Finally, I sold my SoWal house. I've been watching the debate between the real estate bears and real estate bulls over the last few years with great interest. I finally gave in to the bear mentality and put my house on the market. It took a while and some serious down grades of my asking price, but it finally sold amidst the clutter of all the inventory on the market. I bought in 2003 and sold at a little higher than what I put into the house and the furnishings. After commissions, I made a small profit (of course excluding the significant carrying costs for 5 years that I write off to the enjoyment factor). I wanted to exit with my principal intact and I did.
I sold because it appears that the market will continue to fall for quite some time. Certainly not because this is a bad location. On the contrary, it is one of the most beautiful beaches around. It is the problems in the economy as a whole--both nationally and globally--that concern me the most. Lots and lots of people I know are desparately trying to bail out of their second homes after owning them for a few years. Not because they can't afford them, but because they can't justify the cost of ownership and they too are concerned about the direction of the economy. They also see the huge inventory building in second home markets across the country and they realize like me that it will be a long, long time before there are enough buyers to absorb all of this inventory.
I also realize that I can rent the best places around for several weeks a year and still come out ahead of the carrying costs I had on my SoWal home.
I hope that my fears about the economy turn out to be terribly wrong and we come zinging out of the recession soon and home prices start to soar again.
Good luck to all those that are trying desparately to get out of the market.
Those are my thoughts so that's it for me. I won't get into the bear and bull debate with anyone. Back to simply reading and enjoying the back and forth banter.
I sold because it appears that the market will continue to fall for quite some time. Certainly not because this is a bad location. On the contrary, it is one of the most beautiful beaches around. It is the problems in the economy as a whole--both nationally and globally--that concern me the most. Lots and lots of people I know are desparately trying to bail out of their second homes after owning them for a few years. Not because they can't afford them, but because they can't justify the cost of ownership and they too are concerned about the direction of the economy. They also see the huge inventory building in second home markets across the country and they realize like me that it will be a long, long time before there are enough buyers to absorb all of this inventory.
I also realize that I can rent the best places around for several weeks a year and still come out ahead of the carrying costs I had on my SoWal home.
I hope that my fears about the economy turn out to be terribly wrong and we come zinging out of the recession soon and home prices start to soar again.
Good luck to all those that are trying desparately to get out of the market.
Those are my thoughts so that's it for me. I won't get into the bear and bull debate with anyone. Back to simply reading and enjoying the back and forth banter.
