How does the CHARLOTTE Real Estate market compare? (for sale, lease)

[gizmobizmo]

Real Estate agents, please jump in with your thoughts too.

I've read that the R.E. market in Charlotte in down approx. 8% now.

Compared to many parts of the country, that doesn't seem too terrible since others have been slammed pretty hard. I know, it isn't good for those who are losing equity though. It appears that this market didn't see the explosion in RE prices and the market may rebound quicker than other parts of the country due to the continued population growth here.

For those of us looking to take advantage of the drop in RE prices and better interest rates, how does a person know when to actually take the plunge? Any advice?

Are homes in a particular price range a better bet than others? I've heard that resale value is better for mid-range homes like what we are looking at.

BTW, the price range we are looking in is $225,000 - $275,000.

Thanks for your advice.

[CouponJack]

Originally Posted by gizmobizmo

Real Estate agents, please jump in with your thoughts too.

I've read that the R.E. market in Charlotte in down approx. 8% now.

Compared to many parts of the country, that doesn't seem too terrible since others have been slammed pretty hard. I know, it isn't good for those who are losing equity though. It appears that this market didn't see the explosion in RE prices and the market may rebound quicker than other parts of the country due to the continued population growth here.

For those of us looking to take advantage of the drop in RE prices and better interest rates, how does a person know when to actually take the plunge? Any advice?

Are homes in a particular price range a better bet than others? I've heard that resale value is better for mid-range homes like what we are looking at.

BTW, the price range we are looking in is $225,000 - $275,000.

Thanks for your advice.

The best advice I could give for anyone looking to buy or sell is to not just rely on a realtor. You absolutely need to do your own homework to make an informed decision. Right now inventory is sky high and interest rates are at their historic lows.

Also, everyone's situation is different. There are many factors one must weigh in deciding whether its the right time to buy or not. We cannot give you yes or no answers on your particular situation because we don't know all the particulars.

[lovesMountains]

Originally Posted by gizmobizmo

Real Estate agents, please jump in with your thoughts too.

I've read that the R.E. market in Charlotte in down approx. 8% now.

Compared to many parts of the country, that doesn't seem too terrible since others have been slammed pretty hard. I know, it isn't good for those who are losing equity though. It appears that this market didn't see the explosion in RE prices and the market may rebound quicker than other parts of the country due to the continued population growth here.

For those of us looking to take advantage of the drop in RE prices and better interest rates, how does a person know when to actually take the plunge? Any advice?

Are homes in a particular price range a better bet than others? I've heard that resale value is better for mid-range homes like what we are looking at.

BTW, the price range we are looking in is $225,000 - $275,000.

Thanks for your advice.

That 8% is a generalization. In some neighborhoods prices are holding much steadier, or at the most 2-3% decreased. Of course in some neighborhoods it's more than 8%. This is where location, location, location comes in play.

Not sure any one person can tell you when the "best" time to jump in is because that will only be known in hindsight. I can tell you I think this is a great time to buy some great deals.

I can also tell you that while many do seem to think the rates can still go a little bit lower, I am like the cautious player on "Deal or No Deal", LOL - I always swear if I get on that show I'll be so thrilled to be at the say $200,000 level that I will take the deal rather than risk losing that much to try for the million Basically what I mean is, RATES ARE GREAT right now, I don't think I would personally wait around for them to get better IF I found a home I loved and was planning to buy anyway in the next year.

[anifani821]

As Jack and Loves have advised . . . situations are individual . . . and neighborhoods can vary a lot - with location being the key to future value (IMO).

I would do my own research. I would look at schools first. What schools are stable and are at the top in performance. I would only buy in an area w/ stable, high performing schools as that is a variable in the equation that you can control - you can choose the schools you like the best. Even if you yourself do not have children that will attend those schools, this will affect re-sale down the road and affects desirability of the neighborhood (demand).

Once I decided on the schools, I would probably get a realtor involved to help me sort out houses that fall in those confines. You should have a realtor willing to give you plenty of hands-on, individual attention. I would advise you consider looking at re-sales as well as new construction. I personally would rather be in a stable older neighborhood but again - that is an individual decision.

