California Riding Magazine • February, 2014

Southern California
Luxury Real Estate
Where are we in the investment value cycle?

by Caren Kelley

A quick look back at the past several decades helps bring perspective to current real estate values. From the 1950s through the late 1980s, California real estate values soared with few declines, fueling investor fortunes. The early 1990s brought mild to moderate value declines. The mantra, "Stay alive 'til '95," proved accurate, with prices stabilizing in 1995 and inching up through 2000, then accelerating upward at a rapid pace through 2007. Most of us are familiar with the post Lehman Bros failure climate of late 2008—foreclosures, no available financing and values, which temporarily dropped farther than ever experienced in California.

During the next few years, while the pessimists were presiding over real estate's funeral, values began a quiet but serious recovery.
In some areas, (San Francisco Bay area and West Los Angeles) values are back to 2006 levels and beyond, with the plenty of upward momentum remaining. In other areas (San Diego/Orange/Riverside Counties), values are still recovering and well-located properties can be picked up for what is likely to look retrospectively like a great discount.

Land is the last property type to recover and historically, once it hits a tipping point, it recovers the fastest. Land values can change exponentially once demand exceeds supply. Combine a well-located parcel of land with income generation, potential tax benefits, constraints on both natural supply and development and you have a recipe for a rapidly appreciating investment.

For those who enjoy the equestrian lifestyle, it is easy to take for granted that there will always be wonderful places to ride—until suddenly no suitable facilities are available. Low vacancy rates are already here. Is the timing right for you to make a great personal investment and to ensure that you and your horses will always have a lovely place to pursue your happiness?

Market conditions say "yes."

For more information, call Caren Kelley at 858-350-1018 or visit