tag:blogger.com,1999:blog-15223784.post114520344787956669..comments2023-10-08T06:24:07.089-07:00Comments on Seattle Bubble: Westneat Clues In—Seattle Wildly UnaffordableThe Timhttp://www.blogger.com/profile/14832570891451659976noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-15223784.post-1145332079522834832006-04-17T20:47:00.000-07:002006-04-17T20:47:00.000-07:00Foreclosures are starting in-city.I've been checki...Foreclosures are starting in-city.<BR/><BR/>I've been checking the craigslist RE list for a few months now, just to notice trends.<BR/><BR/>The foreclosed listings started outside of the city back in the Fall. I was wondering when they'd start in -city.<BR/><BR/>They started this week. Ballard and Fremont. Nice looking places but the prices still have a ways to fall. Condos and single family homes.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-15223784.post-1145256310327187502006-04-16T23:45:00.000-07:002006-04-16T23:45:00.000-07:00OK, How can property increase at 15%/year while in...OK, How can property increase at 15%/year while incomes go up, at most, 3%?<BR/><BR/>WTF?<BR/><BR/>If the median income on Bainbridge Isl. is $75K in 2004, with home prices at $525K, that would take 55% of your gross income to afford the house with 6% interest rates.<BR/><BR/>In 5 years, the median income will be $86K and the median home will be $1.056M, and 90% income will be consumed on the house payment with interest rates at 4%.<BR/><BR/>2 years later, $92K incomes will have to spend 100% of income to buy the $1.397M at 4% interest rates.<BR/><BR/>3 years later the $2.124M home will eat up 100% of the $100K income in an interest free environment.<BR/><BR/>WTF?<BR/><BR/>People have to eat, drive, botox, pay taxes, internet, and even pay mortgage interest, etc. Tell me how we can keep this up.<BR/><BR/>Nope. Historical ratios will reassert themselves at higher interest rates. Home prices will have to come down in order for this to occur. At 8.5% interest rates, and 25% ratios for housing/gross, that $525K house is now worth, $200K. That is without a reduction in income.Eleuahttps://www.blogger.com/profile/08248482892459370601noreply@blogger.com