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Interesting article from the NY Times. How will people afford to keep moving to NC when they can't sell their homes in NY, NJ and CT?
Quote:
IT’S spring, the traditional time for hope and growth in residential real estate sales. But beyond the borders of New York City, there are indications that a wintry chill besets the market in much of the region.
On Long Island and in Connecticut, brokers report the inventory of unsold homes continues to build, while the number of buyers is reduced by new lending restrictions.
In New Jersey, the market seems to have slowed from March to April — just when things would ordinarily be revving up. The number of sales contracts signed in April declined in 20 of 22 counties monitored by the Otteau Valuation Group, which does market analysis for brokers. Even in Hudson County, which encompasses such sought-after riverfront towns as Hoboken and Jersey City, sales volume declined 21 percent.
Exactly! See how many 500K+ custom houses on North Raleigh remain unsold. Few local people can afford them. I bet that at least half of these properties will still be on the market at Xmas...and you think that the builders involved will drop prices? Not on your life. They are too stubborn.
Exactly! See how many 500K+ custom houses on North Raleigh remain unsold. Few local people can afford them. I bet that at least half of these properties will still be on the market at Xmas...and you think that the builders involved will drop prices? Not on your life. They are too stubborn.
This article claims builders did drop prices and the drop in sales to owners of existing homes. Everybody still wants last year's offers. The backlash from the subprime loans is not about to end soon.
Sales of existing homes fell more than expected in April while prices slid for a record ninth consecutive month, indicating further troubles ahead for the housing market...
Last edited by Marka; 12-10-2007 at 05:30 AM..
Reason: copyright issues
I'm so grateful I sold my home in CT in 2005-now for the job transfers to come through...the house next door to my (rented) home here has been on the market 14 months!
I'm so grateful I sold my home in CT in 2005-now for the job transfers to come through...the house next door to my (rented) home here has been on the market 14 months!
Bottom line is that people are still greedy. Look the neighborhood where I sold a 10 year old toll brothers home that I bought in 96 new for 235K for 520K last May of 06 are now sitting unsold asking prices are in the 440K range for the same house. Now that would not be a problem BUT many of the homes were puchased over the past 5 years in the low 400 range and many of these people have SECOND MORTGAGES on these homes. Yes when I sold mine at 520 a neighbor was taking out a 90K home equity loan on his home, my old next door neighbor. He now must sell but he is in trouble. His mortgage is 345K and still owes 85 on the Home Equity Loan!!!
It's hard to understand in some ways. We thought we were being relocated to TriState at one point, then to bedroom community outside Boston, and the home prices were insanely steep (this was three months ago). We were put off based on home prices and prop tax alone, though loving certain areas very much.
But it could be that it is greed, as urbywan mentions.
In central CT-I think it hasn't sold because (a) it's over priced (they've dropped it a few times but still too high) and (b) taxes are kinda high. It's a cute little place though. The house across the street sold quick, but they had priced it very well (I think they were transferred).
It seems like here it is all about price. So many are still overpriced. If they're priced well, they do sell. This rental house I'm in, they couldn't sell it at the same time my house sold in 48 hrs-it was overpriced! Crazy.
When we've looked at homes in Raleigh, the first thing the salespeople ask is, do you have to sell your house up north?
If you believe that Triangle real estate will stay strong...
Perhaps some of you will appreciate my story:
I sold my 3900 sq. ft. home a year ago in Princeton, NJ, after accepting one of the two full price offers. The relocating buyers (from the west coast) were set to close in the end of July. One week before the closing, my buyer lost his job and cancelled the contract. The lawyers for the relocation company offered me a small settlement to release the buyers. I reduced the price and put the house back on the market in August -- a really tough time to sell. I received four offers immediately, two with house sale contingencies and two that were ridiculously low.
The total cost to carry the house, including taxes (the highest in the country), mortgage, homeowner’s fees, lawn maintenance, and utilities was about $7000 per month. This is about average for this type of home in NJ. Holding out until spring was not a viable option, so I sold my house for 16% less than the first contract price. My old neighbors now tell me that I made a wise decision. Nothing is moving now because most sellers are so stubborn about holding out for their price.
There's no way to know what prices will do in the Triangle, but so many formerly high demand markets have been hard hit. Buyer's coming from depreciating markets will expect the type of concessions that they had to forfeit on their homes up north.
There's no way to know what prices will do in the Triangle, but so many formerly high demand markets have been hard hit. Buyer's coming from depreciating markets will expect the type of concessions that they had to forfeit on their homes up north.
They will be sorely disappointed. Unfortunately for them they are selling low and buying high.
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If you believe that Triangle real estate will stay strong...
