Dr Boom what the real estate industry says and does is something that I do not really care about. Read my posts and you will see that I am quite consistent in the facts. Those being that real estate in San Diego is still overpriced and that in my opinion there is more downside left. How much more is simply going to depend on interest rates. It is not that hard to figure out.
However taking a stand that the prices will go down because there is or will be a lack of organic buyers is a foolish approach. Organic buyers are there for many reasons whether it is similar to your own reason for buying, or for moving up, or for relocating or for whatever.
People have selected to buy for all sorts of reasons. There is not an argument of whether the asset will depreciate. There is an argument of how many of them tied up cash verses financing. There is no argument though that with regards to those who are (or were Piggs) that they did not understand the risks. True many of them weigh the risks differently, however they are not prone to to listen to the drone of the real estate complex.
As for the monthly payment, it goes without saying that it is all inclusive. I give the readers of this site credit enough to figure out that a monthly payment includes PITI and any other owner expense that is essentially recurring. I will say that it is my experience that yes, people do care more about the payment then the price. Of course it is a no brainer to buy the lower priced home at the higher rate. Not much rocket science there. The only problem is that the timeline is not mutually shared by all individuals.
