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The water level for house prices historically is 2 and a half times the median annual income for a given area. In other words, if the typical income is $50,000 a year then the typical house should cost no more than $150,000. At the moment, most houses are still overpriced nationwide.
The water level for house prices historically is 2 and a half times the median annual income for a given area. In other words, if the typical income is $50,000 a year then the typical house should cost no more than $150,000. At the moment, most houses are still overpriced nationwide.
If that's at all accurate, houses here have been overpriced since the 1980s.
Experts I've heard say that if the property generates lots of showings but no offers the property is price 5% too high. If it generates showings and offers it is priced right. Obviously if it has been on the market for 6 months or more it is overpriced and WAY overpriced if the showings have been few and far between.
The water level for house prices historically is 2 and a half times the median annual income for a given area. In other words, if the typical income is $50,000 a year then the typical house should cost no more than $150,000. At the moment, most houses are still overpriced nationwide.
To be transparent you should point out that you pulled this number out of thin air.
I have always heard the magic number is 3X annual income. Expensive markets (like Manhattan) are more like 6x. Anything higher is probably cuckoo.
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