Is real estate crashing/going to crash everywhere? (foreclosure, buy, sell)
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Like most of you, I have read plenty of reports about how the housing market is crashing/has crashed nationally. I know that this is especially evident in areas where there was a lot of speculation such as Southern CA, Phoenix, Vegas, and Miami. I am likely going to take a job offer in Charlotte in the next couple of weeks and I have been planning on buying a house there because the market seems relatively unaffected and the population is growing so long-term it seems to me like a good time to buy. Charlotte did not see the huge gains in the past few years that some of the hardest hit markets did so I feel like it's not going to crash. But, I don't know. Could some markets such as this experience a delayed crash? Do you think it's a bad idea to buy now in Charlotte?
real estate is local. Markets are affected by what is going on locally. Are there new jobs? Is the economy growing? Are people being laid off?
What about the current level of inventory? Is there a large supply? A short supply? A large supply may mean prices are softening...and a short supply may mean that prices are appreciating.
There has been a cooling but no crash. In many areas property sales have slowed but prices have not gone down, it is just less profitable for speculators. Some markets will see little or no change so just do a little research before you buy.
How do you determine if a level of inventory is high for an area? I'm assuming it's going to depend on the population level and the number of people looking to own vs. rent but what sort of rations should I look for determine if inventory is high or low?
How do you determine if a level of inventory is high for an area? I'm assuming it's going to depend on the population level and the number of people looking to own vs. rent but what sort of rations should I look for determine if inventory is high or low?
It is called an absorbtion rate. # of Solds in a 12 month period/12 tells you how many sell a month. Look at current inventory. How many months of inventory are on the market today?
Example: 36 houses in the $200-225 range sold last year. 36/12=3 three houses sell a month there are 15 houses on the market. There is a 5 month supply.
Every market to some extent is going to be negatively affected. Other affected more than others. LA, OC, SF, NY, Miami and any other cities with massive appreciation are going to get hurt pretty bad. Other places like Texas less so, in fact Texas is still appreciating to some extent. However everyone I believe will be affected negatively by this. Yes RE is mostly local but the economy is not. If the economy goes bad then it affects everyone regardless of location which affects housing. There have been many reports about how the housing bubble deflating could send the economy into a recession due to consumer spending slowing down. The overall national trend is that inventory is increasing due to the sub prime collapse (means less buyers) and high foreclosure rates (higher interest rates).
Thanks for all the information. Does anyone have a link to a good data source that can show me housing inventory trends nationally/in Charlotte? Thanks again!
Man, I'm just waiting for the houses to go down to something decent in Pheonix! There are a ton of houses but everyone is still too stubborn!
lol yup, that is the trend out here too. It will take a couple months of high inventory for sellers to start getting desperate and lowering prices. Some homes are just auctioned off to the highest bidder (ie. foreclosures) so they just want to get rid of the home ASAP.
Just be patient, stock up a good down payment and your patients will be rewarded with an affordable home.
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