[feraina]

noone,

this MM 3/2 at 1600 sf is on Craigslist for $2350.
http://sandiego.craigslist.org/csd/apa/745496406.html

It’s not the newest, nicest, biggest in MM, and not even in a great area of MM. If the best would land around $325K, then this should land around $300K, making the price-to-rent ratio 10.6 (300/(2.35*12)), which seems way too low.

The historical norm for the price-to-rent ratio in SD, before the recent bubble, was around 16 (which makes this home $450K).

[feraina]

Oh, finally someone in the federal government talking straight — so I thought — then, I saw this article:
http://www.marketwatch.com/news/story/home-price-data-may-overstating/story.aspx?guid=%7B54BA6E52-EB9E-4B5E-ABA2-669C17610AD4%7D&dist=msr_1#comments

“The government’s data on home prices may be overstating the weakness of the market.”

“Paulson said that home prices typically include foreclosure sales, which usually occur at a discount. In some cities, foreclosure sales have spiked. For instance, foreclosure sales in March were 29% of sales in Los Angeles, Paulson said. Existing home sales appear to have flattened, Paulson said, which could mean that demand for housing is stabilizing.”

So climbing foreclosure sales don’t count as part of the market? What kind of logic is this?

[feraina]

Oh, finally someone in the federal government talking straight — so I thought — then, I saw this article:
http://www.marketwatch.com/news/story/home-price-data-may-overstating/story.aspx?guid=%7B54BA6E52-EB9E-4B5E-ABA2-669C17610AD4%7D&dist=msr_1#comments

“The government’s data on home prices may be overstating the weakness of the market.”

“Paulson said that home prices typically include foreclosure sales, which usually occur at a discount. In some cities, foreclosure sales have spiked. For instance, foreclosure sales in March were 29% of sales in Los Angeles, Paulson said. Existing home sales appear to have flattened, Paulson said, which could mean that demand for housing is stabilizing.”

So climbing foreclosure sales don’t count as part of the market? What kind of logic is this?

[feraina]

Oh, finally someone in the federal government talking straight — so I thought — then, I saw this article:
http://www.marketwatch.com/news/story/home-price-data-may-overstating/story.aspx?guid=%7B54BA6E52-EB9E-4B5E-ABA2-669C17610AD4%7D&dist=msr_1#comments

“The government’s data on home prices may be overstating the weakness of the market.”

“Paulson said that home prices typically include foreclosure sales, which usually occur at a discount. In some cities, foreclosure sales have spiked. For instance, foreclosure sales in March were 29% of sales in Los Angeles, Paulson said. Existing home sales appear to have flattened, Paulson said, which could mean that demand for housing is stabilizing.”

So climbing foreclosure sales don’t count as part of the market? What kind of logic is this?

[feraina]

Oh, finally someone in the federal government talking straight — so I thought — then, I saw this article:
http://www.marketwatch.com/news/story/home-price-data-may-overstating/story.aspx?guid=%7B54BA6E52-EB9E-4B5E-ABA2-669C17610AD4%7D&dist=msr_1#comments

“The government’s data on home prices may be overstating the weakness of the market.”

“Paulson said that home prices typically include foreclosure sales, which usually occur at a discount. In some cities, foreclosure sales have spiked. For instance, foreclosure sales in March were 29% of sales in Los Angeles, Paulson said. Existing home sales appear to have flattened, Paulson said, which could mean that demand for housing is stabilizing.”

So climbing foreclosure sales don’t count as part of the market? What kind of logic is this?

[feraina]

Oh, finally someone in the federal government talking straight — so I thought — then, I saw this article:
http://www.marketwatch.com/news/story/home-price-data-may-overstating/story.aspx?guid=%7B54BA6E52-EB9E-4B5E-ABA2-669C17610AD4%7D&dist=msr_1#comments

“The government’s data on home prices may be overstating the weakness of the market.”

