First off, sorry to deviate off the main topic of the thread which was questioning the valuations of rents being charged. SDE made the best post, it IS all about supply and demand. If there is demand for that 4k monthly rent, then the home will rent… it is all pretty simple.
As for the property sales… It is a tough call… Again, there can be no argument that valuations are out of whack… The premium for living in some of these more desireable parts of the county makes no fiscal sense to me but it a few of these homes are selling. I took a quick look at 92130 sales since 3/1/08. Here is the financing picture:
So anyways, people can take this data anyway they want. Some of you may say, oh man… these guys are foreclosures waiting to happen. Personally I don’t think so.
Once more, this is not anything but data. My premise is that in communities like this, I really do throw out mean or median incomes and such. I am not saying Carmel Valley will not go down. I just think that sometimes there is a bit to much insight trying to be made on some of the statistics and that once more I detect a little of the “prices HAVE to go to such and such a level”… Maybe they will, maybe they won’t… I am always surprised at how much money there is out there.
