A slight drop in values, a larger drop in volume, but still a great investment
Home Values Update for Angels Camp and Murphys, Calaveras County.

What a roller coaster of a year! The third quarter ended a tough real estate year with the same question still on everyone’s mind; have we hit bottom yet? Well, maybe, and maybe not. All things considered, the Angels Camp and Murphys region still remains a good investment in an unstable market. A comparison of the numbers tells the story and comparing the current numbers to the state average, well, we look pretty good. Let’s take a look.

Angels Camp closed its 3^rd quarter 2008 with an average sale price of $403,257 and a median sale price of $335,000. The average sale price is down 10.5% and the median price is 14% off.  This is a huge difference from the state median home price which dropped from $595,000 to $350,000; a 41% drop according to Bloomberg ¹. And Murphys is looking pretty good too with an average sale price of 508,999 and a median home value of $385,000.  This too is off just 2.5% on the median price and the average sale price is actually up .7%!

What seems to be off quite a bit is volume. We have less buyers and more inventory. That is evident. Volume is down 21% in Angels Camp and 11% in Murphys. So why is this not having a huge effect on value. Are we unaffected by supply and demand? Well, that brings us to an interesting conclusion on the values in our quaint foothill town in comparison to the rest of the state.  I believe it is quite simple; amenities, desirability and demographics.

Let’s look at what we know. We know that we are not a community filled with track homes, all the same with lot premiums and up-grades the only difference in value from one to another. We are a community of unique homes, land, views, location and amenities. Most homes are custom, even if speculative and land use and type can vary from neighbor to neighbor. Desirability also plays a huge part in the value of our properties. We have one of the most unique locations in the state. Placed in the center of the state, below the snow, above the fog and only 2 hours to the bay are, Yosemite and Tahoe, makes our location very attractive. Add the fact that we are not on a 4 lane highway with promise of being overrun in 20 years only adds to the protection of lifestyle we love here. Thirdly, demographics plays a huge part in our values. As more and more baby boomer’s purchase second home, pre-retirement and retirement homes in our area, they also bring with them more wealth than any other generation has seen. That being said, they are savvy investors, yet they buy what they want. When a purchase is desire driven, versus need driven, the buyer will buy what drives their desire; lifestyle, location, etc. versus close to work, a certain school etc. The wealth they bring with them also helps our values. When the average baby boomer decides to make a move and sell a second home or move on for whatever reason, their wealth gives them with the ability to wait for the market to rebound, wait it out for their price and hence protect their investment (our overall values). 

Take a look at the links found below ², for the tables on the markets over the past 2 years, in support of the figures provided above.  Looking at the big picture, Angels Camp and Murphys can be a well protected investment indeed.

Angels Camp 06-07               Angels Camp 07-08

Murphys 06-07                     Murphys 07-08

Greenhorn Creek 06-07         Greenhorn Creek 07-08

References:

1. Bloomberg.com; September 25, 2008 17:21 EDT, By Dan Levy “California Home Prices Drop Record 41% Amid Defaults (Update1)”  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aE6gHmeYAxcg

2. Information provided from the Calaveras County Multiple Listing Service from Oct. 1, 2006 to Sept. 30, 2008.   Information is deemed reliable, but is not guaranteed.