[quote=sdrealtor]Problem is we dont have the rental data for those areas and cant assume rents in those areas behaved the same. Based upon where prices have been strongest my guess is rents are up more in those areas also. Of course thats just a guess.
The point is that this calculation puts up a good case that the worst of the carnage is past. It does not say that there isnt potential for more downside but rather things look alot closer to “normal” then the staunchest housing bears are willing to beleive.[/quote]
Unfortunately, a guess is all we have, but I can tell you from personal experience that rents aren’t that much higher in Carmel Valley than they are inland, not anywhere close to the degree that prices are. We paid $1,700 for an 80’s 1,200sf 2/2.5 townhome in CV, compared to $1,600 for an additional 300sf 3/2 in an 80’s area of Vista. This is where historical data would come in handy. The prices of similar properties are so far apart it’s laughable, and I still think Vista is a little overpriced. When the CV condo drops $100k, I’ll stop laughing so much, and it will still be FAR above the inland price.
Because different areas rise and fall at differet rates and different times, I think it’s misleading to include the entire county. You might very well be right, but IMO the calculation is meaningless for individual areas.
