Rocklin - Special, Ergo Not So Special
From the Placer Herald:
Although Rocklin has earned a reputation as a desirable, upscale family friendly place to live, the current mortgage crisis has left its mark on the real estate market here. According to the Foreclosure Data Bank, there are currently 79 foreclosure properties in Rocklin, 32 more will be auctioned and 19 are bankruptcies.
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The bank-owned, or “REO” (real estate owned) properties that have resulted from foreclosures are driving the entire market down in Rocklin as it has in many other areas in the state and the nation, according to local Realtor Billy Radakovitz with Primera Realty.
Radakovitz said that Rocklin’s desirability was a contributing factor in bringing the fallout to the real estate market here. "We’ve been hit as hard as anywhere else," he said. "Rocklin is such a desirable location that it was the destination of choice, people would do anything to get here."
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"From the realtors standpoint, at around 2004 there were some of us who knew the end was near," Radakovitz said.
12 comments:
I absolutely love my little slice of Rocklin, but there is no way in Hades I would pay what they were/are asking to purchase it. Not a chance. Not while my rent is so low. No changes to my rent level in sight, so only significant further price reductions would move my check-writing pen.
And no, I don't live in Whitney Ranch. I don't even consider that to be Rocklin. More like South Lincoln. No thanks!
Rocklin is a nice place to live. When it comes to folks being smarter, and not taking on bad loans, or over-extending themselves, that place doesn't exist. Free money is free money; or so it seemed. Schools are good. Neighborhoods are great. People are people. The only thing I haven't seen yet, though, are BANDOS!
What are BANDOS?
My husband and I have been hoping to move to Rocklin as our first choice (with Whitney Oaks being our preference)or Roseville as our second. Our reasoning is a little different -- hubby wants to be someplace that will hold and possibly increase its value within the next five to seven years. He also doesn't want to buy in Elk Grove for precisely that reason. Plus, the hills of Rocklin remind us of the South Bay where we went to college.
My question is, are we deluding ourselves to think that Rocklin will have a better outcome over time than will Elk Grove? I don't mind paying a premium to buy in Rocklin over what I would pay to buy in Elk Grove, but I'm not ready to jump in right yet, and I don't want to pay more in Rocklin and get the same outcome in terms of appreciation that I would have gotten in Elk Grove.
Thoughts, anyone?
I don't know that I'd count on ANY house/property "holding value" over the next few years. That being said, I think your chances are probably better in Rocklin than in Elk Grove.
Something to consider in this is the cost of gas and the commuting distance, IMHO. Not just for yourselves, but for future buyers of your intended house.
What are BANDOS?
http://calculatedrisk.blogspot.com/2008/02/bandos.html
BTW: Bando is my favorite housing word of the year :)
Yeah, everybody lives in a "special" place. That's why these problems are happening everywhere.
All the children are above average also. :)
"hubby wants to be someplace that will hold and possibly increase its value within the next five to seven years."
Then you should rent the house in Rocklin for a lot less than it would cost to buy it, and invest the difference in savings/CD/money market. While it is certainly possible you could hold value or make money in the next 5 to 7 years, I would not buy now if that is a must for you.
I always loved this qoute from the movie 'The Incredibles':
When everyone is special, no one is'
Easy applicable to the housing bubble.
When every single place was 'special', no place is(was).
Thanks, guys. Hubby and I hadn't planned to buy until next year at the earliest. In fact, I think we'll stay put in our Elk Grove rental and not only pocket the difference between renting and owning, but the difference between renting in Rocklin and renting in Elk Grove.
Oh, and BANDOS? LMAO!
“From the realtors standpoint, at around 2004 there were some of us who knew the end was near,” Radakovitz said. “It wasn’t like we weren’t going see a 1,500 square foot house go for $400,000, we just wouldn’t have expected it until 2010.”
I believe that there were RE "professionals" who have defended the profession as being ethical, etc. Well this direct quote is telling. So "they knew" prices had topped out but had no problems continuing to sell over priced homes to people. Nice. Sounds close to fraud to me.
Watchingthebubble: Almost anyplace is better than Elk Grove. Rocklin is actually very nice and is worth any penny above comps in Elk Grove.
Stop Roseville Crime,
Wow -- what a harsh assessment! That's more harsh than anything I've heard. I used to go back and forth on the Elk Grove thing, but my husband is itching to get north of the river and closer to family. I've been involved in my local neighborhood association from time to time with the idea that I should be involved in whatever community I'm living in while I'm living there. But after getting flamed off certain websites for stating my concerns about Elk Grove and my desire to move north, I've put my energies into my personal goals instead.
And although perception isn't everything, it does count for something in the real estate game. And I'm sure you're not the only one who perceives Elk Grove as you do. The question is whether Elk Grove has what it takes to turn it around. My hubby doesn't want to find out, and he certainly doesn't want to sink hundreds of thousands of dollars (or rather, debt) into the area in hopes that it will turn around.
Yes, our days in Elk Grove are definitely numbered. Thanks to all the contributors to this site for wising me and dear ol' hubby up!
It is in my observation of the Real Estate market that I feel I can make several comments. I sell Real Estate in Las Vegas and the Sacramento area. Every one of my listings have multiple offers and more and more buyers coming out of the woodwork. It will not take as long as some suggest that the turn around will take several years. It is turning around already. Every property that sells contributes to a lower inventory... that is a good thing. This is the start of a more stable market.
As far as Rocklin is concerned, I feel you can never go wrong with that city.... great school, great neighborhoods and close to all major shopping needs.
If you can walk away from your comfort zone and take the leap to purchase a home in the market we have today, you can find a great deal. The tax benifits are worth taking that step. I wish all of you well if you are thinking of making that move....
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