Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
 [Register]
Raleigh, Durham, Chapel Hill, Cary The Triangle Area
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-30-2016, 10:51 AM
 
Location: Raleigh, NC
6,650 posts, read 5,550,422 times
Reputation: 5513

Advertisements

Quote:
Originally Posted by lepoisson View Post
It's not really the economy, but the job market. More and more people with college degrees are forced to work low paying jobs because they cannot find a job in their field.
That is true - I wish we stopped funneling everyone towards colleges. A college education is great but it's not for everyone (or there are affordable/smarter ways of going that route that doesn't involve 240K in student loans)
Reply With Quote Quick reply to this message

 
Old 08-30-2016, 10:59 AM
 
Location: Chicago
6,160 posts, read 5,660,708 times
Reputation: 6193
Quote:
Originally Posted by pierretong1991 View Post
That is true - I wish we stopped funneling everyone towards colleges. A college education is great but it's not for everyone (or there are affordable/smarter ways of going that route that doesn't involve 240K in student loans)
Yup. I taught freshmen classes while I was working on my masters. Out of a class of 25, usually 5 were gone by December.
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 11:27 AM
 
Location: Raleigh NC
25,119 posts, read 16,113,072 times
Reputation: 14408
Quote:
Originally Posted by route66 View Post
Seems like with you being a realtor, you should be educating us on this matter rather than begging to be educated. This isn't even one I referred to before, it's one of the first hits that came up in a Google search. I really, really recommend you learn about search engines sometime in the near future.

McMansions Define Ugly in a New Way: They
to the extent that you're a client of mine, I do tell you my experienced and professional opinion on super-sized tract built homes. it mirrors the idea of the article - if you buy big and brand new today, when you go to sell in 5-6 years, the same buyers also want new and are likely to not want your home.

Upon reading the article, I'm struck by the very simplistic conclusions of the young author who graduated J-school in 2011, after the McMansions noted were built, and after the recession had crushed the housing economy.

What the conclusion drawn is that larger homes don't appreciate as QUICKLY as smaller homes. That's always been true. If you can explain this quote from the article to me, I'd really appreciate it:

Quote:
But the return on investment has dropped like a stone. The additional cash that buyers should be willing to part with to get a McMansion fell in 85 of the 100 largest U.S. metropolitan areas. For example, four years ago a typical McMansion in Fort Lauderdale was valued at $477,000, a 274 percent premium over all other homes in the area. This year, those McMansions are worth about $611,000, or 190 percent more than the rest the homes on the market.
So if a house went from 477 to 611K in 4 years, that's 33% a year. Awful return I tell you - it "dropped like a stone". Then again, he compares "all other homes in the area" 4 years ago to "homes on the market" today. Do you see how, whether by different data sets or even the language chosen - they're completely different things?
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 11:32 AM
 
Location: Raleigh, NC
6,650 posts, read 5,550,422 times
Reputation: 5513
Quote:
Originally Posted by BoBromhal View Post
to the extent that you're a client of mine, I do tell you my experienced and professional opinion on super-sized tract built homes. it mirrors the idea of the article - if you buy big and brand new today, when you go to sell in 5-6 years, the same buyers also want new and are likely to not want your home.

Upon reading the article, I'm struck by the very simplistic conclusions of the young author who graduated J-school in 2011, after the McMansions noted were built, and after the recession had crushed the housing economy.

What the conclusion drawn is that larger homes don't appreciate as QUICKLY as smaller homes. That's always been true. If you can explain this quote from the article to me, I'd really appreciate it:



So if a house went from 477 to 611K in 4 years, that's 33% a year. Awful return I tell you - it "dropped like a stone". Then again, he compares "all other homes in the area" 4 years ago to "homes on the market" today. Do you see how, whether by different data sets or even the language chosen - they're completely different things?
Umm that's like a 6% increase per year, not 33% a year.
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 11:53 AM
 
Location: Apex
188 posts, read 150,833 times
Reputation: 360
Quote:
Originally Posted by BoBromhal View Post
What the conclusion drawn is that larger homes don't appreciate as QUICKLY as smaller homes. That's always been true. If you can explain this quote from the article to me, I'd really appreciate it:
By dropped, he means the return on investment is lower as a percentage, I assume. Now one could say that a lower percent return on a higher valued property might still end up amounting to more actual cash at the end of a sale than a higher return on a lower property, but that's kind of a rabbit hole because maintaining and improving the larger home will cost more too, in the long run.

What I think he's trying to say here and may have not done a great job of is alluding to the relatively poor liquidity (on average) of a large home. People start wanting to sell their home when the economy dips or the job market is astir, and that's right about the time future buyers get nervous about spending more than they need to. There is a "sweet spot" for fast selling homes that I'm sure as a realtor you're aware of -- for example selling a home right now in the Triangle area for $300k is going to be generally easier than getting rid of an $800k home. I don't have numbers to compare the average days on market for both price ranges (and with the market the way it is right now, it's perhaps not the best time period for illustration), but I'm sure you could probably post them here to demonstrate my point if you wanted.

Quote:
Originally Posted by pierretong1991 View Post
Umm that's like a 6% increase per year, not 33% a year.
Hey, quiet over there, we have an experienced and professional opinion going here
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 01:05 PM
 
Location: Raleigh NC
25,119 posts, read 16,113,072 times
Reputation: 14408
Quote:
Originally Posted by pierretong1991 View Post
Umm that's like a 6% increase per year, not 33% a year.
I knew it sounded too high. I should have checked my math. still, not depreciation.

Thanks for the correction. I was multi-tasking and must have incorporated some unrelated data.
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 01:08 PM
 
Location: Raleigh NC
25,119 posts, read 16,113,072 times
Reputation: 14408
that doesn't seem to be the point that the author was making, but you're certainly correct - it has (almost) always been easier to sell a less-expensive home anywhere than a more expensive home. Maybe not at the beach (or similar distinguishing geographic feature), where an oceanfront large home will sell faster and appreciate greater than a small, old, 4th row house.
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 05:42 PM
 
Location: Research Triangle Area, NC
6,329 posts, read 5,424,978 times
Reputation: 9946
Quote:
Originally Posted by lepoisson View Post
It's not really the economy, but the job market. More and more people with college degrees are forced to work low paying jobs because they cannot find a job in their field.
Indeed "economy" and "job market" are not one in the same. The economy can be doing well (growing GDP) if investments are up but that doesn't always translate into more jobs or especially well-paying jobs.
Reply With Quote Quick reply to this message
 
Old 08-30-2016, 06:35 PM
 
Location: Clayton, NC
514 posts, read 600,278 times
Reputation: 269
Quote:
Originally Posted by TarHeelNick View Post
Indeed "economy" and "job market" are not one in the same. The economy can be doing well (growing GDP) if investments are up but that doesn't always translate into more jobs or especially well-paying jobs.
Absolutely. In fact, cutting jobs can oftentimes lead to jumps in stock prices and increased profitability.
Reply With Quote Quick reply to this message
 
Old 08-31-2016, 09:50 AM
 
Location: North Carolina
2,679 posts, read 2,879,326 times
Reputation: 2162
Quote:
Originally Posted by pierretong1991 View Post
Umm that's like a 6% increase per year, not 33% a year.

















...and great point on your follow post earlier, pierre. Thanks for watchdogging these experts.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top