[quote=jstoesz]Those curves imo are kind of useless. I don’t want really affordable payments on a vastly overpriced asset. That is a recipe for a complete disaster. Not just a small disaster, but end of your fiscal life type disaster.
Furthermore, that is SD county which has on the aggregate come down. This includes all manner of neighborhoods, from Jamul to la jolla. I would like to see that curve by zip code. Now that would be enlightening.[/quote]
I disagree about the uselessness of these curves. These are approximately the ratios for areas like Clairemont. Areas like Clairemont are more affordable on a monthly basis (relative to income or rents) than they have been for most of the past three decades.
It might get more affordable in the future, but it’s not meaningless.
I purchased a house in Clairemont in spring 1996, one of the most affordable points of the last 20 years. Let’s compare affordability then to today…
That house would have rented for about $1000. (I actually rented it out 5 years later for $1200).
Example:
2010 Clairemont
400K purchase
2,000 rent
Monthly mortgage = 1574
monthly taxes ~ 400
My point is NOT that you should buy today or that there aren’t better investments or that prices won’t go down (they probably will for the next few months). My point is that right now, many places in San Diego are more affordable (relative to rent) than they have been for at least a generation.
