If nobody can afford a home, wouldn't you say that presents a problem?
P.O.N.Z.I.S.C.H.E.M.E.
Also, isn't it interesting that even though Indy was "most affordable" they're also one of the foreclosure leaders? Hmmm.... Thanks mm for the link
Most homes sold in the United States in the second quarter were not affordable for a family earning the median income, the National Association of Home Builders said Tuesday.
The NAHB-Wells Fargo housing opportunity index inched down to a record low 40.6 in the second quarter from 41.3 in the first quarter. Just 40.6% of the homes sold were affordable for a family earning $59,600.
For the fourth quarter in a row, Indianapolis was the most affordable market, with 87.4% of the homes affordable for families earning the region's median income of $65,100. The median price in Indianapolis was $120,000. For the seventh consecutive quarter, Los Angeles was the least affordable market, with just under 2% of the homes affordable for a family earning the metro median income of $56,200. The median sales price in LA was $521,000
August 23, 2006
Ah, can't beat a good Ponzi Scheme: LA - 2% of homes affordable for family earning median income.
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Everyday I am a witness to the 2% affordablity index in Los Angeles. Some of the realtors I work w/ have seen a surge in demand for mobile homes. Mohos!!!! People out here just want to get into a "home". They're not even aware of the impending pain in the housing market.
what's sad is that working people can't buy a home, and college grads or newlyweds are priced out of the American dream. For now. And the ones that felt pressured and recently bought regardless of price, well, they're going to lose everything.
I make about 120K in DC and cannot afford a POS 2 bedroom townhouse with a 30 year fixed. I can however afford a one bedroom condo for 300K- WhoF'ingHoo! Really, a one bedroom condo? That's outstanding! Condos, condos, condos, get your condos here...Everyone knows the market is inflated, but the sellers simply will not lower their prices that they think they're entitled to. Got some news for you, I ain't buying sh*t. Oh, and no one else is buying but a couple deadender GF's.
In our market the average sales price is $162k for a 3 bedroom, 2 bath, 2 car garage home. Unemployment is 3% and jobs are plentiful, near major university, national park, eastern US. You don't need to make a bundle to live the dream. But, you might need to move.
S. Cal experienced a bubble in the early 90's. I know people that bought at the top of the market and it took them 8 years for the prices/value of their home to return to what they bought it for. This bubble is twice as bad (at least) as the one that occurred in the early 90's. I sure hope for their sake that those that bought in 2004 and 2005 keep their job and don't plan on moving for 8-10 years...otherwise they will be losing money. Is'nt a home an investment? Give me a break...I guess these people need to learn the hard way the difference between a winning and losing investment. You know it's not a good investment when you can rent for 50% less.
Seattle Median Sales price ~415k
Seattle median salary ~54k
Something is rotten in Denmark.
But hey, SEATTLE IS DIFFERENT.
Sorry, that should have said "king county" in which Seattle is incorporated.
If no one can afford a home, who is buying them? Just investors selling to each other?
Yeah, they say Portland is different too. Northwest arrogance to a fault.
Who is buying? Rich people buy condos in every cool city in the country so they can have a nice place to take a shit when they visit.
Median salary? Who gives a rat's ass about anybody anywhere near the median? The only people who matter in the newe republican america are those making 4-5 times the median. Everyone else is called a "loser".
It's Northwest arrogance as well as parasites trying to squeeze the Portland, OR/Vancouver,WA area to death. East of here is a town called The Dalles. It has a near zero economy on the Columbia River. But when the word leaked out that Google was going to put a data center there, the paper wrote that home values just jumped 40%. The paper also had an article on a developer who was going to build 250 homes there. It's a bubble in the making. In the first place Google did not say how many people would be there or what their salaries would be. The assumption is 50-100 people. Secondly, have you ever been there? The Dalles is not the evergreen northwest that people have in mind. It is high desert and is hot as hell in the summer and cold as hell in the winter and the wind never stops blowing. You might as well live in the mountains near Las Vegas. But the stupid will jump at it with nothing but $$ signs in their eyes.
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