jimmyle, I’ve been watching this house and many others chase the market down as well. It not surprising to me anymore. I still see plenty others coming on the market with wishful pricing. Personally, at today’s rate of @ around 6.25% for a 30 year fixed, I wouldn’t buy this house for more than $450k. This house can probably fetch around $2400/month in rent, & @ $450k and interest rate of 6.25%, you’re looking at around $2400/month for just interest.
Of course, this calculation wouldn’t hold if interest rate goes up. That’s the question you have to ask yourself Jimmy, do you think rates will go up? If you say yes, then the future price will go that much lower. Just an example of how much lower: for apple to apple comparison, IF fundamental is $2400/month in interest, and if rates goes up to 8.25%, price would have to drop to around $350k to maintain the same monthly payment.
Don’t catch a falling knife if you don’t have to. Based on your income and the $ you have to down for the house, you’d have to get a jumbo loan. Lets assume a jumbo rate is @ 8.25%, can you afford a $3400/month payment and still live comfortably?
Here’s another house in Mira Mesa with similar square footage & lot size: 9219 Pebblestone Ln, 92126. It’s a short sale that chase the market down from $625,000-$675,000 in June of this year and it’s asking for $545,000 to $555,000 now.
