Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The equity money was what caused the triangle to be late to the party. I stand firm to the idea that what happened in 2008 with other areas will inevitably occur here, probably in 2011. The next phase is the mass exodus of folks leaving the "land of milk and honey" due to lower prospects in RTP and the equity rich folks who might've come down without a stable job prospect exhausting their reserves and heading to greener pastures like Texas.
The Triangle hasn’t been as late to the party as you may think. Already some people have been buying outlying homes for up to 40% less than what they were valued at during the peak. One of my co-workers did just that on a lovely 3,700 sq ft house situated on 1 acre in Johnston County. The place originally appraised in the high 300 to low 400’s and the bank just let it go for around 215 thousand.
Mass exodus from Raleigh?! Nah I don’t see that happening because every State has problems. California is near bankruptcy, New York is now the land of the have and have-nots and Texas has a violent drug war raging just across its boarder.
All things considered I hold firm to my assertion that Wake County North Carolina will be the shinning star of the East Coast. Granted this will all be in the shadow of the aftermath of the Great Recession.
After you rent for 20 years what do you do? Buy a house and carry a mortgage into retirement?
Use the money that was saved by renting (not having to buy a new HVAC, siding, roofing, etc) and remaining mobile (accepting promotions and higher paying jobs requiring relocation without having to worry about the ball 'n chain of a house that won't sell without significant reduction in price), eventually buy a house for half the price it used to be, and take out a 15 year mortgage instead when rates are higher and prices lower. You can always refinance later if rates go back down again.
The Triangle hasn’t been as late to the party as you may think. Already some people have been buying outlying homes for up to 40% less than what they were valued at during the peak. One of my co-workers did just that on a lovely 3,700 sq ft house situated on 1 acre in Johnston County. The place originally appraised in the high 300 to low 400’s and the bank just let it go for around 215 thousand.
Part of that was the scare of $4 gas back in 2007, IMO. People thought it was going to go to 6, 7, or even 10 a gallon before the crash.
Quote:
Mass exodus from Raleigh?! Nah I don’t see that happening because every State has problems. California is near bankruptcy, New York is now the land of the have and have-nots and Texas has a violent drug war raging just across its boarder.
Austin and Dallas are still hotspots and there isn't as much worry about drug wars. El Paso...different story. So, I take back the idea of a "mass exodus". A mollification of growth would be more apt and Raleigh will be less sought after by yanks moving from the north. Unless real estate drops by a lot more here, there are much better deals in other regions in the country. I see a renassiance in FL and (much later on) in CA.
Quote:
All things considered I hold firm to my assertion that Wake County North Carolina will be the shinning star of the East Coast. Granted this will all be in the shadow of the aftermath of the Great Recession.
We shall see. Wake County won't be nearly as bad as CA, FL or Vegas, but we'll be worse off than people think. The federal grants will eventually stop due to forced austerity measures and severely retard a lot of research at places like RTI and at the university level. Charlotte and Atlanta are examples of places that will become more stable than Wake County since they will rely less on academic and research facilities and more on commercial services. Not that I relish that notion since I'm in research myself.
On a happier note...3 homes sold in our neighborhood in the last month. Thats alot considering nothing had sold in months before that. Two had been on the market a long time...close to a yr I would bet. I'm sure they got nothing for them, but at least some of the inventory will get cleaned out.
On a happier note...3 homes sold in our neighborhood in the last month. Thats alot considering nothing had sold in months before that. Two had been on the market a long time...close to a yr I would bet. I'm sure they got nothing for them, but at least some of the inventory will get cleaned out.
I'm pleased when volume is up, even if it's just 3 homes. It means sellers are getting realistic and likely slashing prices. This will allow the triangle area to get towards price stability quicker. I know existing homeowners don't like it, but the quicker they fall, the quicker they can get stable and even trickle up a bit in some cases.
On a happier note...3 homes sold in our neighborhood in the last month. Thats alot considering nothing had sold in months before that. Two had been on the market a long time...close to a yr I would bet. I'm sure they got nothing for them, but at least some of the inventory will get cleaned out.
This is exactly how the housing debacle will ultimately resolve itself. No new building of homes and sellers finally capitulating and selling their existing houses at realistic prices given economic dynamics going forward.
You and I both know that we have agreed to disagree on the home ownership thing but I STILL think you were unwise to rent for 20 years!!!
I do agree that people should buy as a place to live. That was always the reason we purchased homes. The investment issue was the icing on the cake. Prices HAVE gone down, even in the most desirable areas. Some areas were hit more than others. However, Real Estate comes in cycles. Even The Great Depression ENDED!
Do I HOPE prices will rebound and continue? Of course I do. I own TWO HOMES! Do I worry about it? No. It is out of my control.
Has it stopped all buyers from buying and all sellers from selling? No. I still have many great clients who need a place to live and they choose to live in their own home rather than rent someone else's home.
Everyone has a choice. Just because your choice isn't my choice doesn't make either of us wrong. Just different!
Vicki
That's why we're friends, Vicki. We respect each other's opinions.
Use the money that was saved by renting (not having to buy a new HVAC, siding, roofing, etc) and remaining mobile (accepting promotions and higher paying jobs requiring relocation without having to worry about the ball 'n chain of a house that won't sell without significant reduction in price), eventually buy a house for half the price it used to be, and take out a 15 year mortgage instead when rates are higher and prices lower. You can always refinance later if rates go back down again.
The key thing is the 15 year mortgage and being able to afford that and the age you start at. Do you really think in 20 years houses will be half the price they were 3 years ago? You are also betting that long term rental rates relative to housing cost will remain favorable. REIT's related to housing rentals are increasing and I wonder what their impact in the Triangle is this early in the ball game.
No, instead of pouring money into home repairs and taxes, you keep renting possibly in a tax advantaged senior complex.
My problem is I hang out in too many retirement forums. I mean that in all seriousness. I understand your point and also understand another perspective.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Not an event but a process
