Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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
Unfortunately, many of these homes are a result of fraud. There have been a few rings broken by the feds in these neigbhorhoods...they were made up of Realtors/builders/mortgage brokers. Many are being charged. Unfortunately, these crooks hurt us all.
Actually the difference would be around 19K. Because the comparison we would want to do is 400K at 6% and 320K at 8%. The first is where we are at now and the latter is where we could be in the future. So if it takes 4 years to get to another 20% drop, yes that stinks, but you also lose the opportunity cost of living in that home and you have to pay for rent too during that time). So really for anyone buying a home now, really needs imo have a large downpayment (imo 20%) to hedge against the loss in case they need to sell the home due to tragic circumstances.
Quote:
Originally Posted by mmoorecharlotte Jack,
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 agree w/ loves. You are looking at homes in half built out subdivisions out in boonieland. I wouldn't want to buy a home in one of those types of neighborhoods.
And it probably wasn't worth 1.8 when they originally listed it. Probably another delusional seller trying to get what they paid for it. Anyway, are you really looking to purchase in one of those subdivisions?
Anyway, I wouldn't spend a million on real estate right now, unless I had like 40 million dollars lol. Then the percentage of that money in real estate is less and I wouldn't care about a significant loss.
Doesn't higher interest rates put further downward pressure on home prices? The higher the interest rate, the less house someone could afford due to an increase in their monthly payment. Isn't that correct?
Last edited by mmoorecharlotte; 02-24-2010 at 07:12 PM..
Unfortunately, many of these homes are a result of fraud. There have been a few rings broken by the feds in these neigbhorhoods...they were made up of Realtors/builders/mortgage brokers. Many are being charged. Unfortunately, these crooks hurt us all.
Very true and sad for the home owners who played by the rules.
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.
No, I believe you, I really do.....those people are in trouble.....
Actually the difference would be around 19K. Because the comparison we would want to do is 400K at 6% and 320K at 8%. The first is where we are at now and the latter is where we could be in the future. So if it takes 4 years to get to another 20% drop, yes that stinks, but you also lose the opportunity cost of living in that home and you have to pay for rent too during that time). So really for anyone buying a home now, really needs imo have a large downpayment (imo 20%) to hedge against the loss in case they need to sell the home due to tragic circumstances.
I agree w/ loves. You are looking at homes in half built out subdivisions out in boonieland. I wouldn't want to buy a home in one of those types of neighborhoods.
And it probably wasn't worth 1.8 when they originally listed it. Probably another delusional seller trying to get what they paid for it. Anyway, are you really looking to purchase in one of those subdivisions?
Anyway, I wouldn't spend a million on real estate right now, unless I had like 40 million dollars lol. Then the percentage of that money in real estate is less and I wouldn't care about a significant loss.
Highgate and Firethorne are neighborhoods that were built out and are also having issues as well now. Homerama was held in Highgate back in 2005.
I am looking at buying a home in one of those neighborhoods for many different reasons. There are a lot of wonderful things about them. ( Just not the prices right now) I see that you have made an offer on buying a foreclosure for 450K. You too have to know the issues involved with the CMA versus the list price and how that screws up the appraisal/loan process. These problems just get bigger the higher you go up in the market.
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.
Having full equity in your current home vs. having a large mortgage is a relevant factor to the conversation we're having. Its one piece of the puzzle. That's why its not appropriate for anyone to make a blanket statement on whether buying in this area is a good idea or not. You could get burnt, you might not.
You actually could if you wanted to move from Tokyo or London to the States.
We moved from the NE and are extremely happy. Plan to live here a very long time (to boot, sq footage costs were rediculously low) so yes, it was a bargain.
Agreed Jack. People are no longer tied to their hometown / current location in they way that they had been in the past. It can be very easy for many people to pick up and move up or down the coast, across the country, etc. without sacrificing their jobs or income. That means one moving from say, Philly to Charlotte because they can get more house, for less money, in a great neighborhood is no different than choosing to buy in the suburbs vs. the high-priced downtown area in a specific, metropolitan area.
Highgate and Firethorne are neighborhoods that were built out and are also having issues as well now. Homerama was held in Highgate back in 2005.
I am looking at buying a home in one of those neighborhoods for many different reasons. There are a lot of wonderful things about them. ( Just not the prices right now) I see that you have made an offer on buying a foreclosure for 450K. You too have to know the issues involved with the CMA versus the list price and how that screws up the appraisal/loan process. These problems just get bigger the higher you go up in the market.
Did you get that house?
It's not 450K. The home is approx 90K less. We're still countering w/ the bank right now.
...its not appropriate for anyone to make a blanket statement on whether buying in this area is a good idea or not. You could get burnt, you might not.
Exactly. There are many situations in which buying now can be a very good decision for someone. There are many other situations in which buying now is not a smart decision. Whether or not the scale is tilted towards the positive or the negative has to do with a plethora of factors, which are going to be different for different people.
What is important is that anyone who is faced with making such a choice does their homework and makes an educated and informed decision.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
