Ren
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.
Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
