[sdrealtor]

AN
It sold for 395K not 380 and it required about 50K (in 1997 dollars) to get it to completed to where it is today. Rent on that house would be $3500 pretty easy, maybe a touch more.

People who buy homes like this arent doing 100% financing and typically put down at least 20%.

To clarify one thing from my post above, homes like that never got to rental value last time and they wont this time. The home I bought in 1997 was much smaller and less expensive. Smaller and less expensive homes pencil out much better than larger, detached homes.

There is an ownership premium for a house in a location like that which you typically wont find in a place like Mira Mesa. The rules are a bit different for this area than MM. Not completely different but definitely not the same either. For example, you would likely pay over 10K a year for private schools of the quality that these schools are. You would also spend time and money getting your kids to those private schools which are far from your home while these folks have kids walk to from Kindergarten through High School Graduation.

[sdrealtor]

golfgal,
The ecinitas homes you linked to are 30+ years old and of relatively poor construction quality. The neighborhood is nothing like this one and the school is one of the lowest ranked in the district compared to one of the highest ranked. I’d call it lipstick on a pigg.

[sdrealtor]

golfgal,
The ecinitas homes you linked to are 30+ years old and of relatively poor construction quality. The neighborhood is nothing like this one and the school is one of the lowest ranked in the district compared to one of the highest ranked. I’d call it lipstick on a pigg.

[sdrealtor]

golfgal,
The ecinitas homes you linked to are 30+ years old and of relatively poor construction quality. The neighborhood is nothing like this one and the school is one of the lowest ranked in the district compared to one of the highest ranked. I’d call it lipstick on a pigg.

[sdrealtor]

golfgal,
The ecinitas homes you linked to are 30+ years old and of relatively poor construction quality. The neighborhood is nothing like this one and the school is one of the lowest ranked in the district compared to one of the highest ranked. I’d call it lipstick on a pigg.

[sdrealtor]

golfgal,
The ecinitas homes you linked to are 30+ years old and of relatively poor construction quality. The neighborhood is nothing like this one and the school is one of the lowest ranked in the district compared to one of the highest ranked. I’d call it lipstick on a pigg.

[sdrealtor]

WFB,
A place like that for $750 in 2009 is very possible. A place like that in 2010 for $650 is very unlikely IMO because of what I just put up above. I’m not saying impossible because we just dont know what external forces will arise out in the big wide world…..just unlikely.

sdr

[sdrealtor]

WFB,
A place like that for $750 in 2009 is very possible. A place like that in 2010 for $650 is very unlikely IMO because of what I just put up above. I’m not saying impossible because we just dont know what external forces will arise out in the big wide world…..just unlikely.

sdr

[sdrealtor]

WFB,
A place like that for $750 in 2009 is very possible. A place like that in 2010 for $650 is very unlikely IMO because of what I just put up above. I’m not saying impossible because we just dont know what external forces will arise out in the big wide world…..just unlikely.

sdr

[sdrealtor]

WFB,
A place like that for $750 in 2009 is very possible. A place like that in 2010 for $650 is very unlikely IMO because of what I just put up above. I’m not saying impossible because we just dont know what external forces will arise out in the big wide world…..just unlikely.

sdr

[sdrealtor]

WFB,
A place like that for $750 in 2009 is very possible. A place like that in 2010 for $650 is very unlikely IMO because of what I just put up above. I’m not saying impossible because we just dont know what external forces will arise out in the big wide world…..just unlikely.

sdr

[sdrealtor]

CA Renter,
That house sold for just under $400K in July of 1997. To close in July 1997 that house was likely purchased under contract in 1996 pulling it deeper down. I bought RE in this area in 1997 and it was cheaper to buy that to rent with 5% down, PMI and interest rates on 5/1 ARM’s in the mid 8’s. In 1997 we were at the bottom of the last cycle and had overshot on the way down.

That house also has a pool and a large lot requiring mucho landscaping expense. Let’s be ultra-conservative and call it $450K.

Since that time the area has improved dramatically (though long time locals might not agree). In 1997, you couldnt find a place that served a decent dinner around here after 9 PM. If there was such a place we never found it. The schools are better, the shopping is better, there are numerous new medical office buidlings and specialists you previously had to drive to UTC/Kearny Mesa now have offices here. And yes Leucadia Blvd now makes that house about 10 minutes closer to the beach/freeway. The diversity of employment is drmatacilly better now than in 1997. So there are definitely very siginifcant improvements since 1997 which was a pricing bottom with high interest rates.

Let’s continue being ultra-conservative and give ourselves 3% inflation since the overshot bottom. It’s 11 YEARS LATER! The 3% compounded over 11 years is about 40%. Throw the 40% on top of our conservative cost estimate (using 1997 costs not 2008 costs) and ya got $623K.

