housing sales and prices down again... (Charleston, Lane: bank owned, for sale, real estate)

[meks]

things are looking rough for the high end market, check out charleston.net for the article on it today... Home sales dip again

Drake Herrin, a real estate agent with Carolina One Real Estate, said the most common buyers these days are looking for their first homes.
"With that $8,000 first-time homebuyer (tax credit), they are getting off the fence," he said. "It goes away at the end of November, and we don't know if the government is going to extend it."


Most of those buyers are looking for homes that are $250,000 or less, leaving that segment of the market relatively stable, Herrin said.
That's not the case with higher-priced homes, particularly those listed between $250,000 and $749,000.


The combination of sellers seeking to downsize and a lack of financing options for pricier residences has created a glut of inventory.

The association's figures show that while 124 homes sold in the $250,000-$749,000 price range last month, nearly 3,900 properties are available.

[In the Pines]

But where are the people selling those starter homes moving? Out of state my realtor says. That means that people selling and moving out of starter homes in other states could be moving here and looking to move up in price - right?

I know the lower end market is moving but I just figure that a lot of people are being displaced when they sell those homes and they have to go somewhere, even accounting for the number of foreclosures where people have already settled in with family or an apartment.

Any thoughts, opinions, or facts to share?

[StarryEyedSurprise]

Originally Posted by In the Pines

But where are the people selling those starter homes moving? Out of state my realtor says. That means that people selling and moving out of starter homes in other states could be moving here and looking to move up in price - right?

I know the lower end market is moving but I just figure that a lot of people are being displaced when they sell those homes and they have to go somewhere, even accounting for the number of foreclosures where people have already settled in with family or an apartment.

Any thoughts, opinions, or facts to share?

I don't think they'll necessarily want to move up in price, but depends on the demographic.

My in-laws are looking to sell their home in NY and move down here. If they move down here they will probably buy something that is under 3000 sqft, and not in a pricey neighborhood. They will be retired, and they will want to use some of their current house's equity to buy a boat, and to save. In another case, my DH and I are preapproved to buy a house in the 400s. We aren't - we're sticking with under half that, because we prefer ease of payments to bling.

The problem these days seems to be that people are not looking for the "luxury" that was prevalent in the mid-2000s. Not only are retirees downsizing, but earlier generations are doing the same.

[moneill]

There are as many scenarios as there are opinions <G>.

One thing -- there are many steps between starter and low end and high end homes.

But one thing for sure -- nothing will move until the starter homes start to move. When they start to move maybe some people will start to look for that next step at a good price...and then that level will start to move. I don't see that happening in the next few months but maybe in a year.

We have houses with prices for less than what they sold for in 2003 and still nobody is looking. Note -- I didn't say buying -- I said 'looking'. People are waiting for prices to come down more. I can't speak for other areas but I don't know if they will come down more.

The foreclosures are going - which is a good thing!!!!

[pokrplr]

Wish land prices would come down! We looked @ Waccamasaw Plantation yesterday on Hwy 176, one acre lots starting in the Mid 100's...FOR THE LOT?? Damn! Naturally, the one we liked was $167,000...That's absolutely crazy!

[OleTomCat]

That is what I am waiting on Pokr..

[Flat2MT]

Originally Posted by moneill

There are as many scenarios as there are opinions <G>.

One thing -- there are many steps between starter and low end and high end homes.

But one thing for sure -- nothing will move until the starter homes start to move. When they start to move maybe some people will start to look for that next step at a good price...and then that level will start to move. I don't see that happening in the next few months but maybe in a year.

We have houses with prices for less than what they sold for in 2003 and still nobody is looking. Note -- I didn't say buying -- I said 'looking'. People are waiting for prices to come down more. I can't speak for other areas but I don't know if they will come down more.

The foreclosures are going - which is a good thing!!!!

Maybe not so fast....

It will not be the same old 'chain reaction' of people selling and moving up because a majority of homes selling are to first time home buyers buying new builds or bank owned (distressed) properties. Those displaced due to a distressed sale probably can't buy any time soon so they are not moving up. Those able to survive selling in this market will wait before moving on up - they are now risk adverse given their job situation, credit card debt, tightening of credit, loss of investments, past housing experience, etc.

The affordable homes (<$250K) will continue to sell....but the rungs to the next higher levels are now missing. The only way for the higher end homes selling in the Charleston market is for these prices to significantly slide down the 'move up' ladder.

If the RE market was left alone to correct itself, I agree foreclosures would help. But now with all the governtment 'assistance' banks are receiving, 'foreclosures' and their effect on the marketplace aren't what they used to be....

[csurch]

I agree with Flat2MT. I've been watching several houses for months now - we plan to make the move as soon as we sell over here in TX. I can't believe that there are houses that were just sitting on "short sale" lists for months with no takers and now with just a hint of an upturn in the market some of these house prices have jumped by tens of thousands of dollars -- it seems ridiculous to me??Why would sellers or banks think that something that wouldn't sell for X amount of dollars will now sell for X + $30,000??

[mrpeatie]

At some point I think most of us are going to say x is enough space, y is enough features and z is a nice enough area. I think the idea of needing to 'move up' is fading. I doubt we go back to the era after the depression and WW2 when people bought a 1200 sf house and stayed their for life. But I do think the constant need to buy into more space, luxury finishes/features and newer or trendier neighborhoods is subsiding. Unless you pulled in major raises flipping from one property- and mortgage- to then next threw a lot of people of course in retirement savings (and even college & debt repayment) so I think a lot of people are starting to be weary of the constant need to upgrade.

Especially since you aren't guaranteed the 10% a year appreciation we say for almost a decade. That kind of value spike was able to hide a lot of truly stupid financial moves people were making.

[The CMR]

The credit and market crash that occurred in the Fall of 2008 represented a paradign shift to a Frugal Economy. Most people are poorer now than a couple of years ago because their home equity and investment accounts have declined at a rapid pace.

DO NOT get bamboozled into overpaying for real estate in this town. Most lot prices are absolutely too high in this town. Probably 8 or 9 out of every 10 homes for sale are listed too high. Sales of lots are down 71% from last year and getting worse. Home sales are down 38% from last year.

PATIENCE! Let the market come to you. Do not fall for the smoke and mirrors of Wall Street and Real Estate. It is all about what you feel comfortable affording. Everyone is different and each property is different but the overall trend is still OVERPRICED BS.

The only way to deal with this current environment is for the banks and sellers to take a walk down Reality Lane. Right now they are walking down Denial Lane.

Nature will eventually take its course. Trust me but it will take some more time here in Charleston on certain properties.

Good luck and keep your powder dry!