I’m a lifelong Californian hanging out in Austin watching the California prices go down. We sold our Temecula house a year before the peak, but at a tidy profit. Rented for a bit and then bought a house for cash in Austin to catch a little appreciation while enjoying life.
I knew there’d be a crash in California, but for some reason, I never thought I’d come back to California so I didn’t think it was relevant to me. I was cashing out to leave for good. Now I’m thinking that if the prices go down enough, maybe 2002 levels, I might just come on back to my home state. I sorta miss the ole place.
I think (though one can never be sure) that the Austin market isn’t going to have a big crash, and we probably won’t own here long enough to be in danger. Maybe we’ll move back soon and rent while watching the carnage. We won’t make a killing on this house, but should clear selling costs and improvements which is good enough. If we come back, it’ll be with cash in hand, ready and waiting.
That might be where cash buyers come from. The cash-out-and-move-to-flyover-country crowd that has paid for houses in the Midwest and might be wanting to come back when and if prices come down.
