Has the market turned yet? (Sep '07)
She just won't give up. What she fails to understand is that without a 'median income population' to purchase homes, there wouldn't be many homes bought and sold. This is why prices are coming down, and we still have a long way to go.
2008-04-21: Investors are here!
I personally believe if you haven't bought a house yet, you've missed the bottom of the market.
2008-04-04: Market Statistics
Good news, everyone. We have bounced off the bottom, even if it be ever so slightly. Here are the details on Sacramento county's real estate market recovery in March, 2008.
So... median prices have steadied, inventory is down and sales are up! The Sacramento real estate market recovery has begun.
Hurray!!! Thank you, Purva!!! I'm putting all my money in RE now... NOT. LOL
2008-02-15: Does Median Income Have Anything to do with Median Home Values?
Okay, I'm really sick and tired of this argument. You know how it goes: "Median income has not kept up with median home values in Sacramento, this home prices must fall until everyone in Sacramento can afford to pay a third of their monthly budget toward their mortgage." It's a seemingly innocent calculation and very easy to remember; so simple in fact that it gets quoted again and again and unfortunately believed.
But here is an article from the SF Chronicle:
2008-02-14: California home prices still unaffordable
The authors of "Locked Out 2008: The Housing Boom and Beyond," the study released today by the California Budget Project of Sacramento, said median incomes aren't enough to buy median-priced homes in every county it studied, 36 of the state's 58. The report assumes homes are out of reach if households have to dedicate more than 30 percent of their income to housing costs, the level above which the U.S. Department of Housing and Urban Development says people may have difficulty affording necessities such as food, clothing and transportation.
The latest from our Delusional Realtor is a complete 'about face' on affordability. But, gee, if people used the 'third of gross income rule' for payments, who could have purchased a house in Sacramento over the past few years? Maybe during the bubble the rule was 'third of gross liar loan income'. She is basically contradicting her previous point that median income has nothing to do with median house price. (Ref: Ignorant Realtor of the Week)
Where are the median condo prices now, Purva?
Sep '07: $250K
Feb '08: $143K
Jun '08: $135K
Aug '08: $125K
Oct '08: $110K
How's that for an o-r-p-l-e.
Or this gem...
Or how do you explain San Diego where the median price of a home is $566,700 and the median income is $55,637?
It's called a b-u-b-b-l-e. Where are San Diego median prices today? $451,500, and falling.
Jun '08: $370,000 Ain't reality a bitch, sometimes.
Sep '08: $328,000 It's like a nightmare,...
Oct '08: $323,500 it just keeps getting worse.
Nov '08: $305,000 Nov '07 was $521K, Down 32%!!!
Dec '08: $300,000 Light at the end of the tunnel?...
Jan '09: $280,000 Doubtful! LOL
Feb '09: $285,000 Head-fake?
BTW, where were the "experts" during the growing bubble?
2008-02-11: 5 Ways to Know How much House you can Buy
1. Calculate how much you are paying for rent. Then take a good look at your monthly budget and figure out if you can afford taxes, insurance and home repairs. Right now, there are probably homes in your neighborhood you could buy for not much more than the rent you are paying.
2. Most financial experts top off the money you should pay on your mortgage to be a third of your gross income. Calculate the price of your home in reverse that way.
3. Find a mortgage broker who will give you a range of value your home can fall in and also your monthly payments.
4. Use this handy calculator at Bankrate.com
5. Ask Ginnie Mae!
First-time Buyer Fools, Sep. 2007
It is my belief however that they will be laughing all the way to the bank when this market turns. And I will be the first to congratulate them. I'm so proud of clients that know what they want and go for it even in the face of fear.
For first-time buyers, it’s a no-brainer!, Sep 2007
So what if prices fall another 10% - if you plan on holding on to the house for five years or so, you will still walk away with a nice profit, tax-free.
Huh??? Prices are poised for a continual drop for the next 5 years, or until they come back down to historical affordability ranges. Why is it that as soon as a moron gets a Realtor license it instantly makes them experts in real estate, finance, and investing. Pathetic.
and... Purva on Affordability
Question: When will the average list prices get in-line with average incomes?For example, you wrote the average price of those duplexes was $381,133. Assuming 20% down, that leaves a loan of $304K. Using 4x gross income as the affordability factor means you need an income of $76K. Does the average person is Sacramento earn $76K? I thought the median income in Sacramento was $42K.
Purva: Maybe never. As long as someone can buy a house at a certain price, that will remain the list price and sold price. The average person does not shop at Nordstroms, for example, but it's still around. Sometimes we get all caught up in averages and statistics when really we need to ask ourselves the question of does it make sense to me? If it makes sense to you financially to buy a duplex, go ahead and do it. If not, don't.