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MikeyKid - It seems there are a lot of folks out there like "Little Orphan Annie" singing "Tomorrow" for the umpteenth time!Remember there is a fine line between unbridaled optimism and delusion! Like Dr Pangloss always said "All's for the best, in this best of all possible worlds!"
Okay Em...I represent that remark, LOL
Seriously, I don't think anyone here is in denial or anything - we all know there are big problems in the US housing market - we just don't buy into it being as severe as some would have us believe. If I am proven wrong later, so be it. But for now, I will remain optimistic about the market righting itself and things improving by mid 2009. And personally from where I sit in my little neighborhood - it ain't so bad here in 2008
The Charlotte region has traditionally (last few years - anyway) relied on say 4-5 thousand people from about 10 of the "expensive" housing markets to keep its momentum. Once you kill the first-time buyers market in those areas, the "real estate" machines there start to grind to a halt. There will always be people that absolutely have to move and others that can bring wheelbarrows of cash to the table, but those folks will not sustain the Charlotte market in and of themselves.
If the interest rates ever rise to the level of the late 70's or early 80's, you'll see home prices drop like rocks!
In my opintion this is really getting to be a problem here in Charlotte. First-timers are practically priced out of buying a home under the traditional 20% guidelines. For instance, imagine a person out of college making $50k. This person brings home about $3k per month. Assuming no car payment, this person will have to save for nearly 60 months to be able to afford the $52k required for downpayment and closing costs on a $200k house. This matter is further complicated by the fact that in 60 months a $200k house (in 2008 dollars) won't be anywhere near as nice as a present-day $200k house.
Essentially, first-time homebuyers (like myself, bought in June of '07) have to just hold their breath and dive right in. Of course, you then run into the issue we have now, which is lenders who are no longer willing to do these high LTV mortgages. I know that many are now restricted to a 95% LTV, which would have disqualified me (96%).
Just some food for thought for a recent homebuyer.
PS - It's worked out well for me so far. I had a great realtor & was fortunate enough to buy in a good area. I think that if I needed to, I could sell tomorrow and make a few bucks.
In my opintion this is really getting to be a problem here in Charlotte. First-timers are practically priced out of buying a home under the traditional 20% guidelines. For instance, imagine a person out of college making $50k. This person brings home about $3k per month. Assuming no car payment, this person will have to save for nearly 60 months to be able to afford the $52k required for downpayment and closing costs on a $200k house. This matter is further complicated by the fact that in 60 months a $200k house (in 2008 dollars) won't be anywhere near as nice as a present-day $200k house.
Essentially, first-time homebuyers (like myself, bought in June of '07) have to just hold their breath and dive right in. Of course, you then run into the issue we have now, which is lenders who are no longer willing to do these high LTV mortgages. I know that many are now restricted to a 95% LTV, which would have disqualified me (96%).
Just some food for thought for a recent homebuyer.
PS - It's worked out well for me so far. I had a great realtor & was fortunate enough to buy in a good area. I think that if I needed to, I could sell tomorrow and make a few bucks.
DBGNCSU05 - Glad you got in while the getting is good! At least, in this area there are $200,000 homes. But with that $50,000 in a high cost real estate area, that's not even an option.
I was serious about the camp fire - you can pepper me and CJ with rotten tomatoes and partially digested foodstuffs!
MikeyKid - You must have a fan base about the size of Alan Greenspan's and they must have been listening to you because the Consumer Confidence levels have fallen to their lowest point since 1973. I remember that year well - I graduated from college!
Last edited by TheEmissary; 03-25-2008 at 03:32 PM..
Reason: sp
I don't get it..I didn't have one problem qualifying for a 100% loan on a $171K house..Maybe its the money in the bank or my high credit score or both??
I don't get it..I didn't have one problem qualifying for a 100% loan on a $171K house..Maybe its the money in the bank or my high credit score or both??
himain - It was probably both. If you have the right FICO and a sizable bank account, a lot of doors with many options are open for you! They will kiss your gluteus maximus maximumly!
Last edited by TheEmissary; 03-25-2008 at 03:42 PM..
Reason: edit
LOL EM-I don't have ALOT of money in the bank but a years worth of mtg pymnts at least and I've always been very careful with my credit. Its all you have left in this life unfortunately!!
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Remember there is a fine line between unbridaled optimism and delusion! Like Dr Pangloss always said "All's for the best, in this best of all possible worlds!" 
