Raleigh Housing Market Continues to Slow
Although the Raleigh, Wake County and the Research Triangle Park real estate market is being affected by the National downturn in the housing industry, we are a very sturdy market and observing the way our local economy has handled past economic cycles, we tend to be able to hang in there until the cycle makes a turn. Of course, we have seen things in this economic cycle that we have not seen previously, like higher than usual foreclosures due to the liberal mortgage guidelines that were once readily available. In reviewing the Triangle Multiple Listing statistics, home sales have fallen 28 percent when compared with sales from last year. (However, interestingly enough the average price of $235,175 was up by .6% from last year.) And when you take a look at building permits issued in Wake County (Raleigh, Cary, Wake Forest, Holly Springs, Garner, Fuquay Varina, Apex), there has been nearly a 47% decline. What does this all mean? Well, here is my SWAG (actually it is an educated opinion) – sellers are reducing their prices (MLS statistics report 42% reduced their listing price last month compared with 32% who dropped their price March a year ago) and interest rates are low and that makes for a great combination and excellent environment for real estate investing. Of course, I do not have a crystal ball, however, based on past experience this is one of those times in the market when one will look back and say “If I had only made a decision then, look what I would have now.” And, what about this – building permits are down. So what does that mean? To me it means when the economy turns we could have a shortage of housing which will encourage appreciation. So, bottom line, if you are “waiting for the economy to turn” or “get better” you may find you missed a golden opportunity to purchase real estate at a time of low interest rates and enticing price reductions. Don’t let it slip by.
