I wanted to add that I calculated a 22.12 annual rate of return for Unit #2 between 1996-2006 (had the original buyer kept it). SO maybe -25% per year would not be a bad thing for a few years. If you start with a rounded off 40K value in 1996 and use a 6% compounded annual rate you get a present value of about 76K. I know that 1996 was a low year for real estate and maybe it is not a good base year for a comparison. However, if that was the bottom of the last bust it makes me wonder. A value of 76K today is probably a little low if the median household income for San Diego is in the upper 60Ks. Then again, I wonder what the median income was in 1996…
I keep thinking that I can’t see paying over 100K for an El Cajon 900 sf 2bd/2ba condo. But I also know that means I will probably never own a place out here. I guess it will never be 2002 again. Or will it?
