How are people buying homes in SoCal for ~$500K but incomes avg $75K.. what

Tips and Deals Forums Buying Your Home How are people buying homes in SoCal for ~$500K but incomes avg $75K.. what

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    • #202852
      Anonymous
      Inactive

      am i doing wrong? Trying trying to understand why I can’t afford it? (probably rhetorical because its a ton of money). But seriously, with my income I’m trying to buy in a $300K range for something decent.. is housing overvalued that much? Are there other forces at work keeping housing up close to 5x the median income? The economics just do not make sense – please help!

    • #266404
      claucar16
      Participant

      Maybe they have a huge down payment. Or maybe that is not actually happening.

    • #268346

      Its all supply vs demand. I live in the area and know exactly what you are talking about. Unfortunately, since people from all over the country want to live here, the demand for housing is very high. Think about it, who dreams of living in Mississippi?? Its just the price we pay for the great weather and options that we have. No one in Nebraska has the option to visit the desert, go snow skiing, AND go to the ocean all in the same day. I agree it sucks, but if prices were lower then there would be even MORE people moving here and making traffic even worse.

    • #273374

      It depends on a lot of things. One major thing is your credit. Also i think it depends on what bank loans you the money. And then there are people that are out of the average 75k and get 100k.

    • #279860

      there is NO WAY they are getting MORTGAGES of $500,000 on only $75,000 in income
      it might be a $500,000 house, but they probably had $300,000 in equity when they bought it

      you will only qualify for a mortgage that is about 2.5 to MAYBE 3 times your annual salary – any more and even if you get approved, you will really be stretching your finances

    • #279916

      there is NO WAY they are getting MORTGAGES of $500,000 on only $75,000 in income
      it might be a $500,000 house, but they probably had $300,000 in equity when they bought it

      you will only qualify for a mortgage that is about 2.5 to MAYBE 3 times your annual salary – any more and even if you get approved, you will really be stretching your finances

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