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Are you sure that is real appreciation or is the builder just passing on his increased costs?
That's a good question and an important point - I think another post was just talking about how builders are "feeling the pinch" because of cancelled orders etc. An $8000 value increase in 3 months seems like a lot, even if homes are appreciating.
In an area of high demand like NC, builders will up prices slightly thinking someone will buy but buyers are getting smarter...Also, construction costs keep rising and this alone could boost up a price of a home...In areas like NC I imagine they'll only do so much with price because the area is still showing growth and they need to make up their losses in other parts of the US...I see resells dropping everyday...
I'm sure alot of it is increased cost...I'm in construction and I know that all the materials have been going up constantly.
I'm just saying that I dont see the prices coming down unless the home stop selling.
You can blame rising prices on increased fuel costs (like my local Dunkin Donuts) but in reality we all know if oil goes back down to reasonable prices, the price of everything else is staying right where its at.....it will just increase the profits.
Well, where I live appears to be a war zone, in comparison to Charlotte. But that's just it, it's not a war zone, so I don't really get it. Hoping someone else here chimes in with information regarding crime indexes, or where to locate another online resource.
I am in Central Jersey. Lived in North Jersey most of my life (except when in the military).
I'm sure alot of it is increased cost...I'm in construction and I know that all the materials have been going up constantly.
I'm just saying that I dont see the prices coming down unless the home stop selling.
You can blame rising prices on increased fuel costs (like my local Dunkin Donuts) but in reality we all know if oil goes back down to reasonable prices, the price of everything else is staying right where its at.....it will just increase the profits.
Are you sure that is real appreciation or is the builder just passing on his increased costs?
That's a good question and an important point - I think another post was just talking about how builders are "feeling the pinch" because of cancelled orders etc. An $8000 value increase in 3 months seems like a lot, even if homes are appreciating.
It wouldn't surprise me to see the prices continuing to rise, not just because of growth or cost of materials, but also because the counties are now imposing certain fees/increases to the builders so that the towns utilize those added funds to handle the growth. And now most builders have no choice but to carry those added costs down to the buyers. I think it was Union County, but the builders will now be incurring costs/fees up to 21k per home.
Geez, don't say that!!! I'm trying to sell in Fresno, CA to get to NC. I need that buyer! LOL
In the past 5 years, Fresno was in the top 5 cities for the hottest markets in the country. The entire state of Cal was moving here because it's cheaper and we have a few top-rated school systems. It was crazy!!!
Here's what's interesting: 20% drop in Fresno's RE market. But an 8% increase in prices from last spring. Why?? Some feeling that the "bubble" is a media creation and that we are only in a market correction. Also, sellers aren't going to drop their prices that much. Sure, they'll reduce prices, but not enough to lose money. The result seems to be a standoff - buyers waiting for prices to drop, sellers holding out. I think sellers will have to deal with a reality check, but buyers will soon realize that it won't ever be 1998 again -that $900K house is not going to be reduced to $650K. Maybe $825K, but not $650K. Sure, there are foreclosures. But most sellers will stay if need be rather than give their house away. We've already started to see sellers taking their homes off the market here - won't reduce their prices anymore and will try again in a few years.
Our agent thinks that fall will be a little busier, as buyers who have waited out the season will buy and sellers will want to finalize this process. Also, making sellers wait until next spring will likely result in sellers taking their homes off the market in winter, and then putting them back on in spring at higher prices.
Here's the reality check: this country will experience falling incomes and asset prices for the next decade as the rest of the developing world catches up with our standard of living. That said, the only solution will be even more creative financing until everyone winds up living in a perpetual state of bankruptcy.
Just curious.....why do you think California has so many homes for sale right now? And do you really think you can trust a realtor? Wow!
