[quote=asianautica][quote=ibjames]How much has rent increased in that area in the last few years?
Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?
I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.
Like I said, I’m not an expert, but just trying to make sense of things.
Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?[/quote]
Rent has gone up about 4%/year over the last 15 years. Like other have said, I think the renter pool in MM is much higher than others due to its proximity to UCSD and various high tech job centers.
What I’m trying to say is $325k at today’s rate is where it’s reasonable when comparing rent vs buy. It gives similar rent vs buy ratio as the bottom of the last cycle. We can very well undershoot much more this time than last time, so it could go much lower, but I won’t know until it happen. Same could happen if rates goes higher and drive down price even further.[/quote]
I agree, taking all things into consideration that could happen, I still think that MM has some declines coming it’s way..
