I think the valuations you guys are making are not taking into account geographical locations. I believe that as prices continue to deteriorate, when they finally do bottom out there will still be variations due to desireability. I think certain areas will go below the 10x multiplier but others may still higher, in some cases irrationally higher. I believe one of the earlier posts to this thread estimated 492k for a home in La Jolla. I am sorry but in places like Birdrock and other parts of La Jolla I just don’t see that. Forgive me if I misquoted that earlier post.
Don’t get me wrong, as I am hoping for it cuz my wife would love to move to Birdrock. However I don’t see that happening due to the desireability factor.
