The reason I ask that is that even though you are buying the house today for yourself you can never ignore the resale of the same few years down the line and that is always a factor when buying any property. Hence if someone were to buy at say $130 - $140 per sqft in Carpenter Village, do they really stand a chance of any appreciation in even 5 yrs from now?
At that price even a decent size 2400sqft house would cost say somewhere between $312-$336K. I really wonder if at that at that price there is any scope left for an appreciation in the future.
Don't get me wrong but I have nothing against Carpenter Village, I know some parts of Carpenter Village are very upscale and commanding almost $175 per sqft while others are for middle income groups. And it is that group that I belong too. But, everytime I see such a property listed around or more than $140 per sqft in not a very upscale community, I wonder if there would ever be a chance to sell that property at even minimal profit down the years.
You can always argue that price of the house based on community it is, the kind of upgrades the house has and the way the house has been maintained over the years but even then I think there is a market cap to how much price you can ask per sqft based on the size of the house irrespective what the house is like on the inside.Unless you are in Preston, Southbridge or similar neighbourhoods there is a market cap for what you can ask for per sqft price.
Recently, I have seen many homes in resale in Cary-Morrisville area which are up for resale and are very good homes but they have not been selling simply for a reason that they are outpricing themselves solely on the basis of the per sqft rate. There has to be a fair balance between what you can ask for the upgrades inside the house and the total sq footage.
Consider this,most of the new construction in this area in communities like Twin Lakes, Town Hall Commons, Providence, Lennar, Laurel Park is ranging between $100 - $130 per sqft. for a single family home. And builders are willing to throw in some upgrades too to sell there houses.
As compared to that Carpenter Village is a well established older community which has seen the maximum price appreciation in the last few years but I don't think that trend will continue forever. 5 yrs down the line all these new communities will be competing with the existing ones for resale properties and I think that is where our bets on houses above $140 per sqft in some of the communities today can go really wrong.
There are hardly any homes that were bought 2005 onwards that and are up for resale now and are making and are going to make any money in this area. Most of such homes are loosing money, few are just breaking even and very rarely a few may be making hardly any profit. Hence the newly constructed houses have reduced the prices and luring buyers with a newer house for almost the same or lesser price per sqft as compared to older ones already in the market. Net result older houses are sitting much longer on the market and have no choice to but either to wait or reduce the price and loose money.
I am not a real estate investor but just a buyer, however this is what my opinion is on some of the prices in today's market in this area.
Further suggestions/opinions/information is more than welcome.
I just saw your question on Trulia. So sorry that I didn't see it sooner. Interestingly enough, only one home has sold actually it in a pending state that will close in February in Carpenter Village since January 09. The property is a short sale meaning it is selling for less than the owner owes on his mortgage. The property is 2295 square feet. I won't know what is sales for until after it closes on the 12th of February. There are 24 properties on the market in Carpenter Village with an average days on market to be 103. The average price per square foot i s $130.00. If you have any more questions, I would be happy to answer them for you.
Get Results Realty
I though trulia had a community to help each other but looks like this has become a community to just advertise yourself.
Anyway while doing some investigation I came accross this price trend on trulia for Capenter Village. I think the data says it all that i was trying to explain in my post below.
Best of luck house hunting.
Is Carpenter Village still an area you are looking to buy in? I have 2 new listings and at least one more on the way. Homes in the area run from $190,000 to $800,000. What price range are you looking to buy in?
The Bliss Real Estate Group
Keller Williams Realty - Cary
There are so many elements involved to determine the price of a home. The average price per sq/ft is just one of them. Many large community like Carpenter Village, different section has different AVG sqft. I'd suggest to work with a good buyer agent and analysis every aspect of the community including similar communities and arrive your own AVG sqft. This will give you a good negotiation power once you know your market so well.
Here's a link to a brief comparative market analysis for Carpenter Village (large range of prices). http://trianglemls.mlxtempo.com/Pub/GridReportView.asp?r=158 (cut and paste) .
Although a price per square foot gives you a ballpark figure for what list prices shouldn't exceed, it doesn't really give you an accurate portrait of the home's actual worth. Updates (or lack thereof), lot location, lot slope, proximity to busier streets, etc. can also affect a home's value. An average cost per square foot isn't really helpful when comparing a smaller home to a larger one, so the narrower you're able to make the square footage range, the more accurate the average will be (but you'd still have to make adjustments over what one house has compared to another in a more detailed buyer CMA done by a Realtor).
If you're looking at the grid, LA is living area (heated sq ft), LP is list price, SP is sales price, SF is sq ft, and DOM is days on market. In this area, the typical list to sales price ratio rarely goes below 90% with 97% being the norm.
I like the Carpenter Village area and they're adding lots of nearby places for shopping, entertainment, and recreation. It's very close to major transportation routes as well. You will have some aircraft noise from RDU since Carpenter Village has planes passing over quite frequently due to the proximity to the airport, but that doesn't bother a lot of buyers (but is also something to consider in re-sale).
I hope this info helps and if you have any further questions, please feel free to call or email. My website address is http://www.wendynormanonline.com.
Thanks and have a wonderful day!