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There is no longer any significant upward pressure on home prices. The subprime problem is just starting and will get much worse. Mortgage lenders are nervous and are charging a premium on rates right now. Why not wait a few months and see if there is some downward movement. People selling existing homes are typically reluctant to lower the price, but builders don't suffer from the psychological attachment.
There is no longer any significant upward pressure on home prices. The subprime problem is just starting and will get much worse. Mortgage lenders are nervous and are charging a premium on rates right now. Why not wait a few months and see if there is some downward movement. People selling existing homes are typically reluctant to lower the price, but builders don't suffer from the psychological attachment.
Again, I think it really depends on your price point and where you are looking. For example, I live in N. Raleigh in a neighborhood where the houses range between $145K-$170K. It is really hard to find homes in this price range in the 27614 zip area. When I made an offer on my house last year it had been on the market for 2 days. The previous sales had 11, 5, and 6 DOM. If I waited to make an offer I would have most likely missed out. Fast forward a year...... my neighbor came over on July 25th and told me she was selling her house and moving to TN to be with her boyfriend. She had it listed with a realtor on August 6th and a sign went in the yard. It was under contract on August 12th and closed just last weekend. She got 99% of her asking price and closed in less than 30 days. If somebody was waiting for her to reduce her price they are most likely sorely disappointed and still searching for the next "gem" in their price range in this area.
Now this situation may be unique because at this price point you are mainly dealing with first time home buyers like I was. I didn't have a home to sell in a sluggish market like up in NJ that was holding me up from making an offer. But that is my whole point. Not everyone has home sale contingencies, not all first time home buyers are restricted to my modest price point. People in this area are also upgrading and buying newer and bigger homes as their income increases (most of the people who leave my neighborhood do so to move up into $200K+ neighborhoods). Not everyone purchasing here is coming from out of State. Some areas are more desirable than others. There are a lot of micro markets in the Triangle area.
Are you going to be priced out if you wait a few months while you follow some the trends? I doubt it. Just don't be surprised if you don't see across the board price reductions like some people seem to be counting on.
IMO, The real estate market in Raleigh is a value market. It is temporarily affected by the national mortgage snafu. The prices are low now, and it is going to get even lower by the end of the year. National builders are in deep troubles, and they are going to do whatever it takes to satisfy their shareholders by the end of the fiscal quarter.
By summer of next year, the prices should start picking up. So, if you are planning to buy, wait until the end of the year or early next year. If you are planning to build, write the contract now, and close by next spring.
...and what part of the country you're coming from. As a "pre-retiree" in Indiana considering a move to your area for retirement, and to be close to family, I find the current home prices high. Along with higher home prices I read about water restrictions/higher water rates, increasing property taxes, more traffic, possible toll road, tax on sales of homes and wonder what to do for retirement home. At this point we're thinking of a townhome for winter only in Raleigh, and spend the Spring/Summer back in Indiana.
I think prices will continue to go down. The number one reason people are moving to NC for cheaper homes.
This may be what attracted you to look at NC but it's not what attracts all of us transplants. There is so much more here than just cheaper homes.
Quote:
Originally Posted by Njrover0216
I have been watching the market there for a year or so. I noticed in the summer prices get higher, then drop the rest of the year.
This happens just about everywhere in the country. Spring and Summer are when most people, especially those with kids, move. Come September people sit tight.
Quote:
Originally Posted by Njrover0216
I think Raleigh has hit its price cap and soon they will be raising property taxes there to cover the expenses they are incurring with all the new people coming to the area, so that means the homes are going to have to come down even lower.
There are soooo many places in this country where values have been increased and property taxes have gone up but yet that doesn't make the VALUE of the home go down. Remember there was no major run up here like NJ.
Didn't you post that you decided not to move here after your research? If so why are you concerned about Raleigh housing prices?
kbhome in durham. last dec it was around 250k now it's in the low 200s. khov is giving deals this sept which is not being offered last year. maybe i'm looking on different places?
btw, is there like a home price history info available for every builder in the last 3 years in this area? that will really help new home buyer like me.
thanks
If it is the same house, then that makes sense. With the exception of a very few new neighborhoods that came into their market overpriced to begin with though, I haven't seen any price reductions. Your best bet is to find yourself a good buyer's agent. They should be able to get some research like that for you.
If it is the same house, then that makes sense. With the exception of a very few new neighborhoods that came into their market overpriced to begin with though, I haven't seen any price reductions. Your best bet is to find yourself a good buyer's agent. They should be able to get some research like that for you.
