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Can't afford a house in Cali? (Heck no!)
I knew the median home in the SF/Bay Area was $600,000+, but I didn't know the median home in the state was $400,000+.
Jeezuz H. Kriest!! I guess the only way to live in Cali is: 1.) Ghetto 2.) Apartment 3.) Roommates 4.) Live with parents 5.) Rent room from parents 6.) Inherit home from parents 7.) Kill parents or grand-parents and hope they left your the house. 8.) Make that kind of money (Like you can control that.) 9.) Quit day job and become stree-corner pharmaceutical sales representative. 10.) Become supplier for street corner pharmaceutical sales reps. _____________________________ Majority of Californians make less than half the income needed to buy a home LOS ANGELES -- California households are making less than half the income necessary to buy a median-priced home in the first quarter of 2005. Statewide households, with a median household income of $53,540, are $60,380 short of the $113,920 qualifying income needed to purchase a median-priced home at $488,600 in California, according to the California Association of Realtors (C.A.R.) Homebuyer Income Gap Index (HIGI) report for the first quarter of 2005. The association's HIGI is a quarterly analysis of the difference between the median household income and the qualifying income needed to purchase a median-priced, single-family home in the state and for selected regions within the state. The HIGI is calculated with the same assumptions used to generate C.A.R.'s monthly Housing Affordability Index (HAI); a 20 percent down payment and a monthly payment for principal, interest, taxes and insurance (PITI) that is no more than 30 percent of a household's income. For Southern California, the median-priced home was $477,660, which required a qualifying income of $111,370 to make the monthly PITI payment of $2,780. However, the median household income for Southern California was $52,050, leaving an income shortfall of $59,320. "These numbers are particularly troubling for would-be first-time homebuyers, who often are locked out of homeownership because of the lack of affordable homes for sale," said C.A.R. President Jim Hamilton. "While home sales statewide continue to surge, the California real estate market is being dominated by repeat homebuyers, who account for three out of four home purchases in the state." The HIGI for California increased 44.9 percent during the first quarter of 2005 compared to the first quarter of 2004, when the gap stood at $41,660, the median household income was $52,320, and qualifying income needed to purchase a median-priced home at $407,710 was $93,980. "At $100,000, the household incomes of repeat homebuyers are much greater than the population as a whole," Hamilton said. "Repeat buyers also are able to take advantage of equity gains in their current homes, with many making a down payment on their new home that's frequently greater than 20 percent. "For those repeat buyers, the income gap can fall as low as $23,320. Even though repeat buyers fare better than first-timers, that's little consolation to Californians spending a significant portion of their income servicing their monthly mortgage," Hamilton added. According to the report, potential homebuyers in the Central Valley, with a median household income of $41,040, had the smallest income gap at $32,660, and needed a qualifying income of $73,700 to purchase a median-priced home at $316,100. The San Francisco Bay area had the highest gap in the state at $92,930, where potential homebuyers had a median household income of $67,770 but needed qualifying income of $160,700 to purchase a median-priced home at $689,240. |
I'll take option 9.
Quit day job and become stree-corner pharmaceutical sales representative. Why do you think we have such a huge drug problem in American? See option #9. :lol: |
It's getting crazy; the single story, 2bdrm. CONDO i own is worth +- $340,000 easy. kinda makes me think things are getting a little out of hand in O.C.
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Speaking of homes . . .
CIA-AGENT (since you started this thread) I see you list your location as "44 N / 56.4 W" What . . . are you sitting on an iceberg? That's pretty wet where you are. |
^^^ funny chit man! https://www.clicksmilies.com/s0105/l...smiley-014.gif
p.s. we're not ALL liberals, some of us actually were'nt even born here.....go figure huh? |
You think those prices are bad...how about mobile homes near the beach selling for 1.5 million dollars (and you don't even own the land)
That's seriously F'd up. It's nuts. I'm just waiting for the bubble to burst and watch all the fools who bought at these insane prices lose it all with a stupid look on their faces muttering "What happened?" Entertainment value . . . priceless. Good times. |
600 square foot studio condos start at $400,000 where I live.
Thankfully, rents are still relatively cheap, otherwise I could never afford to live here. |
44N, 56.4 west...
Last known location of the swordboat Andrea Gail... From the true story, novel and movie: The Perfect Storm. Just some respect to those guys... |
whoa, thats deep......
get it?? |
A lot of us native Californians are staunch conservatives.
Unfortunately, our Democrat politicians and the Hollywood Elite are the ones on the left. They make laws that make the rest of us in Cali look bad. We also have a huge immigrant population that tends to vote Democrat. Most of them are ideologically mislead, IMHO. I cannot afford my own house. 3 bdrm, 1.5 bath worth about $440K. I bought it for about 1/3 of what its worth now. No way I could qualify for its current value. My parents house is worth close to same. Theirs is 1/3 bigger than mine. They bought it in 1961 for $12K. They added a room addition for $15K in 1977. Base cost is $27K, current value $425K. I work in commercial finance. Used to work in real estate finance. I believe the bubble will burst. Prices will drop. Foreclosures will rise. The other problem is that people buy these houses by qualifying for adjustable mortgages with artificially low introductory interest rates. The rates rise consistently for several years. The payment gets too high. The homeowner is now in trouble. Divorce, lay-off, new baby, medical bills, etc. can all send him over the edge. I hate to see first time buyers get 'sucked in' by the adjustable interest rate loans (called ARM's). The lender does not clearly explain exactly how much the payment will increase each year. This leads to a lot of misery. |
Indeed- it's critically important to get the terms of an ARM explained to you.
In some cases, they work well- but, you can get screwed if you sign up for the wrong ARM, depending on what the prime lending rate does.. Imagine going from paying a 4.5% APR for 3 years, then it jumps to 7.5%- what that will do to your payment & escrow monthly bill on a $400,000 house... The last ARM pitched to me could only go up 1% a year (maximum), after the 3 year introductory period- but, it could also adjust down- depending on where prime was and my then current APR. |
sick05 thats wrong...... funny ... but so wrong. lol
is it sad, that i knew those coordinates? |
Re: Can't afford a house in Cali? (Heck no!)
Originally posted by cia-agent 4.) Live with parents 31C |
Re: Re: Can't afford a house in Cali? (Heck no!)
Originally posted by 31Charlie For the win. My parents house was about 200,000 when we moved in the 80s now its over 500,000. Crazyness. 31C Life could be good.. Debt free, new house, new location.. Not bad A lot of people don't get a chance to start over!! |
Re: Re: Re: Can't afford a house in Cali? (Heck no!)
Originally posted by cia-agent I'd sell that puppy to some idiot for $500,000- then I'd take the $400,000 in equity (Because I'm sure after nearly 20 years, it's more than 1/2 paid for) pay off all my debt, then move to another state.. A cheaper state, pay cash for my house ($120,000 will get you a nice house in Killeen/Harker Heights/Copperas Cove/Gatesville, TX- 3,000+ square feet, 4 BR, 2.5 bath, 2-3 car garage, and land), then find a job paying about $30,000 (No worry, you still have $ to live on- and, no bills remember?) while you search for that job- which will probably be in Temple/Roundrock or Austin, TX) and have $280,000 tucked away in the bank of your choosing... Life could be good.. Debt free, new house, new location.. Not bad A lot of people don't get a chance to start over!! |
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