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Ex-SD
Participantkewp: 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 +/-4,554As 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.Participantkewp: 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 +/-4,554As 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.Participant“What leads one to conclude that a declining dollar and rampant inflation would put downward pressure on real estate prices. I do not understand the logic of those who hold this view. Is there some sort of mass cognitive dissonance going on ?”
#1. There is too much inventory of unsold/foreclosed homes and it’s going to get a lot larger due to more ARM resets, divorces, job losses, etc. It’s going to take seven or eight years (at a minimum) to get unsold inventory numbers back in line.
#2. Housing in the bubble markets is severely overvalued when compared to the majority of homes in the rest of the country.
#3. Wages for the number of people that it would take to buy a home will not rise nearly enough in 10 years to afford anything more than a $300k median price. That $475k house that he just bought can be bought where I live in SC (in a major city) for around $175k. That’s how much houses are over-inflated in most of CA.Participant“What leads one to conclude that a declining dollar and rampant inflation would put downward pressure on real estate prices. I do not understand the logic of those who hold this view. Is there some sort of mass cognitive dissonance going on ?”
#1. There is too much inventory of unsold/foreclosed homes and it’s going to get a lot larger due to more ARM resets, divorces, job losses, etc. It’s going to take seven or eight years (at a minimum) to get unsold inventory numbers back in line.
#2. Housing in the bubble markets is severely overvalued when compared to the majority of homes in the rest of the country.
#3. Wages for the number of people that it would take to buy a home will not rise nearly enough in 10 years to afford anything more than a $300k median price. That $475k house that he just bought can be bought where I live in SC (in a major city) for around $175k. That’s how much houses are over-inflated in most of CA.Participant“What leads one to conclude that a declining dollar and rampant inflation would put downward pressure on real estate prices. I do not understand the logic of those who hold this view. Is there some sort of mass cognitive dissonance going on ?”
#1. There is too much inventory of unsold/foreclosed homes and it’s going to get a lot larger due to more ARM resets, divorces, job losses, etc. It’s going to take seven or eight years (at a minimum) to get unsold inventory numbers back in line.
#2. Housing in the bubble markets is severely overvalued when compared to the majority of homes in the rest of the country.
#3. Wages for the number of people that it would take to buy a home will not rise nearly enough in 10 years to afford anything more than a $300k median price. That $475k house that he just bought can be bought where I live in SC (in a major city) for around $175k. That’s how much houses are over-inflated in most of CA.ParticipantI think that the $475k house that he bought will be worth no more than $300k in 10 years so when the interest only portion is up, he will start paying for P&I for 30 years for an overpriced property. The bottom for housing prices in SoCal won’t hit until at least the end of 2011 but most likely 2012 or later. When the bottom hits, prices will not go up for years because the average incomes for buyers in SD don’t equal what it takes to get a loan. Prices will only be able to rise according to income rising along with inventory & demand. After this fiasco, banks will not be handing out loans like candy to trick or treaters and buyers will not be so eager to buy a home that they can’t use as a get rich quick scheme or an ATM.
If he’s happy with the loan, more power to him but it’s not something I would advise any of my children to do.ParticipantI think that the $475k house that he bought will be worth no more than $300k in 10 years so when the interest only portion is up, he will start paying for P&I for 30 years for an overpriced property. The bottom for housing prices in SoCal won’t hit until at least the end of 2011 but most likely 2012 or later. When the bottom hits, prices will not go up for years because the average incomes for buyers in SD don’t equal what it takes to get a loan. Prices will only be able to rise according to income rising along with inventory & demand. After this fiasco, banks will not be handing out loans like candy to trick or treaters and buyers will not be so eager to buy a home that they can’t use as a get rich quick scheme or an ATM.
If he’s happy with the loan, more power to him but it’s not something I would advise any of my children to do.ParticipantI think that the $475k house that he bought will be worth no more than $300k in 10 years so when the interest only portion is up, he will start paying for P&I for 30 years for an overpriced property. The bottom for housing prices in SoCal won’t hit until at least the end of 2011 but most likely 2012 or later. When the bottom hits, prices will not go up for years because the average incomes for buyers in SD don’t equal what it takes to get a loan. Prices will only be able to rise according to income rising along with inventory & demand. After this fiasco, banks will not be handing out loans like candy to trick or treaters and buyers will not be so eager to buy a home that they can’t use as a get rich quick scheme or an ATM.
If he’s happy with the loan, more power to him but it’s not something I would advise any of my children to do.ParticipantI’ve been in that home (around six or seven years ago) and it’s not exactly what you would call a luxury home.
ParticipantI’ve been in that home (around six or seven years ago) and it’s not exactly what you would call a luxury home.
ParticipantI’ve been in that home (around six or seven years ago) and it’s not exactly what you would call a luxury home.
October 30, 2007 at 2:24 PM in reply to: 10% population in SD county are millionaires (exclude Primary RE)?! #93231ParticipantI remember reading several articles in the UT over the last couple of years that said, less than 5% of the population of SD could qualify for a median priced home. If the number of millionaire households is correct, then the other 90% of households are a long way from ever reaching millionaire status.
October 30, 2007 at 2:24 PM in reply to: 10% population in SD county are millionaires (exclude Primary RE)?! #93264ParticipantI remember reading several articles in the UT over the last couple of years that said, less than 5% of the population of SD could qualify for a median priced home. If the number of millionaire households is correct, then the other 90% of households are a long way from ever reaching millionaire status.
October 30, 2007 at 2:24 PM in reply to: 10% population in SD county are millionaires (exclude Primary RE)?! #93276ParticipantI remember reading several articles in the UT over the last couple of years that said, less than 5% of the population of SD could qualify for a median priced home. If the number of millionaire households is correct, then the other 90% of households are a long way from ever reaching millionaire status.
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