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Raleigh Real Estate Market Update – February 2011

I know we had snow this week, but springtime is just around the corner. Springtime in Raleigh is a beautiful time of year and if the weather forecasts are right, we will begin having warmer weather next week. Maybe your thoughts will turn to buying a home?

Spring is the most popular time to purchase a home in the Raleigh area. Most sales occur in the March to May time frame because home buyers want to be settled into their new home before the start of the school year at the end of summer.

The home sales numbers for 2010 were shocking – both from a national and a local perspective. CoreLogic Home Price Index that was just released on February 8, 2011 revealed that home prices in the U.S. declined for the fifth month in a row. Distressed properties contributed to this decline in December as they accounted for 36% of all home sales.

While the number of home sales was down in 2010, it was a fantastic year for home buyers – great interest rates were available and there were lots of choices available.

The numbers for the real estate market in Raleigh, NC are not something that home sellers would want to applaud, but they are healthier than many other areas of the U.S.

In Wake County both the average and median home price increased when compared to the previous December. The number of closed home sales was down for all of 2010 by 8 % when compared to 2009, but sales in the month of December 2010 were up 1.2% over the previous December.

Is there any reason for optimism regarding the real estate marketplace in 2011? Actually there is. Fannie Mae and the Mortgage Bankers Association forecast that the new-home market will begin a rebound in 2011 that will last through at least 2012.

According to the median forecast of 30 economists at a Federal Reserve Bank of Chicago symposium in December 2010 residential investment probably will increase 9.6 percent in 2011. And the National Association of Home Builders is projecting that housing starts will increase by 17 % in 2011.

Want more specifics? Give Marti Hampton a call today.

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