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Old 02-14-2007, 10:29 AM
 
7 posts, read 21,493 times
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Hi my husband and I are moving to Charlotte in 8 weeks. He has negotiated a position with one of the downtown companies. I am interested in purchasing a house , but he wants to lease a nice condo. We are looking for something within 10 miles of 485 to ease the commute. I have been looking at builders through out Charlotte that build in $250 - $300 range. I keep giving him builder information and layouts. He is concerned that the builders are having trouble though out the country. He says that markets that are in jeopardy will bring down other markets because the builders have already moved into the secondary markets and these markets will be saturated and prevent house prices from moving up. I have known that we would be moving since before Christmas and have been checking prices. It appears that the builders have raised their prices in the past 2 months. I mentioned this to him and his response was that was to allow the builders to cover the cost of the large incentives that have to give without dropping the prices of existing homes in the development. Is this true? I think he would buy a house in the near future but he is scared of the following things. The builder dropping prices to compensate for the low sales and this would devaluing the existing community. The builder halts construction before the development is complete. Who maintains the warranty if the builder is bought out by another company. The value of the land falls due to builders not following through with land options or sells off lots in the community. Lastly, the builder decides to change the business plan for the community and builds smaller more affordable homes. I am sorry to ramble so long but I took notes on his thoughts last night. I know he is only looking out for our best interest financially. I am trying to come up with argument so that I can feel at home in my own place and not a condo. Can you give me your thoughts on the above. Thanks, S

 
Old 02-14-2007, 11:08 AM
 
Location: Up above the world so high!
45,269 posts, read 88,615,347 times
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Quote:
Originally Posted by Iwantahouse View Post
Hi my husband and I are moving to Charlotte in 8 weeks. He has negotiated a position with one of the downtown companies. I am interested in purchasing a house , but he wants to lease a nice condo. We are looking for something within 10 miles of 485 to ease the commute. I have been looking at builders through out Charlotte that build in $250 - $300 range. I keep giving him builder information and layouts. He is concerned that the builders are having trouble though out the country. He says that markets that are in jeopardy will bring down other markets because the builders have already moved into the secondary markets and these markets will be saturated and prevent house prices from moving up. I have known that we would be moving since before Christmas and have been checking prices. It appears that the builders have raised their prices in the past 2 months. I mentioned this to him and his response was that was to allow the builders to cover the cost of the large incentives that have to give without dropping the prices of existing homes in the development. Is this true? I think he would buy a house in the near future but he is scared of the following things. The builder dropping prices to compensate for the low sales and this would devaluing the existing community. The builder halts construction before the development is complete. Who maintains the warranty if the builder is bought out by another company. The value of the land falls due to builders not following through with land options or sells off lots in the community. Lastly, the builder decides to change the business plan for the community and builds smaller more affordable homes. I am sorry to ramble so long but I took notes on his thoughts last night. I know he is only looking out for our best interest financially. I am trying to come up with argument so that I can feel at home in my own place and not a condo. Can you give me your thoughts on the above. Thanks, S
I am not a realtor, so I will leave it to one of them here to better explain this to you, but in my opinion, you would NEVER go wrong to buy in Charlotte right now, as long as you choose a very desirable area to live in (of which there are many). I don't think your husband understands the market here in Charlotte - it is not like any other place in the country right now. He seems to be making very generalized statements that just don't apply here. He needs to be educated.

If you decide to rent, do it so you can get to know the area and what side of town you prefer. But buy sooner rather than later or just watch the prices rise above what you could have paid if you had bought earlier.
 
Old 02-14-2007, 11:16 AM
 
1,453 posts, read 4,696,213 times
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Real Estate markets are regional. Here in Charlotte we really haven't seen a lot of change. Yes, prices fluctuate with buildings costs, demand and other factors. But, I don't see a danger of the "Bubble Bursting" as we read nationally. The main reason is that the Charlotte "Bubble" was never over inflated. For the past 4-5 years the appreciation rate for the Charlotte Metro Area has hovered around 8% (give or take a point). There are articles on MSN.com that show appreciation rates for major cities. The cities that have experienced double digit appreciation are more susceptible to depreciation.
 
