Borrowers are stretching further than ever before, with one of five California home buyers devoting more than half their income to home payments.
–Mark Schwanhausser, Loan Landslide On Shaky Soil, San Jose Mercury News
With the median home price at $714,000 (in some cases for houses less than 1000 square feet), I don’t think we’ll be joining them.
It’s weird to live in a place where the main topic of conversation on any given day at work is about housing. Not, “What movie did you see last weekend?”
It’s obscene is what it is, Kathryn. My place at the beach in Redondo is about 2400 sq. ft., more than I really need at my age. My sons gently talk to me about selling before the market drops–because everyone thinks it is bound to within a year. I tell them that my own place is so ridiculously overpriced now, I’d have to buy a much less desirable piece of property–and then I’d have to pay property taxes on this humongous debt instead of what I bought it for in 1987. On the other hand, I am very grateful I have it. SFO area is the most expensive in the state, I’m told.