did you read the part specific to bubble areas in that article?
This is not always in the case in all areas of San Diego, much less, California. If 10-14 is historic norm, area like Mira Mesa already have rent multiple as low as 13-14.
A bottom will not be in until at least the end of 09 and more possibly until 2011 when all of the Alt-A and option ARM’s start resetting.
No one can predict the bottom. All we can do is run the rent vs buy calculator to see if rent is still cheaper than buy. We can very well go into a flat line for the next 10-20 years or drop 50% in the 6 months and bounce back. No one can predict the future.
