So, Looking at the current trends what could be a projection for price per sqft for this neighbourhood say in 5 years time?
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.