[quote=anxvariety]I think rent must be defined materially in order for the argument to be substantive. One can cherry pick purchase prices as well as rents and make a compelling argument. From an economic perspective though can one argue that home prices have found bottom/climbed from/climbing from etc, without considering where interest rates must head? I agree that rent and purchase are disconnected at the moment, but many find serenity in a 1 year lease.[/quote]
AV, I take it you are renting on a one-year lease? If that is the case, hopefully, you will be able to buy something before or when it expires. If you want to “own,” the sooner you buy, the better, IMHO.
Forget your “fixation” on “interest rates.” They go up and they go down. As a buyer, you are looking for price and built-in sweat equity. You don’t give a rat’s a$$ about interest rates. If you bought in a higher-interest-rate climate, when they get lower, you will refi. End of story.
If you think “interest rates” are going to affect sales volume and prices in coastal CA counties, I’m here to tell you that they won’t. Buyers who need mortgages will simply buy less house for the same amount of money, as they always did. The buyers who don’t need a mortgage will pay cash (for a discount), as they always did.
If you are trying to make a “connection” between “interest rates” and home prices here, put away your spreadsheet … you are wasting your time. As you are coming upon your seven-year Pigg anniversary, the horse left the barn 2-3 yrs ago and the door is closing but has not yet slammed shut. My advice is to get moving NOW on your home search (remaining mos of lease be damned) and keep the Piggs posted on your progress 🙂
