Putting Today’s Real Estate Market in Perspective

Some things never change. People always ask me “How’s the real estate market around here?” It’s a great question. I’m glad people care to know rather than believe the dramatic and often negative sound bites they get from television.

First of all, we are much better off here in the Triangle than in other areas of the country. We have a diversified labor market. We never had the housing bubble that places like Florida and California experienced. Therefore, the national reports do not tell the local story. And we all know that real estate is about location, location, location. Foreclosure applications have decreased in the Raleigh area as of August 2010.

Second, affordability is back. Granted, some people can’t afford to buy right now due to their employment status or credit issues. For those with steady jobs, you can get a better home price and a lower interest rate. Imagine the idea of ​​keeping a mortgage for more than a couple of years! This is a great lesson for homeowners who have used their home as an ATM to buy cars and maintain their not-so-modest lifestyle for the past 5-10 years. Get a mortgage today at less than 5% and, in addition to insurance and property tax increases, know you’ll have the best deal for years to come.

Banks are being more cautious about lending money, which is what they should have done in the beginning. The data shows that recent loans since 2009 are doing well and most are keeping up. With home prices declining slightly in most Triangle cities and towns, in addition to being a buyer’s market, buyers can get a home that is reasonable for their income and where they work.

For homeowners looking to sell in the Triangle right now, it’s not all bad. Homeowners must be prepared to do whatever it takes to price their home correctly, which in many cases means pricing it below what they want or think they need to get from the sale. Price + condition = offer. The condition means they have to repaint or do the work; no more allowances for new flooring or solid surface countertops. And sellers can’t turn down a showing: You’d be surprised to hear the stories local realtors have of trying to schedule an appointment early enough to be turned down by the seller. Sellers must understand that it sends a clear message to the buyer that the seller is not serious or motivated to sell their home. In most cases, buyers will not reschedule. Buyers have too many options to deal with a seller who they don’t feel is ready to sell and is unreasonable.

National data shows that consumer confidence is on the rise since 2009. My experience can back that up here in NC. I think public sentiment is cautious, but the economy is on the move. People are out there buying products and services. More consumers are trying to stay local more than they used to – we understand that supporting our neighbors will keep things going instead of focusing on the cheapest price for a product or service.

http://www.realtor.org/research/research/market_facts_20100901

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