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Putting the current real estate market in perspective

Some things never change. People always ask me “How is the housing market doing around here?” It’s a great question – I’m glad people are interested in knowing rather than believing the dramatic and often negative snippets 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 job 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 rent, location, location. Foreclosure filings are very low in the Raleigh area as of August 2010.

Second, affordability is back. It is true that some people cannot afford to buy right now due to their work situation or credit problems. For those with stable jobs, you can get a better home price and a lower interest rate. Imagine the idea of ​​holding a mortgage for more than a couple of years! This is a great lesson for those homeowners who 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 below 5% today and, aside from property tax increases and insurance, know that you will have the best deal for years to come.

Banks are being more cautious about lending money, which is what they should have been doing to begin with. Data shows that recent loans since 2009 are doing well and most are keeping up. With home prices slightly declining in most cities and towns in the Triangle, along with 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, all is not bad. Homeowners must be prepared to do whatever it takes to properly price their home, which in many cases means pricing it below what they want or think they need to get out of the sale. Price + condition = offer. The condition means they have to repaint or do the job; no more concessions for new flooring or solid surface countertops. And sellers can’t turn down displays; You’d be surprised to hear stories local realtors have of trying to schedule an appointment far enough in advance for the seller to turn them down. 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 for dealing with a seller that they don’t feel is ready to sell and unreasonable.

National data shows that consumer confidence is increasing since 2009. My experience can support that here in North Carolina. I think public opinion is cautious, but the economy is moving. People are buying products and services. More consumers are trying to stay local longer than they used to; We understand that supporting our neighbors will keep everything going rather than focusing on the cheapest price for a product or service.

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

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