Charleston, SC Posts

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Why so afraid of falling prices?

I can certainly understand why homeowners would be afraid of falling prices. We purchased a home during the heat of the market and the builder has since started selling our same floorplan for about $15,000 less. The good news is that over the long term, the prices will go back up.  It's painful for those who HAVE TO move. But look at it on the flip side. For those looking to buy, falling home prices make you RICH! The home correction is good for you assuming your income is still the same, you can now buy MORE HOUSE!


Don't you wonder how homes could constantly go up in value? But yet, people are fighting for affordable housing. We can't have both. The rising median prices of homes in Charleston was shutting out many folks given our average income here doesn't rise with those prices. It's an exciting time to buy...especially if you have been watching prices over the last 3 years.

I just closed a property for a buyer that originally called me about renting. After looking at the numbers, it was actually cheaper to buy, not mention as a military service member, they get a housing allowance so technically, the government makes their mortgage payment. They know they will be stationed here for a minimum of four years and after running the numbers and deciding the risk vs. rewards, they decided, they'd rather be able to paint, decorate, and otherwise have the freedom to live in their home. After almost 10 years of service, this will be their first home. How exciting!! They were able to spend significantly less than their housing allowance and after showing how an extra $100/month towards the principle balance can shave 7 years off the life of the loan, this family is on their way to their American Dream. I'm escatatic for them to reap the benefits.

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 2 commentsMichele Reneau • June 29 2008 07:48AM

Comments

Michele, even a lot of the people who have to move now have a lot of equity in homes they bought many years ago.  Sounds like your almost-renters made a smart move!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 9 years ago

Patricia-Great point! Only problem is that some of those sellers haven't adjusted to the market changes with accepting lower offers or reducing the price feeling like they have lost money by not selling sooner.  One hasn't really lost money if it wasn't in the bank already so it's not really lost, just unrealized.  

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) over 9 years ago

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