Why Did You Move Out Of Maryland.... (Bethesda, Potomac: relocate, luxury)

[Grizzmeister]

To be honest there are a lot of things to like about Maryland; unfortunately it has gotten, in my extremely humble opinion, to the point that the bad out weighs the good.

The main problem is that housing in almost any half-way decent community is outrageously expensive. I remember seeing ½ million dollar townhouses in Odenton and thinking- man… this is nuts! Worse still is the fact that people are finally realizing that many home prices in the DC metro areas are unjustified or at the very least untenable.

We always used to say that the DC area real-estate market was recession proof because of the government employees, but pundits are now certain that house prices will fall. Not only because of the reality of tightening credit either. The real culprit is the impending wave of retiring Baby Boomers who’ll want to cash out their equity and relocate. And relocate many of them will, to states like North Carolina that don’t have a state income tax on government pensions. Don’t believe it? Well that’s exactly what my mother-in-law did when she retired from the US Census bureau in Suitland Maryland, leaving her water front property in Shady Side, and relocated to retirement friendly Youngsville North Carolina. At the time many of her co-workers thought she was crazy but time has proven her to be crazy like a fox. She cashed out her homes equity and now has it safely invested with the added benefit of finally living free of the stress that came with route 4 traffic during rush hour.

[vanyali]

Why would you ever have said that DC realestate was recession proof? It goes through a boom-bust cycle at least every 10 years.

[Grizzmeister]

Originally Posted by vanyali

Why would you ever have said that DC realestate was recession proof? It goes through a boom-bust cycle at least every 10 years.

Are you implying that the situation we’re witnessing with the Housing Bubble implosion is cyclical? You are aware that some pundits believe home prices may recess back to year 2003 levels?

You may want to read this article:
The Haunted Housing Market - US News and World Report

[vanyali]

Lots of metro areas have cyclical housing markets where housing loses value after rapid gains. Talk to anyone who tried to sell a house in Dale City in the early 1990's. I'll look at your article now.

[Grizzmeister]

Economics 101: An item can not cost more than people can afford to pay for said item.

Fact: The DC area real-estate market saw yearly double digit appreciation from 2002 to 2006.

Question: Whose salary went up by double digits yearly during 2002 to 2006?

Conclusion: Much of Maryland, DC and Northern Va. property is woefully overvalued and must either depreciate or stagnate until salaries catch up.

[Mike Jones 1999]

Originally Posted by Mont. Co. Princess

Mike Jones 1999,

Thanks for the response. Any particular areas to consider that are affordable (homes below $200,000) yet populated by good, decent people?

I'm really trying to live way below my means. I'm in my early twenties and I've decided that living paycheck to paycheck is simply not the life for me.

....my wife and I are looking in the McDonough and Stockbridge areas of Henry County GA. We too are in our 20's (late) and know exactly what you mean. We both are professionals and REFUSE to pay these prices up here for a "detached" home! Some people are fine living in row houses and town houses....this is just not for us....we want a yard. A lot changed for us when we got married and started looking to the future.

The same detached homes which go for 600k+ up here are 250k and below in metro ATL. My wife's family is in the ATL area also...so that is a big plus for us. In addition, we both are in the legal profession and have a lot of colleagues in the metro ATL area. I hope that this helps and I wish you luck.

[Mike Jones 1999]

Originally Posted by Grizzmeister

Economics 101: An item can not cost more than people can afford to pay for said item.

Fact: The DC area real-estate market saw yearly double digit appreciation from 2002 to 2006.

Question: Whose salary went up by double digits yearly during 2002 to 2006?

Conclusion: Much of Maryland, DC and Northern Va. property is woefully overvalued and must either depreciate or stagnate until salaries catch up.

....we may find out in the near future that your conclusion is right.....

[Mont. Co. Princess]

Mike Jones 1999,

I'll look into McDonough and Stockbridge.

Thanks again for the helpful info. Greatly appreciated!

[Tlynn3]

I'm in Florida and the salaries are horrible. I need help. I was thinking of going over to Maryland in order to pay off some debts, I have no property here to deal with so --- I thought - I'll try and live cheap and just pay off debt. Does anyone know about the air quality there?

So are the salaries good in Arizona?

[Gil3]

Originally Posted by Grizzmeister

I now live just outside of Raleigh, NC in the little town of Wake Forest. Moved out of Maryland because I could read the writing on the wall and realized in 2003 that the area was becoming unaffordable to normal middle class people. Consider that my house in Crofton doubled to twice what I paid for it in less than ten years and you see the problem in a nutshell. While the price of my home doubled, my salary didn’t! Also, PEPCO and all the other utilities were threatening to increase their rates at a time when my house already seemed like an overpriced luxury. So I sold my 2500 sq ft house in Maryland and downsized to a new 2000 sq ft house near Raleigh and I have zero regrets.

When I look back at my last few years in Maryland, it’s almost as if I was living in a prison. Stress getting to work, stress at work and racial tension that is incomprehensible given the diversity of the area.

Man..Couldn't have said it better myself. Plus the never-ending tension between the locals and transplants.