Closings Up 26% in May, but Will the Real Estate Market Be Hot This Summer?
There were 2,083 home closings in May for Durham, Johnston, Orange and Wake counties, up 26 percent over the same period last year, according to the Triangle Multiple Listing Service. It's an impressive figure given that the federal tax credit stimulus ended April 30 and given that the average sales price of a re-sale in the area up by three percent.
If only this told the story of what to expect. When we look at closed statistics, we're typically seeing the results of buyer activity from 45 to 60 days earlier. I just ran the showings statistics for the heart of North Raleigh, the combined zip codes, 27609, 27613, 27614 and 27615. The $150k-$350k price point was analyzed for May 2009 vs. May 2010.
Our May showings (active buyers out looking in the market place) are down 35% from the previous year. There were 4777 showings in 5/09 vs. 3118 in 5/10. That is a mighty big drop and I see it in the showings of my own listings and in the traffic counts on HomeSearchRALEIGH.com.
If you're a seller wondering why your home is not getting showings, you're in the company of many. If you're a buyer, this is your time to buy. Many sellers are very motivated and prices are competitive. Can prices go lower? Possibly, but will interest rates rise? I don't want to over simplify but this is a very easy concept to understand. One percent (1%) in mortgage interest rates equals ten percent (10%) in home prices. If you're waiting for those home prices to go down and interest rates go up by just one percent, because you will be paying more each month (if you even qualify), your new home is costing you 10% more what you could have paid today.
Let's seize this great buyer's market and start your home search today. Visit my Raleigh real estate website, HomeSearchRALEIGH.com and start looking for the perfect home. With over 14,000 homes online, your dream home is just a mouse-click away!
Posted at 02:35PM Jun 24, 2010 by Rick Freeman in General | Comments[0]
