Income vs House Value in Irvine (Orange, Costa Mesa: short sales, foreclosures, condo)

[NextExile]

I plan on moving to Irvine in the near future. It will, most likely, be my first house.

What I'm wondering is, how is it possible for median family income in Irvine to be $94,895, while a median house value is $679,500?

Now, I'm asking this because after playing around with this calculator, it tells me that a salary needed to pay for a house of that value is around $180,000

Mortgage required income calculator-Interest.com

Also, what are other nice areas to live in if you work in Irvine?

[pacific2]

What I'm wondering is, how is it possible for median family income in Irvine to be $94,895, while a median house value is $679,500?

It's the Orange County way... for some.

There are plenty of nice, but more affordable, South OC communities, such as Aliso Viejo, Rancho Santa Margarita, Laguna Hills, Mission Viejo, etc.

[EscapeCalifornia]

A lot of people bought their houses in Irvine 20 years ago when they were $200k and their income hasn't kept up with the rise in house prices.

[pacific2]

Irvine’s population has exploded over the years. The city had about 110,330 residents in 1990; and an estimated 212,793 people in 2009.
http://www.cityofirvine.org/about/demographics.asp

While some old-timers saw the value of their property increase as they stayed put, there are also lots of newcomers in Irvine who are carrying very hefty mortgages.

[USCTrojanCPA]

Originally Posted by NextExile

I plan on moving to Irvine in the near future. It will, most likely, be my first house.

What I'm wondering is, how is it possible for median family income in Irvine to be $94,895, while a median house value is $679,500?

Now, I'm asking this because after playing around with this calculator, it tells me that a salary needed to pay for a house of that value is around $180,000

Mortgage required income calculator-Interest.com

Also, what are other nice areas to live in if you work in Irvine?

The average down payment for home purchases in Irvine is around 40% compared to about 20-25% for other nice cities in Orange County. Also, about 1 in 7-8 homes in Irvine are bought for cash versus maybe 1 in 20-30 in other cities in OC. Most of the buyers are dual income earners as well.

Other areas that you may want to look at are Foothill Ranch, Mission Viejo, Laguna Niguel, Aliso Viejo, and parts of Costa Mesa.

[pacific2]

The average down payment for home purchases in Irvine is around 40% compared to about 20-25% for other nice cities in Orange County. Also, about 1 in 7-8 homes in Irvine are bought for cash versus maybe 1 in 20-30 in other cities in OC.

Link please. I am curious, why would Irvine residents tend to put 40% down?

[pacific2]

BTW, Very interesting, um, average temperatures for Irvine:

Average Temperature: Jan 56 degrees
Average Temperature: Aug 71 degrees
City of Irvine Website - Demographics Information

[nurserosie]

Originally Posted by pacific2

The average down payment for home purchases in Irvine is around 40% compared to about 20-25% for other nice cities in Orange County. Also, about 1 in 7-8 homes in Irvine are bought for cash versus maybe 1 in 20-30 in other cities in OC.

Link please. I am curious, why would Irvine residents tend to put 40% down?

this is just a guess...but I would attribute this figure (off the top of my head) to several things...
as mentioned..a lot of us have lived in this area for many years...over 20 to start...so if we bought a home,,say...in Irvine in 78 as we did..it cost maybe 110 K...home appreciation skyrocketed..this home could be sold just a few years later,,for say 200 k..you take the gains,,,buy your next..maybe dream home..for ..say 375K...in order to have a mortage that you can handle..we bought 100k down..(that's about 25% down)...in maybe 15 years with both of us working..even putting two kids thru 11 years of quality college..we were able to PAY OFF this house!! it is not uncommon for folks in our age range (over 60) to retire early with a paid off home...we have been in this house 25 years...zillow values it at 1.2 million..not bad!! we also own a condo,, and recently bought a real house in a retirement development in the Palm Springs area...all 3 places are paid off..

just an example..a year ago when our agent in the desert found our "house" she called..it was a foreclosure..she advised to move fast as this place was underpriced and would sell fast..I casually mentioned "but we can pay cash"...she replied "most will offer all cash"..ie the banks like to close out the books on foreclosures and short sales...in less than 4 days our offer was accepted (there were 12 offers in 48 hours!!)...my hubby said he has never spent so much money in such a short time!!..he tends to want to overthink things..in this housing market cash talks...

not bragging..but if one lives within their means..it can pay off in the years when you want to retire and still have enuf to live the same lifestyle..by then your kids should be educated, married,,raising their own families..and if they follow your example (and don't lose their jobs)..they shouldn't need..nor want ..your assets..my theory is...create a trust,,when you both die the kids and grandkids..can get what is left over..if there is any

and to answer your question..no we are not "rich"..nor did we earn millions of dollars per year in our working years...

[pacific2]

I suspect the “average down payment” for a house in Irvine is grossly inflated by the fact that some rich individuals put down millions of dollars on their homes; lifting the “average” boat waters for all Irvine buyers.

The median down payment is bound to be much lower, even though the phenomenon of buying-up (having access to a larger down payment through the sale of a former residence) has existed for years everywhere around the country:
Irvine Housing Forums | Average Down Payment in Irvine 38.68% $300,350

[cabolissa]

2 $90k incomes = $180k+