As far as interest rates, I have loans at 6% and 6.25% on two houses. Historically, those are rates I never expected to see in my lifetime. I bought my first home in the 70s. In that 30 year span, rates were as high as 14% and never went lower than 7.5%, until this crazy run on low interest rates in the last few years. Anyone quibbling over buying b/c they think interest rates will go lower than 4.5% or so is just silly. The days of 14% rates are not THAT long ago . . . and my parents say interest rates at 6% were something they honestly never thought they would see again. So don't let discussions about interest rates going down affect your decision. The only thing one should consider is that interest rates will eventually go up and they could skyrocket when they do go up. Who knows????

If your mortgage payment will be close to what you are paying to rent . . . then building net worth should be one of your considerations w/ buying. All this discussion about the value of homes going down more . . . well . . . if you are paying $1200 a month in rent, you are losing $15,000 or so a year on rent . . . so what is the difference? Everyone seems to be so caught up in this mentality of being concerned about home valuation, when it is a variable anyway and an artificial number assigned to a home. If you are in your home, enjoying it, finding it good to be located there, appreciating the social aspects of a neighborhood plus the pride and security of owning a home . . . worrying about your home's value should not really be an issue as long as you plan to remain in your home several years.

Of course, if you decide to wait a year or so . . . there will always be desirable houses on the market! Yes, the interest rate may have changed . . . prices may have come down some . . . but you will have missed out on a year of enjoying your home. It all is relative and weighs out in the longrun - if you are purchasing for the right reasons. And the right reason to purchase a home is b/c you want a home, plan to stay in it for a while and want to build your net worth ON PAPER.

I find it counter intuitive that people will buy a very expensive new car, knowing it depreciates the day one drives it off the lot . . . and yet will put off buying a house b/c they are so afraid the value will go down a few points. We pay $35,000 -45,000 for a vehicle and know damn well it won't be worth MORE in six months - much less three years! So I can't figure that line of thinking out . . . at least a house is an asset, whereas a car is simply an expense!!!!!

You just have to think it all through and decide where you comfort level is. After all, no one has a gun to your head to buy right now. If you don't feel good about buying, then wait. But if you feel that for you and your family - this is the right thing - then start doing some homework, check things out, see what appeals to you, find yourself a dedicated realtor to help you navigate the journey - and see where that leads you. Even if you get down to the line and have chosen a house to make an offer on, if it doesn't feel right at that point - don't sign the offer. You are in control, after all!!!

[sheenie2000]

Originally Posted by anifani821

The only thing one should consider is that interest rates will eventually go up and they could skyrocket when they do go up. Who knows????

Or they could continue to go down? A few months ago who would have thought interest rates would be as low as they are?

Interest Rate Trends ~ Historical Graphs for Mortgage Rates

If you scroll to the last graph, historically interest rates have been going down since the 80s.

I find it counter intuitive that people will buy a very expensive new car, knowing it depreciates the day one drives it off the lot . . . and yet will put off buying a house b/c they are so afraid the value will go down a few points. We pay $35,000 -45,000 for a vehicle and know damn well it won't be worth MORE in six months - much less three years! So I can't figure that line of thinking out . . . at least a house is an asset, whereas a car is simply an expense!!!!!

I thought cars and houses both are assets. Cars just depreciate quickly. After a few years, you still can get some money back if you sell it.

Also people are more afraid with a house because you have to sign 30 year loan as opposed a car you can pay in cash or take a 3-5 year loan. A house is also several hundred thousand dollars as opposed to a car which is only 30K.

I do think though a house doesn't make as much money as people feel. It seemingly does because the value goes up with inflation but what about all the money homeowners put into upgrades/repairs and property taxes? I have a feeling both are at a loss.

I do agree that one should buy a house to enjoy ownership, when it's the right time, and put down roots.

[anifani821]

Originally Posted by sheenie2000

Or they could continue to go down? A few months ago who would have thought interest rates would be as low as they are?

Interest Rate Trends ~ Historical Graphs for Mortgage Rates

If you scroll to the last graph, historically interest rates have been going down since the 80s.





I thought cars and houses both are assets. Cars just depreciate quickly. After a few years, you still can get some money back if you sell it.

