I think Josh also has a valid point about the close areas that are 20% down. If I would pay 700K in 92024, what is the premium over SEH? For me, it ends up in the $150-200K range, inclusive of MR. That is, I am ‘neutral’ between SEH at 550k with $2400 MR and $700K in 92024. Granted in SEH I would get a newer, larger, home, but that is small factor for me.
So, if I am neutral at $550K vs. $700K, where would I buy if 92024 was at $800K in Fall 2009? SEH.
It will get really interesting when 92024 falls to $700K. Will SEH still be at $550K??