“Paulson said that home prices typically include foreclosure sales, which usually occur at a discount. In some cities, foreclosure sales have spiked. For instance, foreclosure sales in March were 29% of sales in Los Angeles, Paulson said. Existing home sales appear to have flattened, Paulson said, which could mean that demand for housing is stabilizing.”

So climbing foreclosure sales don’t count as part of the market? What kind of logic is this?

[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.

[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]

3/2 for 225K, wow, I sure hope so! But I don’t know. Since April, decent homes in MM listed for 450K or less have been snatched up quickly, and there have even been some price increases on some listed homes. I’m waiting for “summer cooling” of the market, but it doesn’t seem to be happening yet.

I’ll be delighted if prices would fall another 15%, which would make a decent 3/2 closer to 300K. To get to 225K…

The other thread (SD Home Price Index Blog) suggests that MM is already a little under-priced.

My parents were smitten with this 3/3 townhome for retirement:
http://www.sdlookup.com/MLS-080041253-11202_Caminito_Inocenta_San_Diego_Ca_92126
and it was all I could do to prevent them from offering more than 400K (it came back with a counter-offer of 475K), which I thought would make a fair deal if not a good one. I’m curious, what do the rest of you more experienced Piggs think this 3/3 attached home is worth?

[feraina]

3/2 for 225K, wow, I sure hope so! But I don’t know. Since April, decent homes in MM listed for 450K or less have been snatched up quickly, and there have even been some price increases on some listed homes. I’m waiting for “summer cooling” of the market, but it doesn’t seem to be happening yet.

I’ll be delighted if prices would fall another 15%, which would make a decent 3/2 closer to 300K. To get to 225K…

The other thread (SD Home Price Index Blog) suggests that MM is already a little under-priced.

My parents were smitten with this 3/3 townhome for retirement:
http://www.sdlookup.com/MLS-080041253-11202_Caminito_Inocenta_San_Diego_Ca_92126
and it was all I could do to prevent them from offering more than 400K (it came back with a counter-offer of 475K), which I thought would make a fair deal if not a good one. I’m curious, what do the rest of you more experienced Piggs think this 3/3 attached home is worth?

[feraina]

3/2 for 225K, wow, I sure hope so! But I don’t know. Since April, decent homes in MM listed for 450K or less have been snatched up quickly, and there have even been some price increases on some listed homes. I’m waiting for “summer cooling” of the market, but it doesn’t seem to be happening yet.

I’ll be delighted if prices would fall another 15%, which would make a decent 3/2 closer to 300K. To get to 225K…

The other thread (SD Home Price Index Blog) suggests that MM is already a little under-priced.

My parents were smitten with this 3/3 townhome for retirement:
http://www.sdlookup.com/MLS-080041253-11202_Caminito_Inocenta_San_Diego_Ca_92126
and it was all I could do to prevent them from offering more than 400K (it came back with a counter-offer of 475K), which I thought would make a fair deal if not a good one. I’m curious, what do the rest of you more experienced Piggs think this 3/3 attached home is worth?

[feraina]

3/2 for 225K, wow, I sure hope so! But I don’t know. Since April, decent homes in MM listed for 450K or less have been snatched up quickly, and there have even been some price increases on some listed homes. I’m waiting for “summer cooling” of the market, but it doesn’t seem to be happening yet.

I’ll be delighted if prices would fall another 15%, which would make a decent 3/2 closer to 300K. To get to 225K…

The other thread (SD Home Price Index Blog) suggests that MM is already a little under-priced.

My parents were smitten with this 3/3 townhome for retirement:
http://www.sdlookup.com/MLS-080041253-11202_Caminito_Inocenta_San_Diego_Ca_92126
and it was all I could do to prevent them from offering more than 400K (it came back with a counter-offer of 475K), which I thought would make a fair deal if not a good one. I’m curious, what do the rest of you more experienced Piggs think this 3/3 attached home is worth?

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