Although I follow the OC market, I don’t pay as close attention to it as San Diego’s.
I know someone who, at the 1990 peak, bought a 2800sf house for $380k in Penasquitos. It’s on the hill with a view. He could afford the house and rode-out the downturn. He lost subtantially on that house without realizing it.
Look at this 3400sf house below in Carmel Valley. It sold for $399k in Sept 1997 — a bigger house in what I would say is a better location closer to the coast.
5131 RUETTE DE MER, SD – Carmel Valley, CA 92130**
List Price: $1,097,500 – $1,097,500
Bedrooms: 5
Full Baths: 4
Partial Baths: 0
Square Feet: 3,439
Lot Size: 4,356 Sq. Ft.
Year Built: 1998
Listing Date: 02/22/07
On Market: 1 day
Type: SFR
Status: ACTIVE
MLS #: 076014910
As Chris pointed out, the median does not reflect price movements of like-for-like houses. The downturn is a great apportunity to get move value for your money. It happens only one in a couple of decades so take advantage of it.
FormerSanDiegan, by stagnate, I mean increase sporatically at or below inflation and often times not at all, depending on the neighborhood. That’s what I observed in the last downturn. Even with small price appreciation, the transaction costs would eat up any gains.
Someone mentioned on another thread that, within 10 years, the baby boomers will begin retiring. That will dampen any future recovery or prolong the downturn.
