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2) Those same folks have claimed that Mira Mesa has "support" at 2003 prices.
3) Other have claimed that if a house was not even built yet, then how can prices drop below that level?
So what if Carmel Valley drops to 2003 prices? Does that mean that the new support for Mira Mesa is now 2001 prices?
Remember everything is interconnected... one domino falls and the others soon follow.
Let's look at one example here:
MLS-080079803 13211 Petunia Way San Diego Ca 92130
- Purchased 07/18/2003 587,915
- Foreclosed by mortgage back security fund A B F C TRUST 2006-O P T 2 (do you understand the gibberish?)
- Resold for 02/03/2099 for $575,000
This was the principal residence of the person who was foreclosed upon. So much for people eating Ramen noodles to hold on to their American Dream.
That person would have been better-off renting and saving money.
But I guess she preferred the "advantages" of homeownership that included:
- throwing away the downpayment
- throwing away the ownership premiums (amounts over and above rent)
- throwing away all the home improvement such as landscaping which do not come in new houses.
- throwing away her good credit
Had she rented, and saved money she would not have a nice stash of money to weather the financial crisis and then purchase a beautiful house at discount prices.
Thanks to jpinpb for the lead. :)
There is much more on the way. First it was condos, then twinhomes. Now SFHs. Prices will come down even in Carmel Valley.
ReplyDeleteScary comp for neighbors who paid 800k and up. The pain is just starting in these areas.
ReplyDeleteGreat attention to detail again guys! What most people always failed to realize was there is a break even point where buying becomes worse than renting, and we've long passed it. It's not that they debate where the cutoff lies, they simply deny it even exists. This form of delusion is known as invincible ignorance.
ReplyDelete