I agree with you that another 20% and there will be more competition for quality properties. In Sorrento Valley, the area I’m most interested in, price is finally @ 2003 level. Here’s one that as sold earlier this month:
5466 Panoramic Ln, San Diego, CA 92121
12/01/2006: $630,000
08/28/2003: $614,700
03/15/1999: $320,000
There’s another house near there that have the same sq-ft sold for $615k on 12/08/2006.
20% from this point will put this house to about $500k. Still a little high but much more reasonable when compare with rent. Of course, if rates rise, then the 20% will have to be higher. Then there’s one big variable that no one can predict, and that’s psychology. We’ll just have to wait and see.
