[quote=deadzone]In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.
I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.[/quote]
My definition is definitely not limited to the coast. I think east Carlsbad, Santaluz, Crosby, Cielo, 4S’s Ivy Gate, SantaFe Valley near 4S, south of Pomerado in Scripps, larger homes in Stonebridge, and a large number of homes in gated communities in Poway, especially north Poway are all within the league of premium without having to be coastal.
A lot of these areas are very new, and therefore not well established. There are also a lot of distressed properties amongst them. Both of these factors can turn a lot of folks off. But that also means opportunities, dramatic bargains can be found. Of course, if one’s not careful, it is still very possible to overpay in these areas as well.
As for coastal premium. That’s another story. I think JTR and PowaySeller had a huge debate about that back in the days. I’m more in the camp that coastal premium is unlikely to see significant drop. Rather, it’ll just stagnate in pricing until the rest of the market catch up at the next upturn.
