What will 150K buy in Western NC (Asheville, Waynesville: for sale, house)

[RLHuffman]

I only wish a lil' deflation is was on the way concerning the real estate market in this area. $150,000 isn't going to get you much. However you could give a peek into the Dillsboro or west Waynesville area, maybe even Franklin.

[jstubbspt]

A little chart on median house prices in Asheville:

Asheville Home Values, House Prices, and Property Values - Zillow Local Info

Median household income in Asheville is:

Asheville People & Asheville Demographics - Zillow Local Info

Home values will fall to where a ratio of 2.5x the median household income will provide you with the median home price with a traditional 30 year fixed with 20% down (which is the standard that banks are going to be forced back into). Do the math to figure out how much further price declines will go in the area, then overshoot on the down side a bit as we have many more homes in the area compared to 2000-2002 before the bubble took off.

[organick]

just check realtor.com that should give u an answer quickly.

[organick]

jstubb I dont know about that math?? 2.5x the median income?? In asheville thats 35,000 a yr so your saying housing should be at 88,000 as a median price?? thats never gonna happen. If they fall that much everyone will walk out on there mortgages. Right?

[Asheville Native]

$150K, might be a good down payment!

[jstubbspt]

Originally Posted by organick

jstubb I dont know about that math?? 2.5x the median income?? In asheville thats 35,000 a yr so your saying housing should be at 88,000 as a median price?? thats never gonna happen. If they fall that much everyone will walk out on there mortgages. Right?

Yes, that's the price for the median income at a traditional 30 year fixed rate with 15-20% down payment. And yes we're headed back there. My grandfather sold my great grand mother's house in west Asheville for 150K last year. Home was built in '88 for 40K (including land) on 3/4 of an acre. West Asheville was a solid blue collar neighbor hood before the bubble hit; these were homes that normal working people could afford. 88-90k would be appropriate for the area under normal conditions. I'm bookmarking these discussions to bring them back in a year; many people are in for a rude awakening. The credit bubble has burst, housing values have to fall back in line with incomes. What was old (30 year fixed with 20% down) will become new again.

[Zooropa]

Originally Posted by jstubbspt

Yes, that's the price for the median income at a traditional 30 year fixed rate with 15-20% down payment. And yes we're headed back there. My grandfather sold my great grand mother's house in west Asheville for 150K last year. Home was built in '88 for 40K (including land) on 3/4 of an acre. West Asheville was a solid blue collar neighbor hood before the bubble hit; these were homes that normal working people could afford. 88-90k would be appropriate for the area under normal conditions. I'm bookmarking these discussions to bring them back in a year; many people are in for a rude awakening. The credit bubble has burst, housing values have to fall back in line with incomes. What was old (30 year fixed with 20% down) will become new again.

at 20% down I'll be in my 40's before I can buy a home (I'm 30 right now)

[jstubbspt]

Originally Posted by Zooropa

at 20% down I'll be in my 40's before I can buy a home (I'm 30 right now)

Not if home prices decline to historical norms. And not if you cut non-essential expenditures from your budget.

[tkhk3746]

Hi Kelly.

Did you get my email yesterday?

I used the email direct function on city data forum? Just curious.

[Zooropa]

Originally Posted by jstubbspt

Not if home prices decline to historical norms. And not if you cut non-essential expenditures from your budget.

Maybe I should reword that to buy a home in a neighborhood I want to live in. Even after I get my debt paid down I'm likely to continue renting for a while because I'd rather rent and be close in than have to move further out in the county to be able to buy