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Home prices in San Diego have now fallen to the same level as the year 2000. Chris Chan reports.
Some call it the lost decade for housing prices as San Diego home values have dropped to levels not seen since the year 2000 when adjusted for inflation.
The numbers from the S&P Case/Schiller Home Price Index was highlighted by our media partners, Voice of San Diego, displaying the incredible rise and fall of local housing prices.
It was a roller coaster ride that Rancho Penasquitos resident Kevin Elliot knows all too well.
"Honestly the only thing that I had to equate it to was my parents," he said, "They purchased a home in 1970 for $20,000, and right around 2000 they sold the house for around $320,000."
It was no surprise to Kevin Elliott when he bought his home for under $200,000 in 1994, and was appraised for more $700,000 in 2007.
But after cashing out to buy investment properties, and a real estate market crash, he has been left with almost no equity in a house worth under $500,00.
He was caught by surprise.
"A slight downturn like we did in the late 80's up to '94, yeah we did think that, but we didn't think that we would have a collapse," Elliot said.
While the drop in price has been painful for many, financial planner Rick Brooks says that's where they're historically supposed to be.
"In the last decade we really got crazy and got ahead of inflation. And now home prices are back down to where they would have been if adjusted for inflation," he said.
With the frenzy of the housing market over, Brooks says people should think of a house as retirement investment, as well as a roof over your head.
"You're gonna rent it or buy it. When you own a home 20 or 30 years from now, under a traditional structure, you have a good solid investment," said Brooks.
He said many people in retirement use their home as a safety net if more money is needed.
Brooks and real estate broker Jim Abbott said prices could still continue lower. But they say home ownership may still be a good idea if owning is cheaper than renting.