Horse Community

by | May 1, 2013 | Bubbleinfo TV, Rancho Santa Fe | 3 comments

Why the higher-end market is a little sluggish compared to the rest? It’s because $2,000,000 still doesn’t buy you much in the tonier parts of town:

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!
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3 Comments

  1. Jim the Realtor
    Jim the Realtor on May 1, 2013 at 8:05 pm

    There is no compelling leader to command and direct the real estate community, and I’ll live with that.

    But to have the assumed leader – the local president of the association of realtors – give wrong advice in the main newspaper is ridiculous and makes us all look bad:

    http://www.utsandiego.com/news/2013/may/01/homebuyers-afford-mortgage-prequalify-home-loan/

    Buy a house for 1.5x your annual income?

    I don’t see anyone making $200,000 a year buying a $300,000 house.

    The rule of thumb has ALWAYS been 2.5 to 3.0 x annual income, depending on down payment, and with rates so low it should be even higher today.

  2. doughboy
    doughboy on May 2, 2013 at 8:31 am

    In So CA people buy (lease) cars that are 1x income! Homes have to be 4-5x income right now, or at least the loan amount after down payment. Working couple makes 200k a year, buys 1M$ home with 200k down and carries 800k loan at 4%. Its a stretch but what do you do?

  3. Jim the Realtor
    Jim the Realtor on May 2, 2013 at 8:04 pm

    Now the C.A.R. has picked up the local article and is running it on its website, espousing our president’s view that you should buy 1.5x your income.

    http://www.car.org

    We look like clowns in the circus.

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