Mira Mesa prices

[ibjames]

That is funny to me, I guess I’m an uber bear that is pissed off all the time.

I know things are selling now, but there is still a lot coming on the market and prices keep falling, I don’t think I am too far off..

maybe I’ve spent too much time in the sun and my brain has fried a little

[an]

$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.

At the bottom of last cycle, ~1996, a 2 bed/2 bath apartment goes for $900/month and a 3bed/2bath house were selling for around $150k. Interest rate I think were around 9% back then. PI should be around $1000/month and PITI – tax deduction was about $800/month.

My point is that at the bottom of the last cycle, buying a home with 20% down will cost you 10% above the rent of a 2bed/2bath apartment. @ 10% above today’s rent with today’s interest rate, you’re looking at price of around $325k.

[an]

$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.

At the bottom of last cycle, ~1996, a 2 bed/2 bath apartment goes for $900/month and a 3bed/2bath house were selling for around $150k. Interest rate I think were around 9% back then. PI should be around $1000/month and PITI – tax deduction was about $800/month.

My point is that at the bottom of the last cycle, buying a home with 20% down will cost you 10% above the rent of a 2bed/2bath apartment. @ 10% above today’s rent with today’s interest rate, you’re looking at price of around $325k.

[an]

$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.

At the bottom of last cycle, ~1996, a 2 bed/2 bath apartment goes for $900/month and a 3bed/2bath house were selling for around $150k. Interest rate I think were around 9% back then. PI should be around $1000/month and PITI – tax deduction was about $800/month.

My point is that at the bottom of the last cycle, buying a home with 20% down will cost you 10% above the rent of a 2bed/2bath apartment. @ 10% above today’s rent with today’s interest rate, you’re looking at price of around $325k.

[an]

$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.

At the bottom of last cycle, ~1996, a 2 bed/2 bath apartment goes for $900/month and a 3bed/2bath house were selling for around $150k. Interest rate I think were around 9% back then. PI should be around $1000/month and PITI – tax deduction was about $800/month.

My point is that at the bottom of the last cycle, buying a home with 20% down will cost you 10% above the rent of a 2bed/2bath apartment. @ 10% above today’s rent with today’s interest rate, you’re looking at price of around $325k.

[an]

$225k at 6% interest rate will cost ~$1350/month with 0% down. Those houses can easily rent for $1700-1900/month depending on condition. PITI – Tax deduction will bring you to about $1200/month. If you put down 20%, you’re looking @ PI of ~$1100/month and PITI – tax deduction of about $1000/month. That seems too good to be true for a 3bed/2bath house when 2 bed/2 bath apartment rents for around $1400-1500/month. If rates goes to 8-9%, then I can see that happening, but not at today’s rate.

At the bottom of last cycle, ~1996, a 2 bed/2 bath apartment goes for $900/month and a 3bed/2bath house were selling for around $150k. Interest rate I think were around 9% back then. PI should be around $1000/month and PITI – tax deduction was about $800/month.

My point is that at the bottom of the last cycle, buying a home with 20% down will cost you 10% above the rent of a 2bed/2bath apartment. @ 10% above today’s rent with today’s interest rate, you’re looking at price of around $325k.

[ibjames]

How much has rent increased in that area in the last few years?

Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?

I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.

Like I said, I’m not an expert, but just trying to make sense of things.

Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?

[ibjames]

How much has rent increased in that area in the last few years?

Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?

I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.

Like I said, I’m not an expert, but just trying to make sense of things.

Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?

[ibjames]

How much has rent increased in that area in the last few years?

Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?

I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.

Like I said, I’m not an expert, but just trying to make sense of things.

Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?

[ibjames]

How much has rent increased in that area in the last few years?

Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?

I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.

Like I said, I’m not an expert, but just trying to make sense of things.

Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?

[ibjames]

How much has rent increased in that area in the last few years?

Isn’t it a possibility that rents will decrease also? Especially if we are getting a raise in rates perhaps in the near future?

I think it’s very possible for prices in mira mesa to still decline a bit. How much, who knows. Interest rates have to raise, and we still have loan resets coming. I don’t know many that want to live in Mira Mesa (I want to, but so many seem to stereotype it a bit). If prices start declining in other areas, then MM becomes even less attractive.

Like I said, I’m not an expert, but just trying to make sense of things.

Asian, I know you are very familiar with the area, are you saying the average house price should be 325k then?

[feraina]

[quote=ibjames]How much has rent increased in that area in the last few years? Isn’t it a possibility that rents will decrease also?[/quote]

I can’t see rents decreasing substantially. There’s a large and stable student population from UCSD that needs housing. With worsening economy and rising inflation, students are more likely to cut cost by piling up in a big MM house instead of getting a 1BR apt or sharing a 2BR apt in UTC or La Jolla, thus increasing the rental pressure in MM. UCSD students can ride buses for free from MM to campus.

[feraina]

[quote=ibjames]How much has rent increased in that area in the last few years? Isn’t it a possibility that rents will decrease also?[/quote]

I can’t see rents decreasing substantially. There’s a large and stable student population from UCSD that needs housing. With worsening economy and rising inflation, students are more likely to cut cost by piling up in a big MM house instead of getting a 1BR apt or sharing a 2BR apt in UTC or La Jolla, thus increasing the rental pressure in MM. UCSD students can ride buses for free from MM to campus.

[feraina]

[quote=ibjames]How much has rent increased in that area in the last few years? Isn’t it a possibility that rents will decrease also?[/quote]

I can’t see rents decreasing substantially. There’s a large and stable student population from UCSD that needs housing. With worsening economy and rising inflation, students are more likely to cut cost by piling up in a big MM house instead of getting a 1BR apt or sharing a 2BR apt in UTC or La Jolla, thus increasing the rental pressure in MM. UCSD students can ride buses for free from MM to campus.

[feraina]

[quote=ibjames]How much has rent increased in that area in the last few years? Isn’t it a possibility that rents will decrease also?[/quote]

I can’t see rents decreasing substantially. There’s a large and stable student population from UCSD that needs housing. With worsening economy and rising inflation, students are more likely to cut cost by piling up in a big MM house instead of getting a 1BR apt or sharing a 2BR apt in UTC or La Jolla, thus increasing the rental pressure in MM. UCSD students can ride buses for free from MM to campus.

[Author]

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