Thanks for your comments. I reviewed the MLS and there’s no record of the home selling in May ’08, so perhaps that was when title was transferred back to the bank. There was also a brokerage change right at that point, so that was a clear inflection point in the sale of this home. No doubt that this was a significant drop from the sale price in ’06.

Regarding starter home prices, the average home price dropped only 7% in 08 versus 09. However, that same figure dropped nearly 19% in the first quarter of ’09, compared to the same period of ’08. I think higher priced homes are taking the lion’s share of the hit, and I’d estimate that “starter homes” are seeing something more in the 10% range.

Thanks again for your comments.

CG

Love the site, read it every week. Based on Redfin, the house at 365 Old County that just sold for 420K has the following sales history

May 14, 2008 Sold $616,250
May 26, 2006 Sold $716,000
Apr 19, 2005 Sold $650,000

Am I correct in guessing that the May 14 08 sale is actually the transfer of the home back to the bank?

Its pretty amazing that the home is off nearly 300K or put differently, prices would have to rise ~75% from where this latest price occurred for the home to reach its prior peak!

Is the the biggest “loss” % terms in a home’s value you have seen in San Carlos?

How much do you estimate the drop to be on average in the starter home market in San Carlos?