Income vs House Value in Irvine (Los Angeles, Santa Ana: crime, buyers, schools)

[Mr. Fantastic]

Originally Posted by EscapeCalifornia

Its funny how other parts of the country have reasonable median income to median house cost ratios. The average family can afford the average house. Poorer people buy houses in the ghetto or they rent. Wealthier people buy nicer houses.

Yet in OC, the concept that the average family should be able to afford the average house is dismissed as unrealistic nonsense not reflecting the market.

At least for the next 6-12 months.

[CAVA1990]

Originally Posted by Don9

A 50K income buying a 125K home would be a 2.5 ratio and well within the affordability range for that income.

A person making 150K plus 75K (wife) is 225K buying a 600K home would be a 2.6 ratio, again well within the affordability range.

The article says the median income for Orange County is 83.6K and the median home is 530K with a 6.3 ratio, that's twice the affordability range.

Don, I think you're missing my point. the median income that the article sights is for people already there, many of whom bought when prices were much lower. The people buying in now have higher incomes than those existing homeowners. The $83.6K figure is irrelevant as it does not reflect the incomes of prospective homebuyers.

[Don9]

Originally Posted by CAVA1990

Don, I think you're missing my point. the median income that the article sights is for people already there, many of whom bought when prices were much lower. The people buying in now have higher incomes than those existing homeowners. The $83.6K figure is irrelevant as it does not reflect the incomes of prospective homebuyers.

I didn't miss the point. The article is stating median household income and home price in Orange County. The median income to the median home price for a given area is a measure of home affordability. A ratio of 6.3 is not affordable based on existing standards.

[CAVA1990]

Originally Posted by Don9

I didn't miss the point. The article is stating median household income and home price in Orange County. The median income to the median home price for a given area is a measure of home affordability. A ratio of 6.3 is not affordable based on existing standards.

This is such a ridiculous statistic. It's perfectly affordable to the people buying the homes there. If it weren't you'd have huge quantities of unsaleable houses.

[Don9]

Originally Posted by CAVA1990

This is such a ridiculous statistic. It's perfectly affordable to the people buying the homes there. If it weren't you'd have huge quantities of unsaleable houses.

I think your starting to get the point ...

Shadow Inventory Jumps More Than 10 Percent in One Year, Pushing Total Unsold Inventory to 6.3 Million Units

[Socalpal]

There is this myth in Orange County that Inland South Orange County Cities are more expensive and more desirable than Inland North Orange County Cities....Sales numbers from Dataquick does not support this:

Inland South OC:
Aliso Viejo: 380k
Foothill Ranch: 585k
Irvine: 625k
Ladera: 520k
Laguna Hills: 375k
Laguna Niguel: 500k
Lake Forest: 398k
Mission Viejo: 474k
RSM: 399k

http://www.dqnews.com/Charts/Monthly...ts/ZIPCAR.aspx
Inland North OC:
Anaheim: 356k
Brea: 480k
Cypress 449k
Fullerton: 370k
Fountain Valley 523k
La Palma 500k
Los Alamitos 699k
Orange 440k
Placentia 447k
Westminster: 440k
Yorba Linda: 687k

[CAVA1990]

Originally Posted by Don9

I think your starting to get the point ...

Shadow Inventory Jumps More Than 10 Percent in One Year, Pushing Total Unsold Inventory to 6.3 Million Units

That's nationwide, not in Irvine.

[Don9]

Originally Posted by CAVA1990

That's nationwide, not in Irvine.

Yes, it is a nationwide problem but states like California have the most distressed homes.

If you want news specific to Irvine then check this:
Orange County Sales Falling, Prices to Follow

[Charles]

Originally Posted by Socalpal

There is this myth in Orange County that Inland South Orange County Cities are more expensive and more desirable than Inland North Orange County Cities....Sales numbers from Dataquick does not support this:

Inland South OC:
Aliso Viejo: 380k
Foothill Ranch: 585k
Irvine: 625k
Ladera: 520k
Laguna Hills: 375k
Laguna Niguel: 500k
Lake Forest: 398k
Mission Viejo: 474k
RSM: 399k

DQNews - California Home Sale Price Medians by County and City
Inland North OC:
Anaheim: 356k
Brea: 480k
Cypress 449k
Fullerton: 370k
Fountain Valley 523k
La Palma 500k
Los Alamitos 699k
Orange 440k
Placentia 447k
Westminster: 440k
Yorba Linda: 687k

The point you are try to make may well be true (it does make sense, north OC is closer to more jobs - higher demand - higher prices), but the simple tables you posted are not enough to support your point. First of all, the numbers don't look that different. Also, did you cherry pick the north OC cities? Where is Santa Ana? Also, a lot depends on numbers of homes sold in each city at those prices.

[Don9]

Originally Posted by Charles

The point you are try to make may well be true (it does make sense, north OC is closer to more jobs - higher demand - higher prices), but the simple tables you posted are not enough to support your point. First of all, the numbers don't look that different. Also, did you cherry pick the north OC cities? Where is Santa Ana? Also, a lot depends on numbers of homes sold in each city at those prices.

Median home prices based based on sales is deceiving. In this economy with incentives for first time home buyers the median price will be low because more lower end homes are sold. Fewer high end homes are being sold and many are distressed.