I ran into two of my favorite realtors today, and they were willing to seize the moment.
We turned on the camera and talked about real estate, based on our cumulative 72 years experience!
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Is that Yanni or John Tesh in the background?
David Miller, on bubble info.com with JTR. classic!!! now there is someone working as hard as JTR. Good to see you from out here in CO!
Out here in CO? – the commentariat wants to know!
Let’s tell the truth about David – I told your in-laws the truth, and he high-balled them and got their listing.
Almost a year later it sold for less than my price.
Is there a good local rent index, or do you have to go on anecdotal evidence?
I’d like to know the details of the rent vs. buy calculation that you are making here, especially if you could provide some examples from neighborhoods like Mission Hills, Point Loma, La Jolla and Del Mar where buying is comparable to renting.
It seems to me that the bargains (to purchase) are pretty hard to come by, it isn’t that easy to find a house where the cost to buy comes out equal to rent, even if you have 20% down.
In the “rest” of San Diego, it does look like a good idea to buy, but in the prime areas you have to get very very lucky in your purchase.
Also – if you are going to stay in the house 20 years or more, it is very easy to say that buying makes sense. But is staying put 15 or 20 years a reasonable assumption in a rent vs. buy calculation, when most people average more like 7 years?
One reason I didn’t buy into the bubble hype was due to the Rent v Buy analysis. That calcuatlation is coming back into equilibrium………….BUT………. my personal feeling is the pendulum will swing far into the BUY side… much more so than today’s current price point. But at least if you buy today you can justify it a bit more per RvB calculation.
Imagine those that got into adjustable mortgages that kept going up and up…and they lost the house (and are now renters) now start seeing their rents go up and up and up.
I do think you eventually got to the root of the problem. It’s the down payment. One guy says hey you’re renting living month to month and rent keep going up you start cutting back in other areas. If you’re in that situation you can never save a downpayment, you’re always going to be renting whether it’s cheaper to buy or not.
We have investors all over this county thinking I’m going to buy these places for cash and rent them out to people and then sell when they appreciate. Effectively what you’re saying is I’m planing on selling to the guy I’m renting to for a higher price sometime down the road. How do you do it if they are living pay check to pay check. One idea would be investor owner financing, rent to own schemes, or some bank deciding to do the zero down thing again.
How are you ever going to get a first time buyer pool and then a move up buyer pool if you’re squeezing the rental market prices higher such that that’s the majority of a persons budget. I just don’t see the leap to higher housing prices in that scenario. The people that are going to be able to pay those higher prices are not the people you are renting to but other would be investors.
I do think there’s a underlying trend to shy away from debt and that deleveraging process timeframe much be much longer than most people expect. We’ve been hearing just another year until inflation hits, just another year until lending loosens, just another year before rates go higher, I think it’s going to end up being wrong.
@WC
I found this, (select “rent list price” on left if not selected)
http://www.zillow.com/local-info/CA-home-value/r_9/#metric=mt%3D46%26dt%3D1%26tp%3D5%26rt%3D14%26r%3D9%252C395056%26el%3D0
its only for past 2 years but does show 14% yearly increase for SD area, so 1% per month sounds about right. Compared to past 2 years, it shows a decline in rents, but chart looks wacky.
Heh, you guys look like you are competing to see who can lean back the farthest….
Interesting stuff. Love the shop talk. Seems that lack of financing and a smaller buyer pool is driving SD rents higher. In the face of all the other fundamentals being negative. Would it follow that when and if financing starts to ease up, that we will see rents go back down?
$3000 a month? I’ve cut it down to $300 a month… it’s called Mom’s basement. She cooks and does all my laundry and I have plenty of spending cash to do whatever I want when I want. Who could ask for more? :o)
Seriously though, how does higher unemployment factor in here? What about a depleted 401k due to unexpected stock market dips? Potential buyers tend to hold cash when times get hard. I’d like to see some hard data to bolster the rental numbers they are talking about.