Why is the market slow right now? (Cary, Monroe: relocating, real estate)

[Sal298]

People will NOT pay for "nice acreage that is convenient to shopping and good schools." They have proven that time and again. And $300,000 lots with $300,000 homes tend not to appraise well enough to satisfy a lender. $$$$/Square feet is the mantra.

Mike, what exactly are you saying here?

Because I keep reading post after post on thread after thread where people living on tiny lots are sick of being able to tickle their neighbor from their deck. I keep reading posts where people want more land or elbow space.

And to get land along with a nice size house costs more than getting a nice size house on a shrimpy lot, especially if you want convenience. And gas isn't getting any cheaper.

It sounds like you're saying most people are not willing to pay what something is worth, even if it's appraised for that amount and ten different realtors say it's a good price. I'm not talking about a $500k property here. This is a place priced in many people's range if they have their other house sold. Everything is a solid thumbs up, yet there isn't much traffic. Why not?

If I'm hearing you right, then it almost sounds like people moving here might be a little on the greedy side. And they're either mad they can't find a lot for nothing. Or they just want to rent the rest of their lives and steam about it.

I'm not saying all that is true. I just don't know what's going on.

Here is what I do know though. Prices are not going to go down, so if someone wants to buy here, they had better do it soon. (And I am not a realtor saying that. I've just been here long enough to know prices are climbing every year.)

[jln69]

I don't think people are greedy it is just that people have heard so much that housing is very inexpensive here. It is less than in most cities but Chapel Hill, Cary and North Realeigh etc. are expensive for this area and I think people are shocked that they actually have to pay that much even if they are coming from a higher priced area. I think they are second guessing if a move is actually worth it because it wasn't what they thought they would be saving.

[Sal298]

Jln, thanks.

You bring up some good points. What kinds of prices and square footage are most of the transplants looking for? I'm wondering what they consider a good price, like how much per sq. ft.

In a lot of these places transplants are coming in from, housing costs a whole lot more than here. Prices are really rip-off in those areas, more than here. It seems unrealistic if transplants expect to make good profit on their home, but pay a whole lot less to sellers here.

And how many people want established homes in great condition that are well built with acreage and priced right?

Is the new home sardine can blitz what most of the buyers are going for? Is just sitting slumped on the sofa staring up at the boob tube in the ugly hole over the fireplace mantle where life's at for most people? Where do their kids play outside? In the driveway?

I hope that's not the case, because if it is, then maybe we should hold off on selling til later when the marketplace adjusts to reason. It's bound to happen when the walls of the new homes start falling apart.

[Dman999]

Sal,
I think I could help you or at least give yo my opinion.
First let me say I'm from up north and love Cary and the whole area. People are great. Second Leigh, " getting picked on " is a bit dramatic. She makes it known she is a agent, nothing rong with that. But calling a sewage facility a water facuilty well is just not really saying what it really is . that's all. I'm sure she is a wonderful person and a great agent too. But people but stock in what you say because you are the assumed professional. But enough of that

Answer to #1 Sorry to disagree with Mike but I sold my home up north 4 weeks ago visited Cary for basicly the whole last month and I might sadly I'll add change my mind because I feel that the houe prices are getting to the point where it's all about the profit for the builder. They are getting top dollar and giving you a ridiculous size lot. Once again I personaly looked at over 100 houses and wanted to put together a list of ten I could bring back to my wife to pick from. Could only put on on the list and it's 7 miles out.
This next point is an absolute fact. If the house is priced right, and I mean right it is gone in one day. Ask any good broker and he will tell you the same thing. That is why if you read the threads about renting over 80 percent say do it first. aND WHY IS THAT? Because you have to be ready with a check the second a REAl good house comes on the market. It is no coincidence that most people that said they rented took an average of 3 months to find that house. And why is that because their are not that many great and faif deals in the $275,000- $350,000 price range. That is a very desirable range for a lot of people, and not many houses with level driveways and lots which we all want. We know of two other couples that were thinking of moving there and feel they might have missed the boat by a couple of years also. So yes transplants are taking a more serious look before deciding that it's worth it. Tae it from me I'm one of them

[jln69]

I am not sticking up for builders since I am a real estate agent but I think the problem is that the builders ARE being allowed to build on smaller lots and people are buying them. You need to think where all this is originating from.

