[(former)FormerSanDiegan]

“There is a fairly widely held hypothesis that because we can find so much more information online about real estate that the market is more efficient and hence prices should be relatively lower now.”

Regardless of whether the market is efficient or not, I think there is a fundamental flaw in here, and that is the assumption that more efficient means lower prices. A more efficient market would simply respond more immediately to supply and demand. Prices may increase or decrease when this happens.

That said, I think the RE market is signficiantly more efficient than 15 years ago, but still has a long way to go IMO to be as efficient as other capital markets. There are plenty of other factors (including emotional ones) that come into play and probably always will be.

[(former)FormerSanDiegan]

“There is a fairly widely held hypothesis that because we can find so much more information online about real estate that the market is more efficient and hence prices should be relatively lower now.”

Regardless of whether the market is efficient or not, I think there is a fundamental flaw in here, and that is the assumption that more efficient means lower prices. A more efficient market would simply respond more immediately to supply and demand. Prices may increase or decrease when this happens.

That said, I think the RE market is signficiantly more efficient than 15 years ago, but still has a long way to go IMO to be as efficient as other capital markets. There are plenty of other factors (including emotional ones) that come into play and probably always will be.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=TexasLine][quote=sdrealtor]If you are month to month I’d stay. Moving is a hassle and is not cheap.[/quote]

I guess what I failed to convey is that the rent increase is causing me financial stress,…so to speak. So a move is probably inevitable.

And it would be nice to save some $ by moving towards the neighborhood/region that is my “Target” home buying area.

But again, I wonder about breaking the lease when I find the “house”, to buy.[/quote]

How much (percentage-wise) was the lease increased ?
If it is 10% or less and causes financial stress, then I would suggest that buying a property within 6 months should not be a major consideration for you.

In today’s rental market it is not that difficult to find 6-month leases. You may pay a little more for that flexibility, but it might be worth it. Even properties that are advertised for 12-month leases will many times consider 6-month.

[(former)FormerSanDiegan]

[quote=TexasLine][quote=sdrealtor]If you are month to month I’d stay. Moving is a hassle and is not cheap.[/quote]

I guess what I failed to convey is that the rent increase is causing me financial stress,…so to speak. So a move is probably inevitable.

And it would be nice to save some $ by moving towards the neighborhood/region that is my “Target” home buying area.

But again, I wonder about breaking the lease when I find the “house”, to buy.[/quote]

How much (percentage-wise) was the lease increased ?
If it is 10% or less and causes financial stress, then I would suggest that buying a property within 6 months should not be a major consideration for you.

In today’s rental market it is not that difficult to find 6-month leases. You may pay a little more for that flexibility, but it might be worth it. Even properties that are advertised for 12-month leases will many times consider 6-month.

[(former)FormerSanDiegan]

[quote=TexasLine][quote=sdrealtor]If you are month to month I’d stay. Moving is a hassle and is not cheap.[/quote]

I guess what I failed to convey is that the rent increase is causing me financial stress,…so to speak. So a move is probably inevitable.

And it would be nice to save some $ by moving towards the neighborhood/region that is my “Target” home buying area.

But again, I wonder about breaking the lease when I find the “house”, to buy.[/quote]

How much (percentage-wise) was the lease increased ?
If it is 10% or less and causes financial stress, then I would suggest that buying a property within 6 months should not be a major consideration for you.

In today’s rental market it is not that difficult to find 6-month leases. You may pay a little more for that flexibility, but it might be worth it. Even properties that are advertised for 12-month leases will many times consider 6-month.

[(former)FormerSanDiegan]

[quote=TexasLine][quote=sdrealtor]If you are month to month I’d stay. Moving is a hassle and is not cheap.[/quote]

I guess what I failed to convey is that the rent increase is causing me financial stress,…so to speak. So a move is probably inevitable.

And it would be nice to save some $ by moving towards the neighborhood/region that is my “Target” home buying area.

But again, I wonder about breaking the lease when I find the “house”, to buy.[/quote]

How much (percentage-wise) was the lease increased ?
If it is 10% or less and causes financial stress, then I would suggest that buying a property within 6 months should not be a major consideration for you.

In today’s rental market it is not that difficult to find 6-month leases. You may pay a little more for that flexibility, but it might be worth it. Even properties that are advertised for 12-month leases will many times consider 6-month.

[(former)FormerSanDiegan]

[quote=TexasLine][quote=sdrealtor]If you are month to month I’d stay. Moving is a hassle and is not cheap.[/quote]

I guess what I failed to convey is that the rent increase is causing me financial stress,…so to speak. So a move is probably inevitable.

And it would be nice to save some $ by moving towards the neighborhood/region that is my “Target” home buying area.

But again, I wonder about breaking the lease when I find the “house”, to buy.[/quote]

How much (percentage-wise) was the lease increased ?
If it is 10% or less and causes financial stress, then I would suggest that buying a property within 6 months should not be a major consideration for you.

In today’s rental market it is not that difficult to find 6-month leases. You may pay a little more for that flexibility, but it might be worth it. Even properties that are advertised for 12-month leases will many times consider 6-month.

[(former)FormerSanDiegan]

Thanks TG!

I have had TV in the back of my mind for a while, but hadn’t realized it could be this favorable.

[(former)FormerSanDiegan]

Thanks TG!

I have had TV in the back of my mind for a while, but hadn’t realized it could be this favorable.

[(former)FormerSanDiegan]

Thanks TG!

I have had TV in the back of my mind for a while, but hadn’t realized it could be this favorable.

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