Triangle Real Estate - Forecast for 2008
Posted by Cary_Agent
Before we look at our the local Triangle Real Estate Market (Raleigh, Cary, Durham, Chapel Hill & Durham) for 2008, lets take a quick look at what’s going on nationally.In 2007 Home prices across the nation (5-10%) The consensus of expert opinion believes 2008 will mark a bottoming out of declines nationally.
Nationally, mortgage rates will embark on a volatile roller coaster ride. Rates are predicted to move sharply up and down for 2008 with the bottom around 5.25% and the top around 7.00% for 30 year fixed home financing. Locally, the triangle real estate market has slowed down some, though homes priced 175k to 450k are selling briskly. Here we have only a 3 month supply of homes in this range and the average “time on the market is 76 days.
The luxury home market (450k & up) in the triangle is a completely different story. There is currently an 11 month supply of luxury homes on the market. This luxury home market is soft right now and is decidedly a buyer’s market. Luxury homes are selling for an average of 89% of list price (compared to medium income homes at 97%).
THE BIG NEWS: right now in the triangle, new home construction is remarkable affordable. Typically new construction is 15 to 30% more than comparable re-sale homes. Currently New construction is on par with re-sale prices.Locally, job growth has slowed from 5% to 2% and this has stalled demand for homes and builders are really hurting. They are offering steep discounts to just keep afloat, in some cases. This is an unique situation and I don’t expect it to last much longer.
To summarize, if you’re in the market to upgrade to a new home in the triangle, this is fantastic time to do it. Rates are very low (5.5% 30Yr. Fixed) and new home construction is truly a bargain.
Cary Real Estate
2 Responses to “Triangle Real Estate - Forecast for 2008”
Leave a Reply
February 8th, 2008 at 10:41 pm
[…] Karcher Family Realtors wrote an interesting post today onHere’s a quick excerptThe luxury home market (500k & up) in the triangle is a horse of a different color. There is currently and 11 month supply of luxury homes on the market. This luxury home market is soft right now and decidedly a buyers market. … […]
February 20th, 2008 at 6:53 am
Wonderful news for everyone who wants to have Luxury Homes , Triangle Real Estate, offers affordable prices for new home construction. Typically new construction is 15 to 30% more than comparable re-sale homes. Currently New construction is on par with re-sale prices. So, I recommend those who are interested go for this.