Price of new homes going up! (Charlotte, Wake Forest: lawyer, equity loans, refinance)

[TornadoAlley]

Originally Posted by connie

Yup, I think so too. One other factor - many Californians are looking at other areas of the country and thinking "hey, wait a minute. That town in Colorado, New Hampshire, Utah, NC etc is actually NICER than where I live." Not only is it cheaper, but it's actually nicer. Maybe not if you're from southern Cal or the Bay Area, but much of California is just "regular." It's one thing to live in a cheap regular town, it's another thing to live in a crazy expensive regular town. When we visited Charlotte, we couldn't believe how much nicer it was than where we lived! Not just less expensive, but prettier and more exciting.

We go in Sept'06 and I have seen pictures from a friend who moved there. Very nice area! I agree, less expensive and nicer area. Why not? While I am not taking as much money as some made off their homes ($69k) I can put that on a $200k home and have a small payment and a nice area. I am there!

[connie]

That's our mind set as well. Have you selected an area to live and, if so, what made you pick that area? You're from the east coast, right? Why NC? I looked into New Hampshire for a while, looks fantastic, but my husband can't deal with too much snow. I have this mental image of the Northeast and New England that it's a great place to be. But it looks like a lot of NJ and NY people are moving south.

I shall try not to feel bitter and resentful toward you for selling your home while I sit here trying to sell mine!

[TornadoAlley]

Originally Posted by connie

That's our mind set as well. Have you selected an area to live and, if so, what made you pick that area? You're from the east coast, right? Why NC? I looked into New Hampshire for a while, looks fantastic, but my husband can't deal with too much snow. I have this mental image of the Northeast and New England that it's a great place to be. But it looks like a lot of NJ and NY people are moving south.

I shall try not to feel bitter and resentful toward you for selling your home while I sit here trying to sell mine!

I haven't sold yet. I am on the west cost. I picked there for a few reason. I'll send you a PM.

[TornadoAlley]

I didn't see the edit button. I sent you a email instead.

[RedNC]

Home sales in CA have definitely slowed, but they are still selling. The prices are adjusting, and a home that is priced 5 to 7% below 2005 prices are selling.

The jobs outlook is good, but there are some areas that are not as good as they once were. IT, and construction are two that come to mind.

IT is due to outsourcing and advancements in technology. In the early 90’s only a few people understood computers or were required to use one. Now almost every worker is required to understand how to use a computer as a minimum requirement for employment. Some companies that had a computer staff as a necessary evil (CEO words not mine) they now find that they can get along with a service contract from an outsource consulting business, instead of onsite support.

Construction has been inundated with illegal workers. The once good paying skilled construction jobs have been replaced with low skilled laborers that will work for half what a US citizen would be able to work for. Now if don’t speak Spanish you cannot work in most construction jobs. If the borders ever get under control these better paying jobs may return. These illegal workers will either go back home, or once they have to pay taxes and the same cost to live as the workers that they are under cutting the labor rates will return to a level that American workers will replace them.

As for the gloom and doom about CA and everyone leaving I believe you are seeing a temporary adjustment. Most people I know love CA and wouldn’t want to live anywhere else.

Another thing about the shaky loans. That is a very small percentage of homeowners in CA. Some things to look out for are the CA homeowners that used their equity to buy investment rental homes in LV, AZ, TX, etc. If they were unable to keep up their payments on their rental home, which one do you think they would sell first?

[TornadoAlley]

Originally Posted by RedNC

Home sales in CA have definitely slowed, but they are still selling. The prices are adjusting, and a home that is priced 5 to 7% below 2005 prices are selling.

The jobs outlook is good, but there are some areas that are not as good as they once were. IT, and construction are two that come to mind.

IT is due to outsourcing and advancements in technology. In the early 90’s only a few people understood computers or were required to use one. Now almost every worker is required to understand how to use a computer as a minimum requirement for employment. Some companies that had a computer staff as a necessary evil (CEO words not mine) they now find that they can get along with a service contract from an outsource consulting business, instead of onsite support.

Construction has been inundated with illegal workers. The once good paying skilled construction jobs have been replaced with low skilled laborers that will work for half what a US citizen would be able to work for. Now if don’t speak Spanish you cannot work in most construction jobs. If the borders ever get under control these better paying jobs may return. These illegal workers will either go back home, or once they have to pay taxes and the same cost to live as the workers that they are under cutting the labor rates will return to a level that American workers will replace them.

As for the gloom and doom about CA and everyone leaving I believe you are seeing a temporary adjustment. Most people I know love CA and wouldn’t want to live anywhere else.

Another thing about the shaky loans. That is a very small percentage of homeowners in CA. Some things to look out for are the CA homeowners that used their equity to buy investment rental homes in LV, AZ, TX, etc. If they were unable to keep up their payments on their rental home, which one do you think they would sell first?

Investors are only buying houses less than $300k. in our area. Otherwise their payment is to high and rent will not cover it. But, your right, regardless how many people leave CA and AZ or even NV most still love it there or are stuck there with no equity as you stated to move.

I personaly know 3 people who did the 1% deal to get in (No matter how many times I said it was a bad idea). I am sure others may say they know people too. Maybe people don't talk about it much because its hard to say "I didn't qualify for 6% so I got the 1% to get in. That promotion will come, I just know it and I will beok in 3yrs"...lol

When we got our house last year the loan officer said the 1% was so popular and said not to do it. She would rather see people do a 40yr instead of a 1% APR. I think she is right.

[Weis02]

NY is very similar to CA, while prices and costs are high, there are still people who love it here and will stay no matter what the cost and high payments. There are people out there looking to buy, more and more people are getting help from their parents, putting 0-3% down...I do not think there are so many investors out there anymore here, just people wanting to own a home. THe days for investing and flipping for a profit in the short term are over here for a while, but i wonder if that is something that will occur in NC

[Grass Is Greener]

I am not sure if there is room for flipping in NC. If you buy an older property and remodel it at the end your price will not be competitive with all the new development. If you buy a new construction you'd need to wait until the area is build out, so it is more of a long term investment.

[Weis02]

But many are thinking it is investment area - that was my point, what happens when the prices don't go up as they expect?

[TornadoAlley]

Originally Posted by Grass Is Greener

I am not sure if there is room for flipping in NC. If you buy an older property and remodel it at the end your price will not be competitive with all the new development. If you buy a new construction you'd need to wait until the area is build out, so it is more of a long term investment.

If you were going to buy land and sit on it, where would it be (NC or SC doesn't matter)?