North County houses are dropping….

[North County Native]

I’ve lived here my whole life and since I got married and have had kids, we have not been able to afford to purchase a home. Having grown up in a large home on a large lot, it has been hard raising my own family in an apartment. As my husband and I checked out listings tonight, we got excited because maybe we will be able to buy in a couple of years!!! For now we can stay in our apartment with dirt cheap rent. I’m very glad that we decided to have kids while we were still in college. We got on a long waiting list to get into an “affordable” apartment. While on that waiting list, we had some interesting neighbors and uninvited creatures living with us. It was gross but a great learning experience. Our home is a humble home yet it is
okay with us. It is clean, it is in a good neighborhood. Some of our neighbors here are not so great but most importantly – I can stay home with the children.

When we first got married everyone was trying to buy a home. If we had, we would’ve dropped out of college to work more jobs, had no kids and borrowed equity a couple of years later, only to be panic stricken now. For a long time I was sad that we didn’t buy back then. Now I’m relieved and understand the saying “patience is a virtue.”

I’m sad for those we know who are trying to sell right now. We know people who will lose a lot of money. We see “for sale” signs scattered about the lawns on almost every nearby street. I’m happy to be renting. My rent is so good that I can save money to be able to move into a house sooner and let another family move here to hopefully do the same thing.

I hope that nobody thinks I’m gloating, its the last thing that I’d want anyone to think. I just think ist interesting how I felt like a “have not” for so much of my adult life, only to find out that there are more “have nots” than “haves” out there. We used to wonder how in the world people could have a big new house and a fancy SUV. Now I know that it is all just a facade. I’m very humbled and I can safely say that I have no desire to “keep up with the Jones’s” — This is coming from a woman who grew up in an upper middle class home. Now I truly understand why my mom and dad had the base model cars and not BMW’s or Benz’s like the neighbors!

[waiting hawk]

Great post. I wont lie, I like to gloat some. I have been telling people since 03 this was stupid and only and idiot could say “RE never goes up forever”. I have a friend with a MBA which I asked him, “RE only goes up huh so a home in Compton will be $1,000,000 in a couple more years? (he said yes btw)”

As for base model cars, A car is who you want to be…… The House is who you are.

Unless you are in a bubble renting that is. As long as you dont have a Hummer in an apt. Funny the kind of cars people have in apts.

My website tracking Temecula and South Riverside County

[CardiffBaseball]

Around the kids sporting events we seem to be the youngest parents, as we were 26 and 28 when the kids were born. In many ways this sets you back when comparing to those who worked professional jobs until mid to late 30’s before having kids. Of course I can still throw a fastball at 37 but my son’s friend’s 57 year old dad, cannot. He does however have a nice house, and part of that is that he avoided the expense of kids until he was well into his 40’s.

[PerryChase]

North County, you sound like a very sensitive person.

Cardiff, I think that kids who have young parents grow up happier because their parents are their friends also. My dad was 40 when I was born so I always felt like he is my dad more than my friend.

[VCJIM]

I was 21 when my first son was born, bought my first house when I was 24 (with mum’s help with 1/2 the down payment, since paid back with interest).

I can still keep up with either of my sons : )

[BikeRider]

NCN, why are people you know selling at a loss? They have to sell due to job change? or they bought more house than they can afford? It really doesn’t matter what the home prices do if you are just planning to live someplace, stay and can afford the mortgage. But if you are a person that wants to live off equity, I guess in a downturn you’re screwed. Or if you have to change jobs and bought way too high, you’re screwed. Why are they selling for a loss and not just staying put?

[speaker]

I’m looking to gloat as well only because the Mrs. and I have been hounded for the past few years by family, friends, and realtors about not buying. Now, we can breathe a sigh of relief as that pressure is now off us. It was getting ugly there for awhile because our families could not believe that we didn’t buy earlier and were thus pressuring us to buy or else we would be priced out forever.

I never did understand how anyone could subscribe to such logic. Do they mean to suggest that you only get one shot in a lifetime to buy a house? I digress…

Anyway, the Mrs. and I always wanted kids but we both wanted to enjoy marriage first. We held off on the kids for many years so that we could travel and allow us some time to build our careers. It was a difficult balancing act because we wanted to be young enough to enjoy our kids childhood but also be mature (old) enough to have stable careers that would allow us to live comfortably (live in a nice area, save for retirement, etc.) Now that the market is “softening” it serves as validation of our discipline in not buying into the hype. I am looking forward to buying our first house in North County; we prefer the slower pace of life up here. And no I will not consider SEH because the energy bills will kill us.
“End of line.”

[North County Native]

Yes, I am sensitive. Having kids young has made me be more responsible. One of the Doctors that saw me in the hospital after my 2nd child was born said,”So, what High school do you go to?” I laughed and replied that I was 23! It turns out the girl next door was in high school.

Believe it or not but being a young family we still encounter people who can’t understand why we had our children then or would ask me if I got pregnant first and then got married. How rude! Nope, we got married young and then we started having our family. We like taking our kids to the local parks. I sure wouldn’t want to buy one of those $20,000 play sets for my yard! I’ll just take my kids out everyday!

