It is very difficult to be quick to call the beginning or the end of any type of major economic cycle while it is happening. But it is pretty easy to call it when it is over. This 10 year report by CoreLogic shows the depth of the housing crisis in one of our central coast zip codes, 93420.
As you can see, the slope of the housing tragedy for too many homeowners has largely dissipated at the same pace. It is interesting to note that the Auction rates, REO rates, and short sale rates were pretty steady though out the entire cycle. A short sale is when the homeowner and the bank agree to sell the property for a price below the loan value. REO and Auctions are mostly a result of a bank foreclosing on a property or a homeowner’s strategic default.
For most homeowners who have stayed in their property through the crisis, the value of homes have returned to 2006 prices. Indeed, today’s home market sees home prices continuing to rise as a result of demand outpacing supply. There has been very little new home building in our county but our population continues to grow. This market is also influenced by the global demand for California property. The central coast offers the most value and highest quality lifestyle in the state (or as many magazines suggest, the best place to live in the nation!).
Be sure to check out the community pages to find out what is happening in the housing market where you live.