Hi:
I came across an interesting take on the real estate market trend in San Diego California. After reading this, it really changed my own outlook. Check it out at: http://www.brokerforyou.com/san-diego-real-estate-market-trend.htm
It’s sad but true. I live in San Diego. SD saw it’s peak and prices are still dropping.
Luckily for me I decided to buy out the ex for 567k in 2003 instead of selling everything while dividing up our assets.
I was shocked when it appraised for 800k this summer! I immediately pulled out ALL the equity and invested in AZ and Texas. Since I plan to never sell, the value is just a number to me.
I feel so terrible that so many investors thought that this appreciation would continue.
I do believe that the prices will go up again, but not for years.
smart move on pulling out in san diego and investing in AZ and texas.
Inv. Lady,
I can’t help but think that San Diego is a precursor for Seattle. I’m told there are good deals out there, but most seem to be relying on the ‘appreciation’ and ‘tax write-offs’. Commercial appreciation is around 5.5% and CAP downtown is sliding down through 5.4%; scary. Maybe I’m just not seeing the good ones yet.
Well Seattle is a different market than San Diego.
For one, when I left SD almost 9 years ago when the market was just coming out of it’s extended period of stagnation of almost 10 years, builders began constructing lot’s of new homes to meet demand.
As demand increased as well as prices, the developers did not see that at some point most of the buyers were speculative short term investors … many who are now stuck with properties that they are upside down on. The only reason appraised values are dropping at this time is due to the number of foreclosed properties that are being sold at below market value … until homes stop being foreclosed on and being liquidated prices will not recover in the area … which may take 3 to 10 years.
Seattle on the other hand experienced a fast run up on prices around that same time, but has since stablized to reasonable rates of appreciation. Also the local market has very little foreclosure activity at this time whic also helps.
Plus there is one big advantage for the Puget Sound real estate market at this time … stable demand from non-speculative buyers and limited inventory of properties for sale.