Also people are more afraid with a house because you have to sign 30 year loan as opposed a car you can pay in cash or take a 3-5 year loan. A house is also several hundred thousand dollars as opposed to a car which is only 30K.

I do think though a house doesn't make as much money as people feel. It seemingly does because the value goes up with inflation but what about all the money homeowners put into upgrades/repairs and property taxes? I have a feeling both are at a loss.

I do agree that one should buy a house to enjoy ownership, when it's the right time, and put down roots.

Yes, you are right - people will say a car is an asset, but the way I see it (not what is on paper) a car is an expense. You are losing money on it every month you own it, plus repair costs and operational costs. But as far as a spreadsheet, yes, a car is an asset.

My big thing, Sheenie, is exactly what you are saying - "houses not making as much money as people feel." BINGO. People used to not see their house as an ATM, they saw it as a secure asset - something that meant their family would have a roof over their heads and the goal was TO PAY IT OFF. But that shifted when interest rates went down and loans became easy to get - and a whole new mentality was created - that of FLIPPING HOUSES FOR PROFIT. A whole new generation (Gen Xers) got into the housing market and they saw buying a house as part of a plan to generate money, whether from buying and selling houses quickly (taking advantage of upticks in appreciation) or through cashing out equity on appreciated property.

My point is that a house is home where you live, and the goal is to do what Dawn said - outright own your paid off house at some point - thus, providing security for you and your family.

A sub-reason for owning a home is the tax benefit, but that is not the best reason for buying a home. It is an ADVANTAGE of home ownership, however.

Buying an expensive car will give you something nice to drive for a while, but 30 years down the road, you will not want to live in it, LOL. Yet, we purchase cars knowing that the money we are spending represents a big chunk (large percentage) of what we COULD be spending on a home (or a mortgage). We tie ourselves down to this payments of over $450 a month (in many cases) or we lease, in wh/ case, that car represents NO NET WORTH value at all.

What I am trying to get people to think about is how we spend our money; what the long term goals are; and how we have developed mindsets about spending money. We accept that we buy an expensive car and it will quickly depreciate . . . yet we quibble over buying a house that may possibly go down somewhat in value in the SHORT TERM (but will, over time, appreciate).

I hope people will start thinking of buying a home as a long term investment wh/ builds net worth OVER TIME.

[lovesMountains]

Originally Posted by anifani821

Yes, you are right - people will say a car is an asset, but the way I see it (not what is on paper) a car is an expense. You are losing money on it every month you own it, plus repair costs and operational costs. But as far as a spreadsheet, yes, a car is an asset.

My big thing, Sheenie, is exactly what you are saying - "houses not making as much money as people feel." BINGO. People used to not see their house as an ATM, they saw it as a secure asset - something that meant their family would have a roof over their heads and the goal was TO PAY IT OFF. But that shifted when interest rates went down and loans became easy to get - and a whole new mentality was created - that of FLIPPING HOUSES FOR PROFIT. A whole new generation (Gen Xers) got into the housing market and they saw buying a house as part of a plan to generate money, whether from buying and selling houses quickly (taking advantage of upticks in appreciation) or through cashing out equity on appreciated property.

My point is that a house is home where you live, and the goal is to do what Dawn said - outright own your paid off house at some point - thus, providing security for you and your family.

A sub-reason for owning a home is the tax benefit, but that is not the best reason for buying a home. It is an ADVANTAGE of home ownership, however.

Buying an expensive car will give you something nice to drive for a while, but 30 years down the road, you will not want to live in it, LOL. Yet, we purchase cars knowing that the money we are spending represents a big chunk (large percentage) of what we COULD be spending on a home (or a mortgage). We tie ourselves down to this payments of over $450 a month (in many cases) or we lease, in wh/ case, that car represents NO NET WORTH value at all.

What I am trying to get people to think about is how we spend our money; what the long term goals are; and how we have developed mindsets about spending money. We accept that we buy an expensive car and it will quickly depreciate . . . yet we quibble over buying a house that may possibly go down somewhat in value in the SHORT TERM (but will, over time, appreciate).

I hope people will start thinking of buying a home as a long term investment wh/ builds net worth OVER TIME.

