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Just looking at the latest Case-Shiller data for Charlotte (released just today) shows that prices in Charlotte are now at July 2006 levels. That's a pretty decent drop for an area where "there wasn't a bubble". Where there wasn't a huge run up in prices, it's a lot easier for small price drops - a bit under 5% - to make a big impact in how long you have to hold on to a house for it to be above water when you sell.
I thnik you have to look at two things. Not buy a home you can't afford the unkeep and future increased cost on . You also have to be aware that by the time you or I will realize the bottom it will be over with. When to buy in your area and when the bottom is in that area could be much different than the country as awhole. No one can really say which of you is right but just guess. If and when we see lending loosen and peole thinkt eh bottom has been reached there is likely to be real rush to buy as there is alot of money just waiting on the sidelines.
OP posted ''The houses here in Charlotte continue to decline at a pretty rapid pace.''
That right there is reason enough for him to wait to purchase. He needs to understand it will be a bigger strain on the relationship down the road if you 2 buy a home now and 6 months from now they are selling for less. Tell him to stop behaving like a child that wants a new toy. And as far as the interest rates...well.. no matter what anyone cheerleader or RE pro tells you.. interest rates are always refinanceable...overpaying for a home in a declining market is permanent! Good luck :-)
Why must you continue to take shots at Realtors? If you'll notice no Realtor here flew off the handle and said "Go buy the house". Clearly you have an axe to grind. Refi's can cost money and rates may never again reach where they are now. However, now may not be the best time to buy for the OP. I don't think that Charlotte's market is rapidly declining, but I think it is declining. That's just one of the variables. For the right deal anything could be a good price...
Just looking at the latest Case-Shiller data for Charlotte (released just today) shows that prices in Charlotte are now at July 2006 levels. That's a pretty decent drop for an area where "there wasn't a bubble". Where there wasn't a huge run up in prices, it's a lot easier for small price drops - a bit under 5% - to make a big impact in how long you have to hold on to a house for it to be above water when you sell.
Silliness. You buy a house for one of a couple of reasons. You want to live in it or you want to make money from it.
You can intertwine the two but then you will sub-optimize.
You cannot rent what you can buy. Just a fact of life. They are different subsets and have different rules.
However if you are happy in your rental you can perfectly well stay there. That may make you a little money...particularly in the current market...or cost you a little money. You pass on appreciation...which however is not a big deal when prices are going down. You give up certain property rights...a renter is not an owner. But if you are happy no big deal.
If you buy a house to live there the argument that it loses value is mostly silly. You don't lose a dime if you don't move. And if you must move it just turns out it cost you a little more than you thought.
I personally like rental for transiet times. If however the interest is many year stability...which may not be real...you buy.
Now if you are investing...you buy for cash flow. Appreciaition is nice...but cash flow is better. Never have understood why people buy investment property hoping their is a bigger fool down the line. I look for a return on my dollar. If it appreciates great. Might sell it and realize the appreciation if the rent does not increase as fast. Then again if it depreciates I shed not a tear..just collect my monthly pittance.
=I don't think that Charlotte's market is rapidly declining, but I think it is declining. That's just one of the variables.
Let me clarify that. As Charlotte overall decline around 4%. There are 3 subdivisions that I have been watching the past few months that we are considering purchasing in. Those particular ones are rapidly dropping.
For example, in one subdivision, in 06 the houses sold for 300K and now are selling for 200-210K. In some of the other areas, I haven't seen prices reduce that much.
But it's just weird, getting my daily listings and seeing price decreases every month for the same house. Or seeing similar houses in the same subdivisions going for less every few months. And a lot of times they are even bigger in size.
Let me clarify that. As Charlotte overall decline around 4%. There are 3 subdivisions that I have been watching the past few months that we are considering purchasing in. Those particular ones are rapidly dropping.
For example, in one subdivision, in 06 the houses sold for 300K and now are selling for 200-210K. In some of the other areas, I haven't seen prices reduce that much.
But it's just weird, getting my daily listings and seeing price decreases every month for the same house. Or seeing similar houses in the same subdivisions going for less every few months. And a lot of times they are even bigger in size.
That is an unusually high amount for a decline. Why do you think they've done that? (I'm going to throw a guess out - new construction. It's either a builder dumping inventory causing rest of neighborhood to adjust, selling out the n'hood to another builder building more affordable homes, was quite overvalued to start with, or something of the sort). There was a builder that sold one in the 175 range, only one he sold, then had to short sell about 10 spec homes in the 120's/130's. Rest of the lots are sitting right now.
That is an unusually high amount for a decline. Why do you think they've done that? (I'm going to throw a guess out - new construction. It's either a builder dumping inventory causing rest of neighborhood to adjust, selling out the n'hood to another builder building more affordable homes, was quite overvalued to start with, or something of the sort). There was a builder that sold one in the 175 range, only one he sold, then had to short sell about 10 spec homes in the 120's/130's. Rest of the lots are sitting right now.
That one particular house was built in 06 and two years later it was a short sale selling that much lower. But it was/is a newly constructed neighborhood. That street isn't even finished yet. When I saw the house, there was an empty lot next to it. I think Charlotte had a lot of new construction going on during the bubble so those neighborhoods' prices have dropped quite a bit.
That one particular house was built in 06 and two years later it was a short sale selling that much lower. But it was/is a newly constructed neighborhood. That street isn't even finished yet. When I saw the house, there was an empty lot next to it. I think Charlotte had a lot of new construction going on during the bubble so those neighborhoods' prices have dropped quite a bit.
It is not that they have dropped a lot...they started out insanely inflated. There is a difference. When talking price behavior in an areas you don't deal with things built between 2004 and 2006. That is the era of the berserk builder.
Anyone who bought new then Got screwed. But 20% of that screwing was not real value it was builder hype. I would not sell them at the lower end. Above 500K I figured the buyer smart enough to work it out for themselves. But below 300K screw it. Life is to short to sock it to the unwary. I still have a permanent curse on Pulte.
That one particular house was built in 06 and two years later it was a short sale selling that much lower. But it was/is a newly constructed neighborhood. That street isn't even finished yet. When I saw the house, there was an empty lot next to it. I think Charlotte had a lot of new construction going on during the bubble so those neighborhoods' prices have dropped quite a bit.
Again a generalization, but one distress sale does not equate to an entire n'hood declining. A local Realtor could give you a better idea of what's happening in the n'hood. If there are multiple distress sales that's a red flag.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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That one particular house was built in 06 and two years later it was a short sale selling that much lower. But it was/is a newly constructed neighborhood. That street isn't even finished yet. When I saw the house, there was an empty lot next to it.
I personally stay away from these type neighborhoods/subdivisions. You never know if it will ever be finished and also, if you are one of the first few into a new sub, you don't know what's going to follow you in.
I'd buy used in a highly stable and much more desirable neighborhood any day of the week. I have never taken a chance on a new development where it wasn't at least 70% built out.
Are these subdivisions you're keeping an eye on built out? Or did the builder bail on them? That's important to know and a huge factor to determine where prices are falling.
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