Charlotte real estate market

[Ja Rhule]

Good lord....  did you guys see home prices sky rocket?  Some average homes around 3k sqft on sale for $600k.  What is happening?

Examples...

Ballantyne $550k for 2.7k

https://www.zillow.com/homedetails/10904-Lethco-Way-Charlotte-NC-28277/6316377_zpid/

Waxhaw $600k for 3.3k

https://www.zillow.com/homedetails/1300-Iveyridge-Dr-Waxhaw-NC-28173/51464731_zpid/

Edited February 25, 2021 by Ja Rhule

[Squirrel]

32 minutes ago, Ja Rhule said:

Good lord....  did you guys see home prices sky rocket?  Some average homes around 3k sqft on sale for $600k.  What is happening?

Examples...

Ballantyne $550k for 2.7k

https://www.zillow.com/homedetails/10904-Lethco-Way-Charlotte-NC-28277/6316377_zpid/

Waxhaw $600k for 3.3k

https://www.zillow.com/homedetails/1300-Iveyridge-Dr-Waxhaw-NC-28173/51464731_zpid/

Work from home. So people are moving out of bigger cities and living where they want. 

[Ja Rhule]

I think record low rates and low inventory.  Also tons of people moving from Chicago, NY and CA to Charlotte and willing to pay inflated prices.

[Whatev]

Building materials have skyrocketed.  Low interest rates.  You have a seller's market right now and building costs for new homes are driving up costs.  

4x8 sheet of OSB which should be around $10 bucks right now is up around $30.  Was going to build a storage area, but on hold until prices go down.  No hurry.

Edited February 25, 2021 by Whatev

[Anybodyhome]

4 hours ago, Whatev said:

Building materials have skyrocketed.  Low interest rates.  You have a seller's market right now and building costs for new homes are driving up costs.  

4x8 sheet of OSB which should be around $10 bucks right now is up around $30.  Was going to build a storage area, but on hold until prices go down.  No hurry.

Lumber prices across the board are through the roof right now, in excess of 300% in many cases. An 8' stud normally goes for $2.69 is over $6.00 right now. Builders can't afford new construction right now because what was a $200k house last year is now a $500k house and it'll never sell at that price. Hence, all the inventory is either older new construction that's been on the market for a while or it's existing inventory.

[Whatev]

9 minutes ago, Anybodyhome said:

Lumber prices across the board are through the roof right now, in excess of 300% in many cases. An 8' stud normally goes for $2.69 is over $6.00 right now. Builders can't afford new construction right now because what was a $200k house last year is now a $500k house and it'll never sell at that price. Hence, all the inventory is either older new construction that's been on the market for a while or it's existing inventory.

I'm not in that industry and on no timeline for my little project, but that can't be sustainable I wouldn't think.  We could be leading into a another stagflation scenario (what happened during Carter years).  Shouldn't raise taxes right now because stagflation came from inflation and slow growth.  Can't risk the slow growth aspect right now.  

[Panther'sBigD]

There are tear downs in my neighborhood selling for $600,000. It's nuts. 

[Ja Rhule]

4 hours ago, Anybodyhome said:

Lumber prices across the board are through the roof right now, in excess of 300% in many cases. An 8' stud normally goes for $2.69 is over $6.00 right now. Builders can't afford new construction right now because what was a $200k house last year is now a $500k house and it'll never sell at that price. Hence, all the inventory is either older new construction that's been on the market for a while or it's existing inventory.

I’m building a new house right now.  Signed a contract 5 months ago.  Talking about timing...

Edited February 25, 2021 by Ja Rhule

[LinvilleGorge]

We just went under contract on a property about an hour and a half NW of Charlotte. Never let it hit the market. Heard through the grapevine they were going to sell and hammered out a deal. 2400 square feet newer home on 10+ acres with a private pond would've been a bidding war. They were willing to forego potentially more money to avoid showings because they're both working from home and their kid is doing remote learning.

[hepcat]

you should look at Austin's real estate market, Charlotte pales in comparison

[LinvilleGorge]

45 minutes ago, hepcat said:

you should look at Austin's real estate market, Charlotte pales in comparison

The Front Range of CO is straight up STUPID. I honestly think that bubble is going to pop once people understand that the wages are absolutely not keeping up with the skyrocketing costs of living and those mountains? LOL! Yeah, you can see them and get teased but the days of weekend day trips to the mountains from the Front Range are OVER. That's what made me move. Well, that and our small mountain town getting inundated with Denver day traffic because I-70 is a parking lot and they don't want to spend three hours in traffic to get up to Summit County that's normally an hour. We will likely still end up back in western CO in a few years but FUG the Front Range.

[LinvilleGorge]

4 minutes ago, Inimicus said:

Yeah the Denver market is pretty stupid right now.  I just pulled a re-fi on the house I bought 2 years ago and the mortgage company didnt even want an appraisal when I claimed the house was worth 80k more than what we paid.

Yep. We did a 3% down mortgage a few years ago and re-fi'd literally like three months later because we already had enough equity that it met the 20% down requirement to drop the PMI. Just LOL.

[Ja Rhule]

38 minutes ago, LinvilleGorge said:

Yep. We did a 3% down mortgage a few years ago and re-fi'd literally like three months later because we already had enough equity that it met the 20% down requirement to drop the PMI. Just LOL.

Yea, it’s insane.  Not  sure how long this can go for.

[LinvilleGorge]

18 minutes ago, Ja Rhule said:

Yea, it’s insane.  Not  sure how long this can go for.

I thought it would've already popped but as long as there's low inventory and stupid low rates it's gonna keep going.

The one big variable IMO is when the foreclosure market comes back. Is the market falsely inflated right now because that bottom barrel market has been completely eliminated for nearly a year?