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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (69711)	9/14/2006 9:18:30 AM
From: GraceZ	Respond to of 110194

We pay our mortgage with one person's paycheck for the week, I wouldn't buy a house if I had to pay more. Not as good as back when I was a renter and could pay my rent with a single day's work, but then I lived in a dump. Houses would be cheaper if people weren't so willing to pay so much of their income to own them. The reason they're willing to pay more is because they have an expectation that the house will appreciate. When my sister moved to Southern CA in the 70s she and her husband were quite willing to pay a third of their income because they were certain that their house would be worth more soon. This idea was never quite as certain here in the Baltimore area (some houses in the City declined by 70% in the 70s which was characterized by "white flight" from the City) and this uncertainty kept housing in my area fairly reasonable in regards to salaries for a very long time, at least until this latest run up which was beyond all reason.