I just read Liz Moras's most recent post in the rain, It's Just a Matter of Perspective Isn't It? An Elephant Story. She has some great insight definitely check out the blog. But it inspired me to take this concept of "Perspectives" in a different direction. It definitely got me thinking about how we seem to compare markets and that can cloud our perspective.
The best example I can give you is housing prices. A 1500 square foot home in excellent condition might sell for say $700,000 or more in Santa Cruz CA (yes, even in today's market). However, here in Humboldt County California, specifically in the Eureka CA Real Estate Market, a similar home would sell for $275,000 to $320,000. Actually there are shacks in certain markets that are selling for a lot more than $250,000. It may not be everything you dreamed of, but it is what it is.
Same goes for what's happening in our market compared to other markets in the nation. Some markets are experiencing a significant drop in price while others are not. Stockton I believe has dropped at least 40% so far with the foreclosure market at an all time high. The Humboldt CA Real Estate Market has dropped around 10% so far in the past year or so, a big difference compared to other markets. And so far, there have been around 25 Bank Owned Properties that sold over the past year now (most of the Bank Owned homes that have been listed in Humboldt County - many you will find in Eureka alone - did sell). 
My point is this...Everything is relative. I've had several buyers tell me that they just can't believe how a 1500 square foot home for $250,000 would actually sell in Eureka California, when they can get a 2500 square foot estate in Kentucky for less. Again, everything is relative. A lot has to do with the market you live in. There are always reasons why one area's home market is higher or lower than another. A lot has to do with the local economy and other factors, like whether you are in a desirable coastal community or living in the middle of nowhere in the Midwest.
California has always been a desirable area to live in. And I'm sure even in this tough market, people will still move here. Prices may continue to drop steadily in our area and that is to be expected, because of our current financial situation - many buyers will no longer qualify for a loan. But the home is worth what it is worth for our local market. If ten 1500 square foot homes have sold in the past month for $250,000, it doesn't matter that you can buy the same home for $150,000 in a different market. The going rate is what the sales price is for that local real estate market.
If you are considering buying a home in Humboldt County California or anywhere else for that matter, comparing our market to the market you just moved from isn't going to help you find the right home today, because everything is relative. Make sure you work with a Local Real Estate expert who can show you what homes have been selling for in our area. The goal is to own your own home. So let's work together to get you accurate home sales information for the area so you can start living.
Copyright 2008 Jessica Bigger. All Rights Reserved. *You May Get Less House for the $$$ in Humboldt County CA Than in Kentucky - But it's All Relative*
Visit www.GoHumboldtHomes.com for information about the Humboldt County Real Estate market and to learn about what our community has to offer.
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Great analysis Jessica! You are absolutely right! This is also true of homes and properties listed in Crescent City verses in Eureka, although they may be comparable, Crescent City's property would sell for less. Thank you for commenting on my other post as well. And you are doing a great job with Active Rain!
Thanks Thavisak - I think people need to remember this. When my parents came to visit here for the first time last year, my dad just couldn't get over the fact the home prices are so much higher here compared to Michigan. He just couldn't get around the concept. I didn't argue with him, there was no point. I just said, it is what it is. People are buying.
Thanks for the plug Jessica - I didn't see a comment so I didn't know you were there! :-) As I was writing it - I thought about how that applied in so many different areas...........and your post is the perfect follow-up to that idea! Also Active Rain is the perfect forum for displaying the different perspectives no? And I'm alwyas amazed at the price differences........I see places - gorgeous houses for $150,000 in some towns across the country - and yet here you couldn't even by an apartment for that price..............but you're right sometimes just the different parts of town can garner distinct differences in price........good post! Oh also like the pics!
Hi Liz - I read it late last night and had to get my thoughts down. By that time it was around 1 am. I meant to comment, so I'm heading there right now to do so.