Jerseyites are Moving to Charlotte NC
This weekend I took a trip to Charlotte, North Carolina and I found out that this is where people move to when they sell there house in Brooklyn, or Bergen County or the Northeast in general. The houses that you can buy in the Charlotte area for $450,000 would easily cost $1.3 million in Rumson or about $900,000 further west in Marlboro or Freehold Township. Apparently, a lot of people from New York and New Jersey have realized this and have moved down there as I met four people in my friend’s brand new development who have made that trade. Not only do you get more for the money in Charlotte, property taxes are probably only about 20% of what they are here.
This migration of north easterners to the south east is one of the reasons that property prices can not go up indefinitely here at the Shore, or any other bubble areas. Eventually, the prospect of outsized profits causes owners to sell. More importantly, a simple un-affordability forces buyers to look elsewhere, and Charlotte, North Carolina looks like as good a place as any.
This migration of north easterners to the south east is one of the reasons that property prices can not go up indefinitely here at the Shore, or any other bubble areas. Eventually, the prospect of outsized profits causes owners to sell. More importantly, a simple un-affordability forces buyers to look elsewhere, and Charlotte, North Carolina looks like as good a place as any.
posted by Little_Silvered at 6:05 PM
2 Comments:
OT- I was at an open house this past weekend and they were giving out 2 issues of Gallery Homes which is one of those real estate magazines with glossy pictures. I started comparing Volume 2 issue 8 with Volume 2 issue 7 and saw quite a few reductions here are some:
Rumson- $1,3000,000
reduced to $1,190,000
Fair Haven- $659,000
reduced to $619,900
Little Silver- $3,199,000
reduced to $2,997,00
Colts Neck- $1,199,000
reduced to $1,129,000
Holmdel- $2,275,000
reduced to $1,999,000
Colts Neck- $1,299,00
reduced to $1,249,00
Millstone- $1,599,900
reduced to $$1,549,00
Colts Neck (new construction)
$2,899,000
reduced to $2,799,00
Rumson- $3,950,000
reduced to $3,595,000- I went to see this house last spring it is new construction built on spec by one of the Matzel & Mumford partners.
Two sets of people are leaving, the older folks that see selling their homes and moving away as a way to finance an early retirement. And why not, if someone is dumb enough to pay sky high prices, they are dumb enough to pay for your early retirement. The second set of people are the younger generation that are fed up and sick of the cost of living and unaffordable housing in NJ. While moving away might entail a pay cut, the net result is almost always a better quality of life in a more affordable area.
Ultimately, it'll be NJ that suffers because of it's real estate success.
Grim
http://nnjbubble.blogspot.com
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