Hats off to Michael Choe. Time Magazine (2005 & 2009) and the Sac Bee both featured him for his prescient decision to sell his Natomas home (that he bought in 2001) in 2004 and buy a foreclosure in 2008.
While our story is similar but a slightly later timeline......what really struck me was his true reason for purchasing before things had bottomed out. According to the Sacramento Bee "The real story was that his son was ready to start school. Otherwise he would have waited two more years to buy."
Our purchase this year was highly motivated by this same reason. Closing in February gave my daughter enough time to get to know some of the neighborhood kids who are also attending/starting the local elementary (she started Kindergarten in August).
Of course I get serious pangs of anxiety about this decision, as I watch the NODs in our neighborhood pile up. But knowing there are other bubble bloggers out there who followed the same route has us, is giving me great comfort.
Sometimes life just gets in the way of making a buck. For instance I forbade my husband to even think about selling our Townhouse in D.C. when I was pregnant/on maternity leave. I just couldn't handle the stress of a toddler, a newborn and a move. So we missed the peak in the market by about 6 months(luckily the peak in our area was almost a year later than Sac), .......and moved to Sacramento when my son was 9 months old.
The Bee article states that he frequent the blogs....hope he pays Average Buyer a visit, as he sounds like a kindred spirit.
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7 comments:
Understandable, we feel the heat sometimes too. Now that our oldest child is in school it kind of feels like were have restricted our geographical home choice areas, even within EDH and Folsom.
Our sweet spot to buy has not been hit yet and we still wait, observe, collect data, analyze, discuss and update our shortlist. No bids of late...
Here is a recent article that maybe of interest.
Is Homeownership Good for the Kids? Not Necessarily
http://www.time.com/time/business/article/0,8599,1919852,00.html
I've always said there are a ton of factors besides market timing that are at play when you buy a house. It's a hugely personal decision, and one that only during the bubble was taken lightly by those who made it.
In other words:
I wanted to see you walking backwards
And get the sensation of you coming home
We did the same thing, too!
When we purchased in 2008, it was also to give our kids the stability of the same school and friends for a long time to come.
Thankfully we picked the right time, as two homes in our five house cul de sac have gone into foreclosure...
Thanks for the on-point article, husmanen.
Back in 2006, we had neighbors who wanted to sell, as we did, but had promised their two teenagers they'd stay put for high school. They could have funded both college educations on the equity they've lost in the last 3 years.
BT...I certainly understand your decision to purchase. My wife and I have been waiting to buy since selling in 2006. We don't have any children, but I somtimes would just like to purchase so we can quit following this whole housing market thing. It sure would free up a lot of my time. So congrats on your purchase, and someday we hope to join you.
I agree with Brian. As soon as we buy, I'm going to put my head in the sand as far as housing goes and just enjoy having our own home after too many years of renting (albeit with a wonderfull LL).
BT: As far NOD's in your 'hood ... I see very strong buying activity in the "good" neighborhoods such as yours, and that isn't likely to change absent total meltdown of the local RE market. Yes, you might see a modest erosion of equity until the market starts to recover, but I think you anticipated that possibility.
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