Did Katrina just quash my chances of multiple offers at or above my asking price in CA? Now that gas is $3+ per gallon, there’s approximately $200 less per month now available to fund house payments. Of course, in typical fashion, I guess we could all just absorb the increases as $200/mo increase in debt X xmonths of high prices. I think this is the most likely scenario. I’m 33 and in my first home that my wife and I bought almost 8 years ago at nearly the bottom of the market cycle. Now it is worth more than 3x what I bought it for. I listed it 2 weeks ago, just in time for Greenspan and Katrina to start making me nervous. I’ve got 1 offer that came in well below offer price…a few visitors here and there…but no frenzy that I was hoping for. My house is NOT overpriced according to the area comps and listings.
So did Katrina push the American Emotional state into depression? Will the 24 hour news coverage of this tradgedy and the coming economic impact of this make America wake up to the fact that a starter home in CA is now considered to be $650k and 2400 sq.ft.? I’m probably not going to be around there to figure it out if I can close the 1 offer outstanding on the house. I’m going to be firmly ensconced in my Midwestern 2 story with walkout. I’ll probably invest in a safe room now though.
With the proceeds of my little 1800 sq. ft. goldmine, I’ll get a big LCD TV, a new car, be debt free, and triple my family’s living space and yard size…and still have a pile of money left over (to invest in gold of course :). I’m going to be "Midwest Rich" and loving every minute of it. Here’s to Miller High Life and Nascar!