I had no idea that a La Jolla address carries such a price premium. Wow! You can get a beautiful Carmel Valley home for that price. Why get that old small La Jolla house for over a million? I don’t get it.

I think prices will go down 50% over the next 5 years. If history is any guide, years 3-5 will see the largest drops. We are in year 1 now, since the yoy median just turned negative.

Some landlords on this forum wrote that a gross rent multiplier of 8-10 should be used for rental property. So the property should cost less than 8 times annual rent. I expect we will return to that level.

Rents and housing prices have a fundamental support in wages.