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And if everyone's salary is 50K and all the houses are 200 and up, then what will happen to the housing market? Even if a person has a 20% downpayment, he still can't meet the monthly mortgage payment.
FMV only argues through the prism of how he'd like to think housing should work, not in the reality. He only exists in the Matrix.
"Just work harder" doesn't cut it against the hard numbers. 2.5 - 3x income is the benchmark, and we're likely to fall to 1.5-2x income before recovery given the pendulum effect and all this government intervention, IMO. We'll just get to that ratio a lot slower, meaning a whole lot of fruitless hoping by folks on Dec. 31 of 2008, 2009, 2010, 2011, and probably 2012 that "I'm glad this year is over and hope next year will be the turnaround".
a 135,000 home? for that price you might get lucky to find a 800 =/- Sq Ft one bed room condo in my area....or if you want to live your life on the edge you might find a run down single family home in the middle of the getto
Location: Halfway between Number 4 Privet Drive and Forks, WA
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Originally Posted by rtandc
a 135,000 home? for that price you might get lucky to find a 800 =/- Sq Ft one bed room condo in my area....or if you want to live your life on the edge you might find a run down single family home in the middle of the getto
In my area, $135,000 homes are plentiful. They are called "starter" homes, but even so, they are very nice and in nice areas.
I really think that many are in for a surprise as from all indications there will be a bailout coming during the first quarter of teh year from congress. It is aimed dirctly this time at the housing market. It will keep more people in their homes;give buyers real breaks on interest and txaes . This is just what has been coming out as congress works on the bill. The reporta i have read make it sound like much of it will be thru federal agencies directly and aviod many of the financail institiutions except fot the paerwork as they were disappointed at the first bailouts not getting to these areas.
I really think that many are in for a surprise as from all indications there will be a bailout coming during the first quarter of teh year from congress. It is aimed dirctly this time at the housing market. It will keep more people in their homes;give buyers real breaks on interest and txaes . This is just what has been coming out as congress works on the bill. The reporta i have read make it sound like much of it will be thru federal agencies directly and aviod many of the financail institiutions except fot the paerwork as they were disappointed at the first bailouts not getting to these areas.
I wonder if this bailout aimed to support homeowners and buyers will help people who just bought or mainly focus on bringing NEW people to the market to buy (fence sitters, etc...)
Wow! The response to my post has illustrated one thing: most of us suffer from very very poor reading comprehension.
My only point was that the media has got it wrong: falling house prices are a GOOD thing for the Lower Fifty AND they have a way to go yet.
Why did I do these calculations? For fun. I like working with numbers. I have no specific family in mind, I have no agenda, and no, I don't subscribe to the myth that Homeownership Is The American Dream. For many, it's a freaking nightmare.
Thank you ViewFromThePeak for recognizing I was simply making some impersonal calculations based on available data. Everyone else can just calm down. Sheesh!
a 135,000 home? for that price you might get lucky to find a 800 =/- Sq Ft one bed room condo in my area....or if you want to live your life on the edge you might find a run down single family home in the middle of the getto
There's homes in that price range with much bigger square footage where I live in Central Texas. You must live in a high priced city to only get 800 sq ft for $135K. Here you can find a 1700 sq ft home (late 80's) 3/2 for around that price with a nice yard and trees.
... The thought that housing experiences sustainable appreciation (esp given inflation) given how much developable land exists (God ain't makin' more land is a fallacy) is probably the most laughable concept I can imagine.
You can shop for a house on some freshly made new land new an active volcano or something and I'll stay right here in my nice mature area with stable employment. We'll see what sustainable appreciation is...
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Tell you what...