As someone said before it is a buyers market where I live in south florida houses that we purchase in our neighbors were on sale starting in the mid 100 then it would increase by 10-20 thousand dollars in a matter of weeks and months and finally it stop, but not before it got to 1/2 a million. People who purchase house for 180 can now sell for 500-525,000. But now as someone said it is a buyers market and in my area there are many people trying to sell and the prices as mine were listed at 500 but had to drop the price to sell .. So now is the time to buy, because that could be your house with all that equity years from now
What? Buy when prices are falling? Buy at the top of the market? Huh?
Here's the reality check: this country will experience falling incomes and asset prices for the next decade as the rest of the developing world catches up with our standard of living. That said, the only solution will be even more creative financing until everyone winds up living in a perpetual state of bankruptcy.
Just curious.....why do you think California has so many homes for sale right now? And do you really think you can trust a realtor? Wow!
I hate these kinds of posts. Rather than conveying a point of view (even strongly), the underlying message seems to be "this is all so tedious because the answer is so obvious. Can't the rest of you see it? Are you really that stupid? Wow!" Maybe that's not how it was meant, but that's kind of the way it sounds. I get enough of that at work!! LOL
That said, I don't completely agree with your prediction. I think you are right that there are some real problems and that people are going to really "face the music" in the next few years. I think that's why a lot of people are leaving Cal, which most thought they would never ever do. But I don't think "everyone" will wind up in a "perpetual state of bankruptcy." There are too many solid fundamentals in our economy for that, in my opinion.
No, I have the ability to discern the comments from my realtor and either agree or disagree. I am an attorney and have fairly decent analytical skills. But I don't think every realtor (or every attorney!) is a cheap salesman trying to pass off fantasy for the truth. My realtor has been in business for 30 years and I have used her numerous times (for residential as well as all the investment property that I own). She is intelligent, careful, and ethical. I still do my own research, but I value her opinion and think highly of her. If that makes me a fool, then so far being a fool has done me right!
No interest in getting into a "bickerfest" with you, but I'd like to hear your thoughts re falling incomes and asset prices. Do you think wages will come down??
I hate these kinds of posts. Rather than conveying a point of view (even strongly), the underlying message seems to be "this is all so tedious because the answer is so obvious. Can't the rest of you see it? Are you really that stupid? Wow!" Maybe that's not how it was meant, but that's kind of the way it sounds. I get enough of that at work!! LOL
That said, I don't completely agree with your prediction. I think you are right that there are some real problems and that people are going to really "face the music" in the next few years. I think that's why a lot of people are leaving Cal, which most thought they would never ever do. But I don't think "everyone" will wind up in a "perpetual state of bankruptcy." There are too many solid fundamentals in our economy for that, in my opinion.
No, I have the ability to discern the comments from my realtor and either agree or disagree. I am an attorney and have fairly decent analytical skills. But I don't think every realtor (or every attorney!) is a cheap salesman trying to pass off fantasy for the truth. My realtor has been in business for 30 years and I have used her numerous times (for residential as well as all the investment property that I own). She is intelligent, careful, and ethical. I still do my own research, but I value her opinion and think highly of her. If that makes me a fool, then so far being a fool has done me right!
No interest in getting into a "bickerfest" with you, but I'd like to hear your thoughts re falling incomes and asset prices. Do you think wages will come down??
I think people are selling to get out because they can buy a house cash or have a very low house payment is why CA has so many houses for sell, and crime is getting worse! That's my opinion.
I think people are selling to get out because they can buy a house cash or have a very low house payment is why CA has so many houses for sell, and crime is getting worse! That's my opinion.
Yup, I think so too. One other factor - many Californians are looking at other areas of the country and thinking "hey, wait a minute. That town in Colorado, New Hampshire, Utah, NC etc is actually NICER than where I live." Not only is it cheaper, but it's actually nicer. Maybe not if you're from southern Cal or the Bay Area, but much of California is just "regular." It's one thing to live in a cheap regular town, it's another thing to live in a crazy expensive regular town. When we visited Charlotte, we couldn't believe how much nicer it was than where we lived! Not just less expensive, but prettier and more exciting.
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