The London Times:
Feature Article: "The Pepper Group"
Land of Opportunity
New homes in some US states
are half the price they were in 2005, says Suzy Jagger
Some states -- such as California, Arizona, and Florida -- boomed first. It is those states, some believe, where prices stabilise first. In San Diego Peter Toner, realestate broker at Prudential California Realty, says: "While the coastal areas are holding up, inland areas are really suffering."
Mr Toner, an estate agent in London and the Home Counties until 1997, explains: "It is similar to what happened to London in the 1980s. The peripheral areas around London experienced the greatest pain -- areas such as Balham and Dulwich. In San Diego county, Oceanside and Chula Vista are suffering. After the enormous growth in the past five to eight years, we are seeing properties priced at 20 to 25 per cent less than at their peak in July 2005." He added that the market is experiencing a "double whammy" because about a third of potential buyers who could help to stimulate it have been declined mortgages as America's banks tighten their lending criteria. Toner pointed to one property on his books in Chula Vista's Otay Ranch Village: with three bedrooms and two bathrooms, it is priced at $450,000.
Depressed prices in San Diego, which is suffering from the end of the boom in condominium building over the past 16 years, have left some apartments on the market, including one with two bedrooms and two bathrooms, priced at $310,000. The property is a refurbished condominium with 24-hour doorman, pool, spa and terrace, not to mention a new kitchen.
Arizona property prices were among the fastest rising in the boom years, as Californian retirees eyed the cheaper cost of living there
Those properties saw some of the severest declines after the boom. But Arizona real estate sales now appear to be recovering, suggesting that the market may be stabilising. Paula Sindelar, at The Pepper Group Diversified Real Estate Company in Tucson, Arizona, says: "Three years ago we were receiving telephone calls from wealthy Californians who wanted to buy property sight unseen. Often, to secure the purchase, they would bid well above the asking price."
For more information on the Southern Arizona market please contact us at: (520) 977-0003 or info@ThePepper.com.