Sunday, February 19, 2006

Ramen + Peanut Butter = New Homeowner Bliss

First ramen, now peanut butter. Apparently the reader who sent in the ever-popular "Ramen Guy" article has an infatuation with the diets of new homeowners. He recently sent in a link to a presentation made by Greg Paquin at the Building Industry Association's Sacramento Regional Housing Forecast. Mr. Paquin is often quoted by the media in stories about the housing market.

On page 11, Mr. Paquin explains how Californians have afforded the unaffordable.

  • One in five California home buyers spends at least 50% of income on housing
  • Trading up using equity from the sale of another property
  • Risky mortgages – interest only, ARM, etc.
  • Buying smaller sized homes and buying in more affordable regions, e.g. Central Valley, Northern California, etc.
  • Financial help from family members, renting rooms, reducing 401(k) contributions, peanut-butter diet, etc.
Thanks to the reader for shedding light on these new homeowner secrets. And if you are allergic to peanuts, I hear Top Ramen is quite good. By the way, it appears that Mr. Paquin is right on the mark by suggesting these trends (page 27):
  • Pricing decreases
  • Slowdown in sales
  • Increase in inventory
  • Increase in incentives

2 comments:

crisp&cole said...

Did you see the DRHorton ad in the San Jose Mercury News?? Wow!!!!!! Can you confirm that story! Its seems amazing.

Thanks!

crisp&cole said...

http://newspaperads.mercurynews.com/ROP/ads.aspx?advid=128467&adid=2613016&cat=3461