Lynn, Home Buyer in Sneads Ferry, NC

how far are the prices dropping in this area, how lond will they continue to drop?

Asked by Lynn, Sneads Ferry, NC Mon Jun 11, 2012

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Lynn,

That's the million dollar question! No one truly knows, but if recent indicators are correct, we are probably seeing at or very near the bottom in terms of pricing. Prices in this area are at the lowest point in 7 years, but I honestly wouldn't wait too long or expect them to fall much farther. Keep in mind that prices in the mountains, and particularly the High Country of NC are somewhat protected from the massive meltdown that much of the country has experienced, especially in terms of foreclosures, which have driven the prices down so much in harder hit areas. Compared to other areas, our foreclosure rate has remained very low, which helps keep prices stable. Most people who are buying property in our market right now realize that an investment in a home or property in the High Country is just that, an investment, and if you can buy at a reasonable price, there has never been a better time to do so! I hope this information is helpful. If needed, I can provide you with some statistics that may also help. Just let me know if I can be of any help!
0 votes Thank Flag Link Mon Jun 11, 2012
Good question, Lynn! Our prices have taken a bit of a plunge (notice "a bit") during this most recent recession......As you probably know - we are primarily a 2nd home/Vacation property market and we -fortunately- did not see a MAJOR plunge in pricing that other areas did experience! Overall, I'd say they dropped anywhere from 10-12-15%......but it is my opinion that we HAVE bottomed out & we're seeing some evidence that prices are on the rise. There are some good "deals" out here, but they are dwindling FAST!! IF you are the least bit interested in investing in a mountain home or land....the TIME is NOW!! "He/she who snoozes....looses!" as they say!
0 votes Thank Flag Link Mon Jun 11, 2012
It depends on the property, at different price points, we are seeing prices level off. At higher prices, we are still seeing a drop. You asked how long will they continue to drop, that is everybodies guess. What is really comes down to for our market is how bad the seller has to sell. In Banner Elk, a large portion of the properties are not mortgaged, thus these owners don't have to sell and because of that they are not moving on their sale price.
0 votes Thank Flag Link Mon Jun 11, 2012
BOTTOM OF THE MARKET
There has been a lot of speculation and negativity about when the BOTTOM will occur.
The BOTTOM will not be heralded by a Town Crier, walking around, shouting “The Bottom has been reached!”
The BOTTOM will not be accompanied by an article in the Wall Street Journal or New York Times, announcing “The Bottom happened yesterday at 4:30”
The BOTTOM will be completely different for you, than it will be for everyone else.
The reason for this is that you will not be buying the MARKET; you will be buying one house!
There is a fixation among some Buyers, that they be able to tell everyone that they got the absolute BEST price in the world! (I’m sure you know people like this.) This obsessiveness will surely not be rewarded, because there will always be someone who got a better deal.

There is a very old saying that; “To have a good sale, the Buyer had to have been willing to pay more, and the Seller had to have been willing to take less.”

The truth is, when you buy that house, any house, you are establishing the BOTTOM of the MARKET for THAT house. The clock starts on that investment. And considering that Real Estate is a long-term investment; if you can look back in five years and see that you made a good investment….

This whole controversy must take into consideration what you are buying:
If the object-of-your-affection is a Home for your family, then your priorities are skewed if you are obsessing on the Bottom-of-the-market: You are first, last and always buying a HOME for your family; complete with Security, a good neighborhood, good schools, 3 bedrooms, 1647 square feet, a wooded backyard, a 2 car garage, etc.
Sure you want to make a good buy, but that price should not be on the top of your list: Would you be happier in a crummy, crime-ridden neighborhood, with a house that is falling down, BUT, you made a great deal! Or, would your rather have the best house on the block, where you don’t have to lock your doors at night, and your schools are the best in the State, for a good price? You choose.

The last consideration is the dynamic nature of the Market: By holding out for the BOTTOM of the MARKET, you are betting that, not only do the prices continue to drop, but also that:
1.) Interest rates do not increase
2.) The house you want is still available
3.) Your financial position does not change for the worse.
Consider that if you are looking for a home at $400,000 with a loan at 5%, your monthly payments could be $2689.
If you waited for the house to go down $10,000, but the interest rate went up 1%, your monthly payment would INCREASE to $2876!
If you waited for the house to go down $20,000, but the interest rate went up another .5%, your monthly payment would now be $2935!
(these are ball-park figures; please talk to your Mortgage specialists.)
If you are determine to play the interest-rate-game; know that the current Interest Rates are the lowest that they have been since just after World War II! That’s 60 years!
But in the 80’s we had 12 and 13% home loans. (That would make that monthly payment $4,966!)
0 votes Thank Flag Link Mon Jun 11, 2012
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