Why Houses Still So Overpriced?

[thefuzz]

You mean those commercials on TV where the people buy $180k houses for $200 aren't real? Lol.

Everytime a friend of mine comes to me for help buying their first house, they think their is this huge list of tax seized or foreclosed properties selling for pennies on the dollar. Although there are a few properties available for a huge discount, they are usually in a terrible neighborhood, usually missing part of the roof, maybe some exterior walls, possibly populated by crack users, etc. I'm sure you probably get a lot of that too!

Exactly. Not sure what is going on out there that make people believe that the homes that people actually want to live in are not dirt cheap.

It's rather frustrating.

Also Arsen....have you told your agent that you have to purchase a home soon? If not, then do so. If you have been looking all around for a while and keep telling him that prices are too high, he is probably getting fed up with it.

Tell him that you are cool with the prices, and need to find something asap. He will kick it into a higher gear.

The price is the price.

[thefuzz]

The market is getting better and deals are getting snapped up. I bought my house a year and a half ago on the outskirts of Greensboro. I have a friend who is an agent so he hooked me up with listingbook. I also watched homepath, Fannie Mae, and homesteps, Freddie Mac, for foreclosures. I searched for about 7 months. Lost out on a Freddie mac home, because I drug my feet, when it went to a highest best offer between me and another buyer. I found out I offered more total money by 3000 but the other buyer was putting 70K down. I made 3 trips to that house over 3 weeks, then the day my agent goes ahead and submits my offer that other one comes in. In other words don't procrastinate. I was so bummed about losing that house.

I kept on watching and I found another great foreclosure deal and let my agent know about it. House was built new in 2005, 6000sf, hardwoods, 2 car garage, 2 story open living room with a wall of windows, creek behind the house, 6 minutes to a nice park, about 10 min to 40/85. The house was built for $380. The listing agent had to wait 2 weeks before taking offers...I was freaking out thinking about bidding against someone again. Offer day came and I submitted my offer, $230K, which was declined but countered at $260K by the bank. My 2nd offer was $240K with the bank paying $7K toward closing costs. It was accepted!

Since buying my house 3 other houses were foreclosed on around my neighborhood since the job market sucks. They all 3 sold recently for around $250K but aren't as nice as mine and all are in the 2000-2400 sf range. In other words better find something you'll enjoy living in because even small deals are getting snapped up at a fast pace now.

You got a 250K house for 240K. Good job.

Many think that you got a 385K house for 240K......not so.

[Who Dat Pat]

The issue is the news is all about the biggest story sells. So when new was about housing, especially right after the housing bubble, all you saw was the $2k sqft condos in Vegas dropping to $900 sqft then to $350 in a few months, or the same situation in Miami, or the people getting kicked out of their homes because they took a mortgage that is $1,000 a month, $1,300 after adding escrow and can't figure out how they couldn't make the payments with their $1,600 a month income? The bottom line is that the national picture is one story, but individual areas are another story.

At the very worst of housing bubble at end of '05, beginning of '06, the property value in southern Louisiana was skyrocketing because of the hurricane. Basic supply/ demand laws, the hurricane damaged 75% of the houses, so as soon as you got a property renovated and back on market, it lasted less than a few hours. The prices eventually settled and had maybe a 5% to 15% dip around '08, but now are currently right back at pre-housing bubble prices in most areas with largest growth coming this past quarter since hurricane.

Bottom line, if the area is solid, and in demand, there should be almost no effect from what is happening on the national scale. Your biggest threat to value is waiting too long and missing out on the current interest rates.

[thefuzz]

Agree completely.

The "deals" out there need tons of work, or are out of most peoples price range.

[pstall]

Except that is not accurate at all.

Charlotte is growing faster than Union County.

See map: http://www2.journaln...55/census-mamp/

I'm not saying UC is not in demand, the map clearly shows that it is, but to say people are fleeing Charlotte is completely inaccurate.

Let me give just one example. Got a buddy who owns a tutoring/SAT/LSAT prep biz. They deal with the best and brightest kids and motivated parents who are willing to spend money.

He wants to open a second office in and around Ballantyne/Union Cty. The reason is he sees and hears about parents moving out that way to get a better education where Myers Park, once the gold standard zip in Charlotte, is getting old and not many people with kids can afford to move there. And even if they could, are you really getting the same education from MP now as you did 10-15 yrs ago?

No.

The investor in me is a big propenent in on the ground research and data, that is a leading indicator that will never show up in a spreadsheet till years later.

Trends and human behavior. You understand those two you will go far.