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Correction to the posting that said the Governors Row new homes community in Cary originally started in the $800's and now has dropped the prices to the $600's-$700's. This is not true at all. The prices always started from the $600's and went up from there. The pending listings that are in the $800's are for homes with finished basements and which have had custom structural additions added.
The active listings on MLS are for new starts. When the listing goes in prior to start of construction, the days on the market start to add up. However, MLS is the best method for helping Realtors find neighborhoods, so its important to list what you have.
The Builder also has met the climate of the current market conditions by fairly pricing the homes, and not raising prices since the neighborhood was introduced in January. There absolutely has not been any backward movement on values and pricing in that neighborhood. The current pricing is reflective of the home sizes (3400-4200 sq. ft.), all brick veneer construction, and long list of included features such as site finished hardwoods on the entire first floor (except for a 1st floor bedroom), 10' ceilings first floor/9' on the second floor, granite in the kitchen/owners bath/powder room, and much more.
Yep go ahead and buy a 700K home in this area. Go ahead.
Yep go ahead and buy a 700K home in this area. Go ahead.
Why would a house selling at $700k be a worse investment then one selling for half that amount? Most of the people I know who have moved into the mansions were able to do so with puh-lenty of money available. They're less likely to need/want to sell short.
Why would a house selling at $700k be a worse investment then one selling for half that amount? Most of the people I know who have moved into the mansions were able to do so with puh-lenty of money available. They're less likely to need/want to sell short.
Your evidence is anecdotal and likely not indicative of the statistics in the area. The News & Observer is quick to point out that the upper end homes are by far the slowest selling ones right now.
Many people who keep up with the Joneses are in debt to their eyeballs. That includes McMansion owners. The statistics are there already, plain as day. Home sales above the 450K region are way down in the triangle region. Even with 20% down, now more of a requirement, a 700K house requires 140K down and 3x income maximum, although some (desperate) brokers/lenders will claim they can still find zero down loans. Jumbo loans are not FHA insured and the ceiling likely won't be raised above the 417K range anytime soon, and command an interest rate of 7.5% or higher in many cases. That is why a less expensive house will be a better investment, relatively speaking. Keep in mind also the costs of heating/cooling a larger home and paying taxes on such a residence. That eats away at the "investment".
Also, many people will certainly inflate their financial status to their friends, even close ones. Part of "keeping up with the Joneses". I've also seen some of these folks (neighbors of mine) in their everyday lives. I've even seen one couple constantly fight just before filing for divorce and abandon their home immediately afterwards, leaving their two cats with no one to take care of . All the while before, they talked up their wealth to many of us at the HOA events.
Why would a house selling at $700k be a worse investment then one selling for half that amount? Most of the people I know who have moved into the mansions were able to do so with puh-lenty of money available. They're less likely to need/want to sell short.
NYC2RDU Don't ruin his parade, he's on a role. Urbywan, I don't totally disagree with you on everything, but I choose to worry about myself rather than make everyone else feel miserable. I save a good portion of my salary, have no CC debt and I live well within my means. I too think many people have been foolish with their money, but this is a free country and if they want to ruin their lives, then so be it. I choose to be happy and worry about myself and my family.
NYC2RDU Don't ruin his parade, he's on a role. Urbywan, I don't totally disagree with you on everything, but I choose to worry about myself rather than make everyone else feel miserable. I save a good portion of my salary, have no CC debt and I live well within my means. I too think many people have been foolish with their money, but this is a free country and if they want to ruin their lives, then so be it. I choose to be happy and worry about myself and my family.
Waterboy526 well put! Bravo! Give you a point but have to share it with others before I can give it to you.
NYC2RDU Don't ruin his parade, he's on a role. Urbywan, I don't totally disagree with you on everything, but I choose to worry about myself rather than make everyone else feel miserable. I save a good portion of my salary, have no CC debt and I live well within my means. I too think many people have been foolish with their money, but this is a free country and if they want to ruin their lives, then so be it. I choose to be happy and worry about myself and my family.
We'd be sitting pretty if many more people thought like you did.
NYC2RDU Don't ruin his parade, he's on a role. Urbywan, I don't totally disagree with you on everything, but I choose to worry about myself rather than make everyone else feel miserable. I save a good portion of my salary, have no CC debt and I live well within my means. I too think many people have been foolish with their money, but this is a free country and if they want to ruin their lives, then so be it. I choose to be happy and worry about myself and my family.
I actually agree with both of you but when the feds starts spending more money to bail out idiots, it in some ways becomes all of our business.
I actually agree with both of you but when the feds starts spending more money to bail out idiots, it in some ways becomes all of our business.
Good point there and I actually do worry about that. Nothing pisses me off more than the Government bailing out people that were irresponsible in the first place. I read an article about a woman who didn't get the arm and spent more on a 30-year fixed rate because she didn't want to be caught in a bind in a few years and now other people that took the 0% down/teaser rate are being bailed out and given a 5.5% fixed rate for the life of their loan, when she is stuck paying the 7.5% because she decided to be responsible in the first place. Reading that story really ticked me off.
I agree. The bailout is ridiculous, but there will always be irresponsible people and a government willing to have people dependent on it. My personal solution is to make smart decisions (no car payments, no credit card debt, 20 year fixed rate mortgage, max out the 401k, college funds for the children, etc) and to teach our children (who are only 4 and 2 now) to be responsible with their money.
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Fine, I will!
. All the while before, they talked up their wealth to many of us at the HOA events.
