Current State of the Raleigh Real Estate Market
Recently, one of my referral sources in California asked about the state of the Raleigh real estate market and commented his client was disappointed he could not find a good deal in Raleigh. This is what I wrote —
“Although we are seeing more softening in the Raleigh real estate market, our market is still not at the fire sale stage. Until late summer 2007, we had held our own throughout this economic cycle. However, we are now seeing builders offering more incentives during the spring market when they noticed their sales were not like they were last year. We have had price reductions, interest rate buy downs, additional “free” upgrades, more closing costs, appliance packages, and many other creative perks. We have 25% fewer sales and 47% fewer construction permits as this time last year. Of course, this is an optimum time to purchase in our market — low interest rates, negotiable sellers and a reduction in construction permits (which could create a shortage when the market makes a turn, and give a real estate investors a bump in appreciation due to shortage). And interestingly enough, even with prices on the move down, the average price of homes in our market rose which is unusual. The neighborhoods where I take buyers are clean, comfortable and safe, easy to rent, and areas I feel have the best chance to grow in appreciation over the years. We are not able to get the extraordinary deals from these neighborhood builders as I might be able to in a neighborhood that is in an area that I do not feel as positive about. Thank you for your call. I hope you can help your client see the value in our market although we are not able to dazzle your referral with a deal up front in our current real estate market. Builders are eager to get offers and they are ready to deal, but unwilling to show all their cards up front by offering deep discounts. I would love the opportunity to negotiate a really great deal for your referral.”
Over my 50 years of experience following the Raleigh real estate market, the Raleigh area has traditionally handled the ups and downs with style and grace when the inevitable real estate cycles come around. We are usually the last to feel the affects of the market and one of the first to feel it when it returns. The four cornerstones of our market — Education, Government, Technology and Medicine — serve us well and continue to attract jobs to our area.
I always love talking with buyers and sellers about our market and if you want to talk about it personally with me, give me a call – 919.961.7777.
