Just a 46-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH). I thought my renter friends were moving to Oregon to pay cash for their houses and/or enjoy significantly lower costs of living.
I overlooked that they were doing it the American way. What they really wanted was a giant asset to borrow six figures against.
I mentioned more people seem to be moving back to the state, as prices lower, just as I expected.
But I just learned why some are resistant to the idea. One friend just mentioned "because I can not afford to sell my house."
I read that to mean, "I put 0% down and/or borrowed large sums against it.
Oh my. The thought hadn't even crossed my mind. You'd think I'd learn by now.
This person has a Cali job so they can't blame lower wages for not helping their SIGNIFICANTLY decreased cost of living.
No wonder so many people look at our young faces and big house and tsk tsk behind our back. It's the American way. They obviously have not paid close attention to our old cars. I can't imagine what they imagine we have been financing. Even dh's computer/video fancies cost little more than $1k/year. Nowhere near the realm of borrowing six figures for...
But yeah, the old fashioned way of buying a house - it doesn't occur to anyone we went that route. Put 20% down, pay down a 30-year note, and after 9 years or so you have some decent equity (we've paid off 30%, and even better the principal payments are increasing greatly now). While everyone is complaining that the sky is falling we are looking at our average 3% annual real estate returns and wondering where exactly the sky is falling.
Anyway, mostly I am annoyed by myself for being completely shocked by that comment. I will never *get* the masses.
------------------------------------
Reminds me though, if you were curious at all. We have been here about 6.5 years in our cheaper cost of living safe haven.
Before when people asked me where I Was from, I Was confused. Where am I from? You mean my real and true home or the place where I Was able to get a steal on my dream house, and where I now live, work and raise my kids? I am not really from here.
But it happened.
Just a few weeks ago someone asked me and the kids where we were from. "Sacramento" just rolled off my tongue.
It took a little over 6 years, but it's HOME now.
I realized to I have spent a greater part of my adult life here. Just about anyway. Maybe that's the tipping point. 18-24 San Jose. 25-32 Sacramento.
I haven't even griped much about the weather this year. I am adjusting...
& anyway, it's official. Dh lived in the same home from age 0-23 or so. Which may be a little extreme. But I lived in the same home from age 4-18. We both wanted to settle before our kids start school.
So now that BM is in school, I feel like we are stuck in a sense. We don't want to pick up and move. I think it is pretty official that we would like to stay put the next 15 years or so, until the kids are done with school.
We're boring that way. 
I guess while everyone is panicking too I am thinking it is nice my kids may afford to live in the area as adults after all. I think that is the greatest travesty where my parents live. We'll probably inherit millions in real estate. But really, we just wanted to live our adult lives where we grew up, without being slaves to mortgages/rents. I Feel lucky we only had to move 2 hours away. But I'd give up the millions to be able to drop in on my parents any time. *sigh* & I was sad it was looking the same for our kids. I had no idea where they would live. So honestly, I would love it if prices settled down for the long term. Not planning on going anywhere. That is for sure...
But yeah, I have as many friends here now as I used to back home. I know the lay of the land. I know short cuts when the freeway is backed up. I understand the local lingo. It took a few years, but I think I am feeling rather comfy here. 
Which is good since I think we will be here a while.
IT wasn't long here before we realized we would probably never move back home (no matter what). Life is way simpler here. BUT it still took a while to get into that comfort zone. To appreciate the area for more than the affordability.
Thoughts on Relocation...
August 25th, 2008 at 07:52 pm
August 25th, 2008 at 08:49 pm 1219697356
Yeah, was I ignorant, but smart. A couple weeks ago I was in a bank and had to tell what my mortgage was. The banker smiled as she typed in the info. I said, "Yes, I think it's funny, too." And I really do. My mortgage is $298. I could probably collect beer cans to pay the mortgage if I had to. The banker had to call another banker on the phone. In the series of answers she gave that person I heard her say "298." There there was a pause and my banker's belly jiggled in silent, suppressed laughter. I know the person on the other end of the line must have said something. Maybe they only groaned and said, "Lucky jerk!" If they were laughing at me thinking of the wreck of a hovel I must own, oh well, then they could interpret my own laughter as laughing at them.
Anyway, I, too, continue to be shocked at the hard places people signed contracts to be in. But I can't believe that number for your neighborhood could be correct. 1 in 3 in pre-foreclosure/foreclosure?!
August 25th, 2008 at 09:16 pm 1219699007
So I settled with a 30 year fixed at 5.5%, no closing, and no points. In my neighborhood, I have one neighbor who has a lower mortgage then me. He has an initial mortgae for 250k.
But most of my neighbors have around 480k in mortgage. I also know neighbors that had 400k plus in mortgage then took out 80 - 100k for pools, finished basement, cars, etc.
So Monkey Mama, I'm with you. A house is not an investment or something to cash out, it is a place where you live. And everyone needs to live somewhere.
August 26th, 2008 at 04:38 am 1219725509
August 26th, 2008 at 02:24 pm 1219760693
I am afraid that is MANY years away but we will have a giant pfadvice party if we are all still here. Woohoo.
August 26th, 2008 at 02:42 pm 1219761760
We haven't done anything expensive to our house, nor have we bought new cars. We've just stayed the course and paid down our mortgage regularly. The neighbors probably think we are really hurting if we couldn't afford to get money out for all the same toys.
At any rate, I'm very surprised by how many generally sensible people seemed to have lost their minds over strange mortgages and easy HELOCs.
August 26th, 2008 at 04:44 pm 1219769072
August 27th, 2008 at 04:11 pm 1219853466