Wednesday, June 10, 2009

Median home prices drop below 1989 levels in some parts of Southland - Los Angeles Times

Median home prices drop below 1989 levels in some parts of Southland - Los Angeles Times: "To return to the past, take a stroll down Mulberry Avenue in Lancaster. John A. Beatrice, 55, bought his spacious two-story Spanish-style house there brand-new for $120,000 in 1989. It was a price he could comfortably afford, and he planned on staying through retirement, so he wasn't worried about price swings.

'I always knew real estate goes like this,' said the aerospace engineer, moving his hand in an undulating motion like bell curves on a graph.

But he never imagined his neighborhood would drop off the charts. In April, a slightly larger home two doors away sold for $66,500. That's just over half the $130,000 it went for new in 1992. In 2005, that house sold for $330,000."

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I hope that undulating thing happens before we all end up owning 20 year old homes that are worth less than when they were new.

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