This was a morning of discovery and indigestion digestion.
We have seen San Diego real estate prices plummet in the suburban communities of Chula VIsta, National City, San Marcos, eastern Oceanside and Fallbrook. After all, these communities are full of newer subdivisions that were financed with liar’s loans and imaginary incomes.
Established San Diego neighborhoods with lower turnover have been immune from steep price declines–or so I thought,
What took me aback today was our showing of a vintage and lovely 1927 home on a large corner lot in Point Loma that is offered as a bank foreclosure–and at a price that falls below its 2002 sales price.
The last owner purchased the property at $910,000 with 100 percent financing. Neighbors say he tried unsuccessfully to sell it for over $1 million a year or so ago. The sale prior to that occurred in 2002, when this San Diego home was sold for $749,000.
Today this vintage Spanish home with gleaming hardwood floors and manicured landscaping is priced at just $725,000.
Point Loma neighbors and this Realtor are a bit stunned–and still trying to adjust to this new pricing realty.
I have no doubt that this wonderful single level 3-bedroom home with almost 1600 square feet of living space will sell quickly, but it will certainly cripple neighborhood comparables for awhile. But perhaps this abrupt grappling with San Diego real estate realities is what is needed to bring some degree of normalcy back to our real estate market.
Is 2002 an approximate benchmark for San DIego real estate pricing?
It is a sobering thought.