Friday, November 16, 2007

Which Part Of "I'm Paying $900,000 To Live In Vacaville" Did You Not Get?

Highlighted in this housing bubble blog post:

The San Francisco Chronicle. “Vacaville, in eastern Solano County, was long an affordable alternative for home buyers who didn’t mind a long commute to the inner Bay Area. But that market has changed substantially within months.”

“Larry St. John bought a home for more than $900,000 early this year in a new development on the city’s northwest side. This weekend, St. John said the builder - DeNova Homes - is planning an auction of more than a dozen similar homes, with starting bids about $300,000 less than what recent buyers paid.”

“‘This is huge, this is our biggest investment,’ said St. John. ‘I can understand a corporation taking losses to stay in business, but an individual taking a $300,000 hit is not something I have the capacity to do.’”

“As a homeowner in the Bay Area, ‘every couple of years you have an opportunity to refinance and do some improvements and still have equity,’ St. John added. ‘If you’re starting off from a position of negative $300,000, that takes more than a few years to rectify.’”

1 comment:

miriam sawyer said...

Unfortunately, what goes up must come down--including house prices.