An often overlooked part of the housing debacle: location.

I noticed long ago that homes in poor locations or homes that had any other out of the ordinary negative attribute had fallen in value faster than the average home.

Buyers were attracted to busy streets or busy corners or bad locations in general because they could not afford what they really wanted. When the price of an average home came down, these homes became more affordable, negating the need to buy a home in a poor location.

You are so right about that, Richard.  In our area where construction was absolutely booming and out of its mind, houses went everywhere.  Places they should NOT have been allowed.  Whole subdivisions in more rural areas sprang-up where people don't want to drive to now because of the cost of gas.  And they sit forever on the market.  Spot-on assessment of a new marketing challenge ...

Gene

Totally agree.  A great post, I'm borrowing.

This is the truth. I practically couldn't give away a house in a remote location last year.

Hi Richard, having once lived on a busy street, drilled into me the importance of location. If it's peace and quiet you want, make sure it is there from day 1. Great post!

I often wondered during the boom, "who would chose to buy here"... now that the boom is over, we know the answer is "no one". 

I am working with a couple right now who are looking at a golf course community. Unfortunately, that location puts them too far from their grandchildren. They are going to forego the golf course community to be closer to the grandkids. They'll be retired. High gas prices are a concern to them.

Very astute observation!  We are seeing it in this area as well - some neighborhoods were built during the boom time and have seen price drops steeper than average - while other neighborhoods continued to be sought after locations right through the most challenging market times. 

Location is certainly one of the main factors in deciding on a property.  

Richard it's kind of interesting here in Phx. That doesn't seem to be the case - unless it's really really far out -half way to Mexico.  Families need to consider the costs of living far out, the gas bills, the time involved and time away from family. Is that really such a good thing?  For some it appears so.

Richard- your post made me think of Houston which is extremely spread out.  When land prices were high many had to move further out to afford a home.  The trade-off was that you were far out.   My husband built way-y-y-y- out and they did well.  Things haven't changed.. it's still far out!

Yeah, I agree. So true. Location is a very important part of the negotiation when it comes to purchasing a property. Great post.

This is so, so true. Brings to mind some subdivisions in our area that back up to railroad tracks and/or are set in the middle of a large span of high-tension wires. What were they thinking??

Interesting.  Fortunately, I am not aware of this happening to any great extent in the towns I service.   However, I couldn't agree with you more.,

Same in my area.  Back in teh artificial hay days, Lots were hard to come by so they built where ever and people gobbled them up.

Yeppers... and in our neck of the woods there was no shortage of subdivisions built during the real estate bubble days where the homes were practically built on top of each other.

Yes Richard this si so true in some of the areas near me.. Everyone became a developer and subdivisions sprouted up all over. Now i have approved and unimproved subdivisions that can't be given away at a major loss to those. Still others that were started and are now with homes half started and unfinished. People don't want to compromise on location... or distance from work and family right now.

Richard - You're so right! I've noticed this as well. Home backing to roads (even highways), sitting next to an ugly landmark, etc. sold like hotcakes back in the day. People bought them because there was nothing else to choose from.

Now, those are the exact homes having trouble selling and sometimes the ones going into foreclosure.

It just goes to show, location is as extremely important thing to consider when purchasing a home.

Amazing Richard, I use the same argument explaining to one of my sellers. . 1/2 million dollars to live this far means a lot of commuting and gasoline expenses. . that is why the traffic is  so low. . and no, I wil not do an open house. .

we think alike. .

This is so true! I think that's why our market hasn't turned as quickly as others... we're still struggling, although it's better than it's been for 5 years. But we're a pretty small, remote area and people just aren't moving into the area in the numbers they once were.

Gretchen