Things are slowing down!

[coosa]

We saw lots of spec houses for sale in Young Harris last night! Gary wants to build another one, but I don't think we should right now.

[nataliewood]

When you are ready, I have some really nice lots! I thought you were busy on the big house right now?

[coosa]

Yes, we are busy with the big house, but he likes to have two going at once, if possible.

[coosa]

Look like land prices are coming down a little!

[bb]

They have been for a bit, coosa... too many lots on the market and not enough demand.

[coosa]

Well, I am glad, the prices of land are crazy. We know a guy that wants $245,000 for 12 acres. We sold 10 acres with an old house and great views for $145,000.

[coosa]

We just rode around in Pinehurst and the new subdivision, The Arbor. The clubhouse and pool is done at the Arbor, but only one house is being built. Most of the lots are unsold. We looked for a price list but couldn't find any!

[shortcircuit]

The sad thing is that the developers of some of those subdivisions have everything they own put up as collateral. Some of the bigger and richer developers may not be affected but some of the little guys stand to lose everything. I guess that's one of the consequences of risk taking though.

[bb]

Shorty, it seems like the little guy is always the one to be affected first.

[taylor]

I am, luckily, not really affected by the housing market. Neither of us, nor any of my family, is employed in anything that relates to it. Sure, we may be affected somewhat by the economic trickle-down effect, but that's about it. But, there are some things I don't understand.

I was taught that your housing cost should be no more than 1/3 of your total net income. It didn't matter if that amount was for a rental or a mortgage.

Ok, so I see all these places with high mortgages or rental cost. Just for the sake of round even numbers, lets say the mortgage is $1000 a month. (and from what I've seen, this is not the least bit odd). If the 1/3 rule is in place, then the total income should be a minimum of $3000 net per month. That divided down to $750 per week (4 weeks), which then divides down to $18.75 per hour (40 hours). Even if divided between two people (husband and wife both working) the cost is 9.38 net per hour per person. Now "I ain't no rocket scientist" as the saying goes, but just how many jobs are there in the area that actually pay this wage or above? I know when I was up there, even with my training and certification, I was told how lucky I was to find a job at $9 per hour.

I know that not everyone has the educational background to make higher wages. Also, location has a lot to do with wages - some areas simply command higher wages for the same job somewhere else. We both saw this within our jobs when we were up there. Many jobs, such as construction, often kind of have a feast & famine wage - one month they may make great, next month very little.

Again, just for the sake of argument, let's say Jane and John Average make a combined total of $15 per hour net, $600 per week, $2400 per month. With the 1/3 rule, their mortgage/rent should be no more than $800 per month. Yet, how many new homes are being financed, how many new ones are being or have been built, and then look at how many are being repossessed. Who is doing the lending and why, and why are people trying so hard to live above their means?

It seems to me that in many cases, simple vanity is the problem. Sure, I'm like anyone else out there. I would love to have a nice house. Plenty of space, nice modern kitchen, fancy master bed and bath, ect ect ect. But, I've got enough common sense to know that it just isn't going to happen right now. Maybe later, but not now. Why would I set myself up in a financial position to lose?

The part that really chaps my butt is when the very people that set themselves up like this want to play the "woe is me, I have no money, I have no this, that or the other, I don't know what I'll do, whine whine whine". Then you look at their expensive new house in the expensive new neighborhood! Hmm, you have no money why? You bought this kind of expensive house why? Whose fault is it? Get over the vanity of it, sell the fancy place and get a place you can afford! Hey, I live in a rented older double wide mobile home. Are these people any better than I am? I think not, but the attitudes I have seen (OMG! I could never live like that!) just bug me.

Where is the money coming from to pay for these places?
Where are the wages coming from?
According to the census facts for 2004, the average median income for Union county was $34,903 per year gross, ($2908.58 per month, $727.15 per week, $18.18 per hour) This wage falls short of the 1/3 rule for a mortgage of $1000 per month. Yet, look at how many are financed.

Why are there not homes being built that are actually affordable to the average family?

[bb]

For the average working Joe or Jane, the housing market around here is NOT good... for retirees moving in with their savings, retirement plans and social security... that is a different story. Many of the people wanting to move here are just waiting for their homes to sell so they do not have to finance their retirement home in this area, but can just pay cash for it.

In a nutshell; wages are poor... housing is high. There is not much chance of a young person making enough to live here. It's sad, indeed!

[queenbee]

The foreclosures in the paper were really sad, It seems like it used to be the smallest thing in the paper now I believe it the largest.

I agree with Taylor, a nice 2 story house with new everything, cars and boats would be top of the line. Bot I live in a single wide with 2 rooms added and 1 acre of land. I love it. It's paid for and no one can take it away from me. I do not envy people who have large houses because they usually have large payments and are in debt up to their eyeballs.

People I went to school with seem to look down their noses at me, some won't even speak, but I have the last laugh because I am better off than they are.

Besides it's a house and when you die you can't take it with you. Even if it puts you in the grave wondering how you will pay for it.

[coosa]

Bee, I have always wondered how people could afford such large house payments. I never could. i bought my first house at age 21 for $13,000. When I hit about 31, I had it all paid off. My payments were $93 a month. (I only made $1 an hour back then and my husband made about $1.50)
After that, I always traded up, but never had a mortgage except for a brief time. I borrowed a little bit to finish the house I am in now, but I paid it off in less than 2 years. I can't stand to owe.
So, don't feel sorry for me in my big house, cause it is all paid for. It really helps that my husband is a builder and built our house on nights, weekends, etc., for NO pay.

Taylor, I know women don't get paid very much, I have never made more than minimum wage in my life. I can tell you though, that the men in this area get paid very very well if they are in the construction business. My husband pays his labor $18 an hour and they are very lazy and will not work 40 hours a week.

I know this slow down is hurting the little guy, but the rich guys can hang on for a long time. The guy who owns the Arbor is the richest guy in town. I am sure you know who he is!

[queenbee]

I DON'T FEEL SORRY FOR YOU COOSA.

I feel sorry for the ones who look down their noses at me from their overpriced homes, that they struggle to pay for every month, just so they can keep up with their friends who are in the same situation.

[coosa]

Yeah, bee, isn't it great to know that there is no way we could ever lose our homes, because they are all paid for. I don't know why anybody looks down on anybody?? I dress like a bag lady!! I don't even know "The Jones".