
When we first moved here, it was with the hopes of renting for at least the first year, and then eventually buying. A few months ago, we started casually looking. We knew the market had been going down, and was falling fast from it's bubble peak of 2006, and wanted to see what was possible. Everyone was saying, "you should definitely buy - what a great time!" So we would head out to open houses that were in areas that interested us. And we became pretty frustrated. And depressed. Even though prices had dropped, the market still felt well over priced. The properties that were within our price range were not any where near my "want-range". Some where downright yucky. So we basically decided we were going to be renters for a while, and have started to look more at the rental market (which also seems to be falling...) - if we find a rental that is really great, we'll move - if not, we'll stay where we are for now. But I still have Redfin set up to send me emails whenever there is a new listing within our price-range in my favorite neighborhood. And yesterday I got an e-mail that floored me. The home above, in our price range, literally across the street from the elementary school (one of the best in the area, the reason I love the neighborhood), 2 blocks from the chapel, 1/2 a block from the community center with a huge outdoor pool, and large playground, large fenced yard, garage, finished basement, gas heating, gas range, open kitchen leading to deck, 4 beds, 3 1/2 baths, with a potentail 5th bedroom downstairs, large master bath with sperate shower and bath, his and hers closets (walk in!!!), large master bed with vaulted ceilings, sky lights... the list just goes on. It seemed to be a perfect fit. So, we went and saw it. Us and the rest of the world. When we walked through it was buisier than most open houses that we attended. There were at least 4 other groups of people there at the same time. It was labeled a fixer upper, so we of course wanted to see what that meant. It was filthy. But nothing majorly wrong with it. In talking to the agent, it's a Freddie Mac foreclosure, which has been vaccant for 8 months. So sad. The crazy part is it sold in 2007 for over 200K more than it was listed for today. And it had been a rental. And it had been abandoned, and just "trashed-out" today. When we got there all that was left were the crumbs and stains. But the home still had much more going for it that anything else that we had looked at. Curious story, and it makes me so glad that we did not move here sometime during the bubble. What a crazy time.
There are already 3 contracts in, and I'm sure many more are going to be put in over the weekend. I have started to hear about foreclosure deals that are getting into bidding wars similar to the bubble era, and it sounds like this is one of them. So, I think we'll pass and remain in our wait and watch mode. But it has begun to give me hope - maybe this is the beginning of the trickle that will start the flood of foreclosures that may make property values realistic. Not necessarily a situation that I would ever hope for, but an outcome that makes this area a little more livable.