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The typical response to someone who isn't painting a rosy picture of things is that they're somehow jealous. I would NEVER be jealous of taking out a 30 year payment coupon on a house in NC for $500K or more. I am a cash out of NJ buy outright in NC person, just like many you've come across in the past few years. I don't want a mortgage anymore.
Same here however I would not pay 500 for a house here in NC. Nope there just is not the salary numbers to support someone able to buy when I want to sell. My 330 house is just fine, heck it has all the bells and whistles, hardyboard, granite, mouldings hardwood oak floors tile 3 full baths bonus room, 4+ bedrooms 2700 sq feet.
Bingo and ditto and right on. And if I don't get as much for my house then I buy one for $290K and they are available. Heck theres a lot in Johnson and other counties.
Average in North Raleigh means all the houses sold in that area. And it is the median. That means half of them got sold above that price and half below. I suggest you take a math course.
I don't own a house because I sold mine for 2.8 M and I have more money in the bank than your total net worth including your paid off house. Thank goodness, I did not listen to my real estate agent and downsized immediately. I am living in a 1.4M brand new house (the value when I rented it and is probably worth only 1.15M now) and my rent is way less than what I would get if I put the 1.4 M in CD at a measly 4%. And that does not include the taxes I would have to pay and the loss I would have suffered if I had bought a house. It's called prudence dear and above all not listening to your real estate agent.
Another smack by yahoo.
Yikes!
And here we are with our paultry 1400sqft in NE Raleigh and only 600K in principally precious metals and foreign securities.
Ok. Let me see if I understand this...you are saying that some houses in Raleigh sell for $115 per sq. foot and some sell for $135 per sq. foot and you are then coming up with a 17.4% INCREASE??? WRONG.
Lets see If I can make this simple enough for you and then I am done with this thread.
PRICES ARE RELEVANT TO NEIGHBORHOODS. This is our market. I do not know how it is done where you came from. I know how its done here. I'll stack my experience up against yours any day of the week. I KNOW what I'm talking about. This post proves you have no idea.
Hedingham, which is in Raleigh, may have houses that sell on average $105 per square foot.
Bedford, which is in Raleigh, may have houses that sell on average $150 per sq. ft.
One neighborhood has nothing to do with another neighborhood. Thats just the way it is in Raleigh, Cary, Apex, Holly Springs, Wake Forest, etc., etc., etc. We do price by square foot because thats how our appraisers do it. That doesn't mean that the difference between these two neighborhoods is the percentage that prices have appreciated.
Lets say a 1500 sq. ft. house in Hedingham is listed for $157,500.
Lets say a 1500 sq. ft. house in Bedford is listed for $225,000.
Do you really think that you can say..."I think I'll make an offer on the $225,000 based on what is selling in Hedingham. Therefore, I'll make my offer $157,000 in Bedford and expect the seller in Bedford to jump on that?
Ok. I see why you don't own a house. And FYI...I own a house and have no mortgage. Nanny nanny boo boo!
The end. I'm done.
Vicki
No Vicky you can't be done. The lamp of enlightment can only shine brightly if those with the bulb screw it in right. By virtue of your previous contributions and intellectual enLIGHTment many of us have bestowed on you and Mike the title of MASTER BULB TIGHTNER. Bring it on and squash the forces of darkness.
I understand you're done, so perhaps if you get to read this, urbywan simply pointed out the increase of the average (mean or median, don't know which) of each area over time, not comparing one particular neighborhood against another. The particular product it's tracking is constant. Both of our provided statistics tracked cost ($/sqft or median price) over the past year or so in the same area. It didn't compare things like the difference between Bedford with Hedingham. Naturally, that's comparing apples with oranges. If I sold product x at $100 on day 1 and the buyer sold it again at $120 on day 2, that's the same product.
Since you're a parent with a 14 year old, not having a mortgage isn't that surprising. Our family just lucked out and got the mortgage business out of the way in 5 years. When others bought dot com stock, we bought a house. When people started buying houses, we bought gold, oil, and foreign stocks. Housing had it's 15 minutes of fame. It is now leaving the stage and we're all moving onward to the next bull market.
My guess is those numbers are biased higher because of the new construction (a lot of which is more high end). If you're really interested in an apples to apples comparison, show me an established neighborhood in Cary with no new construction and look at the year over year price per square foot increase. My guess is you'll be around 10% which is high, but the area saw modest increases for the previous decade or so.
I understand you're done, so perhaps if you get to read this, urbywan simply pointed out the increase of the average (mean or median, don't know which) of each area over time, not comparing one particular neighborhood against another. The particular product it's tracking is constant.
I don't disagree with you, but keep in mind that median or average can move simply because the mix of houses that are selling change, not that the underlying house prices are changing. So when mortgage rates are cheap, it's possible the average buyer will buy a bigger house, driving the average sale price up even if house prices don't go up. Same on the down side (see the hit that killing jumbo loans did to the average in areas where many of the houses required them).
But in general, your approach here is about as good as you can get with aggregate data. Especially since it's normalized to $/sq ft, which should reduce some of the variation from people buying bigger/smaller houses when rates get better/worse.
My guess is those numbers are biased higher because of the new construction (a lot of which is more high end). If you're really interested in an apples to apples comparison, show me an established neighborhood in Cary with no new construction and look at the year over year price per square foot increase. My guess is you'll be around 10% which is high, but the area saw modest increases for the previous decade or so.
This is a red herring. New construction directly affects existing construction, cannibalizing on their sales. Everyone who wants to see the pretty cloud in an otherwise dark sky will always try to micromanage what is a bigger problem with mortgage and lending in general. Well, this house went up 10%, so that's a good thing. This is meaningless information. It's a statistical outlier.
This is a red herring. New construction directly affects existing construction, cannibalizing on their sales. Everyone who wants to see the pretty cloud in an otherwise dark sky will always try to micromanage what is a bigger problem with mortgage and lending in general. Well, this house went up 10%, so that's a good thing. This is meaningless information. It's a statistical outlier.
It's only meaningless because it doesn't support your contrarian point of view.
Even when the lights are on the blind can't see. I say nanny nanny boo boo to my wife all the time then I turn the lights off and laugh. Come on folks keep it light in here it is getting a tad to mean. Everyone has points and arguments to support them. Obviously this is a drama to be written and played out. Let's hope it plays out in a way to minimize harm and pain to people. Now will someone help me get started on my swing.
It's only meaningless because it doesn't support your contrarian point of view.
Frudy's view cannot be contrarian as it is a accepted fact that housing market is headed down and that is the conventional wisdom.
Contrarian view is of all the posters who say that is not true or who support them.
So don't be a contrarian by saying Frudy's view is contrarian!
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Never Surrender
