Kawana Springs and the post-world war II subdivision just north of it represent two sides of the entry level home market in Santa Rosa. They are blocks apart physically, but miles apart in terms of amenities, style, price, and maintenance. Location unites them, but so does the attractiveness of both sets of homes as entry level housing in Santa Rosa.
The area that was named Stellar Gardens in the early 1950's includes Santa Ana, Santa Barbara, San Domingo, Elsinore, Moraga, and San Clemente Drives. These were very modest homes, even when they were new. On the other hand, their relatively small square footage (877 to 1177 square feet) and nice sized lots (.13 to .25 of an acre) promised an upgrade in the future to returning GI's as the second wave of the Boomer babies were being born. Progress passed them by, however, as new subdivisions drew the growing families into larger homes in Santa Rosa and newly built Rohnert Park. These homes became rentals, for the most part, but during the housing boom they escalated wildly in price and became over-priced, owner-occupied homes for people who didn't want to get left behind as housing appreciated in value. Sadly, the dream turned to nightmare for most of the buyers who paid in the $400,000-$450,000 range for homes that are now selling for $125,000-$150,000. This neighborhood is ground zero for the no-doc loans and 100% financing that helped fuel the bubble.
The bubble victims are mainly gone. Banks have either taken ownership or already sold these foreclosed properties to new buyers. The still modest homes often have illegal garage conversions, dilapidated facades, cracked concrete driveways and patios, and failing roofs. In spite of those common problems, these houses offer the bottom rung on the ladder to home ownership that many people are seeking. The first time home buyer tax credit of $8,000 represents as much as 5-6% of the homes value. Free.
A 10% down payment is only $12,500 for the low end of this market, and that's only about twice as much as the initial deposits to rent an apartment. If you qualify for the excellent rates available today, your house payment, including taxes and insurance, can be less than $1,000 per month. That's a good value in anybody's budget.
Kawana Springs represents a more modern version of the same story. The streets are named for semi-precious stones like Amethyst Way, Lapis Lane, and Malachite Way. These homes were built to capitalize on the housing boom in the early 2001-2003 time frame. They are also modest in scale with most of them being between 1240 and 1698 square feet sitting on small lots of .08 to .107 acres in size. A typical value progression for this subdivision was for a home to sell for $250,000 in 2000, for $550,000 during the bubble height, and to now be sold for $300,000. Current real estate prices reflect significant losses for the buyers who purchased during the bubble peak, but are in line with long term real estate appreciation in Sonoma County.
These are great first time buyer homes for people who can qualify for the higher payments on a house that is selling for around $300,000. These are almost new, and the maintenance costs should be lower than older homes for many years. The neighborhood itself reflects that all the homes were built in 2000 or more recently, so it's in generally excellent repair and appearance.
These two neighborhoods will appeal to buyers with different budgets, but they are both useful ways to get started in the housing market in Santa Rosa.
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