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lumbollo - I agree 100% with your first two sentences, but I just heard on the news yesterday that San Francisco prices rose 5% year over year from Dec 08 to Dec 09. Now, from your postings I can assume you're not a twenty-something, I'm 57 BTW, but I cannot remember anytime in my life when there was quite as large a disparity in prices, between so-called "high-priced" and "low-priced" areas of the country. I don't think that when I lived outside of Raleigh in 1973 that the houses were 1/3 the price of houses in my then home state of NJ!!! Has there ever been a time in the last 40 years, that the Charlotte housing market "appreciated" in the same way as the high-cost areas, at least for a couple of years?
I would look into those San Fran numbers again. Remember 5% down is a whole lot more than 5% up in terms of $ amount.
But here is another statistic to chew on. The US Commerce dept announced today, after this topic was started, that new home sales in the USA have dropped to 50 year lows. 50 years. And this is with interest rates being held as low as possible by irresponsible market interventions by the Fed and the government paying people to buy homes.
Might make sense for houses below 500k, but in the upper real estate market it would not. These houses are dropping like rocks. (hundrend of thousands of dollars. ) This wouldn't make up for a an increase in interest rates of 1-2%.
Agree. That is why I used the figures I did - $300K and $280K.
Just look at the example of the house I mentioned in Providence Downs that was originally priced at $1,799,000 and now is listed at $999,000. This 800K drop in price took place within a few months.
I don't know all the circumstances (maybe the house was built during the peak, was extremely overpriced at listing, and has major problems.....) this seems like an extreme case....
Alot of this depends on how much equity you have in your home too. Many people own their home outright and are not underwater.
I'm just trying to keep the conversation balanced.....
I don't know all the circumstances (maybe the house was built during the peak, was extremely overpriced at listing, and has major problems.....) this seems like an extreme case....
Alot of this depends on how much equity you have in your home too. Many people own their home outright and are not underwater.
I'm just trying to keep the conversation balanced.....
Jack,
The scary thing is that this is not an extreme case in the upper end market. I could list several houses that have dropped in price anywhere from 250-800K and they still are sitting for sale.
... Many people own their home outright and are not underwater.
...
But this isn't an issue that is brought up in this topic. We are talking about people who might be buying real estate in Charlotte and this should be a rather loud wakeup call that you could get burnt badly by getting into a deal right now. People who have already paid for their homes, what ones I know, are not particularly worried about things. However this is more a feature of having no debt at all.
It seems like people are only looking at the monthly payment, not the total cost of the home. If this is the case, then a rise in interest rates will force a lowering of the home price to keep the monthly constant....prices still no place to go but down...
Just look at the example of the house I mentioned in Providence Downs that was originally priced at $1,799,000 and now is listed at $999,000. This 800K drop in price took place within a few months.
Just remember, that neighborhood was seriously overpriced when it was built at the height of the market, so you'd expect to see that kind of drop there now
I would look into those San Fran numbers again. Remember 5% down is a whole lot more than 5% up in terms of $ amount.
But here is another statistic to chew on. The US Commerce dept announced today, after this topic was started, that new home sales in the USA have dropped to 50 year lows. 50 years. And this is with interest rates being held as low as possible by irresponsible market interventions by the Fed and the government paying people to buy homes.
lumbollo - I checked the S&P Case-Schiller index and SF was up 4.8% and Charlotte was -3.8% yoy. This is reflective of existing home sales though. As for Rosewood's condo prices of $400,000 to $1,500,000, lots of luck with disposing of those units. All I know is, for $1.5 million I'd rather see the Empire State Building than the BoA building, although in NY I might also see the new BoA building too, while living in my pricey shoebox!
Just remember, that neighborhood was seriously overpriced when it was built at the height of the market, so you'd expect to see that kind of drop there now
It's just not that neighborhood though. It's Providence Downs South, Longview, Chatelaine, Skyecroft, Woodhall, Firethorne, Sedgefield, Stratford on the Providence, Walden on the Providence, Bromley..... etc
Throw on top of that all of the mortage fraud that took place in some of this neighborhoods, which artificially jacked up the sales prices, and you have the mess we are in now.
There are so many houses for sale in different neighborhoods just in Union County with price points of over a million dollars. Where are all of these buyers going to come from with unemployment so bad?
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