The American dream… for some
By now, we all know that the housing bubble in America has burst. Refinancing isn’t as valuable a move as it once was, so many families look to payday loans for short-term aid. The housing collapse is catastrophic for all the homeowners who have lost tremendous value, but a boon to home buyers looking for a beautiful home and significantly decreased cost.
Paul Vercammen and Ted Rowlands report for CNN that Lake Elsinore, California is turning out to be a great place to buy.
Large, affordable homes
The reporters give the account of the Lepley family, who just moved into a 3,000-square-foot home in January 2009. They purchased the previously owned home for around $250,000. However, the shock comes when you learn that only two years ago, when California’s housing boom was on, the very same house sold for $550,000.
“My heart goes out to everybody that lost their home [and] lost their jobs,” says Derrick Lepley. “I’m real sympathetic toward them. But the reality for us was, if this didn’t happen, we wouldn’t be in this situation. We feel fortunate.”
Many others are taking advantage
A recent private report has shown that housing prices in 20 major cities have fallen to record lows, on average 19 percent lower than the previous year. Since the peak period of Q2 2006, prices have plunged 29.1 percent nationally, according to the S&P Case-Shiller Home Price Index.
Lake Elsinore is in Riverside County, California. The county one of the hardest hit in America’s foreclosure debacle. The scenic community is 70 miles southeast of Los Angeles. Currently, nearly 23,000 homes in Riverside County alone are listed as “bank owned.” One in 80 is now in foreclosure, according to the county assessor’s office.
The other side of happiness
Neighbors to the Lepley family are Frank and Leslie Aceves and their two kids. Their situation is the exact opposite, as they’re fighting to “short sell” their home so that they can avoid foreclosure and repossession. They bought their 3,500-square-foot home for $620,000 only a few years previous. A home across the street of similar size just sold for $267,000.
“We just didn’t think it would happen,” Leslie Aceves said. “We just thought it would stop somewhere.”
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A 3,000 sq. foot house in California – for under $300,000? That is unheard of. Wow, prices really have fallen. Normally you can’t buy a manufactured home in California for that much, never mind a 3,000 sq. ft. home. Cheers to that lucky family for getting that good of a deal.