I wrote this as a guest post at Consumerism Commentary many weeks ago. I’d like to thank Flexo for featuring this post on his site, which is one of the earliest personal finance blogs in the web and one of the first blogs I’ve ever read in this space.
I decided to take a nice stroll down our street after months of being generally cooped up indoors due to the colder weather. It feels like the start of summer these past few days with vegetation budding and the rest of us trading our colds for allergies. Here’s to a lovely, brisk walk down a winding country lane, where I could nod at the neighbors walking their dogs and pushing their babies and grannies along. I love this quiet neighborhood with the heavy vegetation. It’s hard to find crannies like this around here, where I can find solitude from the furor and congestion of busier spaces.
The State of Real Estate on My Block
First stop. The red house that’s still boarded up.
It’s been that way the last few years. It’s a lovely new house but it’s incomplete and I only hear activity on the grounds on sporadic occasions. It’s a shame, it’s a pretty house with a high pitched roof that’s waiting to hear its destiny. So far, it’s quiet, with its framed openings all boarded up.
The state of this property: Unfinished
Second stop: The house on a slope.
It looks fairly large, probably with an additional 20% square footage over what we have, but maybe it could be an illusion. The fact that it looms over our house could just make it look big. This place has 4 or 5 large, fierce sounding dogs roaming its perimeter behind a wire fence, which I secretly hope is electric. These dogs seem aggressive and make a lot of commotion anytime anybody passes its vicinity. The shocker to us was that this house showed up as foreclosed when we did a casual check of our area. It’s pretty unusual to have something that appears so commanding to be in foreclosure. Well then, who wants to be our neighbor?
The state of this property: In Foreclosure
Third stop: The former tacky colored eyesore from another era that was finally upgraded.
I made an about face and started walking the other direction. This brings me to a lovely place that has just gone through a makeover. It used to be the eyesore of the neighborhood. I am sure when you look around your community, you have one or two spots that you pray will reinvent itself. To me, this was one of them. It was a cottage, really, with a strong teal color right where our main road splinters into feeder lanes. So it was front and center to all visitors coming in to the community. It welcomed people with its outdated charm, but it was time to go. Three years ago or thereabouts, we got our wish, and the owners decided to raze it for something probably 3 times its size. It has a nice river stone foundation wrapping the entire house. And a bunch of trailers in the back yard where the owners decided to hole up for all these years. No, they haven’t been able to move into that nice new house just yet. And the canvased, graffitied temporary fence was only taken down very recently. It looks like money troubles kept this house unfinished and we’re still wondering what’s up.
The state of this property: Unfinished
Fourth stop: A beautiful, very spacious new home way down the street.
This house was listed as “for sale” more than once in the last year. There was no interest in it for what seemed like forever and we thought it may have been overpriced. It was listed once more and we still think it’s overpriced but weirdly enough, it has sold…and only after a month or two. Great job to the agent who sold it!
The state of this property: Newly Sold after a few months
Fifth stop: Another beautiful, spacious new home right next door to the fourth stop.
The framework, style and set up looks almost identical to the other house that was just sold. It is for sale as well, with its OPEN HOUSE sign dangling by the front yard. And that, I think, is the kiss of death for any house — when its owner decides to share the market with their nicer looking neighbor.
So this house was competing with its next door neighbor for potential buyers’ foot traffic. The only difference that I see in house quality here is that this house is at an intersection as the last residence on our street. Having almost the same price, square footage, age and look didn’t help while it stood there side by side with its competitor. So there it still sits hoping someone will notice. I’ll be honestly surprised if it finds a buyer soon — I don’t see too large a pool of buyers for this home’s price range. But it must be breathing easier now that the competition is out of the picture.
The state of this propery: For Sale with no more competition
The State of Real Estate Equation
Two (2) Unfinished Homes
One (1) Home For Sale
One (1) Home Just Sold
One (1) House In Foreclosure
Equals (=) a noticeable real estate downturn but no blood in the streets yet.
And that was how my walk turned out: peaceful, refreshing and very telling.









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I’m waiting for our bubble to burst on Oahu. Don’t get me wrong. I love the 300%+ increase in my equity. I’m a realist though, and know that it’s a completely artificial set of circumstances. There are two-income families literally living in tents on the beach in my community because the housing market is so ridiculously overpriced that they can’t even afford to rent anymore. We need a return to sanity, sooner rather than later.
Visiting for the Carnival of Cities. Mahalo (thank you) for a view of the housing market outside of my little patch of real estate.
Carnival of Money Stories #17…
Welcome to the Carnival of Money Stories, Edition #17. I was kindly asked to host this time around, and happily agreed. There were a total of 15 submissions to the carnival this week, but I could only accept 9. The Carnival of Money S…
What I love about your post here is that you are talking about your specific neighborhood and the microeconomics of the situation, not big generalities. I have the same experience in my area, different houses and different situations. A mortgage short sale up the block. Unfinished house. A bank owned mortgage foreclosure, someone tried to stop foreclosure on the house but they failed. Now prices are slowly falling with more and more of this stuff piling up and very little sells.
–Richard
So what does your block look like now heading towards spring 2008 - we’re seeing more foreclosures here.