Monday, September 8, 2008

Answer: $51.75 per hour

Question: How much would you have had to earn each working hour this past year, to offset the loss in value if you owned a median priced home in Sacramento?

August 2007 median= $313,500
August 2008 median= $210,000
Loss = $103,500
Avg annual hours worked= 2,000

(If you prefer using "average" home price, rather than median, the answer would be $56.65/hour. If you prefer average price sq/ft, it would be about $60/hour assuming a 2,000 square foot home.)

Paul

2 comments:

Max said...

I prefer the 24/7 hourly loss rate:

$11.82

Every single hour.

Jacob said...

the opposite of bubble times. In those years people were making an extra $50k-$100k a year for doing nothing.

Now not only is that fake income gone, but now you are losing money.

Not good for retail companies. I have a feeling many will die or be in a lot of pain after a lackluster xmas season.