I’m very glad that we’ve had to go through times of being very poor and learning how to budget. My husband worked retail while finishing college and the customers would chew him out on a daily basis – especially the RE agents! He worked at a printing and copying store and the RE agents couldn’t bear to part with a few cents for a copy! They were making great commission back then! That is why he’d just smile and think of how soon the bubble would burst and it would be his turn. The whole experience of working our way through school and learning things the hard way has helped us define needs and wants. Yes, I want a big huge house on a hill with an oceanview! Do I need it? No! I think that is also whats wrong with some of the buyers. Many have a sense of entitlement. I’ll just stay here for as long as I can possibly stand it and save my money! I think my rent is less than local property taxes so its like I’m here for free!

[North County Native]

Is San Elijo Hills more expensive for energy bills? I thought everything there has energy star appliances. I don’t like that there aren’t enough roads in and out. Even when Twin Oaks goes through it will still be a lot of traffic. Just my opinion!

[North County Native]

They bought at the top of the market, can’t stand the mortgage payment and want to move into a bigger house. With an ARM, the payment is only going to get higher!

We know several families that panicked and bought high because they thought the houses were still going to get higher, they didn’t think how it could hurt them when they tried to sell again later.

[BikeRider]

NCN, I see. Well, it makes sense what they did. It is extremely easy to look back at something and say what you would do, having the luxary of seeing how it all plays out. Too bad for them.

[rocketman]

Greetings from the Bay area. I enjoy this blog community and read everyone’s contribution every morning. What a fascinating group of people who enjoy this most infromative website. I believe I am reading opinions from very educated investors, some weary speculators and some enthusiastic buyers who have been driven out of the market for years and have been looking forward to the predicted demise (like myself).

I believe that if most of us who have been on the “side lines” are even more patient, more cognizant of the market conditions, and saving more cash, then we will prevail to cash-in at a time most adequate to our needs and desires. If however, individuals start to see prices at a comfort level that they believe they can afford, and if the financing is available, then the market will stop falling and the demand will rise. Take for example a house that sold for $250k in 1999 and is now priced at $750k. Would you want to buy it at $500k? Or would you rather see the price of that house fall, let’s say to $300k or $350k. My point is that prices will fall and level to realistic pricing if we all pull together and don’t get to anxious to jump right in. Especially if we see gradual price reductions and unbelievable incentives. Time is on our side now, be as pateint as possible.

[Anonymous]

Anyone who bought since 2003/2004 deserves whatever they get. It has been obvious for a couple years now that we were on the verge of a bubble bursting. Plus, if they need to use ARM/Interest only loans just to afford the payment, then this is nothing short of gambling in hopes that appreciation will continue.

Bottom line, anyone who gets ruined from this deserves what they get. This is natural selection at work. Those of us who exercised patience and sound judgement by not purchasing real estate in the last few years will be rewarded shortly in the form of cheap houses and less traffic on the freeways.

[speaker]

The homes in SEH are big with high ceilings and lots of dead space. It requires a lot of energy to cool and heat up all that dead space. Sure, a central air unit can be efficient but that doesn’t change the fact that with a larger home it requires more cooling/heating. I find it amazing how much hotter it is in the SEH area given its proximity to the coast (10 mi. ?)

“End of line.”

[BikeRider]

It is funny, my wife and I were pretty much oblivious of any kind of housing bubble, peaks, valley, whatever. It was really just the last 6-8 months that I became facinated with what was happening with housing. We bought our first house back in 1992 for $89K (small cape, 1 acre, we are on the east coast). Then, in 1997, which I guess was the end of a housing valley, we sold and upgraded to a bigger house. Made a nice profit off the first house for our area, around $25K or so. Put that into the new house, 2600 sqFT walk out basement on five acres. We slammed the mortgage hard and have actually paid off this house. I must admit I listen to Dave Ramsey, rice and beans, beans and rice. It does work and gives you freedom later on. Anyway, it was just dumb luck when we bought our house that I think our area was in a housing slump. I watched the house we ended up buying. It was a new home built by a rather new builder. His first big house and I think he had stretched his finances. The asking price was $180K. My wife and I talked and said what the heck, lets low ball the price. The house had been sitting for a year since the inital building permit (they start selling them ASAP), though it was really completely finished for only about two months. We offered $145k. The realtor told us it was an insult to the seller. I said what do I care. I don’t live with the seller and the seller isn’t paying my mortgage. The realtor submitted the contract and it came back at $155k. We were like, hey, maybe we will buy this home. So we countered with $155K and the seller (builder) pays closing costs. The realtor is like “the seller doesn’t pay closing costs at this level of home”. Again, I tell the realtor, what do I care. If they want to sell this home, they got to dance. The builder, hungry I guess, accepts our contract and we have been here ever since, happy as larks. I work with someone that wants to buy a new home, upgrade from where they live. The realtors have been taking them around, showing things. A year ago the realtors were telling my friend to hurry up, multiple contracts were on the house and he needed to bid up. He was like “no way, that is dumb. I’ll wait a while and see how it all plays out.” He was smart to wait. The people that have bid up homes because they just HAD to have it, I think are really stupid. They brought a lot of these high prices on themselves.

[Author]

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