So, about those fundamentals

[Eugene]

So, about those fundamentals …

Case in point: Monarch at Scripps Ranch (east end of Mira Mesa Blvd)

Last November, some guy got himself a 2br/2ba 1300 sf condo in Monarch for 380K

http://www.zillow.com/HomeDetails.htm?zprop=71328118

And you can get a comparable condo across the street for 330-350K.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1283984
http://www.redfin.com/stingray/do/printable-listing?listing-id=1390379

For simplicity let’s assume 5% down and 5.5% rate.
Down payment – $16.5K
Mortgage – $1777
Property tax – $275
HOA – $325
Tax deduction – $427 (assuming 25% bracket and maxed-out itemized deductions)
Monthly cost – $1950

What will a condo like that rent for?

http://www.forrent.com/apartment-community-profile/999903912.php

Starting at $2200/month, apparently.

In other words, you can buy a condo in Scripps Ranch TODAY and it will be cheaper than to rent an identical condo.

This does not address a more interesting question, why would anyone pay $2200/month to rent a 2-bedroom condo in Scripps Ranch when you can get a 3-bedroom house in Mira Mesa for $1800, because apparently there are enough suckers or else they wouldn’t be charging those rates…