As 2010 comes to a close, all of us at the Marti Hampton team want to wish you a happy and prosperous new year. We also want to thank you for allowing us to help with your Raleigh real estate needs.
Everyone is wondering what is going to happen in regards to the real estate market. Are we going to see some improvement?
The home sales data for our area was not improved in November as reported by the Triangle Multiple Listing Service. In fact, November closings for all home types (condos, townhomes, and detached – both re-sales and new construction) in Wake County were down 42% from November 2009. The good news was that home sales prices were up – 6.48% for re-sales and 1.89% for new construction.
According to Stacey Anfindsen, the market analyst for the TMLS, the lower sales figures are a result of the government intervention into the marketplace with the $8,000 tax credit. Its first expiration was October 31, 2009 and there were increased sales at that time where home buyers wanted to get the credit.
According to Mr. Anfindsen, there were some other positive indicators in November. The number of pending home sales was up over October 2009 and showing were up as well. Not by a large amount, but it might be enough to indicate that a turnaround may be beginning.
One factor that may affect next year’s Raleigh home sales is interest rates. The Federal Housing Finance Agency today reported on Tuesday of this week that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.42 percent based on loans closed in November. This is a decrease of 0.07 percent from the previous month. Here is a chart showing what happened before November.
What has happened in the last several weeks has been a rise in interest rates. They have risen almost one half a percent. It appears that rates are not going to fall again and they are expected to rise through 2011.
If you are thinking of purchasing a Raleigh home in 2011, it would benefit you to make your move before interest rates rise even more. Contact the Marti Hampton team and we’ll help you get pre-approved for a home loan.