FYI, for those of you who consider yourselves property barons in training, we’re rapidly getting to the point where rents pencil on residential properties here in SD County. I’ve seen some 3-4 unit properties in a couple areas that are now selling for 100x monthly rents. A handful have sold even lower than that. To get there, their REO resale prices have been coming in 40% – as much as 50% below their prior sales at the top of the market.

And the bulls said it would never happen here. LOL

Different market segments will arrive their respective trigger points at different times. After a certain point the availability and terms of mortgage financing is going to be more of a factor than whether the sale prices have reached absolute bottom.

As TG said, if you think the prices are within 10% or 15% of their eventual bottom then maybe you really should consider the merits of the bird in hand.