I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.
Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.
Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).
So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.
