Living in Southern California, it’s easy to see the effects of the economic downtown. For starters, there are more people moving out of California than moving in. Even in upscale Pasadena, where I live, home prices are stagnating or dropping and more storefronts are sitting vacant despite the Christmas shopping season.
Overall, home prices in SoCal have dropped approximately 44% from their peak in 2007–the median price has dropped to under $300,000 for the first time in five years. For those who aren’t struggling with the reality of giving up homes, the bargainers mentality has set in–maybe there’s a good deal out there. Maybe flipping will come back in style soon, and now’s a good chance to get in on a cheap home buy. Especially in neighborhoods like Riverside and San Bernardino, there are “deals” to be had.
Of course, I’m keeping my eye on what is apparently the real deal steal now — Berkshire Hathaway stock, undervalued today at just $100,410.00 per share.