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Hi,
We're putting in an offer on a house in North Raleigh off Durant Rd. (we currently live in Chapel Hill but the special education was a nightmare here -- besides we need to be closer to Raleigh because of work and we like a bigger city.)
My main question is that I'm worried that the housing prices have gone up so much in the past year that we have been looking-- does anyone think it's a bubble and prices are going to fall when they raise interest rates?
Some said, no, they would keep rising because hundreds of thousands of people are expected to keep moving here, without enough options on new homes except further out.
We didn't want a long drive so we chose an "established" neighborhood to be closer to Falls of Neuse and Capitol to get downtown quickly.... but now we are paying fifteen thousand more for a house on the same street compared to one we didn't buy last winter! There just isn't a lot of inventory, but is this creating a bubble?
Or do you think is it going to get even more expensive?
The area you are describing is insanely popular. I live in the general area and I see a lot of homes going under contract within a day or two of being put into the MLS for sale for full price or higher in some cases due to multiple offers. But, I've also been here long enough to tell you that is a symptom of a strong sellers market which can happen in this area of the Triangle or anywhere else. The market conditions that create it aren't really exclusive to a particular neighborhood. Some neighborhoods hit the right buttons for a larger market of buyers more than others, here the proximity to everything is a big selling point.
To your question, no I don't think we are in any sort of bubble. The whole area has been in "correction and recovery mode" for a couple of years now. The homes selling prices finally caught up and surpassed what Wake County property taxes said they were worth back in 2008. It took 7 years but they did it
Anything could happen. The economy could take a hit for any reason and that could affect interest rates and/or the price of housing. About the only thing anyone can be sure of is that interest rates cannot possibly get much lower than they are now. They could go higher, and that could drive the price of loans higher, which could lower sales and potentially create a buyer's market over the longer term, but when people can't afford homes they rent (which results in higher demand for rental housing and drives the rent up).
So it's kind of a never-ending story. Safest investment is to buy what you need and only what you need. Avoid the McMansion syndrome -- those are the ones that will take the fall when the tides change.
Thanks, iota20! It's great to have your local knowledge!
Yes, the rents have increased, too, so I guess most people are in the same boat!
And I agree to stay away from the McMansions -- I've had one before, and it's no fun when things start breaking, the upkeep in time and expense, and not to mention all the constant cleaning lol!
It's good to hear that Durant is a good area -- do you have any thoughts/preferences on Durant Trails, Windsor Forest, Hunter's Knoll or like or dislikes about them?
I don't really have any strong feelings about one versus the other, they all have the nature park and greenway nearby which is great. It would just come down to whether the house itself met my needs or not. I know Durant Trails and Alyson Pond have swimming pools if that matters to you (not sure about the others). I would research the HOA rules of each too.
I would not try to time the market....what is happening across the country not just here is demand with low inventory. If you plan on being here for a while Then go for it.
I would not try to time the market....what is happening across the country not just here is demand with low inventory. If you plan on being here for a while Then go for it.
Agree - no one has a crystal ball. $15K over the course of a 30 year or even 15 year loan isn't something to get hung up on. And who knows what the tangible and intangible differences between the houses are.
You want to move, you like the area, you probably plan on staying since you're talking about schools - those are the issues you need to deal with in the here and now.
Thanks, everyone! All the subdivisions seem to run into each other, so it's good to hear that they are mostly similar, too.
Durant ES and MS seem great, but how is Millbrook HS? It looked so big and crowded! Is the IB program there the better one or is it better to transfer to Enloe? We were interested in the IB program because we're coming from UK schools.
I guess a pool is not important because we don't have little kids --they are older so need laps in a "bigger kid" large/jr. olympic pool and join a team. I saw there were several really huge swim clubs and town pools right nearby. Wow, I never saw such huge athletic clubs!
I looked up HOA's -- only allow in ground pools (which we don't plan on) -- why they don't allow those small backyard above ground pools with the ladders that lock, I can't figure out, as they meet town codes and can have a nice wood covering around the base, and you take them away after the summer is over.
Thanks for any and all of your thoughts! They are much appreciated to us newbies!
Isn't where you're coming from (Chapel Hill) even more expensive? I was looking at homes the other day and didn't realize how much more expensive Chapel Hill and Carrboro homes were (avg $200/sq ft) compared to Raleigh/Cary homes. I don't understand why. I've always found Raleigh to have more things (downtown, malls, shopping, eating, etc).
Thanks, iota20! It's great to have your local knowledge!
Yes, the rents have increased, too, so I guess most people are in the same boat!
And I agree to stay away from the McMansions -- I've had one before, and it's no fun when things start breaking, the upkeep in time and expense, and not to mention all the constant cleaning lol!
It's good to hear that Durant is a good area -- do you have any thoughts/preferences on Durant Trails, Windsor Forest, Hunter's Knoll or like or dislikes about them?
Thanks again!
Durant Trails/Durant Quarters always seems to be in demand. Established neighborhoods with very low HOA fees that include a pool. Windsor Forest has train tracks in close proximity so keep that in mind.
We are renting in Windsor Forest right now and the train tracks have not been an issue at all. Sometimes you hear a whistle but it's never bothered me in the slightest. We love the neighborhood. No neighborhood pool but there is a small pool for the townhomes at the front of the neighborhood. The access to Durant Nature Park and the trails is fantastic.
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