San Diego real estate offers ripe opportunities for discovery and information indigestion digestion.
We have seen San Diego real estate prices plummet in its suburban communities of Chula Vista, National City, Escondido, San Marcos, eastern Oceanside, Fallbrook and others.
After all, these communities (and other like them throughout the country) are full of newer subdivisions--many of which were financed with EZ loans and fictional incomes.
Established San Diego neighborhoods with lower turnover have been largely been immune from steep price declines or so I thought--until recently.
We recently had a showing of a vintage and lovely 1927 home on a large corner lot in Point Loma that was offered as a bank foreclosure--and at a price that fell below its 2002 sales price.
The details?
The last owner purchased the property a couple of years at $910,000 with 100 percent financing. Neighbors say he tried unsuccessfully to sell it for over $1 million a year or so ago. The sale prior to that occurred in 2002, when this San Diego home was sold for $749,000.
Today this vintage Spanish home with gleaming hardwood floors and manicured landscaping is priced at just $725,000.
Point Loma neighbors and this Realtor are a bit stunned--and still trying to adjust to this new pricing realty.
I have no doubt that this wonderful single level 3-bedroom home with almost 1600 square feet of living space will sell quickly (if it hasn't already), but it will certainly cripple neighborhood comparables for awhile.
But perhaps this abrupt grappling with San Diego real estate realities is what is needed to bring somedegree of normalcy back to our real estate market.
Is 2002 an approximate benchmark for San Diego real estate pricing?
It is a sobering thought.
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San Diego County Realtors Mike and Roberta Murphy represent buyers and sellers of real estate in Carlsbad, Encinitas, La Costa, Rancho Santa Fe, La Jolla, Del Mar, Oceanside, San Marcos and Vista.
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Hi Roberta,
Oh my, do you think so? Have you seen others like this? We were talking a couple of months ago at Realtor caravan about 2003 pricing and I wasn't quite sure of that, but it looks like were getting there in my area of SoCal.
Yes, Lynda, I have. It seems the foam, in many areas, is settling at where it began. I have seen 2003 and even 2002. Some say we are back to where we were before the bubble in real estate started.
I've done some analysis on my market here, and 2003 seems to be the magic number. Homes bought before then should have some equity, if the owners didn't take out equity loans. Homes bought in 2004-2006 are likely to sell below the purchase price at that time.
This is a scary fact of the real estate industry right now, our prices here aren't dropping like yours, but they aren't rising and people can't seem to understand why.