The average house in my zip code is $480K

[Slew Foot]

Sacramento CA

According to stats I dug up from the local chamber of commerce, the average houshold income is $55,000. Im guessing that everyone around me has an IO loan. Man, the bubble is going to burst hard soon.

 

[mrchan]

Most of those people probably bought their house 10+ years ago for 150k.....

 

[ChaoZ]

That actually seems kinda low.

 

[mikebb]

That's about the same as where I live (Palm Beach County, FL) Median income: $45k. Median cost of home $400k. 5 years ago, I think the avg cost of a house was like$150k or less...ridiculous.

 

[PlatinumGold]

Originally posted by: Slew Foot
Sacramento CA

According to stats I dug up from the local chamber of commerce, the average houshold income is $55,000. Im guessing that everyone around me has an IO loan. Man, the bubble is going to burst hard soon.

that requires a lot of assumptions.

how many of the people that live their bought their houses more than 2 yrs ago.

i bet you go back even 2 yrs and average price drops significantly.

 

[Sphexi]

About 3 1/2 years ago, my dad bought a house in Staunton, VA. He paid 193K for it, it's 2-story, 3bdrm with a guestroom and a bonus room, full basement, 3 full baths (one with a jacuzzi), 2-car garage. A house across the street (similar make, no basement) just sold for over 300k. I told my dad to sell the house and rent something, he said screw that he plans on dying in this house lol.

 

[Slew Foot]

Well, most of the houses were built in the last year so most people paid close to 400K at least.

 

[Specop 007]

Gardner, KS

County: Johnson

Land area: 4.9 square miles

Zip code: 66030

Median resident age: 29.2 years
Median household income: $50,807 (year 2000)
Median house value: $117,100 (year 2000)

 

[Hexx]

Let's see where I live the average income is $99,068. The Median House Value is $781,500. Population is (year 2000) 61,101. Try to guess where I live. P

 

[rmrf]

why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

 

[Zenmervolt]

How many people are renting in your area? Median income of the home owners is what you need, not median income of the population in the area.

ZV

 

[Specop 007]

Originally posted by: Hexx
Let's see where I live the average income is $99,068. The Median House Value is $781,500. Population is (year 2000) 61,101. Try to guess where I live. P

Hmmm....This is gonna be tough....
Some place with grossly overpriced housing?

 

[Syringer]

Originally posted by: rmrf
why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

Or how about so the poor people living in ridiculously expensive areas (e.g. California) can eventually be able to buy something more than a 1br shack in the middle of nowhere without having to be a millionaire?

 

[Slew Foot]

Originally posted by: rmrf
why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

I aleady paid my house off. Used the profit from selling my house in San Francisco to nearly buy this one in cash. I just wonder how other people do it, someone has to come in on the bottom of the ladder.

Good point about the rentals. Im not sure how many people are renting but I know that my developer makes you sign a contract that you will not rent out your house for the first 24 months.

 

[kranky]

Originally posted by: rmrf
why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

I don't have to worry about a real estate bubble personally. But I sure don't want to see the massive fallout from tens of thousands of people facing financial ruin because they blissfully ignore the fact that people cannot afford homes that cost ten times their annual income. It's the "bigger fool" theory - the house might be overpriced, and more than I can afford, but if I get an interest-only loan and can find a bigger fool to buy it in a couple years, then I'll be OK.

When the music stops, a lot of people are going to be hurting. The consequences of that are going to be far-reaching in the economy - and that might hurt me.

 

[PandaBear]

Average in San Francisco to San Jose is 700k, average income is 65k.

 

[jadinolf]

Originally posted by: Slew Foot
Sacramento CA

According to stats I dug up from the local chamber of commerce, the average houshold income is $55,000. Im guessing that everyone around me has an IO loan. Man, the bubble is going to burst hard soon.

700K here.

 

[Hexx]

Originally posted by: Specop 007

Originally posted by: Hexx
Let's see where I live the average income is $99,068. The Median House Value is $781,500. Population is (year 2000) 61,101. Try to guess where I live. P

Hmmm....This is gonna be tough....
Some place with grossly overpriced housing?

Yup. Come on I want someone to guess a location.

 

[Slew Foot]

Originally posted by: kranky

Originally posted by: rmrf
why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

I don't have to worry about a real estate bubble personally. But I sure don't want to see the massive fallout from tens of thousands of people facing financial ruin because they blissfully ignore the fact that people cannot afford homes that cost ten times their annual income. It's the "bigger fool" theory - the house might be overpriced, and more than I can afford, but if I get an interest-only loan and can find a bigger fool to buy it in a couple years, then I'll be OK.

When the music stops, a lot of people are going to be hurting. The consequences of that are going to be far-reaching in the economy - and that might hurt me.

Exactly, just like the tech stocks of the late 90s. The stock market has barely recovered from that even 5 years later.

 

[kt]

Originally posted by: Slew Foot
Well, most of the houses were built in the last year so most people paid close to 400K at least.

Have you thought about husband & wife combined income may be ~ $100K or so?

 

[BillyBatson]

Originally posted by: mrchan
Most of those people probably bought their house 10+ years ago for 150k.....

that's correct. my mom makes $42k a year and our house apraised for $425k but we purchased it roughly 18 years ago for $230k

 

[aplefka]

Originally posted by: mrchan
Most of those people probably bought their house 10+ years ago for 150k.....

Affirmative. We're gonna be selling ours soon here in Sac and moving to a little nicer one. Our house has doubled in value since we bought it 15+ years ago and I can't imagine what the quick fixes we make will do to the value. Gotta sell it before the bubble pops though.

 

[Slew Foot]

Originally posted by: kt

Originally posted by: Slew Foot
Well, most of the houses were built in the last year so most people paid close to 400K at least.

Have you thought about husband & wife combined income may be ~ $100K or so?

Yep, that's why it said HOUSEHOLD income is 55K as opposed to per capita income.

 

[rmrf]

Originally posted by: Slew Foot

Originally posted by: kranky

Originally posted by: rmrf
why is it that some people want the "bubble" to burst so badly? are they that bitter that they just can't wait to see other people's misfortune?

I don't have to worry about a real estate bubble personally. But I sure don't want to see the massive fallout from tens of thousands of people facing financial ruin because they blissfully ignore the fact that people cannot afford homes that cost ten times their annual income. It's the "bigger fool" theory - the house might be overpriced, and more than I can afford, but if I get an interest-only loan and can find a bigger fool to buy it in a couple years, then I'll be OK.

When the music stops, a lot of people are going to be hurting. The consequences of that are going to be far-reaching in the economy - and that might hurt me.

Exactly, just like the tech stocks of the late 90s. The stock market has barely recovered from that even 5 years later.

the great fallout that was predicted did not happen though.

kranky: I see what you mean by the people that buy the severly overpriced houses with interest only loans. I have a friend that did that on his last house, and just recently bought a house that he definitely can't afford. it makes me sick to see that he can do that, but when I want to get a loan for my ~140K house with annual income of ~90K, I have to jump through so many hoops I feel like I'm at the circus.

 

[Soccerman06]

Within a mile of my home, back in my hometown, the average price for a house is over $2 million, then again, there are only 20 houses in that area and the average income is only $150k total. Of course thats on a mountain in Monana (Big Mountain Ski Resort) and most of the people retired when they were 30-35.