If you think that house will see $450K I’d like some of what you’re smoking. I don’t think a house like that will see $625K but could see it breaking $700K if interest rates climb back into the 9’s.

[sdrealtor]

CA Renter,
That house sold for just under $400K in July of 1997. To close in July 1997 that house was likely purchased under contract in 1996 pulling it deeper down. I bought RE in this area in 1997 and it was cheaper to buy that to rent with 5% down, PMI and interest rates on 5/1 ARM’s in the mid 8’s. In 1997 we were at the bottom of the last cycle and had overshot on the way down.

That house also has a pool and a large lot requiring mucho landscaping expense. Let’s be ultra-conservative and call it $450K.

Since that time the area has improved dramatically (though long time locals might not agree). In 1997, you couldnt find a place that served a decent dinner around here after 9 PM. If there was such a place we never found it. The schools are better, the shopping is better, there are numerous new medical office buidlings and specialists you previously had to drive to UTC/Kearny Mesa now have offices here. And yes Leucadia Blvd now makes that house about 10 minutes closer to the beach/freeway. The diversity of employment is drmatacilly better now than in 1997. So there are definitely very siginifcant improvements since 1997 which was a pricing bottom with high interest rates.

Let’s continue being ultra-conservative and give ourselves 3% inflation since the overshot bottom. It’s 11 YEARS LATER! The 3% compounded over 11 years is about 40%. Throw the 40% on top of our conservative cost estimate (using 1997 costs not 2008 costs) and ya got $623K.

If you think that house will see $450K I’d like some of what you’re smoking. I don’t think a house like that will see $625K but could see it breaking $700K if interest rates climb back into the 9’s.

[sdrealtor]

CA Renter,
That house sold for just under $400K in July of 1997. To close in July 1997 that house was likely purchased under contract in 1996 pulling it deeper down. I bought RE in this area in 1997 and it was cheaper to buy that to rent with 5% down, PMI and interest rates on 5/1 ARM’s in the mid 8’s. In 1997 we were at the bottom of the last cycle and had overshot on the way down.

That house also has a pool and a large lot requiring mucho landscaping expense. Let’s be ultra-conservative and call it $450K.

Since that time the area has improved dramatically (though long time locals might not agree). In 1997, you couldnt find a place that served a decent dinner around here after 9 PM. If there was such a place we never found it. The schools are better, the shopping is better, there are numerous new medical office buidlings and specialists you previously had to drive to UTC/Kearny Mesa now have offices here. And yes Leucadia Blvd now makes that house about 10 minutes closer to the beach/freeway. The diversity of employment is drmatacilly better now than in 1997. So there are definitely very siginifcant improvements since 1997 which was a pricing bottom with high interest rates.

Let’s continue being ultra-conservative and give ourselves 3% inflation since the overshot bottom. It’s 11 YEARS LATER! The 3% compounded over 11 years is about 40%. Throw the 40% on top of our conservative cost estimate (using 1997 costs not 2008 costs) and ya got $623K.

If you think that house will see $450K I’d like some of what you’re smoking. I don’t think a house like that will see $625K but could see it breaking $700K if interest rates climb back into the 9’s.

[sdrealtor]

CA Renter,
That house sold for just under $400K in July of 1997. To close in July 1997 that house was likely purchased under contract in 1996 pulling it deeper down. I bought RE in this area in 1997 and it was cheaper to buy that to rent with 5% down, PMI and interest rates on 5/1 ARM’s in the mid 8’s. In 1997 we were at the bottom of the last cycle and had overshot on the way down.

That house also has a pool and a large lot requiring mucho landscaping expense. Let’s be ultra-conservative and call it $450K.

Since that time the area has improved dramatically (though long time locals might not agree). In 1997, you couldnt find a place that served a decent dinner around here after 9 PM. If there was such a place we never found it. The schools are better, the shopping is better, there are numerous new medical office buidlings and specialists you previously had to drive to UTC/Kearny Mesa now have offices here. And yes Leucadia Blvd now makes that house about 10 minutes closer to the beach/freeway. The diversity of employment is drmatacilly better now than in 1997. So there are definitely very siginifcant improvements since 1997 which was a pricing bottom with high interest rates.

Let’s continue being ultra-conservative and give ourselves 3% inflation since the overshot bottom. It’s 11 YEARS LATER! The 3% compounded over 11 years is about 40%. Throw the 40% on top of our conservative cost estimate (using 1997 costs not 2008 costs) and ya got $623K.

If you think that house will see $450K I’d like some of what you’re smoking. I don’t think a house like that will see $625K but could see it breaking $700K if interest rates climb back into the 9’s.

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