The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: y2kate who wrote (5225)	9/11/2002 4:26:59 PM
From: J. P.	Read Replies (2) of 306849

I have no advice or no idea what you should or could do. But there is a very very odd disconnect between housing prices and income, and it seems to be most pronounced in California. 800K for a 3 bedroom 1 bath? Let's see, the monthly payments and taxes on that would be (assuming you put 160K down!) about 8K a month. So if somebody wanted to put 33% of their income for house payments(mortgage companies used to only let you use 25%!) they would have to gross 24K a month, which is 288k a year. The only people making that kind of dough are business owners, and high level execs. You're talking about the top .05% of the wage earners in this country. And is a high level exec really going to want to live in a house with 1 bathroom? What is probably happening is that people are doubling their incomes and paying 8k in mortgage on a combined 10K in income. Just a guess. HELLO!? This bubble will melt, the only question is when and how fast.

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