how low can it really go?

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[scaredyclassic]

I probably overvalue mobility, since I never actually move frequently. But I like to think that I can. I hate the idea that i would ahve to bring money to the table to leave the house with my credit intact. Realistically, assuming things continue to fall or level off, how far out is a reaosnably expected break-even point? If I stayed 7 years, would i be pretty safe? I believe i and my strange pack of offspring probably wouldnt bring down the neighborhood values, but some people I’ve lived near might disagree.

TG, it’s not justa car payment to me… i haven’t had a car payment since 1993 and I still own and use that same car as my primary vehicle…. I do not like debt. I am the inverse of the fearless buyers who took on extraordinary debt to buyu housing; I’d be afraid to even take ona little debt to buya car. not completely rational, I know, but that’s how I function.

[scaredyclassic]

I probably overvalue mobility, since I never actually move frequently. But I like to think that I can. I hate the idea that i would ahve to bring money to the table to leave the house with my credit intact. Realistically, assuming things continue to fall or level off, how far out is a reaosnably expected break-even point? If I stayed 7 years, would i be pretty safe? I believe i and my strange pack of offspring probably wouldnt bring down the neighborhood values, but some people I’ve lived near might disagree.

TG, it’s not justa car payment to me… i haven’t had a car payment since 1993 and I still own and use that same car as my primary vehicle…. I do not like debt. I am the inverse of the fearless buyers who took on extraordinary debt to buyu housing; I’d be afraid to even take ona little debt to buya car. not completely rational, I know, but that’s how I function.

[scaredyclassic]

I probably overvalue mobility, since I never actually move frequently. But I like to think that I can. I hate the idea that i would ahve to bring money to the table to leave the house with my credit intact. Realistically, assuming things continue to fall or level off, how far out is a reaosnably expected break-even point? If I stayed 7 years, would i be pretty safe? I believe i and my strange pack of offspring probably wouldnt bring down the neighborhood values, but some people I’ve lived near might disagree.

TG, it’s not justa car payment to me… i haven’t had a car payment since 1993 and I still own and use that same car as my primary vehicle…. I do not like debt. I am the inverse of the fearless buyers who took on extraordinary debt to buyu housing; I’d be afraid to even take ona little debt to buya car. not completely rational, I know, but that’s how I function.

[scaredyclassic]

I probably overvalue mobility, since I never actually move frequently. But I like to think that I can. I hate the idea that i would ahve to bring money to the table to leave the house with my credit intact. Realistically, assuming things continue to fall or level off, how far out is a reaosnably expected break-even point? If I stayed 7 years, would i be pretty safe? I believe i and my strange pack of offspring probably wouldnt bring down the neighborhood values, but some people I’ve lived near might disagree.

TG, it’s not justa car payment to me… i haven’t had a car payment since 1993 and I still own and use that same car as my primary vehicle…. I do not like debt. I am the inverse of the fearless buyers who took on extraordinary debt to buyu housing; I’d be afraid to even take ona little debt to buya car. not completely rational, I know, but that’s how I function.

[scaredyclassic]

I probably overvalue mobility, since I never actually move frequently. But I like to think that I can. I hate the idea that i would ahve to bring money to the table to leave the house with my credit intact. Realistically, assuming things continue to fall or level off, how far out is a reaosnably expected break-even point? If I stayed 7 years, would i be pretty safe? I believe i and my strange pack of offspring probably wouldnt bring down the neighborhood values, but some people I’ve lived near might disagree.

TG, it’s not justa car payment to me… i haven’t had a car payment since 1993 and I still own and use that same car as my primary vehicle…. I do not like debt. I am the inverse of the fearless buyers who took on extraordinary debt to buyu housing; I’d be afraid to even take ona little debt to buya car. not completely rational, I know, but that’s how I function.

[CricketOnTheHearth]

PD, you are in fine company.

Good ol’ Ben Franklin said, “neither borrower nor lender be.” Must be why he’s on the $100 bill.

I, too, hate debt. I think that’s a good attitude to have, especially in these times.

[CricketOnTheHearth]

PD, you are in fine company.

Good ol’ Ben Franklin said, “neither borrower nor lender be.” Must be why he’s on the $100 bill.

I, too, hate debt. I think that’s a good attitude to have, especially in these times.

[CricketOnTheHearth]

PD, you are in fine company.

Good ol’ Ben Franklin said, “neither borrower nor lender be.” Must be why he’s on the $100 bill.

I, too, hate debt. I think that’s a good attitude to have, especially in these times.

[CricketOnTheHearth]

PD, you are in fine company.

Good ol’ Ben Franklin said, “neither borrower nor lender be.” Must be why he’s on the $100 bill.

I, too, hate debt. I think that’s a good attitude to have, especially in these times.

[CricketOnTheHearth]

PD, you are in fine company.

Good ol’ Ben Franklin said, “neither borrower nor lender be.” Must be why he’s on the $100 bill.

I, too, hate debt. I think that’s a good attitude to have, especially in these times.

[poorsaver]

I can’t believe some of the numbers I’m reading on this site. $65 a foot? 100X rent? Unbelievable! In my area (Diamond Bar) I’m renting a 24 yr old home for $2850 a month, a house that’s 3800 sq. ft. and is valued at $1.3M. Let’s see, that’s 456X rent, and $342 a foot. And prices are stable, as there is not much inventory for sale. What’s maddening, too, is that I can drive thirty minutes and be in areas that are described here (Riverside, Corona) that are so much less expensive. Doesn’t seem fair.

[poorsaver]

I can’t believe some of the numbers I’m reading on this site. $65 a foot? 100X rent? Unbelievable! In my area (Diamond Bar) I’m renting a 24 yr old home for $2850 a month, a house that’s 3800 sq. ft. and is valued at $1.3M. Let’s see, that’s 456X rent, and $342 a foot. And prices are stable, as there is not much inventory for sale. What’s maddening, too, is that I can drive thirty minutes and be in areas that are described here (Riverside, Corona) that are so much less expensive. Doesn’t seem fair.

[poorsaver]

I can’t believe some of the numbers I’m reading on this site. $65 a foot? 100X rent? Unbelievable! In my area (Diamond Bar) I’m renting a 24 yr old home for $2850 a month, a house that’s 3800 sq. ft. and is valued at $1.3M. Let’s see, that’s 456X rent, and $342 a foot. And prices are stable, as there is not much inventory for sale. What’s maddening, too, is that I can drive thirty minutes and be in areas that are described here (Riverside, Corona) that are so much less expensive. Doesn’t seem fair.

[poorsaver]

I can’t believe some of the numbers I’m reading on this site. $65 a foot? 100X rent? Unbelievable! In my area (Diamond Bar) I’m renting a 24 yr old home for $2850 a month, a house that’s 3800 sq. ft. and is valued at $1.3M. Let’s see, that’s 456X rent, and $342 a foot. And prices are stable, as there is not much inventory for sale. What’s maddening, too, is that I can drive thirty minutes and be in areas that are described here (Riverside, Corona) that are so much less expensive. Doesn’t seem fair.

[Author]

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