Two years ago, I convinced my husband that it was time to buy our first house. I grew up with a family that took great pride in their homes and the real estate that they invested their hard-earned money. My mother and aunt were also real estate agents for many years, and my childhood was filled with open houses and caravans. It is something that is simply ingrained in me, and I really have a great interest in the real estate market. So, my mother and I started searching for a fantastic repo for our first home. My husband had very little interest in the actual search, he had a few requirements, but those soon fell by the waist side.
After a very long search, looking at over a hundred houses, I almost wanted to give up. Every time we would find the perfect house and make an offer, someone else got there first. Finally, we found our home. It was a 2 bedroom, 1 bath home with a big back yard for $65,000. At the time, this seemed like a steal. A few months ago, I was disheartened to learn that the much larger house across the street from us went for $52,000. Timing is everything though, and when that house went on the market, my ex and I were already separated so it was all irrelevant anyway.
The housing market seems to be getting worse and worse. We all know the economy is terrible, so it is no surprise that the market looks like it is only going to get worse. If you are from California, like myself, you know that the town of Santa Cruz is a very nice town. The town is known for being relatively upper middle class. After looking at the Hammond Real Estate Report, it is clear that even the loveliest of towns seem to be affected in the market slump. In the city of Laguna Niguel the houses are expensive to begin with. Considering the location of Orange County, the prices aren’t nearly as steep and surrounding cities. The cost of homes, and the amount of homes being sold are continually decreasing.
The market is not terrible for every town. The lovely little hamlet of Redlands, California is doing just fine. I have a special place in my heart for Redlands because I went to college there. I am also a big fan on their beautiful late 19th century homes. The market seems to be doing better in this small town.
There is a bit of annoyance that creeps into my mind every time I see a much more spacious and appropriate houses for my family that also happens to be significantly cheaper than my current mortgage. I also understand that real estate is always a bit of a rollercoaster. Although my home is worth a lot less than I paid for it, merely two years later, one day it could potentially be worth more. I sure hope so.