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.
I was talking to a friend this week and she said the houses in her neighborhood are worth less than people paid for them.
So I was wondering is this a trend all over the Triangle?
Realtors, are you seeing people upside down on their homes where they owe more on them than they are worth?
Yes.
No.
Maybe.
Seriously.
When did they buy the subject home?
What upgrades have been done in the subject home?
How has the home deteriorated since they owned it?
What has happened in the neighborhood since they bought?
If a home is down 3% in 6 months after purchase with 100% financing, it does not follow that the neighbors who bought 18 years ago are also in the hole, unless they borrowed themselves upside-down.
I, too, would like to know more about the house in question. Where is it? When did they buy it? How old is the home & the neighborhood?
We bought our home in southern Durham last year (May '07) & it has increased in value since then. I've continued to watch the market in our neighborhood, keeping an eye on the asking prices & then the actual sales prices of various properties that are similar to ours. They're definitely selling for more than last year, although I couldn't give you a percentage. Zillow says my home has increased in value by 10%, but I don't trust Zillow. Honestly, I think that rate is far too optimistic. I'd put it closer to 5%, but as I said, I haven't crunched the numbers so I can't give a precise rate.
In my neck of the woods in North Raleigh and in my entry level neighborhood my house has held it's value since I purchased it in 2005. This isn't just wishful thinking on my part but is based on recent comps. I also put a nice chunk of change down when I bought so I would need to see a catastrophic drop in value before I was ever upside down on the mortgage. My neighborhood seems on a bit of an upswing and I like the outlook. A few rentals have turned over to owner occupied and several people have discovered the joy of landscaping.
There is also some retail going up in Bedford within walking distance of my house which I think will be a nice positive. Who knows maybe the knew Wholefoods in North Raleigh will help boost the value a bit down the road.
In all honesty, I don't think about it much these days. I just know I really enjoy living in my house.
My current condo in downtown Raleigh is probably worth about 80-90K more than I paid for it when I closed less than 3 years ago. Full disclosure: I bought it pre-construction in 2003. So, the 80-90K is really a 5 year increase in value, not a 3 year number.
That said, the replacement value in a comparable new property downtown with similar finishes and amenities is probably 100-110K higher than I paid.
In my neck of the woods in North Raleigh and in my entry level neighborhood my house has held it's value since I purchased it in 2005. This isn't just wishful thinking on my part but is based on recent comps. I also put a nice chunk of change down when I bought so I would need to see a catastrophic drop in value before I was ever upside down on the mortgage. My neighborhood seems on a bit of an upswing and I like the outlook. A few rentals have turned over to owner occupied and several people have discovered the joy of landscaping.
Glad your neighborhood's fairing well, NRG! Where abouts do you live?
In general, as long as there is demand for housing, there is a sweet spot in the lower-end of prices where there's the widest range of buyers : first-time/starter, empty-nesters, those looking to downsize and investors.
Based on our Square Footage/neighborhood comps. our house could sell for about $20-25k more than what we paid for it in May of 2006 (We also put 20% down). Now, it would stay on the market much longer too, in which case we might consider cutting the price just to get it sold. So it's really anyone's guess what it's truly worth. Also with the credit crisis affecting everything, even people with good credit might not be able to secure a loan.
Bought a townhouse a little over two years ago about halfway through the construction of the neighborhood and it's up 30%. Mainly due to the area it's in.
Based on similar comps and price per square footage, ours house in central Cary is worth about 40-50K more now than when we bought it 4 years ago. We expect it to go up even more once the downtown rennovation is complete.
Last edited by lamishra; 10-02-2008 at 07:44 AM..
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.
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.
Holding Steady
