Irritating
I read an article the other day that said the median income in the state of CA increased $1,210/year last year. Great. Everyone's (relatively speaking) making 100 bucks a month more this year than they were last. If you want to know where it is, a third of it went to Uncle Sam and the other 2/3 went into your gas tank.
Now, for the bad news.
The income required to purchase a median priced home in CA increased $16,770 over last year.
What?
So, if you couldn't afford to buy anything last year, this year you can fucking forget it. I thank God every day that we bought our house when we did.
Now, for the worse news.
A median priced home in this state goes for $530,430. The above-referenced income required to purchase a home at this price, $124,320, assumes a 20% down payment (so $106k and some change). The median price for homes in my area has increased ONE HUNDRED PERCENT over the last five years. Again, if you own a home (your dream home,anyway), you're sitting pretty. If you're renting or hoping to move up -- not so fast.
When is this bubble gonna burst? It has to. Incomes rarely keep pace with home appreciation -- but it doesn't take a genius to figure out that 2-4% annual increases in income and 20% annual increases in home prices are not going to add up. Why are people still buying homes like they're going out of style? Is Sacramento so much better than So. Cal and the Bay Area? Wait 'til all those Bay Area transplants realize that 100 degree plus temps in the summer aren't so rare. Investors are buying about 20% of the homes here -- and paying the substantial difference between the rents they can fetch and the mortgages on the homes. Of course, they do this anticipating outrageous appreciation. If you bought your investment 2-5 years ago, congratulations. If not, watch out.
But I don't even care about the investors. I wonder what the hell is going to happen to the economy when rates go up and all these people with their interest-only financing and their $3,000/mo. house payments get foreclosed on. We're going to have homeless people everywhere!
AND THEN . . .
There's health care. In CA, I read people are paying more money for less health care -- and a full third of healthcare dollars are going to administrative costs. A THIRD?!
These are the fuckers who decide whether you really need that more expensive test. Clearly, we need to take out the middle man. Insurance companies eat it. Auto insurance, homeowners insurance, health insurance . . . we pay too-high rates for policies we are expected never to use. Because if we do, our rates go up.
Bullshit.
The Insurance Commissioner says the health care system is in a "death spiral." That's comforting.
It's a beautiful day in the neighborhood.
Now, for the bad news.
The income required to purchase a median priced home in CA increased $16,770 over last year.
What?
So, if you couldn't afford to buy anything last year, this year you can fucking forget it. I thank God every day that we bought our house when we did.
Now, for the worse news.
A median priced home in this state goes for $530,430. The above-referenced income required to purchase a home at this price, $124,320, assumes a 20% down payment (so $106k and some change). The median price for homes in my area has increased ONE HUNDRED PERCENT over the last five years. Again, if you own a home (your dream home,anyway), you're sitting pretty. If you're renting or hoping to move up -- not so fast.
When is this bubble gonna burst? It has to. Incomes rarely keep pace with home appreciation -- but it doesn't take a genius to figure out that 2-4% annual increases in income and 20% annual increases in home prices are not going to add up. Why are people still buying homes like they're going out of style? Is Sacramento so much better than So. Cal and the Bay Area? Wait 'til all those Bay Area transplants realize that 100 degree plus temps in the summer aren't so rare. Investors are buying about 20% of the homes here -- and paying the substantial difference between the rents they can fetch and the mortgages on the homes. Of course, they do this anticipating outrageous appreciation. If you bought your investment 2-5 years ago, congratulations. If not, watch out.
But I don't even care about the investors. I wonder what the hell is going to happen to the economy when rates go up and all these people with their interest-only financing and their $3,000/mo. house payments get foreclosed on. We're going to have homeless people everywhere!
AND THEN . . .
There's health care. In CA, I read people are paying more money for less health care -- and a full third of healthcare dollars are going to administrative costs. A THIRD?!
These are the fuckers who decide whether you really need that more expensive test. Clearly, we need to take out the middle man. Insurance companies eat it. Auto insurance, homeowners insurance, health insurance . . . we pay too-high rates for policies we are expected never to use. Because if we do, our rates go up.
Bullshit.
The Insurance Commissioner says the health care system is in a "death spiral." That's comforting.
It's a beautiful day in the neighborhood.
posted by PlatinumGirl at 4:23 PM
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