Real Estate News
Another real estate report came out today indicating yet another drop in the real estate market. In October, the median home price dropped 3.5% from the previous year, the biggest price decline on record.
Back around DC (where we moved from), I'd have to say this is a good thing. Real estate prices had gotten so out of hand up there, and people were taking out ridiculous mortgages to be able to afford them. In the 5 years that I had my townhouse in Alexandria, the price increased more than 250%. Yes, that's right. I sold it for more than 2 1/2 times what I paid.
Now the sales in my old neighborhood are lowering to more reasonable levels. The two sales since we moved are around 85% of the price we got. People can actually start to afford to buy now.
Of course the people who bought during the high years now cannot afford to sell. After real estate commissions and closing costs are taken out, many owners would wind up having to pay money out of pocket just to sell their homes. As a result, about 5 of the homes in our old community have gone rental, just since we moved. Out of only 43 townhomes, that's a lot in a one-year period of time.
Thankfully the real estate market down here is doing much better. The Upstate never experienced the out-of-control boon that hit major metropolitan areas. Prices have just been increasing at a normal rate, and continue to do so.
A house on our street just went on the market. It is listed for about 85% more than what we paid. Yes, the house is slightly larger than ours, but not by 85%!
We are very lucky to have gotten out DC when we did. (And I was lucky to get out of the real estate industry up there too!) And we are very lucky to have landed in the Upstate!
Back around DC (where we moved from), I'd have to say this is a good thing. Real estate prices had gotten so out of hand up there, and people were taking out ridiculous mortgages to be able to afford them. In the 5 years that I had my townhouse in Alexandria, the price increased more than 250%. Yes, that's right. I sold it for more than 2 1/2 times what I paid.
Now the sales in my old neighborhood are lowering to more reasonable levels. The two sales since we moved are around 85% of the price we got. People can actually start to afford to buy now.
Of course the people who bought during the high years now cannot afford to sell. After real estate commissions and closing costs are taken out, many owners would wind up having to pay money out of pocket just to sell their homes. As a result, about 5 of the homes in our old community have gone rental, just since we moved. Out of only 43 townhomes, that's a lot in a one-year period of time.
Thankfully the real estate market down here is doing much better. The Upstate never experienced the out-of-control boon that hit major metropolitan areas. Prices have just been increasing at a normal rate, and continue to do so.
A house on our street just went on the market. It is listed for about 85% more than what we paid. Yes, the house is slightly larger than ours, but not by 85%!
We are very lucky to have gotten out DC when we did. (And I was lucky to get out of the real estate industry up there too!) And we are very lucky to have landed in the Upstate!
posted by Susan | 12:53 PM
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