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Vicki thanks for the comment "about up to $500 in the more desirable areas". I did not see your comment before my last post. This is what they are thinking. That once they hit the $500 mark, not only will the inventory increase, but maybe the competition and time pressure won't be as fierce. They have a lot of equity from the sale of their house that they are planning to pour back in to a purchase, and no plans to leave the area. So it might work for them. I think they are just so done with renting at this point .
their agent can help them see what the deal is with higher priced homes in the location they seek.
I see a big psychological barrier around the $500K mark with resales. That's also the point where less than 20% down puts you in a jumbo mortgage, and there is far less of the 80/10/10 or 80/15/5 product availability than before the last market drop.
I agree that things are slower in the $500K+ range. We spent the last few months looking in the $500-$600k range and there were only two or three houses that were under contract before we could go look at them. Several that I thought would sell quickly are still on the market 45+ days later.
The jumbo mortgage thing currently isn't a concern like it has been previously. We applied for a 30 year fixed jumbo loan 90% LTV and the rate was 1/8% LOWER than the 30 year fixed conventional product (and, FWIW, our PMI will be <$90/month). We looked at an 80/10/10 option but it couldn't hold a candle to what we got.
I agree that things are slower in the $500K+ range. We spent the last few months looking in the $500-$600k range and there were only two or three houses that were under contract before we could go look at them. Several that I thought would sell quickly are still on the market 45+ days later.
The jumbo mortgage thing currently isn't a concern like it has been previously. We applied for a 30 year fixed jumbo loan 90% LTV and the rate was 1/8% LOWER than the 30 year fixed conventional product (and, FWIW, our PMI will be <$90/month). We looked at an 80/10/10 option but it couldn't hold a candle to what we got.
Current Contingent and Pending resale homes in Areas 005, 010, 015, from $600,000--$800,000.
53 homes
Median DOM = 41.
Average DOM = 30.
Remove Area 15, and there is almost no impact.
Median DOM = 42.
Average DOM = 30.
So, it is a bit slower, but inventory is not languishing, either. I can remember agents bragging about selling homes in less than 90 days.
One should be ready to move if one sees a house they really like.
Our market will shift at some point and my guess is the values will dip slightly. It's happened in other markets around the country and will happen to us too. Once inventory catches up demand will go down and dom will increase. This will cause sellers to have to reduce their price in order to sell. It will all balance out in the end, but people need to be careful when buying homes with issues that will hurt their resale. I see many homes that are selling quickly and for top dollar that have steep driveways, back up to roads, old mechanicals, etc.....
Our market will shift at some point and my guess is the values will dip slightly. It's happened in other markets around the country and will happen to us too. Once inventory catches up demand will go down and dom will increase. This will cause sellers to have to reduce their price in order to sell. It will all balance out in the end, but people need to be careful when buying homes with issues that will hurt their resale. I see many homes that are selling quickly and for top dollar that have steep driveways, back up to roads, old mechanicals, etc.....
Old mechanicals, I can understand.
They are fixable.
The others are not.
Heck, half the driveways in Raleigh are up a steep hill. I always joke in every neighborhood you're either up a hill or down in a ditch depending on what side of the road you're on. Take your pick.
I do agree the bigger issue is people buying what would previously be undesirable homes just because of desperation to get a house. I own a house in this market and it even makes me anxious because if I sell I don't want to spend 100k more than I would have 2 years ago.
I do agree the bigger issue is people buying what would previously be undesirable homes just because of desperation to get a house. I own a house in this market and it even makes me anxious because if I sell I don't want to spend 100k more than I would have 2 years ago.
Yeah. I think the only "winners" in this current scenario are sellers who are relocating out of the Triangle area to somewhere with a less crazy real estate market; or those who are major "move up" buyers looking to sell their current home in one of the hot areas of the Triangle to buy one in the higher-end new construction market.
Yeah. I think the only "winners" in this current scenario are sellers who are relocating out of the Triangle area to somewhere with a less crazy real estate market; or those who are major "move up" buyers looking to sell their current home in one of the hot areas of the Triangle to buy one in the higher-end new construction market.
Exactly!
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