Well it's a game of semantics. I know some builders who would never reduce the listing price of inventory in an unfinished neighborhood for obvious reasons.... they plan to build and sell more homes and don't want to have to reduce the price on that inventory as well. They will however increase the incentives. My builder went from giving $2500 in closing costs when I purchased last year to giving $9K exactly a year later. I get emails all of the time from Centex, KBHome, and KHov about $20k - $50k incentives in options given by the builder. I've also seen one neighborhood on Ebeneezer Church Rd. change from starting in the $600k+ to starting in the high $400k's before the grading was done. I agree with what NRG says, it depends on the price point and the location. Some are stagnant, some are staying the same, but there are definitely some deals to be had and its not all just because of the normal slowing sales trend of fall and winter.
I've also seen one neighborhood on Ebeneezer Church Rd. change from starting in the $600k+ to starting in the high $400k's before the grading was done. .
I know which site you mean. This is not quite the ideal example as the original builder (600K+) was custom, and sold the land to a tract builder. Hence the base price is now going be lower (400K+).
I agree with previous posts that great houses will always sell quickly, but my overall feeling is that we will see big price cuts by winter, either by the tract builders (who are facing huge difficulties at the moment- read yesterdays announced losses incurred by KHov) or by the more expensive (500K+) resales.
I live near Brier Creek where more and more houses are coming onto the market. Cheapest SFH there is 495K. One street has 6 for sale; three of these have already had 10-50K price reductions and no takers for several months. Apart from the location and snobbery of being on this community I'm wondering who in their right mind who pay this much money for someone elses average construction on postage stamp lot, when better custom options are available? Expect to see further price cuts.
Plus, many folk are reaching the ends of their short term ARMs. Wonder how many can afford the increase in payments? If not, then what?? Sell quickly or foreclose. Lower prices.
Isn't it also more expensive to borrow in excess of 417K? Even with 20% down, a 417K loan would still only get you a house in the 500s. Maybe that would slow the sales of this price range too and induce price reductions?
I'm eager to buy but will wait six months I think.
I know which site you mean. This is not quite the ideal example as the original builder (600K+) was custom, and sold the land to a tract builder. Hence the base price is now going be lower (400K+).
I agree with previous posts that great houses will always sell quickly, but my overall feeling is that we will see big price cuts by winter, either by the tract builders (who are facing huge difficulties at the moment- read yesterdays announced losses incurred by KHov) or by the more expensive (500K+) resales.
I live near Brier Creek where more and more houses are coming onto the market. Cheapest SFH there is 495K. One street has 6 for sale; three of these have already had 10-50K price reductions and no takers for several months. Apart from the location and snobbery of being on this community I'm wondering who in their right mind who pay this much money for someone elses average construction on postage stamp lot, when better custom options are available? Expect to see further price cuts.
Plus, many folk are reaching the ends of their short term ARMs. Wonder how many can afford the increase in payments? If not, then what?? Sell quickly or foreclose. Lower prices.
Isn't it also more expensive to borrow in excess of 417K? Even with 20% down, a 417K loan would still only get you a house in the 500s. Maybe that would slow the sales of this price range too and induce price reductions?
I'm eager to buy but will wait six months I think.
From my perspective you hit the nail squarely. If you a house that was overpriced when sold new and is on a tiny lot with others up for sale wait. If you want a custom built from scratch don't expect a big discount. I agree with you the just over jumbo market will get hit hard. Would be cheaper to pay 50k less and not need a jumbo if you had to borrow 450K to do the deal. Sellers will have to adjust accordingly. If you want quality buy now and buy for quality and you will be happy with your decision. If you want a discount buy the tan car on the lot with no features and is the lost lead in the ad. Oh yeah and be ready to roll the windows down by hand.
Plus, many folk are reaching the ends of their short term ARMs. Wonder how many can afford the increase in payments? If not, then what?? Sell quickly or foreclose. Lower prices.
I have seen a lot of talk about this on the news and how some think it could pull prices down as far as national averages go. Each year they talk about the billions of dollars in loans secured in ARM's that will readjust to higher rates. I am curious when (What year) the majority of these ARM's will have finally readjusted. I also wonder whether or not their is a high % percentage of people with ARM's in this area or not. I have not idea myself. I went with a 30 yr fixed myself!
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"Value" is in the eye of the beholder...