Ani, AS USUAL, good job - you should be teaching a class or something - you have insight and info a lot of younger people really need People who see their cars as an asset really are not understanding the way things work.

[gizmobizmo]

I appreciate eveyones answers so far. I realize there are many factors to consider and nobody has "THE" answer.

Where I used to live, I knew that market area like the back of my hand. I knew if I bought in "this" neighborhood, I was making a much safer bet than if I bought in "that" neighborhood. Also, years ago, when I purchased a home, I planned on being in it for a while. Now, with the economy, there is so much uncertainty. I don't like tossing thousands of dollars away on rent though.

Now, I am in an area that I don't know and have to rely on others for information. I have an agent who is helpful but I also know that he wants to make a sale, so I take some things with a grain of salt. I do my research but I have found that others can often offer insight into things I may not have considered previously. Therefore, I ask questions of the fine CD folks in Charlotte to point me in the right direction till I'm more familiar with the area.

It seems that every neighborhood I've looked at is missing something.
One has great schools but outrageous HOA fees. One has good schools but very strict HOA rules. One has lenient HOA rules but the houses aren't as well-cared for. Finding one that doesn't require $25,000 worth of re-habbing in my price range seems to be a fantasy that I've been having.

And what is with all these darned HOA subdivisions anyway? It's like a plague of them have swept through Charlotte. They were hard to find where I used to live and we had plenty of nice neighborhoods. Every single house my agent has showed me to date was in an HOA.

It would be nice if there was a BIG RED Arrow pointing at the different neighborhoods that says, "Buy In Here, U can't Go Wrong!" LOL!!!

[anifani821]

HEE HEE. Loved your post!

I felt the same way when I moved back here - couldn't believe what had happened w/ all these new neighborhoods. The Charlotte I knew had several "rules" for the "right neighborhood."

Buy in S. Charlotte off Carmel (inside 51) if you can't afford Myers Park or Carmel Country Club; stay w/in 3 miles of SouthPark. That made it easy!

Buy in Cotswold if you want closer to the city.


Those were the rules; they were easy. I didn't have time to think about it, cause I had 5 weeks to find a house and close on it!!!! I didn't even consider a new home in a new subdivision.

SO I think by following "the old rules" I knew from back in the 80s . . . it worked out fine for me.

I suspect you are interested in a new home, tho . . . and you won't find that here, except for a few ostentatious looking McMansions that have been built on "tear down" property, LOL.

[gizmobizmo]

Originally Posted by anifani821

HEE HEE. Loved your post!

I felt the same way when I moved back here - couldn't believe what had happened w/ all these new neighborhoods. The Charlotte I knew had several "rules" for the "right neighborhood."

Buy in S. Charlotte off Carmel (inside 51) if you can't afford Myers Park or Carmel Country Club; stay w/in 3 miles of SouthPark. That made it easy!

Buy in Cotswold if you want closer to the city.


Those were the rules; they were easy. I didn't have time to think about it, cause I had 5 weeks to find a house and close on it!!!! I didn't even consider a new home in a new subdivision.

SO I think by following "the old rules" I knew from back in the 80s . . . it worked out fine for me.

I suspect you are interested in a new home, tho . . . and you won't find that here, except for a few ostentatious looking McMansions that have been built on "tear down" property, LOL.

Ani,
You pegged how I used to know my old hometown perfectly. I knew "The Rules." Here, I'm still trying to find the rulebook! LOL!!!

Although I like the floorplans and open feel of new homes, I'm not locked in on one. There was a time when I had older homes and wasn't afraid to tackle re-modeling projects. Now, I'm just too tired to rip out cabinets, carpets and what not. UGH!!! If I could find an older home that had been well-cared for, clean and had good sized closets on about an acre or two in the country........Well, I would be one happy little camper!

Oh, an to actually have an extra garage to park my car. That would be heaven! Right now, the garage is home to "stuff" we can't part with and a motorcycle while my $30,000 SUV sits outside in the rain. Go figure!

I actually get out and drive up and down the country roads now and again to see if there might be anything that catches my eye. Too bad the ones I like are never for sale. I wonder if I could do like that woman in "War of the Roses" and just go ask them if they'd sell it to me.