If there is anyone left who still believes in market fundamentals, here’s a graph that shows how the traditional 3:1 price-to-income ratio is still a decent measuring stick in the rest of America.  But in California, it has escalated to dizzying heights!

San Diego County

Median Household Income: $75,456

Median Sales Price, YTD: $705,000

Price-to-Income Ratio: 9.3

Encinitas

Median Household Income: $113,175

Median Sales Price, YTD: $1,465,000

Price-to-Income Ratio: 12.9

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With the affluent in full control of the real estate market, expect these numbers to get dizzier!

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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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