In Tucson we get a lot of people who move here from someplace else. And whether the move is for retirement, a change in lifestyle, or a job, people usually have a home to sell back in San Diego, Chicago, Boston or wherever. During the last few years when real estate markets in many parts of the country were doing well, Tucson was one of the really hot markets, with home prices rising rapidly and homes flying off the shelf in bidding wars.
So many of these transferees jumped in and bought a home in Tucson, before selling their home back in Boise. The thinking was that home prices in Tucson were going through the roof, and it seemed like a smart move to buy soon, lock in a decent deal here in Tucson, then sell the Colonial in Chicago, and make out on both ends. And that strategy worked pretty well for a while. But then the real estate market turned, and homes were suddenly (and it happened very suddenly) sitting on the market for extended periods, despite price reductions and other creative selling inducements. Things continued to get worse and worse. And those who were late to the game found that they couldn't, and still can't, sell their home back home. And in what I'm sure was a very painful and difficult decision, a few of my clients ended up having me turn around and sell their new Tucson home just so they could get out from under the quagmire.
It's an ugly situation to be in. I know that first-hand, because when we moved to Tucson from Chicago in the summer of 2000, we bought a home here and then put our Chicago home on the market. Dumb-da-dumb-dumb. Seven months and many sleepless nights later, we finally closed on our Chicago home, but at the time we did get a good price. Compared to what's going on (and not going on) in some real estate markets today, our experience might seem like a cake walk. In a story from CNN, see profiles of people who are stuck with two homes, and some strategies to avoid that fate.
From CNNMoney.com Slow-market crisis: Stuck with two homes
