DWCAP, isn’t PITI = P+I+Tax+Insurance? I understand your argument about Joe 6pac not having the best credit and get the best rate. I guess I’m just projecting myself onto this market. Which is why I’m using the lowest rate available right now. Since people on here are not Joe 6pac, and we all are trying to time the entry point, that’s what I’m trying to calculate. Make no mistake, I don’t think $320k is the bottom by any mean. I think around 300-320k is where using rent as a fundamental, it starts to make a case for buying vs rent. I truly believe we’ll undershoot just as we’ve overshoot. If you look at Rich’s chart, 1997-1998 was well under fundamental trend line. But if you’re buying a place to live, the line starts to blur after it reaches fundamental, because then there’s no saving between rent vs buy and now you’re just speculating that price will fall more. There are a million ways this thing can play out. One of them is price drop to low $200k. Another would be massive inflation, which cause price to stay flat for many years to come. That’s all I’m saying. Some houses are already starting to hit 2002 price in Mira Mesa, btw.
