[Gatornation]

Originally Posted by Mike Peterson

So if you make $40,000 a year you should be able to buy a home for $40,000?

I would imagine a % of gross compared to mortgage payment is what they meant.

[Mike1306]

Originally Posted by bdpop

I always thought what you could afford typically was 3x your income, or in this situation $120k for a $40k salary.

In some area that has not been possible for 20 years. It is also an overly simplistic notion and does not take into account numerous other factors.

[deep-blue-water]

Originally Posted by Mike Peterson

In some area that has not been possible for 20 years. It is also an overly simplistic notion and does not take into account numerous other factors.

what areas?

[Mike1306]

Originally Posted by deep-blue-water

what areas?

Many areas in NY, California, NJ, Conn. amoung others.

[Ten]

Originally Posted by Mike Peterson

In some area that has not been possible for 20 years. It is also an overly simplistic notion and does not take into account numerous other factors.

what other factors?

Existing-Home Sales Down In June (http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june - broken link)

[Ten]

Originally Posted by Mike Peterson

Many areas in NY, California, NJ, Conn. amoung others.

NV, both ends of CA, and other areas are epicenters of realty bust, Mike. The best graphs of the backside of the bubble exactly resembling the front side are on The Mess That Greenspan Made, so I can't link them here, but let's just say that the bottom is a ways off.

[kwilli]

Here in the lovely Jacksonville, Florida area new home inventory is below 3 months. Still a lot of building going on though it seem to have slowed some except for high rise waterfront condos.

I have been trying to buy some of the repos in the area but the banks do not seem to be very willing to part with them. I think they see big profits in the near future.

I do not think you will ever see low prices in desirable areas again unless we go back to 17% interest rates. (Possible it's election year)

[bale002]

Originally Posted by markhunt

MyFox Tampa Bay | Is the housing crash over? (http://www.myfoxtampabay.com/myfox/pages/Home/Detail?contentId=6868822&version=2&locale=EN-US&layoutCode=TSTY&pageId=1.1.1 - broken link)

Florida Association of Realtors :: Media Center

Yes the housing market is in the midst of the recovery, since probably about two years ago.

After a period of the most notorious financial and moral irresponsibility in the country's history, during which housing prices soared above the means of most of the countries' citizens and lost all connection with economic reality, the recovery actually started as early as the summer of 2005 in southwestern Florida, the region most affected by the insanity in proportional terms.

The recovery spread to places like Palm Beach County, especially since 2007, with price drops of up to 30%, and it is just finally starting in Dade County. In short, the recovery is spreading at a speed in inverse proportion to the level of economic depth of the region affected by the insanity during the 2003-2007 period.

I would say that the recovery has another two years to go, at least, with price drops in the vicinity of another 30% from current levels, then a period of normalcy, during which prices rise slowly consistent with the pace of inflation, based on real productivity, possibly lasting 10-20 years, until another bout of insanity afflicts the country.

So yes, the recovery is well underway, and prices have to drop another 30% before a return to normalcy.

[Mike1306]

Originally Posted by Ten

what other factors?

Existing-Home Sales Down In June (http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june - broken link)

Additional down payment from the sale of an earlier home and other debt are 2 that come to mind.

[Mike1306]

Originally Posted by Ten

NV, both ends of CA, and other areas are epicenters of realty bust, Mike. The best graphs of the backside of the bubble exactly resembling the front side are on The Mess That Greenspan Made, so I can't link them here, but let's just say that the bottom is a ways off.

The bottom may be a ways off in some areas but in other areas the bottom has been reached. Median price has been relatively the same for 10-11 months and inventory is going down.