[Dman999]

once again sorry about the typos, but it's late
A few more ideas, Actually the economy is starting to slow down that is a fact, but brokers don't want to believe it or won't say it, but it is check consumer index/wall street/ bond market articules on NATIONAL BUILDERS PROFIT REPORTS lots of things going on it is slowing down someone tells you different well what I say we are all adults.
Buyers from other parts of the country want more quality in homes and real lots. not .015 .022. More bang for your buck.
The subprime mortgage business for lack of better term wellis gone. yes banks guidelines are much tighter. Basicly it's a bunch of factors converging that's causing this slow down. It happened in Vegas cheap houses plenty of new jobs in Vegas everything moving along no end in sight then overnight gone couldn't give houses away. The brokers said the same things about builders the " price is the price is the price" then Pulte slashed their home prices overnight by between$60,000- $80,000 and now are being sued in a class action because they are controlling the market. So not sure what else I can say. I think the prices will continue to go up as long as their are willing buyers. It's the old supply and demand rule.
Still by far nicest place I've seen or been on the east coast, and every single person I meet and there were many made me want to live there all the more.

[tentonc]

.........don't they have the yay or nay on rezoning? That's how it was in NJ & PA. Strange how things can change from one meeting to the next!!!!!!!

[Sal298]

I feel that the houe prices are getting to the point where it's all about the profit for the builder. They are getting top dollar and giving you a ridiculous size lot.

You are right. No doubt at all. But those are the new houses that most people don't seem to realize are being built with popsicle sticks.

I've a question for you: What do you consider a house that is priced right?

Look at it this way: Wherever you moved from, if you priced your house so it would sell in one day, do you think you would get fair equity? On rare occasions bidding lifting the price can happen, but it's not the norm.

What I'm saying is that houses that sell in one day are nice of course. But the homeowner has priced lower due to some crisis, and he knows he has to lose. There may even be some serious reason the buyer is selling, like a sewer plant is going to be built nearby, or a busy freeway is planned 40 feet away. A buyer has to totally trust his realtor in order to jump on a house in just a few hours. It's not something I personally would do.

A house is a big investment and I don't think it's smart to give up equity just to sell in a day. Unless you have to because of a crisis.

I suspect that some of the people coming here and wanting a deal - did not give the person buying their home the same kind of deal. If that is the case, then it's called greed.

It's not fair to expect someone else to give you something for less than you would sell it yourself (given the same timing and circumstances.) Buyers can rent and wait like buzzards sitting on a dead tree top I guess. But in the end, a house is a house. I'm not willing to give away such a big investment.

Don't get me wrong. I like your points and you're probably right. I just think that if that's the mindset of the average transplant coming in, then I'm not ready to sell yet.

[Dman999]

Jln,
your blaming the victim are you? Not the billion dollar companies building these homes. You have to be joking right? I'll make this one real easy $400,000 home on .015 lot backyard maybe 30 by 20 on a hill with plastic $100 shower and tub units and formica counters? Please............... They don't even use formica up noth in rentals anymore because if you check the price of granite has become so cheap they are putting in the consols of cars....But that did make me laugh...." who's fault is it?", now that is funny....

[Sal298]

Jln, that's what really puzzles me. Why on earth would so many people want to buy cheaply built new homes on teeny-tiny lots? I've driven through Cary where the new building is going on and it's ridiculous. Have people gone mad?

Buyers from other parts of the country want more quality in homes and real lots. not .015 .022. More bang for your buck.

Dman, now see, there's where you've got it. That makes sense to me. That is exactly what we're selling, and yet, I suspect most people are going for the low quality homes with zip lots.

The northeast, for example, is where you have a lot of history and landscape interest. It seems people from there would want a bit of New England down here, not some cheap pre-fab neighborhood.