This was sent to me by another agent – I thought it was helpful content and visiual creative.
As you all know, the real estate market is sloo_o_w_i_n_g down across the USA, and specifically in California.
The reason seems to be Buyers’ FEAR of
MBLING housing price$, due to *so many* homes being For Sale.
This little quiz might help you get a new perspective on the current real estate market.
Quiz: (yes the answers are below)
Q. What was the single biggest annual percentage Drop in the California Median Home Price?
A. 4.5% That’s all…..can you believe it?
According to the California Association of Realtors, since WAY, WAY back in 1968 (38 years),
in only 7 years did median home prices GO DOWN !!! (1993, 1995,1992, 1994,1990, 1996, in that
order, oh and 1984 was teenie)
Q. How many years WAS the longest streak of consecutive annual percentage drops in Median Home Price?
A. If you were paying attention, the previous answer holds the key. Only 5 years and during that time…..
THE D.o.D Closed 32 bases in California from 1988-1995, with a loss of nearly 100,000 California jobs.
Tearing all those jobs out of good ol’ CA’s heart was CLEARLY A ONE-TIME EVENT. (If you don’t agree, take a lunch break, then start again)
And…. PILING ON the HURT… Between 1990-1996, interest rates on 30 year fixed rate mortgages ranged from 7.2% to 10.5%.
Q. What was the total drop in California Median Home Prices for this (longest) 5 year __streak__?
A. In the worst series of value drops in recent California history, homes only lost 13.2% –
is that ALL??
Contrast that with 12 of the individual years since 1968 had more than 13.2% appreciation!!
And MORE: 3 years after the (longest) state- wide downturn was over, prices were up 21%.
Q. What was the HIGHEST annual percentage increase in
California Median Home Price$?
A. 28.1% – What? Twenty-Eight.One Percent? Do you know what Kansas is? Maybe 10%?
Q. Guess which year had the highest annual appreciation?
A. 1977 – …………….you thought it was during the last 5 years?.
One More Thing,
after a 6% drop from June 2005 to June 2006, how much further do you think prices will fall before the market changes?
Have you changed your perspective on the current California real estate market?