Bubble? (Raleigh, Cary, Welcome: real estate market, apartments, foreclosures)
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The more Gilbert resident Debi Averett researches the current real estate market, the more alarmed she becomes.Moderator cut: Provide a link instead of copying, please
Reading some of the responses to the Arizona Botanist Blogger lead me to a more wide-ranging site link removed
That blogger carries stories from different parts of the world, illustrating that the craziness doesn't just exist here in the US. From China:
Quote:
“A real estate frenzy grips China’s urban areas, and one recent day saleswoman Xu Shuang faced an unruly throng when units at her luxury housing project went on the block. ‘You should have seen it. More than 1,000 people gathered outside,’ Xu said.”
“Amid flying elbows and chaos, many signed purchase agreements for anything put before them. ‘It was kind of chaotic,’ Xu said. ‘People selected their apartments in a great hurry. They didn’t give much thought to the floor or the location.’”
“The frothy market generates passions, which worry Chinese officials. Last month, the government shut down the Web site of an activist who launched a ‘Don’t Buy a House’ petition drive. Activist Zou Tao claims that urban dwellers are turning into ‘mortgage slaves’ yoked to debts for decades.”
“Buyers retain bulletproof optimism that values will only go up. ‘It’s impossible for them to go down,” said Lu Ting, a saleswoman at a massive housing complex in southwest Beijing.”
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Isn't it really a national problem for all those people who got interest rate ARM mortgages and now they're adjusting? I listen to the Dave Ramsey show a lot (online) and here calls who are pretty panicking over zero or negative equity.
There has been alot of talk on many news shows (MSNBC, CNN) that those who purchased ARM's w/ interest only are now coming to the point where they need to start paying interest and principal and there is speculation that in the upcoming years, there will be a lot of foreclosures - hopefully over the next few years the bubble will level off and not burst. If it bursts, it effects us all.
All I can tell you guys is this...I am a Realtor but I've lived in Raleigh/Cary area for over 25 years. I've bought and sold 5 houses and have never NOT made a profit. Now, don't get me wrong...its not like Maryland or California or Florida, where prices double each year. We have a very stable economy here, low unemployment and our homes appreciate every year but at the rate of an average 5%. So, we have no bubble to burst. And I've never seen homes go down in value here. But lets remember this...people want a good life for their familes. Live where you are happy and don't make it all about the "investment". Yes, you want to make a well educated decision but if you are trying to find the area where houses are going to double in price by the end of the year, you are taking a huge risk wherever you go. My clients move to Raleigh becuase its a great place to live for a lot of reason, not just because of investments. Ok...I'm now getting off my soapbox!!! Vicki
What we see in NC (the 5% inc each yr) is more reasonable. So many people are leaving my area of Long Island yet the demand for houses and costs not only doubled for some but tripled, on the other side a lot of people took the equity to redo their homes as opposed to moving which increases debt load. These people would get very little $ if they sold as now they owe more on their homes. If you buy a house now and do not intend to sell it for at least 5-10 yrs, common sense dicates there will be some profit on the house BUT what other debt to do carry? There are a lot more pieces to the equations but it will be interesting to see what happens over the next year or so
All I can tell you guys is this...I am a Realtor but I've lived in Raleigh/Cary area for over 25 years. I've bought and sold 5 houses and have never NOT made a profit. Now, don't get me wrong...its not like Maryland or California or Florida, where prices double each year. We have a very stable economy here, low unemployment and our homes appreciate every year but at the rate of an average 5%. So, we have no bubble to burst. And I've never seen homes go down in value here. But lets remember this...people want a good life for their familes. Live where you are happy and don't make it all about the "investment". Yes, you want to make a well educated decision but if you are trying to find the area where houses are going to double in price by the end of the year, you are taking a huge risk wherever you go. My clients move to Raleigh becuase its a great place to live for a lot of reason, not just because of investments. Ok...I'm now getting off my soapbox!!! Vicki
Az used to be the same way not even a 5% appreciation per year..............then bang double appreciation.
Times are different right though, I think someone descibed it well previously. The trickle down effect will effect the entire market some markets obviously more sereve due to the correction that must take place.
NC shouldn't be hurt in that capacity since they haven't been over inflated.
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