Time to Forget.
If you were to ask a resident the question “What year did you buy your home in San Carlos?”, you might be surprised at the tone of the answer you’d get. If the answer is somewhere in the 1990’s, you’ll probably sense a dose of bravado in the reply — after all, they are sitting on a mountain of equity now (if the place isn’t completely paid off already.)
Or, you might hear a tinge of incredulous relief when someone says “2011”, because they knew they took a big chance in a very unstable economic market. But their gamble paid off handsomely, as home prices have climbed so quickly just the past two years. The relief comes from the fact that some of those buyers could probably not afford to buy that very same house today in this crazy market.
But there’s one year that always elicits a much different answer. It’s almost a hushed, shameful tone that seems to compel them to couch their answer with an elaborate explanation:
You see, 2007 was the last full year before the economy and the real estate market imploded on itself, leaving us mired in a horrifying goo of mortgage fraud, sub-prime loans, and unemployment. Home prices plummeted in most markets around the bay area, and those poor folks who paid top dollar for a home in San Carlos in 2007 felt as if they were the unlucky souls that were left standing when the music stopped in a high-stakes game of musical chairs.
But how could they have known this was going to happen?
In subsequent years, those shell-shocked residents who purchased their home in 2007 seemed almost resigned to the fact that they would incur a significant loss on their investment whenever the time came to move again, or even worse, have to face the specter of a short sale just to get out from under it. This explains their less than enthusiastic response to the question we posed at the top.
Out of the Hole.
Well, times have changed, 2007’ers. It’s time to stand tall and be proud of your home purchase again. The magical real estate market of 2014 has officially buried the perennial nightmare of 2007 – and hopefully for good. The graph below should be a sight for sore eyes for anyone who is still thinking that they’ve been banished to the land of upside-down homeowners.
Home prices in San Carlos have not only recovered since the peak of 2007, but they’ve actually grown by a whopping 27%, on average. That essentially makes 2007 look more like a pothole on the road to prosperity, rather than the dead-end street that it probably seemed like to these homeowners.
I think you’d be very hard pressed to find a home that was purchased in San Carlos in 2007 that is still worth less than what it was purchased for. Not sure? Just give me a call, and I’ll be happy to give you an estimate on what your home is worth, free of charge.
But for now, it’s time to kick 2007 to the curb. And then run it over with your new Tesla.
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