Raleigh NC Real Estate Home

Based on recent predictions by financial forecaster Global Insight, provided to the US Conference of Mayors, the Raleigh-Cary economic growth is expected to decline by more than 20 percent next year. The Raleigh-Cary real estate market has been more or less sheltered from the national housing slump and has just recently noticed a slow down with more homes on the market than this time last year (however, interestingly, appreciation of homes has gone up 5% to 6%). Although we have been expecting the national real estate downturn to affect our market for a while, as in the past, we do not anticipate our area to experience the dramatic economic downtown as seen in many of our other national real estate markets. Real estate appreciation rates in the Wake County area for the last ten years has been 1996 3.4%; 1997 3.8%; 1998 4.2%; 1999 3.9%; 2000 3.1%; 2001 4.4%; 2002 2.4%; 2003 2.1%; 2004 3%; 2005 4.8%; 2006 6.2%  The coming year will be interesting one as our market is influenced by the national downturn in the housing market while facing the predicted 1.4 million foreclosures (nationally) and the pending reset of millions of adjustable rate mortgages. The Raleigh-Cary real estate market still has something that many of the other areas do not – job growth! We continue to attract high tech industries and our companies are continuing to grow. What a great area to be investing in real estate! 

Many thanks to Ethan Jarvis, Mortgage Consultant with Carolina Residential Lending, for sending this link along with his comments about the relationship (or lack thereof) of the prime rate and how it relates (or doesn’t) to mortgage rates. If you would like to consult with Ethan, you can reach him at 919.656.6647 or send him an email at ethan@carolinaresidentiallending.com  

“This is a great article explaining the how and why many times fixed rate mortgages do not follow the Fed cutting rates.  To sum it up, the Fed reduced the Fed Funds rate and the discount rate last week.  The fed funds rate is what prime rate is based on.  So when they cut rates last week it lowered HELOCs (Home Equity Line of Credit) and credit card rates.  The discount rate is what banks are charged from the Federal Reserve discount window.  Neither of these rates have a direct bearing on how the 30 year fixed rates with perform.  As we have seen in the past, many times when the Fed reduces the Fed Funds rate, fixed rates actually increased.  The bond market dictates how fixed rates move.  Many times people are confused to why fixed rates are not lower after a rate cut.  I hope this helps you explain to your customers how it works.”

Article Link:   http://bankrate.com/brm/news/fed/20071102_Fed_mortgages_differences_a1.asp 

We have been hearing and reading about it, and those who are the identified experts in such matters, expect it will happen. We will soon be in the middle of a full blown mortgage crisis. This is expected to occur, when some of the monthly payments of the more creative loans have their monthly payments revised, and the initial low rates that allowed buyers to qualify for more home than they would by borrowing the “old fashioned way,” could now create a financial hardship and many homeowners could face an uncertain future meeting their financial obligation. We have our share of foreclosures in the Raleigh real estate market, however, because our market continues to be strong, and homes are continuing to sell, there are still not a lot of foreclosure bargains available. Surprisingly, many of the foreclosures in the Raleigh area are priced at market. Evidently lenders are not bleeding enough in our area to lower their prices, but that could change dramatically in the coming months as more and more foreclosures show up.

It will be interesting to see how foreclosures will fare in our Raleigh real estate market. If you are a real estate investor and have an interest in foreclosures, we can set up a property alert that will keep you updated on new and existing foreclosures. All you have to do is send an email to make that request and we will be happy to set that up for you. And, if you are an experienced or a newbie, do visit my investor page (click on “Investors” on the menu) for lots of links and information about real estate investing.

Recently on the list of the “Top 100″ towns on http://www.CNN.com were two of our Wake County, NC towns — Holly Springs, NC (#22) and Apex, NC (#14). Of course, for years we have known the appeal of these areas — close in for convenience, but far enough away from the “big city” to get that home town charm. We have also seen impressive real estate appreciation in these two Raleigh, NC area markets. Although Apex and Holly Springs seem to be doing just fine as they are, when the outer beltline is completed (years to come — ten perhaps?), that will really open things up for these two Raleigh area communities (as well as the other Southern Wake County towns like Fuquay-Varina). Having recognized towns such as Holly Springs and Apex in our community are some of the reasons the Raleigh area makes such a good choice for long-term buy and hold real estate investors. There are a couple of neighborhoods where I have been confidently recommending and selling investment real estate to my investor clients. If you wish more information on real estate investing in the Raleigh, NC area . . . you know who to call. (919.961.7777))

John Kane, the master mind behind the re-development of the expanded North Hills area appears to be forging ahead. Not only is he assembling 45 acres east of North Hills to build more shops, offices and residences, but has purchased land southwest of I-440 and Six Forks where building is underway for Ramblewood of North Hills, which is to include 84 condos, 39 town homes and 18 single family homes. It is reported that Kane also plans to break ground this summer on a 49-unit condo development called The Lassiter at North Hills, northwest of Six Forks and I-440. The homes range from 1,100 square feet to almost 6,000 square feet; new home prices will range from $280,000 to $2.5 million. Needless to say, property values in and around this area have soared as Kane’s development plans have taken shape. Being a resident of Raleigh since 1959, I remember the pleasure of stroller outings with my two babies in the 1960’s in the “new” North Hills Mall. Now the Mall has been transformed into a upscale village with shopping, dining and entertainment. It is such a joy see “what’s new” as the plan grows from an idea into reality. I don’t think we will run out of new things to discover any time soon. Great job, Mr. Kane! I look forward to watching your master plan take shape. And, for those with an interest in purchasing condos, town homes or single family homes in the North Raleigh and North Hills area, that information is just a phone call away — 919.961.7777.

Went out to show property in Chasteal Trail yesterday. This is a HomeLife Community located off Barwell Road, off Rock Quarry. A lot of dirt has been moved around at the Olde Towne site. Olde Towne is expected to have 2400 new homes built around a golf course, and shopping and offices. This should give a real boost to this area that has traditionally not drawn many “big box” shopping opportunities. It will be interesting to see how the project takes shape and how it affects real estate market values in the area. This is a very positive addition to this neighborhood. Here is a link to a few new home communities that are off New Hope Road and Barwell Road near this development. And for Olde Towne — here is the latest information I have on that project — olde-towne-information.pdf 

Pardon my shameless touting, but I find it hard to be humble when I live and work in such an outstanding city! When you couple the opportunities found in Raleigh that have to do with jobs, education and a family friendly environment, it makes a winning combination for relocating your family and for real estate investing. The Raleigh area continues to be recognized in many “top ten” lists. The latest is from Forbes Magazine by way of the “TBJ” (Triangle Business Journal). And please stay tuned . . . there is more to come.

When the City Fathers decided to dig up the Fayetteville Street Mall, and re-open Fayetteville Street (our “Main Street”) to traffic after thirty years, I was very disappointed. I enjoyed walking on the Mall downtown among the fountains and hot dog vendors. However, all is not lost and much to my joy, there is  talk of a new downtown plaza (toward the South end of Fayetteville Street) where downtown residents and visitors would enjoy restaurants (hopefully, including outdoor), cafes and newstands (and how about parades, gatherings and concerts?) which would contribute to the wonderful personality changes now underway in Downtown Raleigh. So exciting to watch! If Downtown Raleigh real estate is something you are considering as an investment and/or your new home — let’s talk about it. I am a click or a phone call away.