Why can I not get a loan?

[MadeInTaiwan]

[quote=jficquette]MadeinTaiwan,

I do think its different this time. No reason to get into why. Its all been said by others.

Affordablity is based on relationship between median wage and house price.

Mid 90’s were the last time in SoCal they were even close to matching up.

Pendulum swings.

John[/quote]

I want to make it clear that I am not saying prices will not get down to 95 adjusted for inflation, or even lower.

If you go by historic means then 95/96 was the last bottom going back over 100 years. Note: these are prices adjusted for inflation and material/content, i.e. pricing of the same house with same features in 2005 and 1905. This is from a graph I saw on either the Atlantic or Economist website back in 04 I think. Of course this is a national average and not specific to San Diego.

Maybe San Diego did not always have a premium in terms of price/wage, but it’s been the case since I started attending UCSD in 86.

John, please at least give me a few links to the threads that discuss your reasoning. I don’t read all the thread and don’t remember this particular discussion.

Maybe the last 20+ years has been an anomaly and in 95/96 housing prices did not get back to the long term mean sufficiently, but that is not what I saw on that national graph.

Slightly OT but according to that inflation/content adjusted graph housing in the long term does not beat inflation.

MadeInTaiwan

[jficquette]

Hi MadeInTaiwan,

There are a lot of people here who know tons more then me. I am not in real estate in anyway. I am just offering my opinion based on what I see happening to the economy. The others on the board could help you a lot more then I.

I do know that San Diego has always had a premium as far as the ratio of median price to median wage. I believe that it has always been about 4-6 prices vs wages whereas the national average has always been around 3-4. I also believe that it got to around 11 at the the peak here.

Thank you,

John

[jficquette]

Hi MadeInTaiwan,

There are a lot of people here who know tons more then me. I am not in real estate in anyway. I am just offering my opinion based on what I see happening to the economy. The others on the board could help you a lot more then I.

I do know that San Diego has always had a premium as far as the ratio of median price to median wage. I believe that it has always been about 4-6 prices vs wages whereas the national average has always been around 3-4. I also believe that it got to around 11 at the the peak here.

Thank you,

John

[jficquette]

Hi MadeInTaiwan,

There are a lot of people here who know tons more then me. I am not in real estate in anyway. I am just offering my opinion based on what I see happening to the economy. The others on the board could help you a lot more then I.

I do know that San Diego has always had a premium as far as the ratio of median price to median wage. I believe that it has always been about 4-6 prices vs wages whereas the national average has always been around 3-4. I also believe that it got to around 11 at the the peak here.

Thank you,

John

[jficquette]

Hi MadeInTaiwan,

There are a lot of people here who know tons more then me. I am not in real estate in anyway. I am just offering my opinion based on what I see happening to the economy. The others on the board could help you a lot more then I.

I do know that San Diego has always had a premium as far as the ratio of median price to median wage. I believe that it has always been about 4-6 prices vs wages whereas the national average has always been around 3-4. I also believe that it got to around 11 at the the peak here.

Thank you,

John

[jficquette]

Hi MadeInTaiwan,

There are a lot of people here who know tons more then me. I am not in real estate in anyway. I am just offering my opinion based on what I see happening to the economy. The others on the board could help you a lot more then I.

I do know that San Diego has always had a premium as far as the ratio of median price to median wage. I believe that it has always been about 4-6 prices vs wages whereas the national average has always been around 3-4. I also believe that it got to around 11 at the the peak here.

Thank you,

John

[localguy]

We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy

[localguy]

We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy

[localguy]

We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy

[localguy]

We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy

[localguy]

We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy

[CBad]

Can’t we all just get a loan? (Sorry, couldn’t resist….)

TG, you are still hilarious. Scaredycat’s post made me laugh too. I live the “super cheap” life and I have to say, it’s great for removing stress and providing freedom. You have to be very anti keeping up with the Joneses though which I will agree that many women can’t do (I have to remind my husband how lucky he is sometimes). And I firmly believe that young children do not care what type of house/condo/apartment you own or rent or what size it is as long as they are cared for and loved. Some of my best childhood memories are from the 6 months that our family rented an apartment in between buying houses. The house my parents bought was 4000 sq. ft. and the apartment was probably 1000. After we moved to the house, we weren’t as close literally and emotionally.

[CBad]

Can’t we all just get a loan? (Sorry, couldn’t resist….)

TG, you are still hilarious. Scaredycat’s post made me laugh too. I live the “super cheap” life and I have to say, it’s great for removing stress and providing freedom. You have to be very anti keeping up with the Joneses though which I will agree that many women can’t do (I have to remind my husband how lucky he is sometimes). And I firmly believe that young children do not care what type of house/condo/apartment you own or rent or what size it is as long as they are cared for and loved. Some of my best childhood memories are from the 6 months that our family rented an apartment in between buying houses. The house my parents bought was 4000 sq. ft. and the apartment was probably 1000. After we moved to the house, we weren’t as close literally and emotionally.

[CBad]

Can’t we all just get a loan? (Sorry, couldn’t resist….)

TG, you are still hilarious. Scaredycat’s post made me laugh too. I live the “super cheap” life and I have to say, it’s great for removing stress and providing freedom. You have to be very anti keeping up with the Joneses though which I will agree that many women can’t do (I have to remind my husband how lucky he is sometimes). And I firmly believe that young children do not care what type of house/condo/apartment you own or rent or what size it is as long as they are cared for and loved. Some of my best childhood memories are from the 6 months that our family rented an apartment in between buying houses. The house my parents bought was 4000 sq. ft. and the apartment was probably 1000. After we moved to the house, we weren’t as close literally and emotionally.

[CBad]

Can’t we all just get a loan? (Sorry, couldn’t resist….)

TG, you are still hilarious. Scaredycat’s post made me laugh too. I live the “super cheap” life and I have to say, it’s great for removing stress and providing freedom. You have to be very anti keeping up with the Joneses though which I will agree that many women can’t do (I have to remind my husband how lucky he is sometimes). And I firmly believe that young children do not care what type of house/condo/apartment you own or rent or what size it is as long as they are cared for and loved. Some of my best childhood memories are from the 6 months that our family rented an apartment in between buying houses. The house my parents bought was 4000 sq. ft. and the apartment was probably 1000. After we moved to the house, we weren’t as close literally and emotionally.

[Author]

Posts