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Old 08-16-2007, 06:24 PM
 
709 posts, read 929,165 times
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Quote:
Originally Posted by VickiR View Post
On WRAL at 6PM, as they spoke of housing and the morgage issues, they made it very clear that this area of NC is NOT having the same problems that FL is having because we did not have the huge increase in home prices so we have no reason to have a huge decrease. As they stated, overall the entire area has increased 4%. I've seen increases in North Raleigh and Cary being between 6% and 8% over last year.

Vicki
Vicky

Listen you may have been a realtor for 30 years here in this area, however this situation in Iraq the awful money issues with the sub prime market and quite frankly the home prices in Cary and North raleigh are not what you have lived thru down here. If gasoline prices spike to 4+ dollars a gallon this area will look no different than any other suburaban county in america.

Please understand Home equity is only on paper and you cannot live on that paper money, Oh wait a min. How many of the people who bought homes took second mortgages on their home, yes took money out for a vacation or new car etc, What a bunch of dummies!
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Old 08-16-2007, 06:33 PM
 
9,848 posts, read 30,202,744 times
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Quote:
Originally Posted by 98stage2 View Post
So what about homes in the 150K range? I wouldn't think there is much room to go lower on homes in the 150K and under range. Opinions?

Great point. I have said this many times on this forum, whenever people talk about pricing trends it is important to distinquish what price range you are talking about. What is or is not happening in the $400K to $600K housing range has nothing to do with what is going on in the $150K-$200K range. I feel sorry for people who think price reductions span all price points in this market. If you are looking for a $150K home in this area and are waiting for prices to drop you are in for a rude awakening.
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Old 08-16-2007, 08:24 PM
 
Location: Raleigh, NC
12,475 posts, read 32,148,806 times
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Quote:
Originally Posted by urbywan View Post
Vicky

Listen you may have been a realtor for 30 years here in this area, however this situation in Iraq the awful money issues with the sub prime market and quite frankly the home prices in Cary and North raleigh are not what you have lived thru down here. If gasoline prices spike to 4+ dollars a gallon this area will look no different than any other suburaban county in america.

Please understand Home equity is only on paper and you cannot live on that paper money, Oh wait a min. How many of the people who bought homes took second mortgages on their home, yes took money out for a vacation or new car etc, What a bunch of dummies!
And you seem to forget that we have already gone through one war and in 1990 the interest rates were 14% and still that didn't break the housing market. And lets don't forget the gas lines of the '70s and that didn't break the housing market.

Yes, in areas that had huge price increases, the market IS righting itself. However, we did not have that huge increase here and we have consistently had 6% to 8% appreciation every year.

I do not know what the future will hold. We can only relate to what history teaches us.

However, I do not believe the housing market will ever be destroyed.

I personally KNOW what my clients purchased and I personally KNOW the amount of monies they have made when I've sold these properties. I know that the last 5 houses I had and sold EACH MADE MONEY so no, its not just on paper. I personally KNOW my client that has bought and sold 3 houses in the last 6 years and made money on each and every house so there is nothing that you can say that will make me NOT know what I DO KNOW.

I would love to show you settlement statements that prove my points but due to my clients' confidentiality, I would never do such a thing. Besides, people will always believe WHAT they want to believe and they will justify their decisions anyway they can.

I am not out to prove you wrong. I am simply pointing out that based on YOUR experiences in other areas, you cannot know what this area has DONE or WILL DO.

Vicki
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Old 08-16-2007, 11:32 PM
 
3,379 posts, read 7,733,426 times
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Businesses continue to (re)locate in this area, creating jobs and keeping local unemployment extremely low (especially in some segments). As long as that is happening, this area will continue to grow and real estate locally will do well. They aren't making more land as they say.

Yes, we don't live in a vacuum. Things like gas/food prices, interest rates, bubbles bursting in other regions, etc. will all have some effect on this market. But for the next several years (at least), this market will do better than the rest of the country.

The thread headline is interesting, but only when taken into the account of how those housing starts had increased so greatly over the years in the Southern US as the population migrated here. So the rate of new homes has slowed, but so what. We've had tons of newcomer builders try to jump on the bandwagon. Some of them are backing off.

A stock market might see a correction of 10% after runups of 25%. A real estate market might see slowness (more days on market), some price softness, and new homes starts decline. But it usually takes an awful lot to see prices drop, especially in an area that wasn't a "bubble".
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Old 08-16-2007, 11:50 PM
 
Location: North Raleigh
820 posts, read 2,782,035 times
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Quote:
Originally Posted by urbywan View Post
It was quick off the top of my head and the taxes are probably closer to 400 a month 1.20 per 100 in this part of wake county. Yes 2,022 a month and add 400 for taxes well you are at almost 2500 a month just for P&I and taxes.

