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pemeliza
ParticipantJust because you cannot buy a house where you want to live doesn’t mean you cannot live there. Rental rates are actually pretty reasonable in SD and many people don’t mind commuting a long distance to work to get to areas in which they can buy a nicer house.
The reason median income doesn’t matter IMHO, is because there are not enough houses that change hands every year in SD for all of those people with the median income or higher to buy one. In other words, if prices were set based on median incomes, then there would be an instability because the demand would far outweigh the supply.
The other problem with the median income analysis is that it does not take into account other sources of wealth including stock options and equity from prior home sales.
ParticipantJust because you cannot buy a house where you want to live doesn’t mean you cannot live there. Rental rates are actually pretty reasonable in SD and many people don’t mind commuting a long distance to work to get to areas in which they can buy a nicer house.
The reason median income doesn’t matter IMHO, is because there are not enough houses that change hands every year in SD for all of those people with the median income or higher to buy one. In other words, if prices were set based on median incomes, then there would be an instability because the demand would far outweigh the supply.
The other problem with the median income analysis is that it does not take into account other sources of wealth including stock options and equity from prior home sales.
ParticipantAccording to your link the median income in 92103 is $47,978.
At 3x income, the median home price should be 150k?
150k for a median priced home in one of the premier neighborhoods in all of san diego?
I know people that live in that area that make 150k a year and that’s just one of two incomes.
Median income is pretty much a useless metric for housing in a supply constrained market such as SD.
By the way, I do agree that SD is an expensive place to live especially if you don’t have any equity or stock options. It definitely is not for everyone.
ParticipantAccording to your link the median income in 92103 is $47,978.
At 3x income, the median home price should be 150k?
150k for a median priced home in one of the premier neighborhoods in all of san diego?
I know people that live in that area that make 150k a year and that’s just one of two incomes.
Median income is pretty much a useless metric for housing in a supply constrained market such as SD.
By the way, I do agree that SD is an expensive place to live especially if you don’t have any equity or stock options. It definitely is not for everyone.
ParticipantAccording to your link the median income in 92103 is $47,978.
At 3x income, the median home price should be 150k?
150k for a median priced home in one of the premier neighborhoods in all of san diego?
I know people that live in that area that make 150k a year and that’s just one of two incomes.
Median income is pretty much a useless metric for housing in a supply constrained market such as SD.
By the way, I do agree that SD is an expensive place to live especially if you don’t have any equity or stock options. It definitely is not for everyone.
ParticipantAccording to your link the median income in 92103 is $47,978.
At 3x income, the median home price should be 150k?
150k for a median priced home in one of the premier neighborhoods in all of san diego?
I know people that live in that area that make 150k a year and that’s just one of two incomes.
Median income is pretty much a useless metric for housing in a supply constrained market such as SD.
By the way, I do agree that SD is an expensive place to live especially if you don’t have any equity or stock options. It definitely is not for everyone.
ParticipantAccording to your link the median income in 92103 is $47,978.
At 3x income, the median home price should be 150k?
150k for a median priced home in one of the premier neighborhoods in all of san diego?
I know people that live in that area that make 150k a year and that’s just one of two incomes.
Median income is pretty much a useless metric for housing in a supply constrained market such as SD.
By the way, I do agree that SD is an expensive place to live especially if you don’t have any equity or stock options. It definitely is not for everyone.
Participant“What matters is the fact that we live in one of the worst cities in the country for median income to median home price ratio. Which means we live in one of the most speculative cities in the country…
Any objections?”I looked at your table and it doesn’t add up.
According to trulia, the median sales price for homes in San Diego CA for Mar 10 to May 10 was $320,000. How on earth does that translate into a $3086 median monthly mortgage payment? If I plug in $320,000 (assume 0% downpayment) and 5% 30 year fixed rate I get $1717. If you put 20% down and get today’s rate which is substantially lower than 5%, the table looks even more ridiculous.
Then I looked at the date and realized it was from March 10, 2008.
Participant“What matters is the fact that we live in one of the worst cities in the country for median income to median home price ratio. Which means we live in one of the most speculative cities in the country…
Any objections?”I looked at your table and it doesn’t add up.
According to trulia, the median sales price for homes in San Diego CA for Mar 10 to May 10 was $320,000. How on earth does that translate into a $3086 median monthly mortgage payment? If I plug in $320,000 (assume 0% downpayment) and 5% 30 year fixed rate I get $1717. If you put 20% down and get today’s rate which is substantially lower than 5%, the table looks even more ridiculous.
Then I looked at the date and realized it was from March 10, 2008.
Participant“What matters is the fact that we live in one of the worst cities in the country for median income to median home price ratio. Which means we live in one of the most speculative cities in the country…
Any objections?”I looked at your table and it doesn’t add up.
According to trulia, the median sales price for homes in San Diego CA for Mar 10 to May 10 was $320,000. How on earth does that translate into a $3086 median monthly mortgage payment? If I plug in $320,000 (assume 0% downpayment) and 5% 30 year fixed rate I get $1717. If you put 20% down and get today’s rate which is substantially lower than 5%, the table looks even more ridiculous.
Then I looked at the date and realized it was from March 10, 2008.
Participant“What matters is the fact that we live in one of the worst cities in the country for median income to median home price ratio. Which means we live in one of the most speculative cities in the country…
Any objections?”I looked at your table and it doesn’t add up.
According to trulia, the median sales price for homes in San Diego CA for Mar 10 to May 10 was $320,000. How on earth does that translate into a $3086 median monthly mortgage payment? If I plug in $320,000 (assume 0% downpayment) and 5% 30 year fixed rate I get $1717. If you put 20% down and get today’s rate which is substantially lower than 5%, the table looks even more ridiculous.
Then I looked at the date and realized it was from March 10, 2008.
Participant“What matters is the fact that we live in one of the worst cities in the country for median income to median home price ratio. Which means we live in one of the most speculative cities in the country…
Any objections?”I looked at your table and it doesn’t add up.
According to trulia, the median sales price for homes in San Diego CA for Mar 10 to May 10 was $320,000. How on earth does that translate into a $3086 median monthly mortgage payment? If I plug in $320,000 (assume 0% downpayment) and 5% 30 year fixed rate I get $1717. If you put 20% down and get today’s rate which is substantially lower than 5%, the table looks even more ridiculous.
Then I looked at the date and realized it was from March 10, 2008.
Participant“I take issue with the idea that a 1000 sq ft house, 10 miles from the ocean and in a bad school district is going to sell for over a half a million dollars. ”
I agree that sounds like a bad deal and I would never buy something like that. As much as I like mission hills (which is about 3 miles from the ocean) I never could figure out Kensington. Once you get east of the I-15, I don’t really consider that coastal anymore.
Participant“I take issue with the idea that a 1000 sq ft house, 10 miles from the ocean and in a bad school district is going to sell for over a half a million dollars. ”
I agree that sounds like a bad deal and I would never buy something like that. As much as I like mission hills (which is about 3 miles from the ocean) I never could figure out Kensington. Once you get east of the I-15, I don’t really consider that coastal anymore.
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