Charlotte real estate market

[LinvilleGorge]

4 minutes ago, toldozer said:

Arm loans are coming.  First time I've been concerned about a potential drop in the market but that will be 5 years down the road.  Hopefully rates aren't 13% then and it'll be fine.  I have one client that's doing the arm and another considering it. I don't like that product at all but I do get it. 

Jesus. We didn't learn poo from the last housing crisis, did we?

[toldozer]

7 minutes ago, LinvilleGorge said:

Jesus. We didn't learn poo from the last housing crisis, did we?

A lot of places don't offer them but a lot of credit unions do. It's like 3.125 can you blame the consumer for accessing them? 

[LinvilleGorge]

19 minutes ago, toldozer said:

A lot of places don't offer them but a lot of credit unions do. It's like 3.125 can you blame the consumer for accessing them? 

No, but we've already seen what happens to a lot of folks when you kick that can down the road.

[toldozer]

1 hour ago, LinvilleGorge said:

No, but we've already seen what happens to a lot of folks when you kick that can down the road.

Yeah that's why I think it's on the mortgage industry to not offer that product because as a society I feel like we like to gamble and it saves money upfront. My one buyer is using it because they are purchasing a new build and signed paperwork back in December and budgeted on 3-3.5% interest. They can afford the mortgage at 6% but don't want to.  I let them know there could be some rate fluctuations but didn't anticipate this kind of jump so we didnt really plan for it.  If it was me I would probably close on the home,  immediately sell it and make 50k and then buy something cheaper at the higher rate.

[Anybodyhome]

We're closing on the sale of my wife's parents' home in Ocean Isle Beach this week. Fortunately, the buyers wanted a very long escrow and paid us a healthy due diligence fee to sit for nearly 2 months, but they were lucky to lock in at a hair over 3%.

We paid cash for new construction/custom in 2008 right after the bubble burst, found a builder desperate for work and made well over double our cost from 14 years ago- all free and clear. 

[Paa Langfart]

First house I bought was financed at 10% .  5% sounds good to me.

[LinvilleGorge]

13 minutes ago, Paa Langfart said:

First house I bought was financed at 10% .  5% sounds good to me.

Yep. Historically speaking these are still fairly low rates. We've just been spoiled by literally historically low rates for years but the bill is coming due.

 

[Ja Rhule]

1 hour ago, LinvilleGorge said:

Yep. Historically speaking these are still fairly low rates. We've just been spoiled by literally historically low rates for years but the bill is coming due.

 

I guess good thing I bought my house at 2.75% rate

[PanthersATL]

Biggest problem coming in aren't necessarily ARMs, but the fact that banks/mortgage companies are looking at shifting from the traditional 30yr loan to a 40yr or even 50yr loan period.

Those longer terms loans may make monthly payments appear to be more affordable, but the long-term impact is going to be bad.

Folks won't be thinking about paying off their loans early and going into retirement (relatively) debt-free if these become popular.

 

[toldozer]

My parents first home was at 18.5%, mine was 4.5% in 2009. Our mortgage is at 3% from last April.  Yeah  surprised 40 years aren't starting to become the norm already 

[LinvilleGorge]

3 minutes ago, PanthersATL said:

Biggest problem coming in aren't necessarily ARMs, but the fact that banks/mortgage companies are looking at shifting from the traditional 30yr loan to a 40yr or even 50yr loan period.

Those longer terms loans may make monthly payments appear to be more affordable, but the long-term impact is going to be bad.

Folks won't be thinking about paying off their loans early and going into retirement (relatively) debt-free if these become popular.

 

Kinda like how 80+ month notes for vehicles are becoming more and more common. If you need an 84 month note on a vehicle to afford it, YOU CAN'T AFFORD IT.

[LinvilleGorge]

2 minutes ago, toldozer said:

My parents first home was at 18.5%, mine was 4.5% in 2009. Our mortgage is at 3% from last April.  Yeah  surprised 40 years aren't starting to become the norm already 

I think my parents' house was in the low 20s.  My first was around 6ish initially. Refinanced it multiple times over the course of four years ending sub-3. Current house is sub-3.

[motocross_cat]

I bought my home in 2010 for 124k

House was  newly finished and had 2 acres. Previous people ran out of money and foreclosed.  I cleared some trees have added a fenced in  acre yard, a building, carport, bedroom and 3 closets.  Concrete driveway.  Since then the residential boom has happened.  Man these crazy ass people offered me 370k site unseen.  I'll hang around for a while yet and see if that dont keep climbing.

[PanthersATL]

6 hours ago, motocross_cat said:

I bought my home in 2010 for 124k

House was  newly finished and had 2 acres. Previous people ran out of money and foreclosed.  I cleared some trees have added a fenced in  acre yard, a building, carport, bedroom and 3 closets.  Concrete driveway.  Since then the residential boom has happened.  Man these crazy ass people offered me 370k site unseen.  I'll hang around for a while yet and see if that dont keep climbing.

When we built our starter-home, 3BR/2BA house in Charlotte, we struggled at the $100k+ price point.  Zillow currently has its "Zestimate" around $350k.  It has a reasonable, accessible location -- but couldn't imagine it going for more than $250k.