Comments on: Buy now in the Charlottesville market or wait? http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/ Tracking Charlottesville's Real Estate Market since 2005 Tue, 16 Mar 2010 21:50:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: L http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7442 L Thu, 03 May 2007 00:15:40 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7442 The person who left a question about whether to buy a home in Charlottesville when they are over-priced by $100K to $150K sounds like they are in the one home market only, renting currently, and hoping that their investment purchase will be their retirement. If you love the home, there is a vibrant economy with 2% unemployment, a sustainable local economy with diversity (not just the University), and you can afford it, buy now. Otherwise, trying to hit the low of the market, with imperfect information and asking everyone's opinion means you will again miss the market. Apparently, this individual missed it the last time it was low. A first home, or an up-grade home is never affordable. It is a reach, and one usually buys at the top of their financial ability and then works to keep it and/or rehab it when markets improve. Waiting for the bottom is like trying to sell at the top. According to Jim's charts, there is a lot of inventory that apparently didn't get out at the top either. And, market rents are increasing rapidly due to current condo conversions and the high price of homes. Paying almost mortgage amounts without gaining equity or credit is sometimes a waste of money. My theory is the individual is getting way too much advice while attempting to make it rich on the home front, of which they probably can't afford what they're looking at anyway. Just my opinion. The person who left a question about whether to buy a home in Charlottesville when they are over-priced by $100K to $150K sounds like they are in the one home market only, renting currently, and hoping that their investment purchase will be their retirement. If you love the home, there is a vibrant economy with 2% unemployment, a sustainable local economy with diversity (not just the University), and you can afford it, buy now. Otherwise, trying to hit the low of the market, with imperfect information and asking everyone’s opinion means you will again miss the market. Apparently, this individual missed it the last time it was low. A first home, or an up-grade home is never affordable. It is a reach, and one usually buys at the top of their financial ability and then works to keep it and/or rehab it when markets improve. Waiting for the bottom is like trying to sell at the top. According to Jim’s charts, there is a lot of inventory that apparently didn’t get out at the top either. And, market rents are increasing rapidly due to current condo conversions and the high price of homes. Paying almost mortgage amounts without gaining equity or credit is sometimes a waste of money. My theory is the individual is getting way too much advice while attempting to make it rich on the home front, of which they probably can’t afford what they’re looking at anyway. Just my opinion.

]]> By: Mike Elliott http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7433 Mike Elliott Wed, 02 May 2007 19:54:36 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7433 Great analysis, Jim. I operate out of Central New Jersey, in an area that is generally well-insulated from national market forces, but we're seeing many of the same trends here with DOM and prices. http://mikeelliottsblog.blogspot.com Great analysis, Jim. I operate out of Central New Jersey, in an area that is generally well-insulated from national market forces, but we’re seeing many of the same trends here with DOM and prices.

http://mikeelliottsblog.blogspot.com

]]> By: Arthur http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7372 Arthur Tue, 01 May 2007 12:58:06 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7372 Checking the rental listings, it does seem that rents in town have gone up some in the last year, but I would be curious to know what the rental market is like from those more directly involved. Checking the rental listings, it does seem that rents in town have gone up some in the last year, but I would be curious to know what the rental market is like from those more directly involved.

]]> By: Arthur http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7371 Arthur Tue, 01 May 2007 12:52:04 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7371 The cost difference between renting and owning has been out of whack for the last few years. When these come back into alignment, we will have a better sense of where Jim's more durable, "place to live" market is. The cost difference between renting and owning has been out of whack for the last few years. When these come back into alignment, we will have a better sense of where Jim’s more durable, “place to live” market is.

]]> By: Jim Duncan http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7366 Jim Duncan Tue, 01 May 2007 11:21:59 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7366 jmcnamera - I couldn't agree more. jmcnamera -

I couldn’t agree more.

]]> By: jmcnamera http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7330 jmcnamera Mon, 30 Apr 2007 18:04:49 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7330 Part of the pullback will be due to weaker home prices in other locations. People have been moving here and buying based on how much they could sell for elsewhere. Now that they are getting less for their homes in northern VA and other places, then they will be unable to pay as much here. Long run though, the best way for affordable housing is to have cheaper housing - not more borrowing. A correction will be good for all (well, most) in the end. Part of the pullback will be due to weaker home prices in other locations. People have been moving here and buying based on how much they could sell for elsewhere. Now that they are getting less for their homes in northern VA and other places, then they will be unable to pay as much here.

Long run though, the best way for affordable housing is to have cheaper housing – not more borrowing. A correction will be good for all (well, most) in the end.

]]> By: Jim Duncan http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7153 Jim Duncan Fri, 27 Apr 2007 22:01:38 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7153 Scott - This is <a href="http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/" rel="nofollow">a story I wrote</a> last month about the subprime market in Charlottesville. I don't think we will see <em>significant</em> pullback, but we will see some. In addition, I think that <a href="http://www.realcentralva.com/2006/08/10/two-real-estate-cycles/" rel="nofollow">there may be two real estate cycles</a>. Thanks for reading and commenting. Scott –

This is a story I wrote last month about the subprime market in Charlottesville.

I don’t think we will see significant pullback, but we will see some. In addition, I think that there may be two real estate cycles.

Thanks for reading and commenting.

]]> By: Scott http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/comment-page-1/#comment-7151 Scott Fri, 27 Apr 2007 21:51:44 +0000 http://www.realcentralva.com/2007/04/27/buy-now-in-the-charlottesville-market-or-wait/#comment-7151 I've been watching your blog to see if you would have comments on the degree to which national trends are affecting the local market. It seems to me that we're in for a national bloodletting, and C'ville has got a reputation for being insulated, but just how insulated can we be from massive national trends, particularly when they're driven by tightening credit <i>and</i> when we've had such a huge runup in pricing locally; according to something I saw in the WSJ, the Central Virginia area has a fair number of the sub-prime ARMs, heading for resets. I'm betting we see significant price pullbacks (purely academic - I'm out of the market). Thanks for the comments. I’ve been watching your blog to see if you would have comments on the degree to which national trends are affecting the local market. It seems to me that we’re in for a national bloodletting, and C’ville has got a reputation for being insulated, but just how insulated can we be from massive national trends, particularly when they’re driven by tightening credit and when we’ve had such a huge runup in pricing locally; according to something I saw in the WSJ, the Central Virginia area has a fair number of the sub-prime ARMs, heading for resets. I’m betting we see significant price pullbacks (purely academic – I’m out of the market). Thanks for the comments.

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