Zillow Advice: Home Buying - California prices and income

"As prices go up.. jobs move ...

Fri, 05 Oct 2007 05:27:00 GMT

"As prices go up.. jobs move to lower cost states."

You can't re-locate Wall St. That will never happen.

Well we have massive job ...

Fri, 05 Oct 2007 05:17:00 GMT

Well we have massive job cuts in SV.. trimmed off back in 2001 and still at it. As prices go up.. jobs move to lower cost states.

Whatever you say Mike. People ...

Fri, 05 Oct 2007 05:03:00 GMT

Whatever you say Mike. People have been predicting massive job cuts on the street for a long time now, and it is beginning to sound like they are crying wolf.

dmc - At some point you use ...

Fri, 05 Oct 2007 03:20:00 GMT

dmc -
At some point you use a ratios based median or average and look at trends.
Prices have become fundementally unsupported either way. Prices start to come down.

Factors you list , were they not true in 1972, 1981 or 1991 also? At the same time unafforability peaked and prices declined. At some point there is an analysis that makes sense over the decades. I believe we are looking at that now and in the future.

I'm not sure you can divide ...

Fri, 05 Oct 2007 02:46:00 GMT

I'm not sure you can divide one median by another and have a meaningful number. First, median is not the same as average. Then, this "analysis" doesn't account for the renting population, changes in the housing stock (i.e. more or less condos, larger or smaller homes, etc.), and especially the marginal buyer income effect (people selling out to higher-income new arrivals, the effect on the median income is close to zilch, the effect on the median home price is huge because the comps are set by the more recent transactions). Not all of the recent run-up is due to bubble financing.

And they did.. Hopefully, ...

Thu, 04 Oct 2007 18:46:00 GMT

And they did.. Hopefully, they didn't tie it back up in declining property though..

Hmm yeah , those numbers ...

Thu, 04 Oct 2007 18:41:00 GMT

Hmm yeah , those numbers are remarkable.

Kind of makes me wonder, what would have been if I have moved to LA four years back when I had the chance. I could have made a killing in commissions.

grammar error.. "will feel ...

Thu, 04 Oct 2007 18:25:00 GMT

grammar error.. "will feel the pinch"

Captain Alpine is feel the ...

Thu, 04 Oct 2007 18:25:00 GMT

Captain Alpine is feel the pinch though when his property is worth less. He lives in New Jersey where all the investment bankers who worked on CDOs and subprime are going to get the axe. Read up on the upcoming job cuts that the big financials are planning for their employees.. No cash flow.. = No outflow to mortgage = Declining property values..

His neighbors will buy into the neighborhood at $500K while Alpine grumbles about how he improved his house and deserves to profit big...

Should have sold at the top of the bubble.. We're going back to reality..

Well, since I live in San ...

Thu, 04 Oct 2007 17:57:00 GMT

Well, since I live in San Diego, part of the stupidity was not only the bank's outrageous willing to loan anyone any amount, but ALSO the stupidity that 2 working people were applying. If one looses a job, they loose their most important asset, their house. I heard 80% of the families have dual incomes. Prices may not come down as much over this change of lifestyle, because 62K (income) x2 (qualifing buyers) x 4.5 (approx purchase amount) is approx 558K!