California falls into the sea

From Minnesota Peg comes this cheery link: Southern California home prices fall to 2002 levels. Gee, things must be improving out there.

As an aside, I recently got a call from an appraiser who is redoing a 2007 appraisal on land in one of our less popular areas. How much did I think prices had fallen there from 2007? I said, “20%, minimum.” “Oh,” said the appraiser, “I was thinking 45%”. “Go for it,” said I.

My first estimate was me being kind. My affirmation of 45% was me being realistic. Someone’s in for bad news and he can blame me. But I don’t want to hear from LA homeowners – their problems are their own.

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One response to “California falls into the sea

  1. Peg

    Like you, Chris, I sell residential real estate for a living. (Well; let’s say I try!) Bad as it is to see homeowners who have seen a significant drop in the value of their home – it’s even worse to see those who purchased recently and may now face tough times because of it.

    Still – almost everything has dropped. Last time I checked, my stock portfolio is half of what it was 14 months ago – and the carnage seems to continue. If I want to sell what I’ve got, it ain’t gonna be a 20% or 30% drop – try more like 50% – or worse in some cases.

    We all have to suck it up and acknowledge what it is today. That is – if we wish to sell. And – try to remember the silver lining… for those who thought they may have been shut out of homeownership forever – the door is opening wide. That is – if sellers will be realistic and let them.