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Thanks for the report. When I found the aerial view of the high-rise condo, it has a mobile home court on one side of the property, with a hundred beat-up trailers. Whatever possesed the developers that they could sell luxury condos in that location?
Do I even have the right location?
You've got the right location. Most of those trailers are 2nd homes so the demographic isn't like most trailer parks (sorry if I offended anyone with that). The condos were originally marketed around 700k each. Now you can't even get anyone interested at 165k. The upscale condo development across the street is currently advertising at 500k and up which I find laughable.
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"48 years in MD, 18 in NC"
(set 8 days ago)
Location: Greenville, NC
2,309 posts, read 6,101,128 times
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Quote:
Originally Posted by giffman
The condos were originally marketed around 700k each. Now you can't even get anyone interested at 165k.
There is such a thing as getting a fair amount too. If no one was willing to go to $165k then it seems like the only people there were the ones that were looking to take advantage of what is probably a bad situation. I'm sure the financiers would like to get at least a good portion of their money back.
Now you can't even get anyone interested at 165k. The upscale condo development across the street is currently advertising at 500k and up which I find laughable.
It looks like the condo buildings at 1700 and 1701 Salter Path are selling around $250K for the sound-side ones. The ocean-front ones are listed around $375K, and selling from $250K-400K. I understand why the auction was cancelled if they can't get $165K for bigger ocean-front ones. It's sad.
I told you the condo market along the Crystal Coast was weird!
Here's the problem in both the condo and home markets. There is only a certain level of inventory this market has ever been able to bear. Sales have never exceeded a certain amount regardless of price.
What started the glut was that higher prices created greater inventory but demand never exceeded a certain amount. Demand did not drive the market. Price did.
Have you ever eaten too much? Doesn't matter how sweet the desert is you have to say no and let time pass before you can even think about eating it.
EscapeNC, one way to obtain market data on any real estate market in the country is to just search "city state market data" or some other combo of keywords and you'll likely find anywhere from 3-20 bloggers covering it. However they almost always commercial but usually that's obvious. But often they will link to city and county websites that also have market data.
One site that is 100% neutral--not run by real estate contractors--is AltosResearch that gives public access to market data throughout the country. I have no ties to Altos for the record. What that site lacks though are actual sold pricing trends. They based all their research on list prices but other variables such a inventory, days on market, etc. are great.
I moved to Wilmington recently and am blown away by the quality of life here. But I came from N VA-where a large portion of the population (DC metro) is there because of financial/professional interests but would rather live somewhere else; it's very transient up there. Whereas people living in this coastal area are either local their entire lives or chose to live here for lifestyle/quality of life issues.
Here is the cold hard facts about market data and what is available online. Almost all reports rely on public information. But here's the thing-all market data is not public. (The super sites rely on public data.) The only way to have access to all data is to be a Realtor. Each market has it's own system. So the only way to have all market data in a specific market is to be a Realtor in that specific market. A Realtor, let's say from Boone, NC will not have access to the data in the OBX market.
Unfortunately very, very few Realtors have a handle on the info available to them. It's gotten better over the past few years because Realtors have had to learn. But most still haven't gotten past "It's a buyer's market", or "Sellers are motivated" or "Sales are improving over last month" type of quote market unquote reports.
The upscale condo development across the street is currently advertising at 500k and up which I find laughable.
My neighbor spent 600k on a 3 bedroom Grande Villa condo . They stay there the every summer while their kids are out of school. They love it. I wouldn't spend that amount of money to live there part-time. To each is own----I guess.
Status:
"48 years in MD, 18 in NC"
(set 8 days ago)
Location: Greenville, NC
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Quote:
Originally Posted by Bill Hitchcock
But most still haven't gotten past "It's a buyer's market", or "Sellers are motivated" or "Sales are improving over last month" type of quote market unquote reports.
Did you read the forecast that Bernanke is considering buying into long term mortgage securities to try to drive residential interest rates even lower? If they're not buying at 3.5%, I don't think going lower is going to help. They're also considering prohibiting the big banks from parking funds at the treasury in an attempt to get them to lend more.
A real estate transaction requires a buy and a seller. There is the reality of elasticity of supply and demand. As price goes up demand tends to go down and supply tends to go up. Downward moving prices produce the opposite result. The goal of any market is to reach equilibrium where demand and supply are equal. Virtually all current real estate markets are out of whack and equilibrium is some time away. When dealing with housing you have to factor in the elasticity of mortgage money supply and the demand for that money. Lower rates might interest more borrowers but not more lenders. I mean as an individual would you really invest 300K in a relatively risky investment that would give you a 3% return over thirty years? Why should a bank be jumping up and down to do that either. Let rates rise and supply of money to be loaned will probably rise as risk and reward become more stable for lenders. What that does to demand to borrow oh well we know that answer.
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. They stay there the every summer while their kids are out of school. They love it. I wouldn't spend that amount of money to live there part-time. To each is own----I guess.