Anyways a bit of dollars and quite frankly who wants to be saddled with a huge mortgage?

Plus I want to see who really gas 80K to put down on a house these days. Most will be in the 10% range with a down payment then add PMI and bingo a 3000+ payment a month!
1. In Wake County most taxes would be assessed at a lower value, even with the new adjustments being made, $400 is an overestimate.

2. Plenty of people have 80k to put down on a house (and they're not "rich").

3. A 3000 a month mortgage after putting down 10% on $400K is again another over estimate.

I know it's nitpicking but really, you've rounded up a lot to get to your numbers.
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Old 08-16-2007, 11:55 PM
 
Location: North Raleigh
820 posts, read 2,782,035 times
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Quote:
Originally Posted by urbywan View Post
The smell is off the rose.

I would be careful that is all I am saying. Hey I want prices to go up I own a place down here. But I would be extremly cautious over the next 6 months, heck I might rent until after the election NEXT year. too many IFs.

I mean a teacher down here makes less than 50K a year even after 20 years of teaching. That puts people into their 40s. Police, Nurses all make in that range, NO way can that salary pay off a 300+ mortgage.
But what about the engineers, software developers, lawyers, and doctors? I think there are more than enough people here who can afford a 300k home and it shows. Look at N. Raleigh. I'm not even talking about the outskirts where the $600k+ homes are going up..... I'm talking about Brookhaven, Long Lake, Harrington Grove. A good $300k home doesn't stay on the market long in these areas.
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Old 08-17-2007, 12:04 AM
 
Location: North Raleigh
820 posts, read 2,782,035 times
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Quote:
Originally Posted by VickiR View Post
However, lets all remember that you buy a HOME to live in. Just becuase its an investment doesn't mean thats ALL it is to it. The investment part is the icing on the cake. Having your own HOME means so much more.
Vicki
ThankYou ThankYou ThankYou. When people talk about housing these days it is always about how much it appreciated. Sure you want the house to be/stay valuable but ultimately you want a good place to live.

I do consider my current home an investment, but I've always said that I would never buy a home or invest in a property I wouldn't live in. My plan was to live here a year or two but if I need to wait for conditions to be more favorable it's no skin off my back.

Those Flip-that-house shows have completely turned around what the "American Dream" used to be. Yes you can make easy money in the housing market just as with stock but it's always a good idea to shoot for the long time investment value and return. Other than a ROTH or 401k I don't know of anything better for that than a home.
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Old 08-17-2007, 05:14 AM
 
1,489 posts, read 5,678,723 times
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Do some research, the Triangle is among the number 1 markets in the country. We will continue to have appreciation. Yes, you will be able to find builder discounts as they get pressure from corporate to make up for other's losses. But, it will be localized to certain neighborhoods, and mostly on inventory as they try to increase assets.
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Old 08-17-2007, 05:58 AM
 
709 posts, read 929,165 times
Reputation: 80
1.7 million homeowners may foreclose on their homes. Gasoline lines back in the 70s this area was not much back then. 5 dollar a gallon gasoline down here is a recession maker. Oh and it could happen sooner than later. No mass transit, zip nada. You guys really are looking at the bright side. War? Look this mess 400 billion already?

Hey if you guys believe my house that I bought here last year is gonna appreciate, GREAT! but I think you guys are well overly optimistic.
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Old 08-17-2007, 07:20 AM
 
5,458 posts, read 6,695,868 times
Reputation: 1814
Quote:
Originally Posted by VickiR View Post
In the last 18 years that I've lived in my home, it has more than doubled in price. Is this on paper? Yep...until I sell it! However, I'd be more likely to keep it, rent it out and just buy something smaller when the time comes. I'd like to know how much rent you've paid in the last 18 years and what you have to show for it? I have a house that is pretty much paid for.

Vicki
The stock market is up over 7x in that same time period. Investing the money paid on interest, insurance, taxes and repairs would have likely given you more money after those 18 years, plus it wouldn't be tied up in home equity. That's typical, though - over long periods the stock market has gone up on average 10-12% a year (7-8% after inflation), while housing on average barely beats inflation (less than 1% return in real dollars). You return of 4% a year is right in line with that, since inflation tends to average 3% or a bit higher each year.

There are definite reasons to own a house, though - I'd never argue against that. Hopefully the collapse of the real estate bubble will remove "massive profit" as one of those reasons, and keep prices at a rational level that's sustainable long term.
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