San Diego California real estate property values in many neighborhoods have now surpassed the average nationwide 30% drop seen during the1930's.
San Diego California resale condominium appreciation
In the table below, www.brokerforyou.com looked at selected San Diego neighborhoods that
had 10 or more closed sales in July 2008 & 2007.
The sales data was compiled by DataQuick Information Systems & published in the 8-24-08 edition of the San Diego Union-Tribune.
One should keep in mind the above chart is just for a one year period (July 2007 vs. July 2008) and
San Diego home values topped out around the Summer of 2005!
Below is a similar chart Brokerforyou.com produced and published in 2007 & comparing San Diego condo values from July 2006 to July 2007.
When one compares the condo value drops from the above chart with our latest chart for 2008, the magnitude of the real value loss can be clearly seen. As an example, in Clairemont for the latest one year period the value loss was 36.2%. Now add that to the approximately 20% loss show directly above, and we have a two year loss of just over 56%! The college area condo value drop from 2006 to 2007 was very modest. But, for the latest one year period alone it was down a starraging 51.6%!
Lastly, I would note that these figures do not take into account the very prevalent seller concession (usually payment of thousands in the buyer's closing costs) necessitated by an ultra strong buyers market place.
A few of our related prior posts were:
Yale Professor … House Price Decline Could Be Worse than Great Depression
Survey Says Home Values Must Fall Another 14%
Jumbo Financing and the Impact on The San Diego Real Estate Market
Believe the local San Diego ‘experts’ that subprime delinquencies are slowing?
More homeowners than ever are selling at a loss!
San Diego County Foreclosures up 125% from 2007
Home prices do not double in price on average every ten years. There is no evidence to support sucha statement. S&P case shiller home index which goes back to 1890 found that SFR price’s went up at the rate of inflation over time. If they do double in any short period its called a asset bubble and values return to medium as the bubble implodes. OFHEO also shows long term prices run with inflation and return to normal price levels rather then continuing to rise. In order for RE to double every 10 years average income would also need to rise with it, which if you hav’t noticed doesn’t happen and when it does as during the 70’s yield on bonds jump into the teen’s and the FED pushes up interest rates causing home prices to decline. San Diego Real Estate Investments
If you had bought a house 8 yrs ago, it’ll be worth a lot more today than what you would have paid for despite the housing mess. IMO, you lost out by not buying in 2000. But if you couldn’t afford year 2000 prices, then that’s a different story… Bay Area Family Attorney Legal Rights Group
Owning a home is not the be all and end all. In fact, for a fair number of people renting is a much better choice. A house can be an albatross that is hard to dispose of. It certainly limits your mobility. The government is making a mistake trying to maximize home ownership with it’s easy money policies. San Francisco Criminal Attorney
When I saw how the housing prices were going up, up,up and most peoples’ salaries didn’t pay enough to afford them, I knew the market was going to crash three or four years ago. Some real estate dealers and owners were just so incredibly greedy. They ask for a sales price or rent not based on how much they really need to charge to recover their expenses and make a reasonable profit, but on getting the maximum money for themselves, without regard for the effect on society. San Diego Downtown Real Estate Agent
The genesis of this meltdown is the outrageous decriminalization of usury by the United States Congress which allowed predatory lending at stratospheric interest rates, and the perversion of the Internal Revenue Code, rewarding layoffs of American workers, outsourcing of their jobs to the cheapest wog-land labor market, and the offshore relocation of fat-cat corporations with little or no tax liability. Home buyers are mostly what are known in the securities business as unsophisticated investors and when they have gotten sucked into adjustable rate mortgages just so they could get a tiny piece of the American Dream, little did they know that this most predictable of economic disasters would be laid mostly upon them. Congress is a club of millionaire whore lobbyists, run by big-money lobbyists. Example of how we’ve been screwed: the infamous Senate Bill 256, which forbids the discharge of medical and credit card debts, condemning its victims to a lifetime of fiscal misery. LA Lawyers Group
I remember in 2005 that it seems every month the paper reported that real estate sales were down by double digits though the values seem to be holding up. You would think an intelligent person would realize sales cannot drop by such a magnitude without values following. Ft Lauderdale bail bondsman