-qualified bubble sitters, myself. That being said, there have always been very well-qualified buyers in Southern California; that doesn’t mean that prices can’t go down. Those buyers tend to be far smarter than their NINJA counterparts who pushed up prices with OPM during the bubble.
April 6, 2011 at 2:29 AM #684623Participant[quote=sdrealtor]CAR
No snark intended but we now live in a place that is very different than it was a few decades ago. Hell its different than it was a decade ago. The profile of relative desireability of the NCC has gone up exponentially since you were a kid. We have discussed this over the years ad naseum. If you are not willing to accept that reality you will have to stay where you, which isn’t exactly a bad place. Nothing that you have described about yourself and your lifestyle entitles you to the house you want. It is all driven by supply and demand.This weekend I met with some new clients in their mid 50’s. They got re-married a few years ago and both have very good incomes bigger than your DH. Her house is owned free and clear. They will rent that one out for a year or two because the income will be great and then sell within the 2 out of 5 years rule. His house is on the edge but rent just about covers PITI. As soon as they can sell without paying anything out of pocket they will get rid of that one. They have enough to buy a couple houses all cash but only want one and will finance because rates are so good. They are looking for pretty much what you are. There are plenty of others just like them. That is your competition. And they have better representation;)[/quote]
I have absolutely no doubt that there are plenty of qualified buyers out there. I know a number of VERY well-qualified bubble sitters, myself. That being said, there have always been very well-qualified buyers in Southern California; that doesn’t mean that prices can’t go down. Those buyers tend to be far smarter than their NINJA counterparts who pushed up prices with OPM during the bubble.
April 6, 2011 at 2:29 AM #684765Participant[quote=sdrealtor]CAR
No snark intended but we now live in a place that is very different than it was a few decades ago. Hell its different than it was a decade ago. The profile of relative desireability of the NCC has gone up exponentially since you were a kid. We have discussed this over the years ad naseum. If you are not willing to accept that reality you will have to stay where you, which isn’t exactly a bad place. Nothing that you have described about yourself and your lifestyle entitles you to the house you want. It is all driven by supply and demand.This weekend I met with some new clients in their mid 50’s. They got re-married a few years ago and both have very good incomes bigger than your DH. Her house is owned free and clear. They will rent that one out for a year or two because the income will be great and then sell within the 2 out of 5 years rule. His house is on the edge but rent just about covers PITI. As soon as they can sell without paying anything out of pocket they will get rid of that one. They have enough to buy a couple houses all cash but only want one and will finance because rates are so good. They are looking for pretty much what you are. There are plenty of others just like them. That is your competition. And they have better representation;)[/quote]
I have absolutely no doubt that there are plenty of qualified buyers out there. I know a number of VERY well-qualified bubble sitters, myself. That being said, there have always been very well-qualified buyers in Southern California; that doesn’t mean that prices can’t go down. Those buyers tend to be far smarter than their NINJA counterparts who pushed up prices with OPM during the bubble.
April 6, 2011 at 2:29 AM #685116Participant[quote=sdrealtor]CAR
No snark intended but we now live in a place that is very different than it was a few decades ago. Hell its different than it was a decade ago. The profile of relative desireability of the NCC has gone up exponentially since you were a kid. We have discussed this over the years ad naseum. If you are not willing to accept that reality you will have to stay where you, which isn’t exactly a bad place. Nothing that you have described about yourself and your lifestyle entitles you to the house you want. It is all driven by supply and demand.This weekend I met with some new clients in their mid 50’s. They got re-married a few years ago and both have very good incomes bigger than your DH. Her house is owned free and clear. They will rent that one out for a year or two because the income will be great and then sell within the 2 out of 5 years rule. His house is on the edge but rent just about covers PITI. As soon as they can sell without paying anything out of pocket they will get rid of that one. They have enough to buy a couple houses all cash but only want one and will finance because rates are so good. They are looking for pretty much what you are. There are plenty of others just like them. That is your competition. And they have better representation;)[/quote]
I have absolutely no doubt that there are plenty of qualified buyers out there. I know a number of VERY well-qualified bubble sitters, myself. That being said, there have always been very well-qualified buyers in Southern California; that doesn’t mean that prices can’t go down. Those buyers tend to be far smarter than their NINJA counterparts who pushed up prices with OPM during the bubble.
April 6, 2011 at 6:33 AM #683948Scarlett
ParticipantWell said, CA R. I was thinking of several replies to the sdr’s post. You are a lady!
April 6, 2011 at 6:33 AM #683999ParticipantWell said, CA R. I was thinking of several replies to the sdr’s post. You are a lady!
April 6, 2011 at 6:33 AM #684628ParticipantWell said, CA R. I was thinking of several replies to the sdr’s post. You are a lady!
April 6, 2011 at 6:33 AM #684770ParticipantWell said, CA R. I was thinking of several replies to the sdr’s post. You are a lady!
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