Some Active/Pending Ratios

[CA renter]

Thank you, SD Realtor.

Once again, we have to remember that sales are picking up **because** prices are down.

In the lower-end neighborhoods, I believe you can buy now and risk only $30K-$60K in potential losses, at worst. This would be for $250K homes or less. That’s not bad, compared to $200K+ losses.

They are still offering “funky” mortgages, and the upward swing of the housing bubble is still fresh in everyone’s mind. They are anchoring to 2005 prices, and things look great to buy!

If the economy continues to get worse, rents will fall, and I think this is key. Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods. I do not think this is sustainable over the long run.

[CA renter]

Thank you, SD Realtor.

Once again, we have to remember that sales are picking up **because** prices are down.

In the lower-end neighborhoods, I believe you can buy now and risk only $30K-$60K in potential losses, at worst. This would be for $250K homes or less. That’s not bad, compared to $200K+ losses.

They are still offering “funky” mortgages, and the upward swing of the housing bubble is still fresh in everyone’s mind. They are anchoring to 2005 prices, and things look great to buy!

If the economy continues to get worse, rents will fall, and I think this is key. Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods. I do not think this is sustainable over the long run.

[CA renter]

Thank you, SD Realtor.

Once again, we have to remember that sales are picking up **because** prices are down.

In the lower-end neighborhoods, I believe you can buy now and risk only $30K-$60K in potential losses, at worst. This would be for $250K homes or less. That’s not bad, compared to $200K+ losses.

They are still offering “funky” mortgages, and the upward swing of the housing bubble is still fresh in everyone’s mind. They are anchoring to 2005 prices, and things look great to buy!

If the economy continues to get worse, rents will fall, and I think this is key. Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods. I do not think this is sustainable over the long run.

[PD]

Do you have the numbers for 92118? Thank you.

[PD]

Do you have the numbers for 92118? Thank you.

[PD]

Do you have the numbers for 92118? Thank you.

[PD]

Do you have the numbers for 92118? Thank you.

[PD]

Do you have the numbers for 92118? Thank you.

[(former)FormerSanDiegan]

Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods.

Bubble ? in rents ? Didn’t we cover this already ?

2K per month is 24K per year.
Median Household income (as of 2006 per SANDAG) was : 65K

That’s 37% of median household income for an average house using 2006 income numbers and your assessment of average. That’s a bit high, but the rent was for an “average” house (not including
apartments) and income numbers are from all households including apartment and condo dwellers.

If you look at median rent versus median income it’s even lower. Median rent is about 30% of median household income. That’s not that out of line with traditional guidelines of 1/3 of your income to housing.

[(former)FormerSanDiegan]

Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods.

Bubble ? in rents ? Didn’t we cover this already ?

2K per month is 24K per year.
Median Household income (as of 2006 per SANDAG) was : 65K

That’s 37% of median household income for an average house using 2006 income numbers and your assessment of average. That’s a bit high, but the rent was for an “average” house (not including
apartments) and income numbers are from all households including apartment and condo dwellers.

If you look at median rent versus median income it’s even lower. Median rent is about 30% of median household income. That’s not that out of line with traditional guidelines of 1/3 of your income to housing.

[(former)FormerSanDiegan]

Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods.

Bubble ? in rents ? Didn’t we cover this already ?

2K per month is 24K per year.
Median Household income (as of 2006 per SANDAG) was : 65K

That’s 37% of median household income for an average house using 2006 income numbers and your assessment of average. That’s a bit high, but the rent was for an “average” house (not including
apartments) and income numbers are from all households including apartment and condo dwellers.

If you look at median rent versus median income it’s even lower. Median rent is about 30% of median household income. That’s not that out of line with traditional guidelines of 1/3 of your income to housing.

[(former)FormerSanDiegan]

Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods.

Bubble ? in rents ? Didn’t we cover this already ?

2K per month is 24K per year.
Median Household income (as of 2006 per SANDAG) was : 65K

That’s 37% of median household income for an average house using 2006 income numbers and your assessment of average. That’s a bit high, but the rent was for an “average” house (not including
apartments) and income numbers are from all households including apartment and condo dwellers.

If you look at median rent versus median income it’s even lower. Median rent is about 30% of median household income. That’s not that out of line with traditional guidelines of 1/3 of your income to housing.

[(former)FormerSanDiegan]

Rents are in their own bubble right now, IMO. Too many LLs asking $2K+/mo rent for really basic housing in average neighborhoods.

Bubble ? in rents ? Didn’t we cover this already ?

2K per month is 24K per year.
Median Household income (as of 2006 per SANDAG) was : 65K

That’s 37% of median household income for an average house using 2006 income numbers and your assessment of average. That’s a bit high, but the rent was for an “average” house (not including
apartments) and income numbers are from all households including apartment and condo dwellers.

If you look at median rent versus median income it’s even lower. Median rent is about 30% of median household income. That’s not that out of line with traditional guidelines of 1/3 of your income to housing.

[DWCAP]

I personally dont think we will see much more decline in places like MM just due to foreclosures. As the relators point out, fundaments in MM and even some similar places such as clairmont, are about as “normal” as todays market place could support.
That isnt to say that there wont be more price reductions, only that they wont come in the same way as in the past. Fannie and freddie are in crisis mode and changing their buisness. interest rates and fees are going up, and buyers are being squeezed out by that. Fannie is ending ALtA loans. Wouldnt supprise me one bit if that took 20% of MM buyers out of the pool. AltA was great for the would be donald trumps, and is going the way of subprime if Fannie/Freddie wont buy them anymore. Less demand……..
The last leg to chop off will be the move up buyer. The person who can be an upper end buyer in MM, or a lower end buyer in CV/PQ if prices in those areas will fall. The bottom end of the buyer pool is dead, subprime isnt coming back. AltA is following, and the buyer pyramid starts looking like a diamond shaped as the two ends just cant get financing.
The “trade up” effect plus the further reduction in financing will be the last 15-20%. 350k will become 280k, but I dont know if well actually see 280k as a number. Maybe there are enough asian families and bubble sitters to drag it out so inflation eats the rest. I dont think so, but I am kinda biased. (Fall baby; fall) Just my idiot opnion.

[DWCAP]

I personally dont think we will see much more decline in places like MM just due to foreclosures. As the relators point out, fundaments in MM and even some similar places such as clairmont, are about as “normal” as todays market place could support.
That isnt to say that there wont be more price reductions, only that they wont come in the same way as in the past. Fannie and freddie are in crisis mode and changing their buisness. interest rates and fees are going up, and buyers are being squeezed out by that. Fannie is ending ALtA loans. Wouldnt supprise me one bit if that took 20% of MM buyers out of the pool. AltA was great for the would be donald trumps, and is going the way of subprime if Fannie/Freddie wont buy them anymore. Less demand……..
The last leg to chop off will be the move up buyer. The person who can be an upper end buyer in MM, or a lower end buyer in CV/PQ if prices in those areas will fall. The bottom end of the buyer pool is dead, subprime isnt coming back. AltA is following, and the buyer pyramid starts looking like a diamond shaped as the two ends just cant get financing.
The “trade up” effect plus the further reduction in financing will be the last 15-20%. 350k will become 280k, but I dont know if well actually see 280k as a number. Maybe there are enough asian families and bubble sitters to drag it out so inflation eats the rest. I dont think so, but I am kinda biased. (Fall baby; fall) Just my idiot opnion.

[Author]

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