I wish someone would track the occupations of people buying homes versus 10-15 years ago. I genuinely believe it is so much harder for the average Joe or Jane to become a homeowner. In 1992, my mom was an executive assistant who made with a salary in the low 30's and bought a modest, but lovely $60,000 home in a safe area. Today that home would sell for approx $150,000. I make in the high 30's and could not afford that house today. Sure, maybe I could get approved for that amount. But it wouldn't be financially prudent to buy. The only houses that I could afford are in neighborhoods that are "in transition" There are countless other stories I could relay of secretaries, factory workers, and other average Joes that could afford a modest home in a safe neighborhood in the 80's and 90's but people in those same occupations could not afford the same kinds of homes today. Prices are still too darn high! I will not consider the Baltimore real estate market prices reasonable until a person with a reasonable wage can afford a home.

Hi -- I haven't come across a report on buying patterns by occupation over the years (that would be fascinating), but the Paycheck to Paycheck study does show you how pay by occupation stacks up to home prices in metro areas across the country. (It's here: www.nhc.org/chp/p2p)

You can also look at income vs. prices over time to see how they have changed.

Jamie,

Thanks for the link. I hope the graphs are useful to sellers and buyers alike.

Best,
Kevin

Notice the nice bell-shaped curves developing. 2000 prices are on the way - or even an overshoot to 1997-98 prices given the rapidity of the economic fall, and likelihood that interest rates will have to start going up. Start hoarding cash - maybe to buy a house outright at the fire sale!

ldj78,

Here's a story about professions and homes. Both my grandfathers were truck drivers, and both my grandmothers were house wives. On a truck driver's salary, one grandfather sent all four of his children to private schools. My other grandfather owned two houses, one on the water. Neither of these men inherited any money; they lived solely on their salaries.

My dad? He's a truck driver too, but my mom has to work a fulltime job to be able to afford their modest townhome. Private schools and a second home were out of the question while I was growing up.

The cost of living has far outpaced salaries. I don't think things will ever return the same, no matter what the economy does.

Please, no one respond to say that I'm complaining. I'm not. I just wanted to share that story.

Being relatively new to the area, but came here frequently for business in the past 8 years, I have noticed a transition in occupations. This is probably one of the biggest things that fueled the price increase. If you notice on the graphs, we are still way above the prices 10 years ago. Without seeing the exact data, I'm suspecting that the average price increase per year is still relatively high. With any bubble, the market has to adjust to a "reasonable" rate over a time period. Maybe Kevin or Jamie can data mine the numbers and let us know what that rate is and what is a "typical" rate for other areas.