If the house is such a bargain (relative to the current market price) that it screams: BUY ME, should you buy it ?
There is a phrase for this: “catch the falling knife”.
The problem with the current San Diego market is this: Even if you buy a house at 10% under the current market price, that “10% cushion” will disappear by the end of 2007. And prices will go down further in 2008.
One other thing. In general, it’s a bad idea to buy a house whose value is at/near the top of a neighborhood. For example, buying a $800k house in a neighborhood whose value range is $500k – $850k.
It’s better to buy a $800k house in a $750k – $1Mil neighborhood.