Old 02-14-2007, 01:02 PM
 
56 posts, read 46,660 times
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Iwantahome your husband sounds like a smart man to have these concerns. I think anyone of his concerns could happen here as they are happening elsewhere as we speak. I do not think the Charlotte region is an different then other areas. We have plenty of land of unbuilt and reclaimable land throughout this region this and unchecked emotion is what caused the spike in price else where. As far as the cost going up I would like to be educated on that also, as anyone can see by traveling to one of the many building supply stores there are deep discounts in the retail supply chain and larger at the builder level. For instance oriented strand board in half the price of a year a go, roofing at 25% discount and caret of hardwood flooring is being discounted by 20% 50% depending on the vendor. The labor that is used to build the house is 90% migrant aliens so the cost of labor is very low. And lots in many of the new communities have been reduced to postage stamp size. So if the material and labor costs have been reduced and the lots are much smaller how is that builders justify raising prices when the current inventory levels are at records highs of 1,000,000 plus homes? And please don't tell me it is improvements to the general area as when all know the roads and schools need plenty of work and many times lower cost housing is be in close proximaty to larger homes.
 
Old 02-14-2007, 02:13 PM
 
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Charlotte is definitely a different market here. Last summer inventory for both new and existing construction was very low. People were overpaying for properties in South Charlotte, Union and the Lake areas because they wanted into these "hot" subdivisions. There are more buyers waiting in the pipeline. About the only thing slowing down this market currently is that buyers can't sale thier homes in other areas.....NY,Fl etc. Yes, the builders are making a killing and will continue as long as there is demand here in Charlotte. Nobody knows the future (speculation) but the Charlotte market seems pretty predictable for the next few years.
 
Old 02-15-2007, 04:18 AM
 
1,453 posts, read 4,696,213 times
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Hi Jennifer,

By saying that our bubble was never over inflated I wasn't incenuating that it's not a good market. Taking that $125k figure you quoted...at 8% over 3 yrs. that same house would go for $157,464; a $200k for $251,942. Eight percent is a healthy rate; not over inflated but at the same time a good return. Certainly a higher rate than one would see on a standard savings account. And, you can live in your investment when its a home; can't live in a savings account! I agree with you that Charlotte is a healthy housing market.
 
Old 03-02-2007, 07:56 AM
 
7 posts, read 21,493 times
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Hi All, I am sorry to say that I have decided not to purchase a house at this time. As I mentioned before DH was very reluctant to purchase now and wants to rent a luxury condo until the markets gain better vision. After seeing all the bad news since I last posted. The home builders with impairment write-offs in the billions and huge misses in earnings. The bankruptcy many sub prime mortgage lenders. The crash of the ABX indices which has spilled over into the Alt A and AA loans. The coming cash crunch due to Fannie Mae no longer taking on high risk sub prime loans. New home sales falling 18% this past quarter. And the flat sales numbers for existing homes if you undo the “seasonal adjustment” in the NAR data. Just a few things my DH pointed in the past weeks. By the way it is difficult to tell a very well educated man that he needs get educated. He asked me to pass the above notes on for those that are also on the fence. So does anyone have any recommendations to an luxury condo's outside the beltway or maybe in the Lake Norman area?
 
Old 03-02-2007, 08:23 AM
 
Location: Up above the world so high!
45,269 posts, read 88,615,347 times
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Quote:
Originally Posted by Iwantahouse View Post
Hi All, I am sorry to say that I have decided not to purchase a house at this time. As I mentioned before DH was very reluctant to purchase now and wants to rent a luxury condo until the markets gain better vision. After seeing all the bad news since I last posted. The home builders with impairment write-offs in the billions and huge misses in earnings. The bankruptcy many sub prime mortgage lenders. The crash of the ABX indices which has spilled over into the Alt A and AA loans. The coming cash crunch due to Fannie Mae no longer taking on high risk sub prime loans. New home sales falling 18% this past quarter. And the flat sales numbers for existing homes if you undo the “seasonal adjustment” in the NAR data. Just a few things my DH pointed in the past weeks. By the way it is difficult to tell a very well educated man that he needs get educated. He asked me to pass the above notes on for those that are also on the fence. So does anyone have any recommendations to an luxury condo's outside the beltway or maybe in the Lake Norman area?
Please show your husband this article from Sunday's Charlotte Observer - he still does not understand the Charlotte market. Especially with rates being this low right now he is crazy for not buying. Sorry he'd rather waste your money on rent

