ResalesGreat Homes Taking Longer To Sell In Raleigh, Say Local Realtors
Raleigh, North Carolina Realtors are reporting slower sales for sellers, but lower interest rates make it a great time for buyers.
"Raleigh is an absolutely beautiful place to live," says Realtor Sudie Wagner. "Much of the workforce is centralized in Research Triangle Park, focusing on technology, biomedical and environmental occupations. The downtown Raleigh area is a thriving small community of professionals, museums, schools, parks and wonderful restaurants.
"We are seeing great homes take longer to sell in this market," she says. "There are 15 percent more homes on the market than there were last year. Analysts say the market is down about 17 percent from this same time last year, due to the economy and job layoffs.
Yet, says Wagner, it"s a great time to buy, with interest rates lower than they"ve been in 30 years.
"New construction builders are cutting prices in efforts to clear out their inventory before the end of the year," she advises. "The feeling I sense from my customers is that there are deals to be had and many are willing to be more choosey to find the best deal."
Says Realtor Mark Civiok, "Raleigh is the state capitol, with a strong economy, moderate climate, sports and recreation activities, and high quality of life.
"While some things remain the same," says Civiok, "the real estate market in Raleigh isn"t one of them. For the first time in 30 years we have a buyer"s market, although signs of a turn are starting to show. The largest city in the Triangle area, Raleigh enjoys a moderate climate, a strong economy with still relatively low unemployment, a sustained growth trend, good appreciation in the housing market, an international population, and many other factors that make this one of the country"s best places to live. While the real estate market continues to be strong, appreciation this year is expected to be less than the five to six percent rate over the past few years, and upscale homes ($400k+) have been slower to move since the stock market correction in 2001."
Realtor Rick Freeman, says, "Often described as a city within a park, Raleigh is the country"s only preplanned and deliberately developed state capital. Raleigh is famous for offering a solid economic foundation of higher education, high-tech research and industry, and a commitment to government and business. Designated an "All American City", this vital and thriving community offers a diverse and sophisticated quality of life."
"In the last quarter of 2002," explains Freeman, "three of the four Raleigh/Durham metro counties have had a rise in the total number of homes closed over the same period in 2001; Wake county fell behind with 500 less sales. Year to date resales rose in Durham and Orange counties and remained flat in Johnston county. Currently there are around 7,000 active listings in Raleigh/Wake county, up almost 1000 from the previous year; the combined numbers for Wake, Durham, Orange and Johnston counties is 11,587 homes. These listings are on the market an average of 110 days with a 5 percent overall difference in the current list price and the original list price. A whopping 30 percent of the homes currently listed have dropped their price since going on the market. House price appreciation is something we are all interested in.
"The number one ranked state during the last year has been Rhode Island, with an average gain of 14.06 percent. They are followed by New Jersey (10.98 percent), New York (10.21 percent) and Maryland (10.11 percent). North Carolina, with an average of 2.8 percent, ranked 45 out of the 50 states. The Raleigh/Durham area had an average gain of only 2.18 percent and a ranking of 172 out of 185; number 185 was San Jose with prices decreasing -.39 percent per year.
"Why are the Raleigh/Durham numbers so low? Appreciation is a simple function of supply and demand, where supply is influenced by new construction and demand is influenced by unemployment. All of the top states have existing housing stock and minimal new construction competition. The slightest increase in population, without net job loss, will drive up resale prices. North Carolina, while experiencing population growth, has always had an ample supply of new construction. When builders are unable to raise prices due to competition, resale prices will lag behind."
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