2010 was a year most of us would like to forget, yes? Unemployment ranged up to 10+%, and even now hovers around 9.7%. The newspapers printed story after story of foreclosures, families in fiscal distress, and news of instability around the world.
But the facts, ma’m, as Jack Webb would say. How did Oceanside handle the drop in home prices in 2010? Should homeowners despair, or is there room to smile, or even celebrate? Let’s see.
Oceanside Home Prices Kicked Butt – Sort of
In a story about home prices I just wrote for the Oceanside Chamber of Commerce I recapped the last few years of home prices in Oceanside. As a member of the Chamber it’s important to keep each and every member, every business, every proprietor, and every family who lives and works in this area educated about what is really happening with home prices. We’ve all seen the panic that comes from hyperbole, and the insanity that arises when good intentioned entities try to solve problems that are at their heart and soul local in nature.
Chart of Oceanside Home Prices in 2010
Let’s take a few minutes and reflect on what the chart of real estate prices in Oceanside above means to us. First, what are we seeing? I REALLY LIKE THIS CHART. It’s factual, and it paints a more LOCAL approach to what has happened to real estate prices in Oceanside over the past three years. Don’t jump up for joy quite yet, though. Prices have dropped, and money was lost. Mistakes were make by regular men and women who thought that the upward trend in real estate was a never ending well from which would spring retirement funds, college funds, money for fun, and security.
Not All Oceanside Homeowners Suffered the Same Loss – Some Still Have Gained
High end homeowners value in 2007 of $680,000 is now $580,000.
Upper Middle end homeowners value in 2007 of $500,000 is now $400,000
Lower Middle end homeowners value in 2007 of $400,000 is now $310,000
Low end homeowners value in 2007 of $100,000 is now $225,000
Take a few minutes and review the chart and the summary above. At the high point in prices homeowners at the high, upper middle and lower middle were just a few months away from seeing a profit, and then during the past two years they have seen (if they purchased at the high point) about a 20% loss in equity.
Contrast that with low end homeowners who saw prices for their homes stay well above the 2007 level even now! It happened everywhere. These homeowners saw the value of their homes triple in value, and even now, if the homes were owned in 2007, the values continue to be double the value at that time. Of course, if you purchased your lower end home (perhaps as an investor???) in 2008, your value has now dropped, again approximately 20%.
So How Did We Oceanside Homeowners Do In in 2010?
If you love sailing you’ll appreciate that bad weather has both a front and a back side to it. On the leading edge of a storm the winds and waves pick up, and you’re off on a rollercoaster ride until you hit a bit of a lull. Then often the backside of the storm swings around to hit you when you think the whole thing was over.
It looks to me as if the back side of the storm has arrived, we road it out, and now the waves are steady once again. Prices are stable, along with interest rates, and most of the government debacle associated with artificially propping up the real estate market had dissipated. Oceanside, it seems, has pumped the bilges, mended her sails, and is sailing along with some minor damage back to her beautiful harbor on the Pacific. (Yikes, I’m waxing way too poetic, but real estate will do that to you).
Start the New Year with good health and the best information you can gather on anything you do. Give me a call if you want the best information available on selling or buying a home.