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sdrealtor
ParticipantThanx YBC. You said it better and more concisely than most of us could have.
ParticipantGood sound advice
ParticipantAnd that is different than a home in what way?
ParticipantDRHB,
Who cares about reported medians. prices are down 10% or more just about everywhere in my world.FSD,
Many on this blog are expecting 40 to 50% declines and believe they will buy todays $1M homes for $500K or less.ParticipantRightside,
Did you ever buy a house in The Bay Collection. They just dropped the prices by 150 to 200K on the smaller ones in the MLS and are including all upgrades and landscaping. Someone recently closed on a 4,000+ sq ft in the bigger ones(Plan 3 I think with tons of upgrades and landscaping for about $1.05M).I think SP is in trouble also.
ParticipantTime to stir the pot a little:
How many of you out there would be happy buying a home at 20% off current prices at the bottom of the market? I suspect, most if not all of you would be very, very disappointed.
If we asssume prices are already down 10% off the peak. This is very reasonable and probably understates the decline.
Add 15 to 20% inflation over the next 5 years as mentioned in the Anderson Report. (DrHB uncle’s property is renting for close to 30% more today than 5 years ago so this seems like a reasonable assumption for inflation/increasing rental rates).
Then take 20% off the current prices and VOILA!
We effectively have close to a 50% decline in the Real price of housing.
Discuss…
ParticipantAN,
To your point that “You can’t really compare the peak of the .com bubble with current wages, it just doesn’t work.”That is the point. Alot of homes were sold based upon these salaries at the time which sent this market into overdrive beginning in the early 2000’s. The falling interest rates feed the beast and Voila! Here we are!
I Never said they caused the bubble but certainly they helped feed it.
ParticipantJG,
There are a helluva lot more people making 150K+ than what you see in the statistics. When you own the business you control your income, have the ability to hide lots of things and run lots of expenses through your business. I hope it wouldn’t surprise you to learn that high income earners often dramatically have under reported incomes.ParticipantJustme,
To answer your questions, I dont think either Realtors or Engineers deserve to be Movers or Shakers unless as Realtors they are at the top of the profession or as engineers they invent something very valuable or own the business. Also making 100K as a realtor is harder. There are alot less Realtors making that kind of money than engineers around here.FYI, for the latecomers to this board before Real Estate I worked in Corporate America as well as some succesful as well as unsuccessful start-up companies and my earnings were about double of what they are now. RE has allowed me to spend lots of time with my family and watch my young children grow. I’m not in it for the big bucks but rather the big personal payoff.
ParticipantAgreed! Someone with a $100K income cant really afford a $500K or higher home.
September 28, 2006 at 12:18 PM in reply to: Sell or Hold if Mortage is roughly equal to rent? #36725ParticipantIf you like the place it could be worth hanging on. Transaction costs are substantial as are moving costs which not only involve dollars but distractons to your personal and professional life. It really depends on the exact numbers, how much you like the place and your risk tolerance.
ParticipantBetween 1999 and 2001 anyone with a pulse could get a 75K job with all the Internet nonsense. I had friends making 100K plus sitting in their cubicles playing solitaire all day.
BTW, you must be working the wrong place. My old neighbor was an HR exec for a major defense contractor. She was constantly hiring dozens of mid level guys in the 90’s with a couple years experience and that was a few years ago.
Lastly, a HH Income of $20K per month easily supports a $600K home. A 30 year fixed rate on 500K loan is only about $3100 per month, add $700 for taxes, $150 for HOA and $150 for insurance and you reach approximately $4000 per month. At 20% of monthly gross that is a no brainer.
ParticipantPS, Yes I think they contributed to the boom. I think that alot of techies/engineers fit the stereotypes having grown up modestly, working hard and being pretty introverted. Many suddenly found themselves with low six figures incomes, thought that was a lot of money, got seduced by it and thought that they would always make that much money and more. Its all emotions at play.
I dont think that is alot of money to live well and save. They bought homes stretching themselves while not allowing for downturns or periods of unemployment. Unless your household income is AT LEAST $200K and you ARE the boss, I don’t consider you as being a mover and shaker.
ParticipantMy family lived in Pittsburgh before I was born for a few years. One of the great wisdoms my father passed down to me as NEVER MOVE TO PITTSBURGH.
Back on topic though….lots of relatively young techies/engineers suddenly making relatively good money likely fueled the fire in SD. All of a sudden they felt rich and successful without actually having earned the incomes they got. I think that continues to this day. When I grew up, engineers were distinctly middle to lower middle class unless they owned the business or were in technical sales. When I graduated college in the mid-80’s engineers earned starting salaries of 30 to 40K and hoped they might someday reach 75K. Now we have a lot of engineers starting salaries in 70K range and many making low six figures after a couple years that think they are movers and shakers. I’d agree with the sweaty guy at the gym.
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