Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > Long Island
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-08-2010, 12:04 PM
 
2,851 posts, read 3,462,989 times
Reputation: 1200

Advertisements

Quote:
Originally Posted by mj23445 View Post
Median salary in Nassau for 2008 was 95,000. Using a conservative lending standard of 2.5 gross you get to 237,500. Since it is an island maybe you'd be willing to stretch to 3x and 285,000.

But last time I checked Nassau median prices were close to 400,000. That is 4x gross median salary. So the median household cannot afford the median home. I don't think that means massive price declines because people on LI treat RE like a religion. What I think will happen is that prices will move sideways for a very long time.

There are people who grew up in the area knowing nothing but home price appreciation. Homes have become like shrines where residents have invested a significant portion of their time, money and self-worth. This is not a market where sellers are going to knock 100K off the price for a fast sale. They will instead let a home sit on the market for months, or years, at an asking price that made sense back in 2006 and then give up in disgust. i know several people who have done just that. The fantasy that their home had secured them a comfy retirement is an illusion that is very difficult to release.

However, the fact remains that the median household can't afford the median home.

Median salary is 95K!!! Maybe median household income.
Reply With Quote Quick reply to this message

 
Old 07-08-2010, 01:05 PM
 
150 posts, read 297,082 times
Reputation: 60
I'm not real good at putting this particular math together. If the median house in Nassau County purchased the median priced home in Nassau, what percent of their pre-tax income would they be paying for their mortgage, excluding property taxes? Must be a pretty high number.
Reply With Quote Quick reply to this message
 
Old 07-08-2010, 01:46 PM
 
13,507 posts, read 16,972,759 times
Reputation: 9688
Quote:
Originally Posted by TheLists09 View Post
I'm not real good at putting this particular math together. If the median house in Nassau County purchased the median priced home in Nassau, what percent of their pre-tax income would they be paying for their mortgage, excluding property taxes? Must be a pretty high number.

Depends on downpayment...are you assuming 20% or 5%, and hence PMI. Either way, it's a lot more than any financial adviser would recommend in terms of debt to income ratios. 95,000 is a net take home of what, $70,000 or so? Let's say they take home 75,000/12 they have $6,250 in take home per month. Even with 20% down their mortgage+taxes=$2467.82, that's 40% of their net income towards housing. That's a recipe for a crappy life. Never mind that no one has 80K to put down on houses who is making 95K combined, so they would be shelling out even more.

In short, those numbers don't work out. But people making 95K family income usually aren't buying houses here, and not everyone has to sell, so that kind of comparison doesn't automatically mean that house are going to drop down to 250K..not anytime soon, anyway. What you'll have is less people selling to cash in and move out of the area..they'll just stay put instead.
Reply With Quote Quick reply to this message
 
Old 07-08-2010, 10:33 PM
 
Location: Copiague, NY
1,500 posts, read 2,792,294 times
Reputation: 2414
I hope you really meant reality, not realty.
Reply With Quote Quick reply to this message
 
Old 07-10-2010, 02:25 PM
 
2,851 posts, read 3,462,989 times
Reputation: 1200
List/Sell price doesn't matter, check Zillow or some other site to check what the purchase prices were then adjust for inflation. They probably got a deal, but on the other hand, they might not have.
Reply With Quote Quick reply to this message
 
Old 07-10-2010, 06:13 PM
 
335 posts, read 933,036 times
Reputation: 76
Quote:
Originally Posted by SilverBulletZ06 View Post
List/Sell price doesn't matter, check Zillow or some other site to check what the purchase prices were then adjust for inflation. They probably got a deal, but on the other hand, they might not have.
I see no record anywhere that these homes sold for the 800k you say...where did you get this info????
Reply With Quote Quick reply to this message
 
Old 07-10-2010, 06:44 PM
 
2,851 posts, read 3,462,989 times
Reputation: 1200
Quote:
Originally Posted by modmondays View Post
I see no record anywhere that these homes sold for the 800k you say...where did you get this info????
Yep, no sale within 10 years means you need to check with town records from what I know. Maybe someone else can help throw in some info.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New York > Long Island
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top