Yes, we've been seeing some market clearing in North Oceanside. An orderly decent market clearing has some common denominators: Highly-motivated sellers, similar product-types to feed off each other, and an expanding buyer pool because prices get low enough to attract investors - of the 22 below, almost half were purchased by investors, and four paid all-cash. (The rents are $1,000 to $1,200 per month, and there is no HOA fee.) These are sorted in order of recent sales price, the SP @ Peak are the sales prices on those that previously sold between 2004-2007, and LP @ OMD is the list price the day the buyer was found,
Hermosa Half-Duplexes 2 br/1 ba 800-827sf 1-car Gar Closed Since May 1st
SP @ Peak
Orig LP
LP @ OMD
Sales Price
% chg
$321,000
$184,900
$129,900
$130,900
-59%
$329,000
$219,900
$219,900
$137,000
-58%
$214,900
$139,500
$139,500
$350,000
$199,900
$139,900
$139,900
-60%
$318,000
$127,900
$127,900
$140,000
-56%
$370,000
$226,900
$142,900
$140,000
-62%
$380,000
$292,500
$165,000
$145,000
-62%
$175,000
$159,000
$145,000
$359,000
$124,900
$124,900
$145,000
-60%
$380,000
$139,900
$139,900
$145,000
-62%
$140,000
$140,000
$145,000
$382,500
$144,900
$144,900
$145,000
-62%
$325,000
$142,500
$142,500
$147,000
-55%
$175,900
$149,900
$150,000
$340,000
$180,000
$154,900
$154,000
-55%
$159,900
$159,900
$155,000
$218,900
$159,900
$159,900
$399,000
$244,500
$184,900
$162,000
-59%
$357,000
$169,900
$150,000
$165,000
-54%
$370,000
$289,000
$169,000
$170,000
-54%
$336,500
$235,000
$175,900
$170,000
-49%
$385,000
$225,000
$189,000
$180,000
-53%
There are a few things to take away from this chart, some of the obvious being that the banks are getting killed, that there is market clearing when you see 50% to 60% off-peak pricing, and that investing at the low-end of this range doesn't look too bad, etc.
The part sellers should notice is the fact that the banks and experienced listing agents tried in many cases to beat the odds and list high - only to have to come down to reality before finding a buyer. With the exception of the second deal in which the listing agent represented the buyer too, there aren't any lowball offers here. The buyers aren't going to make an offer unless the list price is very attractive. Sellers, the selling season is wrapping up - if you're not in escrow, it's time to drop your price.