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Median Mortgage Payment

July 31st, 2008 at 01:28 pm

In 2006 the median monthly mortgage payment was $2291. (In Sacramento).

!!

Egads.

On one hand, I am not surprised. I remember marveling at the fliers when our neighbors sold their homes in 2004 - 2006.

"All this yours, for a mere $3k/month."

!!!

& I certainly know a lot of people in the area, with bigger mortgage payments.

But when I think to shortly before we moved here I think of house payments in the maybe $800 range. (I still can't get over how dh's cousin paid a mere $100k for his 4-bedroom home here, in 1999. If only we were 2 years older - our house would be paid off).

I saw some statistic somewhere, that I can't find now, that the median mortgage payment was about $1100 in 2000.

I am surprised it was that much. But the median can be hard to measure at face value. $1100 seems fair.

So that's 110% increase or so, in 6 years???

I will be curious to see where that median figure settles, once all the dust settles.

Maybe in the $1500 range.

The foreclosure rate is something like 100% for people who paid above a certain threshold for their home (over $475k in our neighborhood - every single last one fell. Though some had paid up to $650k).

I imagine all those foreclosures have got to bring down the median a lot!

Our mortgage was in line with the median when we bought, but since we have never increased our loan amount or interest rate, well, we can brag our payment is 50% of the median today.

Though it doesn't exactly mean much.

Then again, we could have maybe stomached a $300k mortgage or so - that was always rather our limit. If we had been looking at houses here in 2005 we just would have rolled our eyes. No thanks! Those were the kind of prices we were running from.

I was just thinking the other day that if we had a crystal ball we could have sold our house in 2005 for the realm of $650k (boy were we close to selling it anyway). & then if we got home sick or whatever we could have just moved back and scooped up the same house early this year for $350k again. Just waited for it to foreclose...

That would have been pretty sweet. Hell, we could have paid cash.

If only we knew.

I do know a lot of people who fled up north in 2004 - 2006. I haven't heard of them swooping in and buying back their houses at a fraction of the cost. Though I wouldn't be surprised if there is somewhat of a phenomenon of people moving back with prices settling so low again.

Then again, maybe they just move on. We have talked much about if we would move back home if it were suddenly more affordable. The decided decision is "hell no," but I must admit that comes with a fair amount of certainty that the area will never be near what we consider "affordable." I do admit closer proximity to family would give us second thoughts. But seems to nearly impossible, why even think about it.

But people who fled Sacramento at the peak clearly have that luxury to return. IF they wanted to.

It will be interesting to see how it unfolds.

13 Responses to “Median Mortgage Payment”

  1. Ima saver Says:

    My first mortgage payment was $96 a month. Of couse, I only made $1 an hour, so that was 2 weeks pay.

  2. gamecock43 Says:

    I love watching the housing market. It is fascinating!

  3. PauletteGoddard Says:

    The median house price in Sacramento, according to housingtracker.net, is only $299,000. Was the median house price much higher in 2006?

  4. monkeymama Says:

    Um yes. The average price fell 40% in the last year alone. (In many areas anyway - maybe not the entire region).

    2006 median price was $400k (peak was higher in 2005):

    http://www.housingtracker.net/old_housingtracker/location/Ca...
    However, that's just a slice of it. Many of the larger mortgage payments are people who borrowed lots of equity. MANY. So though not so many people bought at the peak, a little too many borrowed at the peak.

  5. monkeymama Says:

    PG - neat website by the way... I'm marking this one down.

    Sacramento is a cake walk compared to my original home. Egads...

    http://www.housingtracker.net/askingprices/California/SanJos...
    scroll down to 2006. !!!

  6. PauletteGoddard Says:

    A 42% value depreciation over three years. Frightening.
    But then, Sacramento has had a rollercoaster-style run-up, yes?
    :hustles to improvise crash savings plan to pay down mortgage.

  7. monkeymama Says:

    I found something - median price Sacramento in July 1999 - $128k.

    !!

    That's what caught our eye in 2000. (We ended up buying mid-2001, for MUCH more).

    As you can see it has been a CRAZY ride, since 1999.

    There are locals who think we will see $100k homes again. (homes worth buying). I personally think they are dreaming. Too many Bay Area refugees who have found the dirty little secret that this is a pretty nice place to live. Big Grin Though I wouldn't be surprised if the median drops significantly - maybe to $200k. But the Bay Area is just still so insane. Any big drop here and so many people waiting to rush in.

    My feelings anyway. Time will tell...

  8. gamecock43 Says:

    Oh that is a great website!!! I wish they could track the mid sized cities too. I would love to see Savannah's info.

  9. paulettegoddard Says:

    At least inventory is decreasing already in Sacramento. Inventory where I am is up 68%.

  10. gruntina Says:

    I am not suprised! It is not nearly as high as it is over here (Santa Clara County) but I was expecting a little lower than that for Sac.


  11. PauletteGoddard Says:

    Huh, our city's median mtg payment is $2,077. I am shocked. Maybe after a few major savings goals are reached I'll feel okay about my mtg payment (lower than the current Seattle median, higher than the 2000 median for Sacramento).

    Some doomsayers here think 1991-era prices, but maybe they're thinking the outlying areas within commute distance of the city: the islands, and the McMansion ghettos. I'm thinking 2003-era prices for where I live (within the city, lots of mass transit options, walkable to major shopping), but that's a step up from the 28% decrease slide over five years I'd projected a year earlier, before I saw oodles of cranes and construction.

  12. gamecock43 Says:

    Suze Orman said that if you can get a home for 2003 prices then you got a great deal. The Savannah houses are all listing at 2007 numbers right now. I dont know how I am going to get someone to back track 4 years. Frown

  13. monkeymama Says:

    Our inventory increase came with the 40% price drop. Wink They mostly project it to be be a temporary bounce. Talking to people in trouble I feel like the foreclosures have barely begun. So it doesn't feel very warm and fuzzy...

    Sounds like a lot of equity borrowing in your neck of the woods too. (& $0 down and ARMs, etc.)

    I do admit my "optimism" is because the Bay Area hasn't sunk yet. I haven't ruled it out. (I know a few too many 20-somethings with $500k+ mortgages there). I guess I wouldn't entirely rule out 1991 era prices, though I figure it seems unlikely at this point. Interest rates are another matter though. (Higher rates mean lower prices).

    Too bad Gamecock! On the website. Give it some time. The way the markets are, it will come down more.

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