Are you considering a Geographic Arbitrage plan to abandon the higher price coasts for middle America? Have your plans changed now that real estate has "adjusted" somewhat?
I’m VERY interested in hearing stories of folks that didn’t pull the trigger on their moves and the fallout (positive or negative from it).
We seemed to have accidentally bailed from CA at the peak of the real estate market. Now however, I know many people (they look and act like you and me by the way) that are totally UPSIDE DOWN in their properties meaning they owe more than their house is worth. Years of footloose refi’s have left them with low interest rates (good) but no chance to move (bad if you want to).
I know that the Des Moines real estate market and Iowa in general will feel less of the pinch because our houses never did "explode" like the coasts. Also, our economy is strong and growing at above average rates. New jobs are being announced weekly. But don’t get me wrong, Des Moines will feel the crunch. Houses do stay on the market much longer now…but prices aren’t falling too much just yet.
I believe that over the next 12-18 months we’ll see the true nature of this housing slowdown/credit crunch manifest itself.
The key has always been to not over extend oneself and while that may have prevented you from getting the new hummer and the boat with a home equity loan, you’re probably a lot less concerned now with what’s happening in the world of real estate.
Please share your thoughts.