What does this mean to NC home prices ? (Raleigh, Cary: sale, foreclosures)

[Comedian]

it's always difficult to relate the impact of these major 'national' issues to the local economy - any expert opinions out there?

Dow Plummets 243 to 12,076, Nasdaq Falls 52 to 2,351 on Rising Concerns About Subprime Lenders


NEW YORK (AP) -- Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points to their second-biggest drop in almost four years, as troubles piled up for subprime lenders.

Investors, bracing for a wilting economy, fled the already deflated subprime mortgage sector on more news that lenders New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit are facing financial problems. The Mortgage Bankers Association bolstered the belief that the struggles are widespread after it said new foreclosures surged to an all-time high in the last quarter of 2006.

[raccemup]

I don't think it means much because growth is still strong here (66 people a day move into Wake county alone) and homes are continuing to appreciate at a good steady pace in this area. The Raleigh-Cary market had the 5th highest percent change to median prices of 149 markets from Q4/06 to Q4/07 at almost 14%. Maybe this means a slightly higher average DOM? But I can't see it impacting this particular market much more than that.

[StitchJones]

I was wondering the same thing. I think housing prices have escalated way too much in the triangle over the last year. I was just looking at town homes in Bedford and the ones my coworkers paid 150k or so for are now going for 175+. Too much over such a short period of time. This same story is going on in Brier Creek right now. Prices need to fall back another 5% or so at least. With a LOT more homes still yet to be built here (More Bedford, more in Southeast Raleigh, more in Brier Creek and now even more in Brightleaf, housing prices should stabilize a bit. The appreciation has been out of control if you ask me.

[ducter]

I think that some of this is hype. Even though these things matter, local market conditions matter much more and the market is still strong here. Everyone knows that all this high limit no questions asked borrowing had to come full circle.

I think that this affects very high priced cities as soom are dead set on staying there or though the market would just keep going through the roof there. Also these cities are where most of the risky loans are since so many are were and are trying to live above, way above their means.

[carolinatrendsetter]

I think these analyst types really read to much into the current status of the economy and such. Sometimes they just need to keep quiet. Instead of worrying the general public and let the economy correct itself.

But I would not fear about any of the bubble burst or sluggish home sale issues that have plagued california, florida, and the northeast. We are in a particularly good situation here in north carolina. We are in the midst of having the greatest influx of new residents that this state has ever seen.
And we have lots of land and space to grow and infill is also becoming utilized more often.

Some areas i.e. Brier Creek, WakeField & Bedford, Cary has seen extremely good appreciation, but overall the outlook is good and steady. We are shielded for the most part I believe. And three houses on my block in North east Raleigh sold in the last week and a half. Spring time gets close and people really do start buying houses. Gotta love the Triangle.