Sell NOW. The foreclosure tsunami is approaching SouthCal shores because of too many funny-money loans propping huge mortgage loans. You will be able to buy again a nicer house in similar area at deep discounted rates after 4-5 years. Many of these “debt-drowned” refugees will migrate out of Southcal to get rehabilitation in cheaper locales.
The price of oil, which is higher now in Southcal, is going to get higher still, because of BP Amoco’s problems. For example, gas prices in Texas in the foreseeable future won’t be as expensive as in California ($2.89 vs.$3.39 lately.) Because of cheaper living costs in midwestern states like Texas, folks would be following out-migration from SouthCal to cheaper midwestern states, leaving more vacant homes in SouthCal for you to choose from later on.
Better still, why not follow the herd of out-migration from SouthCal? This is just an idea to think about. During the Depression in the 1930’s, it was the Okies going their way to California. This time around, it will be the other way – the Cali-poories going to Oklahoma. The soon-to-be Bushco-NAFTA mega/super highway and corridors will make their travels easier to rehabilitation land.
