While you see individual transactions I see the entire market. here is a perfect example of what I see. Santa Fe Trails is one of the best neighborhoods in So carlsbad/Encinitas. It is about 8 years old and has low mello roos and hoa fees. Children CAN WALK to elementary (Olivenhain Pioneer a perenial top 10 school in SD County),Diegueno Jr (very good) and La Costa Canyon HS (very good). It sits on the Olivenhain border. It is one of the best communities in what is a very prime area and they dont get much better than this.
There is a house that just sold for the 4th time in about 5 years. It was the largest model, well upgraded, on one of the best streets, on a cul de sac, with a much larger yard than most, a beuatiful in ground pool and sits on a the rim of a natural preserve/canyon. They dont get much better than this. REALLY!!! Here is the sales history
04/01 $675,000
06/02 $730,000
10/03 $870,000
It did not sell during the peak years of 2004 and 2005. Anyone who was around at the beginning of 2004 knows that prices jumped between $100,000 and $200,000 between Fall 2003 and Summer 2004. This house could easily have sold for close to $1.1M in May 2004. An inferior home sold for $1M in March 2006 after prices had already fallen about 5% in the area.
It just closed at $915,000 and the sellers were very lucky to get that. This house which is a great house in a great neighborhood in a great location (overall and within the neighborhood just closed at a price well below what it would have sold for in January 2004. I could spend all day and nite posting similar scenarios but have better things to do.
