Originally Posted by IdealConcepts
What's the Median Income in your areas also? In Sac its approx. $45K, which makes it difficult to purchase a decent home anywhere. Luckily I make more than this, but it feels like its never enough.
DakarM - I don't think you meant anything with you last comment, but about being screwed in CA this was my opion because of what my parents(in 1987) and what my other family members paid for (in the last 5-10 years) their home compared to what I will need to be paying. I'm paying twice as much as my aunt who has a sligthly larger home with more upgrades that she bought 6-7 years ago. I'm sure if you talk with other first time home buyers in the Sacramento Area (Elk Grove, Roseville, Rocklin, Folsom, Lincoln) many would agree they are getting the short end of the stick with purchasing a home. You could buy a new starter home (in a track community approximately 1,100 to 1,700 sq ft)for around $90K to $130K about 5 years ago, now you can't touch those same size houses for under $350K some areas they are in the +$400K mark. About 5-7 years ago with $500k you could by a fairly large home (anywhere from 3,000sq ft to 5,000 sq ft house) on an Acre or Two of land in one of the more upscale place in the area. Those same houses go for about $1.5 and above.
this is how the housing market generally works. my friends parents bought their house in Cupertino, CA in 1975 for $40K. It's worth around 1M+. It's not like you want to buy your house then have it go down in value like your car over the next 5 years.
screwed? far from it. paying twice as much? yeah? so? if you could have bought when she did you would have. If I bought my house 2 years earlier, I would have only paid $400K.
Edit: median income in my town... I think around $125K not sure.
MSN says: $134,014