National Economic News and Raleigh Economy
Recently an International real estate buyer client came to visit Raleigh. He was interested in purchasing real estate investment property in our area since he had so many wonderful things about our economy and the quality of life we enjoy in the Triangle area. However, because he has also been reading the newspapers and listening to television reports, and the ”gloom and doom” talk, after we located a well-priced, strategically located property, he stepped back to take another look. He kept hearing “the voices” from the media and was suspect about the sustainability of our market. I have been licensed since 1978 and have seen many real estate cycles. Raleigh has demonstrated over and over that it can withstand the downturns. We continue to have jobs come into our market and that is the secret to our stable area. And, recently we were named #2 by Forbes as having some of the best bargains for house hunters.
Here is how I responded to my cautious investor:
Your comment “in light of the recent happenings in the US market”. One cannot read National news and apply it directly to our local economy. It does not fit the Research Triangle Area like it fits many other parts of the country. We continue to have jobs flowing into the Triangle which of course is what any economy must have in order to maintain growth. We are in an optimum time for real estate investing in the Raleigh area, as we are one of the more stable markets in the US. Of course we have been feeling the effects of the national economy — we cannot help but be affected. I have been in Raleigh since 1959, and have seen a number of economic cycles. Traditionally our area is the last to feel the downward trends, and we are the first to respond when the economy makes a come back. Our local economy has demonstrated many times it is strong enough to withstand the continuing cycle. Stick around — in good times and in not so good — it will change — it always does. My personal prediction — we will smooth out for a while and “hang in there,” then begin to see an upturn in about 12 to 18 months. I am currently adding to my personal real estate investment portfolio. It’s a timely thing to do in the Triangle with interest rates as low as they are, along with it currently having turned into a buyer’s market. As an aside — last Spring we were in a seller’s market; Summer came and we sensed a change; October arrived and we were could see the difference; then since November, sellers have been realizing more and more they are not able to take the hard line they enjoyed as few as 6-8 months prior. I am grateful to be working with more buyers than sellers right now. And, I am thankful to be a real estate broker who works with investor buyers and am not a builder. Look forward to hearing from you soon. Take care. jan
