The purchase dilemma

[an]

FormerSanDiegan, you mean 1996 and not 2006, right?

A house @ 160k @ 8% = ~1175/month. Since there’s a difference in rates between then and now, I think it’ll be more fair to compare monthly payment instead of pure price. If you give it 3% yearly appreciation, which is relatively conservative, you’ll get a monthly cost of ~$1675/month. Given today’s interest of about 5.5%-6%, if the house is around $280k-$290k today, it would be similarly valued as the last bottom. How much do you think your house would go for today? If you give it a higher yearly appreciation, like 4% or 5%, then we might be at the same level as 1996 bottom, adjusted for inflation already.

[jumbo]

My rental is a 4br/3.5 bath at about 3000 sqft. It’s an older CV homes with some updates. It’s in an ideal location for us (great culdesac/neighbors, close to park/school, beach, I-5). I looked at other rentals recently and the rent was not totally out of line.

[jumbo]

My rental is a 4br/3.5 bath at about 3000 sqft. It’s an older CV homes with some updates. It’s in an ideal location for us (great culdesac/neighbors, close to park/school, beach, I-5). I looked at other rentals recently and the rent was not totally out of line.

[jumbo]

My rental is a 4br/3.5 bath at about 3000 sqft. It’s an older CV homes with some updates. It’s in an ideal location for us (great culdesac/neighbors, close to park/school, beach, I-5). I looked at other rentals recently and the rent was not totally out of line.

[jumbo]

My rental is a 4br/3.5 bath at about 3000 sqft. It’s an older CV homes with some updates. It’s in an ideal location for us (great culdesac/neighbors, close to park/school, beach, I-5). I looked at other rentals recently and the rent was not totally out of line.

[jumbo]

My rental is a 4br/3.5 bath at about 3000 sqft. It’s an older CV homes with some updates. It’s in an ideal location for us (great culdesac/neighbors, close to park/school, beach, I-5). I looked at other rentals recently and the rent was not totally out of line.

[Anonymous]

Wonderful responses for pricing bottom model piggs. This site is great. Using other methods for pricing, such as renting to mortgage ratio or a different annual appreciation rate, can I have your estimates of what a 2000 sq.ft. 4b home should be priced in 2008 at say San Marcos if reasonable historical housing trends had been followed (and not crazed buying frenzy of last few years). BTW I acknowledge an error that was pointed out. I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate. So if someone thinks $400,000 is too high, what do you think a reasonable figure should be and why?

[Anonymous]

Wonderful responses for pricing bottom model piggs. This site is great. Using other methods for pricing, such as renting to mortgage ratio or a different annual appreciation rate, can I have your estimates of what a 2000 sq.ft. 4b home should be priced in 2008 at say San Marcos if reasonable historical housing trends had been followed (and not crazed buying frenzy of last few years). BTW I acknowledge an error that was pointed out. I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate. So if someone thinks $400,000 is too high, what do you think a reasonable figure should be and why?

[Anonymous]

Wonderful responses for pricing bottom model piggs. This site is great. Using other methods for pricing, such as renting to mortgage ratio or a different annual appreciation rate, can I have your estimates of what a 2000 sq.ft. 4b home should be priced in 2008 at say San Marcos if reasonable historical housing trends had been followed (and not crazed buying frenzy of last few years). BTW I acknowledge an error that was pointed out. I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate. So if someone thinks $400,000 is too high, what do you think a reasonable figure should be and why?

[Anonymous]

Wonderful responses for pricing bottom model piggs. This site is great. Using other methods for pricing, such as renting to mortgage ratio or a different annual appreciation rate, can I have your estimates of what a 2000 sq.ft. 4b home should be priced in 2008 at say San Marcos if reasonable historical housing trends had been followed (and not crazed buying frenzy of last few years). BTW I acknowledge an error that was pointed out. I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate. So if someone thinks $400,000 is too high, what do you think a reasonable figure should be and why?

[Anonymous]

Wonderful responses for pricing bottom model piggs. This site is great. Using other methods for pricing, such as renting to mortgage ratio or a different annual appreciation rate, can I have your estimates of what a 2000 sq.ft. 4b home should be priced in 2008 at say San Marcos if reasonable historical housing trends had been followed (and not crazed buying frenzy of last few years). BTW I acknowledge an error that was pointed out. I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate. So if someone thinks $400,000 is too high, what do you think a reasonable figure should be and why?

[Borat]

I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate.

How many people do you know that have gotten 6% raises every year since 2000? Incomes have been flat or declining for the vast majority of folks (like those who buy San Marcos homes). I would wager that actual wage growth is more like 3% per year since then once you exclude all of those involved in the great housing scam of the early 2000s. So those $250K houses in 2000 should be worth somewhere around $316K today. Of course it overshot way way big on the way up so it is likely to undershoot on the way down IMO.

[Borat]

I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate.

How many people do you know that have gotten 6% raises every year since 2000? Incomes have been flat or declining for the vast majority of folks (like those who buy San Marcos homes). I would wager that actual wage growth is more like 3% per year since then once you exclude all of those involved in the great housing scam of the early 2000s. So those $250K houses in 2000 should be worth somewhere around $316K today. Of course it overshot way way big on the way up so it is likely to undershoot on the way down IMO.

[Borat]

I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate.

How many people do you know that have gotten 6% raises every year since 2000? Incomes have been flat or declining for the vast majority of folks (like those who buy San Marcos homes). I would wager that actual wage growth is more like 3% per year since then once you exclude all of those involved in the great housing scam of the early 2000s. So those $250K houses in 2000 should be worth somewhere around $316K today. Of course it overshot way way big on the way up so it is likely to undershoot on the way down IMO.

[Borat]

I actually start with a base price of $250,000 in 2000 for above home, that leads to slightly under $400,000 in 2008 at 6% annual growth rate.

How many people do you know that have gotten 6% raises every year since 2000? Incomes have been flat or declining for the vast majority of folks (like those who buy San Marcos homes). I would wager that actual wage growth is more like 3% per year since then once you exclude all of those involved in the great housing scam of the early 2000s. So those $250K houses in 2000 should be worth somewhere around $316K today. Of course it overshot way way big on the way up so it is likely to undershoot on the way down IMO.

[Author]

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