Possible Wachovia effect on real estate (Charlotte, Greenville: real estate market, rentals, condo)

[cltsig]

Just wondering what people think will happen to the real estate market as a result of the Wachovia purchase. I know down, but how far and how quickly?

This link says nothing good will come of it (obviously) but I wonder what will really happen.

Quote from the linked article:

" Plath (Tony Plath, a finance professor at the University of North Carolina-Charlotte) said the effect from the job losses will trickle down, especially into real estate. He said a loss of high-end jobs will hit high-end neighborhoods and uptown's condo market.

That possibility is sending a buzz through Charlotte's real estate community, even before Wachovia or Citigroup comments officially on possible job losses.

“It will definitely put a little more stress on the market because we'll have more houses going on the market,” said Dot Munson, president of the Charlotte Area Realtors Association.

The takeover of Wachovia also threatens many businesses that service the banking industry. Mindy Holt and Laina Roberts work in an uptown dentists’ office that has many Wachovia employees as patients.

“We had a lot of patients call us today that were concerned so they didn’t show up for their appointments today or they canceled because they were scared that they were going to lose their jobs if they left the office,” Roberts said.

After selling a house in FL and riding the price down waaaayyyy lower than I ever thought, less than I bought it for, my only suggestion to those needing to sell is price it competitively from the start and it will sell. We rode the market way down and it cost us a boatload of money. My wife and I are still considering Charlotte and Greenville SC but after the last few weeks and today's announcement, we may wait for the dust to settle a bit.

All opinions are encouraged and welcome.

[BrianH1970]

Originally Posted by cltsig

“We had a lot of patients call us today that were concerned so they didn’t show up for their appointments today or they canceled because they were scared that they were going to lose their jobs if they left the office,” Roberts said.[/i][/b]

Like getting a filling was going to cause their badges to stop working. It was just an excuse to avoid the drill.

Not that I can say I wouldn't be looking for an excuse to not go to the dentist myself...

[anifani821]

I don't mean to sound heartless, but honestly . . . the growth here has been so fast . . . and how many times have we all posted here that the infrastructure is strained . . . everything from our schools to our roads . . .

I don't want to see ONE PERSON lose his/her job. Having gone thru/ that . . . it is a challenging life event. However, I personally would really like to see the building STOPPED and houses that are on the market sold . . . re-sales . . .

I don't want to see anyone in the situation of trying to sell a home w/ prices falling . . . wh/ is one reason I wish builders would cut back on the new houses.

If we have a lot of people transferred b/c of jobs . . . then the market will become glutted, but there are still people needing homes . . . and there is also the investment market and rentals . . . I just can't believe our real estate market will fall apart.

Not everyone who moves here is looking for a job; some people move here to create new businesses. And there will always be companies with growth who need more employees. So I can't see the real estate market "tanking" - even if it does slow down. Heck, it has already slowed down!

So I don't know . . . we have to see how things work out w/ jobs here. I personally think that there is going to be a resurgence in "Made in America" products. I think Americans are getting angry about all the jobs being outsourced and all the Chinese goods flooding our markets. I am just not buying things made in China, even tho that is not easy to do! I think there are going to be manufacturing jobs that "come back" to our region in the next five years. These companies may be small, start up companies but they will hire people . . .

I think Americans are going to get more innovative about our economy . . . and create more "cottage industry" jobs - right here in our region.

If someone wants to move here . . . and can find a reasonable price on a home and a good loan . . . I don't see things falling apart. NC has always been known for entrepreneurs and start up companies. I see a resurgence of this spirit on the horizon . . . and I think Charlotte is gonna remain an economically strong and growing community.

[Londonlawyer]

Originally Posted by anifani821

. . . However, I personally would really like to see the building STOPPED and houses that are on the market sold . . . re-sales . . .

I don't want to see anyone in the situation of trying to sell a home w/ prices falling . . . wh/ is one reason I wish builders would cut back on the new houses. . . .

But many newcomers to Charlotte want a new house. In the northeast, for example, new houses are prohibitively expensive and people who come to Charlotte from there come, in large part, because they want houses that they could not have at home.

[amploud]

Originally Posted by Londonlawyer

But many newcomers to Charlotte want a new house. In the northeast, for example, new houses are prohibitively expensive and people who come to Charlotte from there come, in large part, because they want houses that they could not have at home.

On top of that, many owners of resales expect a selling price 99% to 110% of a similarly-featured brand new home, even though the resale may be out-of-date and in need of more maintenance. Resale listing prices around here can be the epitome of wishful thinking!

[Brooklyn_QueenBee]

My office who are major players with Wachovia was at a basic standstill today. Nothing, but closed doors and dodging media calls. Our business will suffer, all pending deals will basically halt until new ownership begins. This thing is a mess. I can't talk about residential since we are more commercial. The only good news for us, is that we will get bankruptcy and workout deals from the mortgage crisis.

[anifani821]

Originally Posted by arussell

My office who are major players with Wachovia was at a basic standstill today. Nothing, but closed doors and dodging media calls. Our business will suffer, all pending deals will basically halt until new ownership begins. This thing is a mess. I can't talk about residential since we are more commercial. The only good news for us, is that we will get bankruptcy and workout deals from the mortgage crisis.

You are gonna be seeing the fallout upfront and close . . . I don't think anyone, including the "experts" can truly measure what is getting ready to happen - not just here, but all over this country.

I am trying to remain optimistic that when the dust settles, we won't have seen things as devastated as so many are predicting. But I am sure at your desk, Arussell, you are gonna see the fallout in detail.

[chocula]

Citi said they were moving the headquarters for retail banking to Charlotte, which means Charlotte will gain jobs, not lose them.

If they go through with their early commitment, then things will be great here.

[anifani821]

Originally Posted by Londonlawyer

But many newcomers to Charlotte want a new house. In the northeast, for example, new houses are prohibitively expensive and people who come to Charlotte from there come, in large part, because they want houses that they could not have at home.

I am sure you are right. I have heard newcomers say that, and I totally understand that. Why not get a new home if the price is right?

The reason a re-sale can be a great decision would depend on someone's situation . . . but for those w/ kids . . . and the desire to be in a particular school district . . . buying a re-sale may be the only way to do that.

And many of the older homes are on large lots and built to higher standards than recent construction.

Plus, many people like mature landscaping . . .

But I totally understand the draw to a new home.

However, if there is no new construction available . . . It would be better for the real estate market . . . but I know it ain't gonna happen, LOL!!!!

[chicagocubs]

Originally Posted by chocula

Citi said they were moving the headquarters for retail banking to Charlotte, which means Charlotte will gain jobs, not lose them.

If they go through with their early commitment, then things will be great here.

REALLY, REALLY hope that it true. If Citi moves their retail bank HQ to Charlotte, the people that currently work for Wachovia's retail bank (except there it is called "General Bank") would, hopefully, be the ones that would get those jobs. We will be very fortunate if we break even on the job market. However, analysts are predicting between 3-7k job losses. That is a large amount for this area to swallow, especially since finance jobs have been disappearing for over a year already. Many large companies with mortgage divisions have already closed up shop. Those people are either out of work already or are most likely under-employed out of their field. No, things are going to be quite dicey for awhile here. Not to say that we won't rebound, but, it'll take awhile...and, yes, real estate will bear a large brunt of that.