New Construction Prices Don't Seem To Be Going Down (Raleigh: 2014, apartment)

[lancers]

Originally Posted by CHTransplant

My point wasn't about the distance or whether it's a do-able commute, but rather whether those towns qualify as "bedroom communities" for RTP.

That's semantics. It means something different where you are up here anything within an hours drive to NYC is a bedroom comm. You pay for it too.

[VeniceBound]

Originally Posted by MikeJaquish

NAHB: Framing Lumber Prices

It looks like lumber pricing is down significantly from the highs of 2004-2006.

[MikeJaquish]

Originally Posted by VeniceBound

It looks like lumber pricing is down significantly from the highs of 2004-2006.

And, 30-38% higher than the lows of winter 2008-2009.
It is a fairly volatile commodity.

Interesting stuff:
http://www.randomlengths.com/base.as...Random_Lengths

[KCfromNC]

Originally Posted by MikeJaquish

NAHB: Framing Lumber Prices

Peaked 2q-3q 2004. Current prices are roughly half of that. That's way down from the peak by any standard. Sure, it's volatile but so is the rest of the housing market. Doesn't change the fact that it's cheaper to build a house now than during the bubble.

Economics | Materials Trends | ENR: Engineering News Record | McGraw-Hill Construction

Building and Construction Cost Indexes – Construction Materials Trends -- ENR: Engineering News Record

Unless you want to provide us log in information all they show is the past year of data in a barely-readable charts. Considering the construction bubble popped years ago that's not particularly useful.

[MikeJaquish]

Originally Posted by lancers

I am still some time away from purchasing a new home but I have been following the pricing of a couple of moderately priced developments around Durham. Within 45 minutes or so actually. Specifically Carthage Colonies in Sanford and Paddington in Creedmoor. Prices seem to be around 20K higher in most cases than a year ago this time. Are most of you finding this to be the case? My price range is in the neighborhood of 175K for slightly smaller than 3000 square feet.

Originally Posted by lancers

True but they are in competition with homes already in inventory. If you buy into all the gloom and doom you would think that at best they would hold prices from last year.

Originally Posted by lancers

You can look at Paddington in Creedmoor and Carthage Colonies in Sanford. Both are under 60 bucks a square foot. The same home in Durham is under 70 a square foot.

I currently live in NJ and I know how much these would go for up here. Last time I looked Durham wasn't close to NYC.

Originally Posted by lancers

This isn't a north south thing. I know the economy can't support the prices in the large metro areas here and in Cali and from what I have heard it isn't that easy to find a job in NC either. No I wouldn't expect anymore than builder basic for near those prices.

Originally Posted by lancers

Joe I know that KB is not Toll Brothers or some upscale local builder but I would assume these homes have to pass inspection. Granted NC did not see bubble prices like some other areas in the US did but a lot of people expect further erosion in pricing. My reason for posting the thread was just to say that from the little that I can see on the net the pricing on two developments that I have been watching have gone up around 20K not down. Personally I think a 3K sq ft house on 1/4-1/3 acre priced around 175K with property taxes in the neighborhood of 3K annually is a great deal.

I know that Creedmoor and Sanford are not Durham but a 45 minute commute to RTP make them what you might call bedroom communities right?
I have visited Durham maybe half a dozen times and being from NJ do not consider it a big city. It has a downtown area true but from my point of view it is rural subrural Creedmoor and Sanford obviously more so. That is what I am looking for though.

Originally Posted by lancers

You telling me the prices on the website are incorrect? I have visited a few developments and I can assure you they are real homes. It is what it is the prices are what they are.

Originally Posted by lancers

No. This is with a garden tub and middle of the road tile instead of vinyl in the bathrooms kitchen and utility room. I'm 60 with no school age kids I plan on dying in the house I don't care if its a 45 minute commute to RTP that's how far my commute is right now. 20% is 35K you're off by quite a bit.

Originally Posted by lancers

There is no problem that is not the point of the thread. I was basically asking if anyone else is seeing this as well. RE is going down nationally. Prices for new homes seem to be holding up or going up in NC.

Originally Posted by lancers

Exactly. This is one example. Hopefully it isn't in a bad area. I have to check it out more.


Moderator cut: Links to real estate properties are NOT allowed.

Originally Posted by North_Raleigh_Guy

Real Estate is Local

Yes it is, to a great degree. Even commodities have local pricing fluctuations. If we take a hit from Irene, just watch the prices of OSB and plywood short term.

Originally Posted by lancers

I live in New Jersey not near New York closer to the Shore area. There are a ton of what are considered to be bedroom communities to NYC and the commute is a heck of a lot longer than 30 minutes. The Triangle is a steal and if you don't plan on working in or around Durham you should be able to buy really cheap. That's my plan anyway buy cash and get a part time job to pay living expenses. Might be best to get a month to month rental and check out all the areas near RTP before buying. I really like the strip on 70 near the Walmart. Durham County is nice.

Originally Posted by KCfromNC

Peaked 2q-3q 2004. Current prices are roughly half of that. That's way down from the peak by any standard. Sure, it's volatile but so is the rest of the housing market. Doesn't change the fact that it's cheaper to build a house now than during the bubble.



Unless you want to provide us log in information all they show is the past year of data in a barely-readable charts. Considering the construction bubble popped years ago that's not particularly useful.

Did the OP in any of those posts tie his observation to 2004--2006? I don't see it, other than a vague comment that the national bubble had less effect locally.
Has he been watching the local new construction market since 2005? I don't see it.
We could just as easily cite Winter 2009 and wonder why prices aren't UP.
Or even in some respects, Summer 2010.

That is the time factor noted by the OP. Grabbing at 5-7 year old national data to offset that fact doesn't really contribute to the conversation.

[jtmcofc15]

You can absolutely buy a new home in Durham County (and in Durham City Limits) over 3,000 SF for Under $168k. And thats not a stripped out box. This is happening all over the place. Are the builders making any money? Likely not. But it absolutely exist. If you can dig through all the levels of bs and marketing out there new homes are dirt dirt cheap right now. Builders are willing to build for break even or a loss to do business. And even at $168k for a 3000+ Square Foot home the buyers still come in wanting 10k off and closing cost paid. It is the world we live in.

[curlyloca]

Originally Posted by jtmcofc15

You can absolutely buy a new home in Durham County (and in Durham City Limits) over 3,000 SF for Under $168k. And thats not a stripped out box. This is happening all over the place. Are the builders making any money? Likely not. But it absolutely exist. If you can dig through all the levels of bs and marketing out there new homes are dirt dirt cheap right now. Builders are willing to build for break even or a loss to do business. And even at $168k for a 3000+ Square Foot home the buyers still come in wanting 10k off and closing cost paid. It is the world we live in.

Very interesting. Can u DM me this info/search? Thanks.

[jtmcofc15]

Sure

[MikeJaquish]

Originally Posted by curlyloca

Very interesting. Can u DM me this info/search? Thanks.

Originally Posted by jtmcofc15

Sure

I think there should certainly be a great deal of interest in available 3000SF homes @ under $170,000.
What neighborhoods/communities/subdivisions are offering such?

MLS shows one in Broadway/Harnett County, closing in 11/2009, 3434Sf, and $169900 sales price.
And one incompleted home in Portofino/Johnston County, roughed in, closing at $150000 in 7/2009.

And nothing else.

[jtmcofc15]

Mike,

I should have been clearer with that. This is for a new home, on a presale basis and that is a base price for a new 4 bedroom 2.5 bath home in a new home neighborhood. Is a base home liveable? Depends on the buyer I guess. I'll be glad to DM you the info if you like.

J