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I have read through this forum A LOT over the past few days.We are debating on taking a job transfer to the Raleigh area from the Dallas area.The last time we kept track of home prices in Wake county was roughly 4 years ago when we were debating a move at that time.It seems like prices have gone up significantly since then.What has always held us back from having my husband do the transfer with his company is the state income tax in NC compared to TX and other misc. things that make NC more expensive. We also have a homestead cap here that kicks in to protect us against tremendous property tax increases.People I have spoken to who live in the Raleigh area,other wives of his co-workers ect,they all say the same thing.The salaries in Raleigh will not compare to the salaries in the Dallas area for most professional jobs.After doing some research online,that seems accurate.My husband will be taking a pay cut if we move to Raleigh from Dallas.Not huge,but not what he gets here.
Cary,Apex,desireable parts of Raleigh...will prices keep going up?New construction prices seem really high.Am I missing something?How are people affording these houses that are $450,000 plus?Is Raleigh slowly becoming un affordable for people moving for affordability? It also seems like SO MANY people from NY/NJ are moving to the NC area in general.Is that part of why the area seems to be changing so rapidly?
Last edited by Pearls712; 04-06-2016 at 09:28 PM..
I have read through this forum a lot over the past few days.We are debating on taking a job transfer to the Raleigh area from the Dallas area.The last time we kept track of home prices in Wake county was roughly 4years ago when we were debating a move at that time.It seems like prices have hone up significantly.What has always held us back from having my husband do the transfer with his company is the state income tax in NC compared to TX and other misc. things that make it more expensive. We also have a homestead cap here that kicks in to protect us against tremendous tax increases.People I have spoken to who live in the Raleigh area,other wives of his co-workers ect,they all say the same thing.The salaries in Raleigh will notcompate to the salaries in the Dallas areaa for most professional jobs.After doing some research online,that seems accurate.
Prices for new builds in Wake county seem really high.Am I missing something?How are people affording these houses that acerage $450,000 plus?
They're selling their houses in the NYC metro area and putting tremendous cash downpayments on the brand new house of their dreams here (I call this this "oh muy gawd" pattern). This trend started about 10 years ago. Before that there was a much larger number of newbuild family homes available from the $190k-$300k range.
TX may not have an income tax; but from what I've heard property taxes out there are much higher than they are here.
They're selling their houses in the NYC metro area and putting tremendous cash downpayments on the brand new house of their dreams here (I call this this "oh muy gawd" pattern). This trend started about 10 years ago. Before that there was a much larger number of newbuild family homes available from the $190k-$300k range.
TX may not have an income tax; but from what I've heard property taxes out there are much higher than they are here.
Property taxes are high here in the Dallas area,but no state income tax and the homestead cap loss (protects you from giant property tax increases) makes it worth it.We purchased 6 years ago in a suburb of Dallas.We would walk away with roughly $170,000 on profit if we decided to sell our house today and make this move.I am quickly realizing we would end up spending about $450,000 to get the equivelant of what we purchased here 6 years ago (granted that was at the rock bottom of the housing market) for $205,000.We did a new build here at that time.
Property taxes are high here in the Dallas area,but no state income tax and the homestead cap loss (protects you from giant property tax increases) makes it worth it.We purchased 6 years ago in a suburb of Dallas.We would walk away with roughly $170,000 on profit if we decided to sell our house today and make this move.I am quickly realizing we would end up spending about $450,000 to get the equivelant of what we purchased here 6 years ago (granted that was at the rock bottom of the housing market) for $205,000.We did a new build here at that time.
Compare apples to apples. What can you get NOW in your area, brand new, that's similar to what you can get here?
That's the price difference you should be examining. Not what you paid at the bottom of the market. Our market here had not quite recovered yet 4 years ago when you first started looking here.
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They're selling their houses in the NYC metro area and putting tremendous cash downpayments on the brand new house of their dreams here (I call this this "oh muy gawd" pattern). This trend started about 10 years ago. Before that there was a much larger number of newbuild family homes available from the $190k-$300k range.
TX may not have an income tax; but from what I've heard property taxes out there are much higher than they are here.
Or, they just make enough to buy a house (in whatever price range).
Or, their families loaned them money.
Or, they're trust fund babies.
You get the point.
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Since when does salary range in an area have anything to do with housing prices? That would be really nice, if they were always tied to each other.
My house in NY (to use Nick's example) more than doubled in value while we owned it, while the property taxes tripled - I can assure you that our salaries did not keep pace, nor did most people's that I know.
Most of the posts that I see here from transplants are people who can't afford to buy a house in the first place....people who bought up north 10 years ago probably haven't made enough to come down here with that kind of cash. Prices haven't gone up that much in that time.
I know plenty of people here who have lived here for a long time, and either traded up houses as they went along or just flat out make a lot of money. Or HAVE a lot of money from years of living in a low COL area and being smart with their funds.
But RedZin is right - you are not making the correct comparison about housing prices.
Property taxes are high here in the Dallas area,but no state income tax and the homestead cap loss (protects you from giant property tax increases) makes it worth it.We purchased 6 years ago in a suburb of Dallas.We would walk away with roughly $170,000 on profit if we decided to sell our house today and make this move.I am quickly realizing we would end up spending about $450,000 to get the equivelant of what we purchased here 6 years ago (granted that was at the rock bottom of the housing market) for $205,000.We did a new build here at that time.
But what do you pay in property taxes in Texas right now on that home? For a $450K home here, you would likely be paying around $3,000 annually. I moved down here from Pennsylvania 2 years ago, and a house of that same value would be taxed at roughly 4 times that amount.
We have been renting since moving here. Rent here is higher than in Florida. We are still trying to decide where to settle. TBH, I am struggling to see why house prices here are rising like they are. It's nice here but I do not see it to have any big advantages to justify the prices they are charging.
Location: Chapel Hill, NC, formerly NoVA and Phila
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Quote:
Originally Posted by Thr3stripe
But what do you pay in property taxes in Texas right now on that home? For a $450K home here, you would likely be paying around $3,000 annually. I moved down here from Pennsylvania 2 years ago, and a house of that same value would be taxed at roughly 4 times that amount.
Where in Pennsylvania would a $450K house be taxes at $12K? Both my parents and my sister's family live in houses of about that value (in the Philadelphia region), and they pay about $6K in taxes.
ETA:
Median Property Tax in NC:.78%, in PA 1.35%, in TX 1.81%
State Income Tax in NC: 5.75%, in PA 3.07%, in TX 0%
New construction home prices are high because of lack of inventory. The increase in housing prices is not based off anything sound, such as wage increases and positive economic outlook. It is due to low inventory and looser regulations for loans.
A lot of people are staying out of the market. The ones who do snatch them up are the ones that TarHeelNick mentioned...They sell their house for a ton of money in NYC for example, and overpay in NC b/c to them it seems cheap.
The home builders may be smart and realize that a lot of people buying their new properties are transplants from other housing markets that are higher, therefore they can jack the prices.
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