The word for 2006: SOLD

Contrary to nationwide figures, local housing market stayed strong
ALLEN NORWOOD
Home Editor

Home sales in the Charlotte region rose 13 percent last year, contrasting sharply with the national slowdown. In Mecklenburg County, sales of homes, condos and townhouses were up by 11 percent.

Nationally, existing home sales took the worst tumble in 17 years, dipping by more than 8 percent.

Prices rose here, too. The average residential closing price through Carolina Multiple Listing Services, which serves Mecklenburg and surrounding counties, was $221,130. That's up about 4 percent. In Mecklenburg, the average sales price rose about 5 percent to $227,502.

The map reflects average 2006 closing prices for single-family sales in Mecklenburg County, sorted by ZIP code.

And you can find more information -- including average sales price for your neighborhood or complex -- online at www.charlotte.com/home (broken link). You'll find sales for Mecklenburg and selected areas in adjacent counties.

The prices here and online are averages for sales through the MLS for 2006. Some sales -- many new homes, for instance -- don't pass through the listing service. In cases where invalid ZIP codes were posted, closing prices are included in averages but individual sales might not be listed properly.
 
Old 03-09-2007, 01:13 PM
 
7 posts, read 21,493 times
Reputation: 12
This past week has really confirmed that our move to lease a luxury condo is the correct move. I mean I have a realtor screaming that my husband is crazy and needs an education because we want to lease instead of buy. The end of cheap loans to anyone with a heart beat via the FED, Fannie Mae and the meltdown of sub-prime lending. The likely bankruptcy of New Century Financial and Freemont General Corp. and many others. The closing of Charlotte based Ameritrust Mortgage Company's sub prime division. The huge layoff at Charlotte based Wells Fargo. Oh and don't forget the homebuilders. Dr Horton executive says “2007 is going to suck” while posting huge losses along with Hovanian, Centex, MI, Lennar, Toll Brothers and many more. Ya, loves maybe the word for 2006 was sold, but the new word is likely to be bankruptcy, foreclosure or the phrase “here's the keys back “. Now can we get back on topic. Does anyone have any suggestions for luxury apartments.
 
Old 03-09-2007, 01:47 PM
 
462 posts, read 1,687,691 times
Reputation: 215
Quote:
Originally Posted by Iwantahouse View Post
This past week has really confirmed that our move to lease a luxury condo is the correct move. I mean I have a realtor screaming that my husband is crazy and needs an education because we want to lease instead of buy. The end of cheap loans to anyone with a heart beat via the FED, Fannie Mae and the meltdown of sub-prime lending. The likely bankruptcy of New Century Financial and Freemont General Corp. and many others. The closing of Charlotte based Ameritrust Mortgage Company's sub prime division. The huge layoff at Charlotte based Wells Fargo. Oh and don't forget the homebuilders. Dr Horton executive says “2007 is going to suck” while posting huge losses along with Hovanian, Centex, MI, Lennar, Toll Brothers and many more. Ya, loves maybe the word for 2006 was sold, but the new word is likely to be bankruptcy, foreclosure or the phrase “here's the keys back “. Now can we get back on topic. Does anyone have any suggestions for luxury apartments.
Just out of curiousity, where are you getting your facts from because they are a bit alarming to say the least and seems to go against anything else out their that I have read on the Charlotte market. As far as you and your husband deciding not to buy now is your decision and if you feel it is the right thing for you to do than by all means no one else should have a problem with it. Just my .02
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