In a bit of surprising news, the last lot in this development phase went for sale for a starting price of about 40K more than six months ago, increasing base entry price for whole neighborhood.
There are other sides to this as price increase as I pointed out below. While instant equity and increased perceived dwellings value, and while feeling incredibly fortunate to have been able to score the house for the price we paid (not cheap at our maximum possible budget) and the interest rate we got, we feel bad for those having to pay so much more just to get in.. Granted the next phase will have more privacy with more woods behind it, better lots with higher ground elevations, and will be further back from the main street and all..
Another aspect is that currently almost the whole neighborhood is made up of younger families and their kids.. When prices in the next phase start rolling in at 100K more than what we bought at, can many many young families who are just starting afford homes in the 400K range in this part of Northeast Ohio? How is increased premium going to change neighborhood demographics?
Prices in our neighborhood have jumped $80,000 since we bought our house! It's crazy!
ReplyDeleteOurs jumped $60,000 plus lot premimums...that's just crazy! I would have never paid that much for this house!! I feel bad for those folks building the same house and paying much more. Although, we were in Phase one of four phases...so, they say buying into the "dirt". Also the phase they are building now the lots are awesome and have views, mine does not, so maybe justifyable, but for only like 3 houses down from me! Gesh!
DeleteAnd let's mention the interest rates....we got in at 3.25...What are the now, near 5?
That's the other side of the equation. While we are very pleased about the instant equity and increased perceived value of our humble dwelling, and feeling incredibly fortunate to have been able to score the house for the price we paid and the interest rate we got, we feel bad for those having to pay so much more just to get in.. Granted the next phase will have better privacy, more woods, higher elevated lots and all..
DeleteCurrently almost the whole neighborhood is made up of younger families and school aged kids.. How is the increased premium going to change the demographics of the neighborhood? When prices in the next phase start rolling in at 100K more than what we bought at, I don't know many young families who are just starting out that can afford homes in the 400K range for our part of Northeast Ohio..
Instant equity that's fantastic!
ReplyDeleteInstant equity is always great! Our base price has risen $40K since February, but it would have been more had they put premiums on the remaining lots (I think the largest had like a $17K premium). They're also offering closing help on a few to try and sellout the community. It does make me wonder how people buying now are going to get their homes appraised at the appropriate price considering the price has jumped so much.
ReplyDeleteYay! that's great news!
ReplyDeleteOurs did that, too! We are 30K up from when we bought! Great feeling, isn't it :-)
ReplyDeleteEquity is very nice. They have to make it appealing to start building and once the sales start then they take some of the perks away. The early bird gets the worm.
ReplyDeleteI missed this post. The Victoria Falls in our neighborhood is 435K!
ReplyDelete