2) Did you sell your residence in the last two years because you thought prices had topped out?
We put a deposit on our new home in November 2003. By the time we closed escrow on in in August 2004, our existing home had appreciated more than 100k over what we had expected to sell it for, and our new home had appreciated — at least on paper — about the same amount.
We sold our existing home for triple what my wife had paid for it in 1996, and used the proceeds towards the down payment on our new home, new furnishings and a new car for which we paid cash.
In July of 2005 I sold my vacation home and acreage in the High Desert for six times what I had paid for it in 2001.
3) Did you sell before the peak, at the peak or after the peak (give percentages)?
I would say that we sold our home for about 90-95% of peak value, and our vacation place sale was perfectly timed.
4) How did you come the conclusion there was a bubble (from a friend, news, independent analysis, Piggingtons)?
I had been through the cycle of prices going down in the early 90’s and always felt that this boom would have a bust sooner or later.
5) Will you buy back into your former neighborhood?
We bought our house because it is in an area with great schools and only 15 minutes from where I work. We plan to live here at least until my retirement in another 15 years and very likely longer.
6) If you have not sold, are considering doing so?
No plans to sell. We have a small 15 year fixed mortgage — which we may pay off in ten years — and love the house. Because of the appreciation we captured during the boom years, we live in a McMansion on a Love Shack mortgage.
7) If you have not owned in the last ten years (or ever) is it because you were priced out? How far would prices have to drop for you to be able to buy?
