Median home price in Southern California falls below $300,000 Home foreclosures continued to drag home prices to new lows in November, as the Southern California median sales price slid to $285,000, its first dip below $300,000 since 2003. Falling prices have made homes affordable. A National Association of Home Builders quarterly index showed that at the end of September, about one-fifth of Los Angeles area residents could afford the median-priced home. During the height of the real estate boom in 2005 and 2006, only about 2 percent of Los Angeles area residents could afford a median priced home, the index showed. More here: Mercury News
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 | |  It's about time...
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Yo te digo, el mundo esta jodido | |
|  | | | Re: It's about time... The median household income in Southern California is $59,948.
The home afford ability is typically 3 to 4 times net yearly income. So for best case, the home price need to fall to an average of $239,792. But more realistically $209,818 (x3.5).
The article is good because it tells truth:
"During the height of the real estate boom in 2005 and 2006, only about 2 percent of Los Angeles area residents could afford a median priced home, the index showed. "
Yet about 10 - 15% were buying, so all were lying about their income. What may be even worse, and may cause values to be less, is all of the junk refinancing. Those people were twice as much people as the new buyers back then. They all were lying about their income to. But those foreclosures have not hit yet. later they will. 1 in 4 homes will be foreclosed on over the next 5 years. The people who were smart to rent, save there money and not lie will buy all of those houses at as much as 90% less than what the other people paid in 2005. Even if some people can afford big payment today, they will walk away because it is smart to. Why pay big payment on house when you can buy same house across street for less than half price? Cause even more foreclosures.
I Wait about 6 another months before buying house here. Maybe year. Average house about less than $200,000 | |
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