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[23109VC]

Ex-SD

the house that is 475k here is 175 there.

what is the discrepancy in salaries/incomes.

the guy who makes $100k here – what does he make there? $50? I’m assuming a local job, not someone self employed over the internet who makes the same regardless of where they live…. your average person has to work somehwere, and in general, incomes seem to vary with regions – cost of living varies.. etc.

housing in CA may be way overpriced, but part of why it costs more is that jobs here sometimes tend to pay better than say a job in Arkansas….where that 475k house cost 100k..

[kewp]

what is the discrepancy in salaries/incomes.

Courtesy of:

http://www.census.gov/hhes/www/income/medincsizeandstate.html

Arkansas Estimate Margin of Error
Total: 45,093 +/-813
2-person families 40,604 +/-821
3-person families 47,588 +/-1,487
4-person families 52,185 +/-1,486
5-person families 50,500 +/-1,924
6-person families 51,971 +/-6,247
7-or-more-person families 49,272 +/-4,514

California Estimate Margin of Error
Total: 64,563 +/-413
2-person families 60,032 +/-524
3-person families 64,766 +/-854
4-person families 74,801 +/-868
5-person families 64,132 +/-1,356
6-person families 61,348 +/-1,096
7-or-more-person families 68,030 +/-2,050

By your logic, all things being equal, CA homes should be 30% more than AK homes.

Apparently this is not the case.

[kewp]

what is the discrepancy in salaries/incomes.

Courtesy of:

http://www.census.gov/hhes/www/income/medincsizeandstate.html

Arkansas Estimate Margin of Error
Total: 45,093 +/-813
2-person families 40,604 +/-821
3-person families 47,588 +/-1,487
4-person families 52,185 +/-1,486
5-person families 50,500 +/-1,924
6-person families 51,971 +/-6,247
7-or-more-person families 49,272 +/-4,514

California Estimate Margin of Error
Total: 64,563 +/-413
2-person families 60,032 +/-524
3-person families 64,766 +/-854
4-person families 74,801 +/-868
5-person families 64,132 +/-1,356
6-person families 61,348 +/-1,096
7-or-more-person families 68,030 +/-2,050

By your logic, all things being equal, CA homes should be 30% more than AK homes.

Apparently this is not the case.

[kewp]

what is the discrepancy in salaries/incomes.

Courtesy of:

http://www.census.gov/hhes/www/income/medincsizeandstate.html

Arkansas Estimate Margin of Error
Total: 45,093 +/-813
2-person families 40,604 +/-821
3-person families 47,588 +/-1,487
4-person families 52,185 +/-1,486
5-person families 50,500 +/-1,924
6-person families 51,971 +/-6,247
7-or-more-person families 49,272 +/-4,514

California Estimate Margin of Error
Total: 64,563 +/-413
2-person families 60,032 +/-524
3-person families 64,766 +/-854
4-person families 74,801 +/-868
5-person families 64,132 +/-1,356
6-person families 61,348 +/-1,096
7-or-more-person families 68,030 +/-2,050

By your logic, all things being equal, CA homes should be 30% more than AK homes.

Apparently this is not the case.

[Ex-SD]

kewp: You beat me to it:

South Carolina……….Estimate…Margin of Error
Total: 50,334 +/-657
2-person families……45,233 +/-752
3-person families…….51,525 +/-1,739
4-person families…….59,663 +/-1,819
5-person families…….55,134 +/-2,696
6-person families…….60,783 +/-6,321
7-or-more-people…….47,140 +/-4,554

As you can see, things are way out of wack in SD and the rest of CA.
What’s selling for $475k in SD should be priced at around $215-$220k in SD.

[Ex-SD]

kewp: You beat me to it:

South Carolina……….Estimate…Margin of Error
Total: 50,334 +/-657
2-person families……45,233 +/-752
3-person families…….51,525 +/-1,739
4-person families…….59,663 +/-1,819
5-person families…….55,134 +/-2,696
6-person families…….60,783 +/-6,321
7-or-more-people…….47,140 +/-4,554

As you can see, things are way out of wack in SD and the rest of CA.
What’s selling for $475k in SD should be priced at around $215-$220k in SD.

