Comments on: We’re all subprime now http://polizeros.com/2007/10/11/were-all-subprime-now/ Musings on politics: anti-war, global warming, peak oil and otherwise Thu, 08 Jan 2009 19:01:56 +0000 http://wordpress.org/?v=2.7 hourly 1 By: DJ http://polizeros.com/2007/10/11/were-all-subprime-now/comment-page-1/#comment-144262 DJ Fri, 12 Oct 2007 21:45:05 +0000 http://polizeros.com/2007/10/11/were-all-subprime-now/#comment-144262 "Your old condo may be dropping in price now too." Yes, it has-- from a former ridiculous price of almost double what we sold for in 2004. But my ex-sister-in-law is currently trying to buy one-- and $500K is the going rate. “Your old condo may be dropping in price now too.”

Yes, it has– from a former ridiculous price of almost double what we sold for in 2004. But my ex-sister-in-law is currently trying to buy one– and $500K is the going rate.

]]> By: Bob Morris http://polizeros.com/2007/10/11/were-all-subprime-now/comment-page-1/#comment-144236 Bob Morris Fri, 12 Oct 2007 17:50:51 +0000 http://polizeros.com/2007/10/11/were-all-subprime-now/#comment-144236 The house we sold for Jan. would now go for 15-20% less, according to our broker there who knows the area well. Your old condo may be dropping in price now too. $35k a year in payments translates to about $50k before taxes, so if one is are sane and allots no more than 30% for housing costs, then they need to be making at least 150k to afford that condo. The house we sold for Jan. would now go for 15-20% less, according to our broker there who knows the area well.

Your old condo may be dropping in price now too.

$35k a year in payments translates to about $50k before taxes, so if one is are sane and allots no more than 30% for housing costs, then they need to be making at least 150k to afford that condo.

]]> By: DJ http://polizeros.com/2007/10/11/were-all-subprime-now/comment-page-1/#comment-144232 DJ Fri, 12 Oct 2007 16:34:50 +0000 http://polizeros.com/2007/10/11/were-all-subprime-now/#comment-144232 Wow, a $600K home? That's cheap! Seriously, in the Culver City condo complex we moved out of 3 years ago (built in the 1970s, termite-ridden, and with a nearly bankrupt HOA), a 2-bed 2-bath condo now sells for a cool half million. Why? Because you can't live anywhere on the West Side for less. Fixer-upper homes in Westchester, under the flight path of the jumbo jets, start at $750K. These $500K condos are entry-level housing! One <a href="http://www.homeinsight.com/home-value/CA/los_angeles.asp" rel="nofollow">website</a> says LA's median home price is $464K, but I don't know where those lower-priced homes are, maybe in the projects. The payments on the median home (at 6.5%) would be over $35K each year. Compare that with LA's median income of $36K. Is it any wonder so many homes are on sub-prime? Wow, a $600K home? That’s cheap! Seriously, in the Culver City condo complex we moved out of 3 years ago (built in the 1970s, termite-ridden, and with a nearly bankrupt HOA), a 2-bed 2-bath condo now sells for a cool half million. Why? Because you can’t live anywhere on the West Side for less. Fixer-upper homes in Westchester, under the flight path of the jumbo jets, start at $750K. These $500K condos are entry-level housing!

One website says LA’s median home price is $464K, but I don’t know where those lower-priced homes are, maybe in the projects. The payments on the median home (at 6.5%) would be over $35K each year. Compare that with LA’s median income of $36K. Is it any wonder so many homes are on sub-prime?

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