For all who thinks we’ll go back to 2000 price, I sure hope you’re right but please take a look at Rich’s extensive amount plots here. They all show we didn’t hit bubblelicious territory until 2003. If we return back to 2000 prices, we’d be well under the trend line. It’s definitely possible if we undershoot by a big amount. But realistically, I highly doubt it’ll happen.
If we go back to 2000 price, houses in Mira Mesa would be around $200k. At today’s rate, your mortgage for a decent 4 bed/2 bath house would be around $1000/month while rent of a 2 bed/2 bath apartment in Mira Mesa would be $1300/month. Also, a similar house in Mira Mesa in 1996-7 would fetch about $1200/month in rent w/ a 10% down (I know people who bought such house in 1996). So make your own judgment but please be realistic. If you do think it’ll go back to 2000 price, please provide data to support your point. I’ve just provided mine.