[Ex-SD]

kewp: You beat me to it:

South Carolina……….Estimate…Margin of Error
Total: 50,334 +/-657
2-person families……45,233 +/-752
3-person families…….51,525 +/-1,739
4-person families…….59,663 +/-1,819
5-person families…….55,134 +/-2,696
6-person families…….60,783 +/-6,321
7-or-more-people…….47,140 +/-4,554

As you can see, things are way out of wack in SD and the rest of CA.
What’s selling for $475k in SD should be priced at around $215-$220k in SD.

[garysears]

I think this is an incredible loan. I wouldn’t mind taking advantage of such an ill conceived program designed to get unqualified people into the peak of the mania.

Why overpay now to do it?

It will be a double bonus later on to buy a house at a reasonable price plus get better than market financing. No one should feel pressured to buy immediately due to any such program. Price matters more than financing terms or monthly payment.

Anyone really think these programs are going anywhere soon? My guess is more government intervention and not less as this plays out.

It doesn’t seem likely wages will dramatically inflate to stabilize prices. Isn’t it normal for wage inflation to lag real inflation? The claim that a 4% wage increase is outpacing inflation would be hotly contested by many.

My personal real estate bet is I can pick a more reasonable entry point into the market before wages show any substantial increase.

Don’t forget about financing in the face of obvious inflation. Even if incomes rise somewhat, financing is only likely to get more difficult. The net result will still be declining property values. I don’t see how devaluation of the dollar even matters. It is basic supply and demand.

Wage inflation is swimming upstream against both the financing and distressed inventory trends.

Stay patient.

[garysears]

I think this is an incredible loan. I wouldn’t mind taking advantage of such an ill conceived program designed to get unqualified people into the peak of the mania.

Why overpay now to do it?

It will be a double bonus later on to buy a house at a reasonable price plus get better than market financing. No one should feel pressured to buy immediately due to any such program. Price matters more than financing terms or monthly payment.

Anyone really think these programs are going anywhere soon? My guess is more government intervention and not less as this plays out.

It doesn’t seem likely wages will dramatically inflate to stabilize prices. Isn’t it normal for wage inflation to lag real inflation? The claim that a 4% wage increase is outpacing inflation would be hotly contested by many.

My personal real estate bet is I can pick a more reasonable entry point into the market before wages show any substantial increase.

Don’t forget about financing in the face of obvious inflation. Even if incomes rise somewhat, financing is only likely to get more difficult. The net result will still be declining property values. I don’t see how devaluation of the dollar even matters. It is basic supply and demand.

Wage inflation is swimming upstream against both the financing and distressed inventory trends.

Stay patient.

[garysears]

I think this is an incredible loan. I wouldn’t mind taking advantage of such an ill conceived program designed to get unqualified people into the peak of the mania.

Why overpay now to do it?

It will be a double bonus later on to buy a house at a reasonable price plus get better than market financing. No one should feel pressured to buy immediately due to any such program. Price matters more than financing terms or monthly payment.

Anyone really think these programs are going anywhere soon? My guess is more government intervention and not less as this plays out.

It doesn’t seem likely wages will dramatically inflate to stabilize prices. Isn’t it normal for wage inflation to lag real inflation? The claim that a 4% wage increase is outpacing inflation would be hotly contested by many.

My personal real estate bet is I can pick a more reasonable entry point into the market before wages show any substantial increase.

Don’t forget about financing in the face of obvious inflation. Even if incomes rise somewhat, financing is only likely to get more difficult. The net result will still be declining property values. I don’t see how devaluation of the dollar even matters. It is basic supply and demand.

Wage inflation is swimming upstream against both the financing and distressed inventory trends.

Stay patient.

[Raybyrnes]

patientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”

I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.

Best scenario is to identify something you can afford and then use the affordable-income programs.

But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.

[Raybyrnes]

patientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”

I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.

Best scenario is to identify something you can afford and then use the affordable-income programs.

But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.

[Raybyrnes]

patientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”

I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.

Best scenario is to identify something you can afford and then use the affordable-income programs.

But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.

[kev374]

a 40 yr loan doesn’t make any sense. The difference in payments between a 30yr and a 40yr isn’t all that much but an additional 10 years is a loonnnnnng time to continue making those payments. And do you want to keep paying a mortgage into retirement? Geez!

[kev374]

a 40 yr loan doesn’t make any sense. The difference in payments between a 30yr and a 40yr isn’t all that much but an additional 10 years is a loonnnnnng time to continue making those payments. And do you want to keep paying a mortgage into retirement? Geez!

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