What will it take to get you to buy a house?

[pencilneck]

Well said, Sdduuuuude.

One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.

Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.

http://www.federalreserve.gov/releases/housedebt/default.htm

I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.

[pencilneck]

Well said, Sdduuuuude.

One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.

Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.

http://www.federalreserve.gov/releases/housedebt/default.htm

I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.

[pencilneck]

Well said, Sdduuuuude.

One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.

Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.

http://www.federalreserve.gov/releases/housedebt/default.htm

I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.

[pencilneck]

Well said, Sdduuuuude.

One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.

Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.

http://www.federalreserve.gov/releases/housedebt/default.htm

I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.

[34f3f3f]

I’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.

[34f3f3f]

I’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.

[34f3f3f]

I’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.

[34f3f3f]

I’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.

[34f3f3f]

I’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.

[ibjames]

good job sdduuude (how do you remember the number of U’s when you login by the way)

some sense has been restored in this recycled thread

QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters

[ibjames]

good job sdduuude (how do you remember the number of U’s when you login by the way)

some sense has been restored in this recycled thread

QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters

[ibjames]

good job sdduuude (how do you remember the number of U’s when you login by the way)

some sense has been restored in this recycled thread

QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters

[ibjames]

good job sdduuude (how do you remember the number of U’s when you login by the way)

some sense has been restored in this recycled thread

QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters

[ibjames]

good job sdduuude (how do you remember the number of U’s when you login by the way)

some sense has been restored in this recycled thread

QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters

[kev374]

2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)

Of course it will go down but not 30%, perhaps more like 40-50%.

Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.

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