Triangle Real Estate Market Update - 3rd Quarter 2009
The Triangle Real Estate Market has not suffered the double digit value decreases seen in many parts of the country. In fact, recent articles continue to proclaim the area one of the best to live, work, retire, or start a new business venture. Because the area continues to be a desirable location, it is expected that the Triangle Real Estate Market will be one of the first to achieve full recovery.
For a more data-centric view of the Triangle Real Estate Market, we turn to statistical data. Recently, our MLS released the 3rd Quarter Market Update Report and, on its face, the dip is evident. However, I am happy to say that recent developments indicate a brighter horizon!
One such indicator is the declining listing inventory. On average during the first nine months of the year the listing inventory was down 14% over the same period in 2008. Few if any sellers in this market have their property listed "just to see what it brings." With fewer Triangle property listings available, demand will increase, the number of days on the market will decrease and selling prices are likely to stabilize. Return to a more balanced market will follow.
Homes listed for sale at or under $149,000 continue to be in demand in the Triangle marketplace and they are in relatively short supply. Buyers in this market will face stiff competition and little room for negotiation. On the other hand, buyers will find the very best opportunities in the $600,000+ market. In fact, there is a 35 month inventory supply of homes priced $800K+. All homebuyers would be well advised to consult with an Exclusive Buyer Agent skilled in the art of negotiation to get the best price and terms in their real estate transaction.
Challenges we face in the near future are the pending expiration of the First Time Home Buyer Tax Credit (November 30, 2009) and continuation of tighter lending practices, particularly relating to jumbo loans. An extension of the tax credit to include all homebuyers throughout 2010 and lower interest rates on jumbo loans would eliminate those challenges and hasten recovery on a national level.
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