“Dec 29, 1988 Sold (Public Records) $620,000 Jul 09, 2012 Sold (Public Records) $1,085,000 75% more expensive over 24 yrs”
Jazz, this is your argument that prices are still substantially too high in La Jolla?
First, let’s consider the annual appreciation rate of 2.36%. How does that compare to the annual inflation rate over the last 24 years?
Second, let’s look at mortgage rates. The average 30 year fixed rate mortgage the last week of 1988 was 10.76%. Today’s average 30 year fixed interest rate is around 3.5%. Current interest rates are 1/3 of what they were back in 1988.
