Holden Beach - When do you think prices will fall even lower? (Wilmington: for sale, real estate market)

[raleighkc]

I've been researching towns like Oak Island, Carolina beach, and Holden Beach for the past year looking for a 2nd home. I can't believe Holden Beach still doesn't have any single family homes (not duplexes/condos) for under $300,000. I drive up and down its streets and it seems every 4th house is for sale. What do you think about its real estate outlook?

[seashellbelle]

Originally Posted by raleighkc

I've been researching towns like Oak Island, Carolina beach, and Holden Beach for the past year looking for a 2nd home. I can't believe Holden Beach still doesn't have any single family homes (not duplexes/condos) for under $300,000. I drive up and down its streets and it seems every 4th house is for sale. What do you think about its real estate outlook?

Unless you purchase something in foreclosure, you will unlikely find a home under $300,000 on HB. Prices there are remaining steady, due to it's desirability, location to the coast, and Sellers just aren't in a hurry to reduce their price, and many don't have to. This is a good thing for homeowners as they are seeing their property values remain steady and resilient, it can be frustrating for Buyers. If you go a little further inland, you should find something in your price range.
You may find something more affordable on OI. Have you been using a Realtor to assist you? Rather than driving up and down the streets, with no representation from an agent, I'm afraid you are just wasting gas and spinning your wheels.
If anything I predict pricing to go up in 2010, so this year will probably be the best to purchase, as interest rates are very low, but they too are starting to creep up.
If I can be of any assistance with your questions, please feel free to DM, I have assisted many navigate the daunting task of finding a place at the beach.

[Uneekarts]

I wouls say foreclosures are the first thing you should be looking at now and according to the local news, Bruinswick County has been hit hard.

Foreclosures rates hitting Brunswick County hard | WWAY NewsChannel 3 | Wilmington NC News

Not all forecolsures are "buy a house for $50" deals so you need to do your homework.

Good luck.

[NC man]

Never, I hope, invested 10 years ago and no reason to sell anytime soon and that is the feeling with lots of folks on the island.

[wilmingtonangel]

598,000 jobs were lost in January alone. The economy is contracting. People are starting to realize that the easy credit days are over. The first government stimulus didn't change the real estate market, the bank bailout didn't change the real estate market, and neither will the next stimulus bill that is in congress right now.

Be patient, prices will continue to go down.

[geos]

Originally Posted by wilmingtonangel

598,000 jobs were lost in January alone. The economy is contracting. People are starting to realize that the easy credit days are over. The first government stimulus didn't change the real estate market, the bank bailout didn't change the real estate market, and neither will the next stimulus bill that is in congress right now.

Be patient, prices will continue to go down.

You got that right. Patience is a BIG virtue at this time. 2010 should tell the tale.

Housing Crash: Latest Real Estate News, Home Value Updates: US Housing Update

[giffman]

Originally Posted by seashellbelle

Unless you purchase something in foreclosure, you will unlikely find a home under $300,000 on HB. Prices there are remaining steady, due to it's desirability, location to the coast, and Sellers just aren't in a hurry to reduce their price, and many don't have to. This is a good thing for homeowners as they are seeing their property values remain steady and resilient, it can be frustrating for Buyers. If you go a little further inland, you should find something in your price range.
You may find something more affordable on OI. Have you been using a Realtor to assist you? Rather than driving up and down the streets, with no representation from an agent, I'm afraid you are just wasting gas and spinning your wheels.
If anything I predict pricing to go up in 2010, so this year will probably be the best to purchase, as interest rates are very low, but they too are starting to creep up.
If I can be of any assistance with your questions, please feel free to DM, I have assisted many navigate the daunting task of finding a place at the beach.

I disagree. If your assumption that people are in no hurry to sell is true, why are so many houses on the market?

My theory is that most people are upside down in the value of their homes and they cannot go any lower. Beach prices will not start rising in 2010. There is simply no demand for it. We need to be at least one year removed from this recesion before people even start thinking about discretionary purchases such as beach homes. We'll probably be two or three years removed from this recession before prices at the beach start going up again.

Unless you find a sweet deal in forclosure, your best bet is to wait about five years to make a purchase. Prices will stagnate but your earning level will not. If a realtor tells you differently, remember how our economy got into this mess in the first place.

[NCBND]

Forget about coastal NC and head a few miles south to Myrtle Beach. No one there, including even the realtors, will insult your intelligence by pretending that the real estate market is anywhere near stability. I get all of the foreclosure listings from the MB MLS and can barely keep up with them. Prices there are in a free fall as this stuff keeps on cascading onto the market. I've posed the question before on this forum as to why driving 10 miles north and crossing the NC/SC state line suddenly changes the entire supply/demand/pricing equation. Although I've heard some interesting and creative rationalizations I've yet to hear a logical one.

Giffman is right. Be patient and the Invisible Hand will come to visit even coastal NC.

[LLN]

I don't think they will come down.

That doesn't mean that the houses will sell for anywhere near what they are asking, but folks just cannot believe that they are not going to make their big profit like all the others DID, I say again, DID.

A lot of folks are not real bright, in fact, 50% have less than average intelligence. The prices will stay listed high, until someone has to have the cash, regardless, then, if a buyer comes along who is interested in the property makes an offer, they have to take, they will take it.

I would make offers on any home I wanted. But, I would only make offers on homes that I wanted to own. To live in, not to invest in.

This garbage about homes being investments is just that, and has been spawned over the last 30 - 40 years be "non-value" people in the real estate supply chain.

A home investment is a poor choice. If you want to invest, get a CD or something like a mutual fund. If you find a place where you want to live, then buy it.

lln

[giffman]

Originally Posted by LLN

I don't think they will come down.

That doesn't mean that the houses will sell for anywhere near what they are asking, but folks just cannot believe that they are not going to make their big profit like all the others DID, I say again, DID.

A lot of folks are not real bright, in fact, 50% have less than average intelligence. The prices will stay listed high, until someone has to have the cash, regardless, then, if a buyer comes along who is interested in the property makes an offer, they have to take, they will take it.

I would make offers on any home I wanted. But, I would only make offers on homes that I wanted to own. To live in, not to invest in.

This garbage about homes being investments is just that, and has been spawned over the last 30 - 40 years be "non-value" people in the real estate supply chain.

A home investment is a poor choice. If you want to invest, get a CD or something like a mutual fund. If you find a place where you want to live, then buy it.

lln

I wouldn't go so far as saying real estate is not a good investment. I've got two rental properties that each net me $300 positive cash flow per month. Speculative real estate is what you are referring to. For the most part, this is what beach real estate is. Run the numbers on any beach property. If you keep the thing fully rented over the summer, you might get away with a 10k LOSS per year.............if your lucky. I've run the numbers on dozens of beach properties and I usually find that losses are closer to 20k per year. Over the past 8 years, people have lost touch with simple fundamentals.

I've posted this on this board before and I'll say it again. If any realtor can find me a property at the beach that can net me positive cash flow, I'll buy it now. Heck, I may even settle for a break even proposition. So far, no one has taken me up on this offer.