[finnman69]

Tt's not about mortgages, it's about afforability. When average incomes are $50,000 and homes cost $500,000 the math does not work.

[Moonman62]

That's true. Homes in hot markets have reached the limits of affordability. However, my point is that falling interest rates make a widespread real estate crash less likely.

[RockinRight]

It's insane.

The average income in LA County is about $44000 and the average house is over $400k IIRC.

In Summit County, Ohio the average income is about $40000 and the average house is $135k.

[Petronski]

When average incomes are $50,000 and homes cost $500,000 the math does not work.All homes? Everywhere?

If that ever happens, let me know.

[goldstategop]

That's $4170 income rounded a month with $1390 mortgage payment rounded a month going The latter more than the median in California and a third of the household income is going to the mortgage payment. If we drop the income to 3180 rounded a month, a little under half the household income goes to service the mortgage. Now let's drop that to the $25,000 most people typically earn: 2090 a month - over half of the household income goes to pay the mortgage down. When other expenses are factored in, that means there's nothing left at the end of the month. Economists say ideally one should pay no more than a third of one's monthly budget on housing. Its often a great deal more. A lot of people rent since they dont want to live on rice and beans the rest of their lives.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus