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Yep, from 300% of income to ~500+% of income.
If the ratio is 3 or less, then there is incentive to save a lot of money and make at least a 50% downpayment.
What was the average age of a purchased house 30-40 years ago versus today. T
So much difference then and now as far as economy and demographics. Women are more employed now, for example.
in idaho out here, a lot of people moved in which spiked sales a lot. it keeps going. however interesting enough flippers see losses. 4 different guys who came here tried flipping, 3 lost money and one made very little. no one buys flips here, mainly new construction.
Around here, there is a shortage of home listed because people do not want to sell their homes. One major reason is this example:
Current home, $1,000,000 mortgage at 2% has a monthly payment of $3,696.
Downsize home, $750,000 mortgage at 7% has a monthly payment of $4,990.
Moving to a smaller home at today's interest rates actually can increase the monthly nut and that is after costs like realtor commission and loan origination fees.
Did those median incomes in 1970 include a workforce that had college degrees (and attendant debt) to the extent the modern one does? .
Personal debt is anti-American.
gabbar says
Personal debt is anti-American.
Oh, personal debt is an American tradition. Irresponsible, yes, but quite the practice in the US.
Yet to meet a millionaire that didn't use debt to make their wealth.
HeadSet says
gabbar says
Personal debt is anti-American.
Oh, personal debt is an American tradition. Irresponsible, yes, but quite the practice in the US.
Yet to meet a millionaire that didn't use debt to make their wealth. You don't use your own money if you want to be wealthy. And then YOU become the bank and make more. Rarely are W-2'ers millionaires. Their check goes to putting food on the table and their house. They're broke or on food stamps even if they pull in $100k.
WookieMan says
Yet to meet a millionaire that didn't use debt to make their wealth.
Personal debt and investment debt are two different things. Borrowing to buy rental property or company equipment is not the same as borrowing to buy that 'vette.
I'm a guy who didn't use debt to achieve wealth.
I'm a weirdo to my friends however.
What do you do to stay productive and live a fulfilling life?
I like my financial independence. I don't need more money or care to work for more money. Life is short. I don't want to spend all my time adding digits to a banks account working like a dog.
We are going to see Realtors and Banks grovelling before the Fed very soon.
What do you do to stay productive and live a fulfilling life?
What do you do to stay productive and live a fulfilling life?
"My favorite Central Banker was Paul Volcker. He was not worried about nailing the soft landing. He put us into a terrible recession and we got 20 years of prosperity because of the pain we took for 18 months. And I’d like to remind those who think this has been in their political interests, Reagan won 49 states in 1984 after the economy was absolutely in the tank in 1982 because he did the right thing."
However, household wages and/or income for the demographic that would buy this townhome has gone up about 25% since February 2020.
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https://finance.yahoo.com/news/pimco-kiesel-called-housing-top-160339396.html?source=patrick.net
Bond manager Mark Kiesel sold his California home in 2006, when he presciently predicted the housing bubble would pop. He bought again in 2012, after U.S. prices fell more than 30% and found a floor.
Now, after a record surge in prices, Kiesel says the time to sell is once again at hand.