I LOVE THIS GRAPH. Really shows different markets and responses to the property crash.
JUST using my two primary markets.... EVERYTHING and i mean EVERYTHING in Vegas was valued at over 200k....even the most dire, crappy mobile homes ... people were literally buying OPTIONS on the purchase of properties... especially new developments and a lot got VERY burnt. In Atlanta... not so much as it wasn't and never was a speculative real estate market... One thing I took very much to consideration when i bought in Vegas.. It is a boom bust town - the troughs are lower, the peaks are higher...
This is about finding the gems wherever you are and IGNORE what the peak of the market was....
Here are precise examples... Randomly chosen...
LAS VEGAS
Here is an unmistakable mobile that sold for 41k.....(someone got screwed but could probably flip it now for 55k) Decimated from it's peak "value" of 200k... In 2004, this baby blue mobile sold for $180k...! Probably deemed cheap....
http://www.zillow.com/homedetails/4789-Fairfax-Ave-Las-Vegas-NV-89120/7070090_zpid/
OR, RANDOM FROM TODAY....
http://las.mlxchange.com/DotNet/Pub/EmailView.aspx?r=655275741&s=LAS&t=LAS
Go to the 3rd on this list... Oh it is just so so dire it barely rates a mention...16 isn't much better..it is big though. MMMMM. HOME! Lol.
Address= 4918 E Van Buren.... it is not a foreclosure and list is 84,900. It says lot is large enough for a horse!!!! It is just under 1/2 an acre. Yes it is large enough for a horse if you have miniature ponies and want to keep them in a dust bowl. Fluffing is legal.
In 2006 this property was "valued" at over 300k (switch to 10 year graph)
http://www.zillow.com/homedetails/7033245_zpid
Again, pick ANY house in Vegas and it was "valued" at over 200k in the peak
Look at Atlanta and you see a graph that plateaus and then just drops on some of these properties....and will probably bounce quickly back to market values but after that we merely have the joys of CPI to increase values if historical price rises are anything to go by...(just personal opinion)... To demonstrate, look at a house there worth 89k and it has, probably only dropped as the graph says by 30-40% on average ... But some??? Oh some are WAY more....and THEY are the gems we hunt down!
Okay, I can't find quickly one at the same price so this one will have to do...
853 Hawthorn Lane Grayson - Foreclosure list price 79,900
This is a "live" property for sale today ...
http://www.zillow.com/homedetails/853-Hawthorn-Ln-Grayson-GA-30017/80156808_zpid/
This demonstrates that a foreclosure, a lovely young 4 bedder even in a perceived good area like Grayson was only at the PEAK of the market $166-$180k....the drop self evidently has "only" been 50% on this one BUT IT HAS BEEN over 50% and for an area that has maintained good pricing, this might be the type of thing you take a closer look at and then decide from there what you
PLEASE NOTE THESE ARE EXAMPLES ONLY FOR DEMONSTRATION AND NOT RECOMMENDATIONS - I HAVE NOT LOOKED FURTHER AT EITHER PROPERTY (although the Grayson one shows the whole enclave around 50 -80k... a bit all over the place and it is a little "clustered" to the neighbour houses etc)...
My personal opinion - FORGET 2006 prices.. I aim more moderately to 2001-2002 prices for where this market will readjust to and I am still thinking we only have until the end of the year
Great graph.
Ignore 2006 prices