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Raleigh, Durham, Chapel Hill, Cary The Triangle Area
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Old 08-21-2010, 02:56 PM
 
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The N&O reports that after being buoyed by the Government tax credits the number of home sales in July fell by 33% compared to July last year from MLS data. The number of pending home sales fell by 32% and showings were down 23%. Listings were 20% higher than a year ago and are now at the highest for 4 years - perhaps the Realtors can tell us if that is good or bad news. One piece of good news is that average prices in July increased by 6% to $252k, but I suppose that depends on the mix of properties sold.

The article states that 'although RE professionals expected July sales to be down they were still sobering' and that the recovery will be slow. One comment was that no recovery in real estate until the jobs situation improves. I guess that sums up the economy in general


Home sales collapse in the Triangle - Real Estate News - NewsObserver.com
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Old 08-21-2010, 03:21 PM
 
Location: NC
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Good post! Sobering stats!
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Old 08-21-2010, 05:13 PM
 
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No surprise in my mind. I never understood the hope in the tax credit. All it did was artificially increase the numbers earlier by pulling future buyers into the present. The result is a lack of buyers later. Seems less than intelligent to have spent all that money to have the same result at the end of the year.

I think the housing market is about to take another hit. I don't feel confident when I see low pricing and super low interest rates at the same time. That spells trouble down the road.
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Old 08-21-2010, 06:42 PM
 
Location: Carolina Mountains
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No surprise here either. And the foreclosures are only going to get worse. I know a few people in banking and they are just now catching up to properties that are delinquent from LAST September.
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Old 08-21-2010, 07:17 PM
 
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Quote:
Originally Posted by saucystargazer View Post
No surprise here either. And the foreclosures are only going to get worse. I know a few people in banking and they are just now catching up to properties that are delinquent from LAST September.
Two to three years to clear out the existing foreclosures. Banks are holding off foreclosures and calling them slowly. They don't want to flood the market with low priced homes. Not good at all.
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Old 08-21-2010, 08:00 PM
 
Location: Durham NC
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I might be all wet but I look at it like this. For those unable to buy before this is not a bad time to buy a lower priced home if you consider the cost of an apartment and the lack of opportunity cost of your down payment money. Suppose you want to buy in the 150K range. If you put down 50% and finance 75K you basically get a home for near the cost of an apartment. You'd be hard pressed to get more than 1.5% on your money in a bank today. You are going to pay rent/mortgage to live somewhere so you might as well buy after a correction. I haven't heard many bullish predictions from any RE analysts save the RE agents who of course have an axe to grind. I prefer going against the crowd especially when the risk is limited.
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Old 08-21-2010, 08:28 PM
 
Location: Holly Springs
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Our inspection business performs more annual inspections than any firm in the state. A typical July for us is 20-25 inspections a week. We averaged 8 a week through the month of July. Conversely, in April and May, we were so busy we hardly had time to breathe. There is a severe lag due to everyone pushing to get in before the tax credit deadline. I suspect it will pick back up for the fall, but it will be a long climb to normalcy imo. I do agree with Lancers; great time to buy! (just a bad time to sell lol)
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Old 08-21-2010, 08:48 PM
 
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Originally Posted by sacredgrooves View Post
Our inspection business performs more annual inspections than any firm in the state. A typical July for us is 20-25 inspections a week. We averaged 8 a week through the month of July. Conversely, in April and May, we were so busy we hardly had time to breathe. There is a severe lag due to everyone pushing to get in before the tax credit deadline. I suspect it will pick back up for the fall, but it will be a long climb to normalcy imo. I do agree with Lancers; great time to buy! (just a bad time to sell lol)
That's what I didn't understand about the bad news - prices actually increased 6% in July. As I said in the original posting maybe there was a 'mix' issue which caused the price increase, eg more SFH rather then townhomes or Condos. Perhaps the realtors with access to MLS data maybe able to explain whats going on
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Old 08-21-2010, 09:04 PM
 
Location: Midtown Raleigh
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Everyone knew there would be a dip when the tax credits expired. I'm not ready to predict doom and gloom yet.
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Old 08-21-2010, 09:06 PM
 
Location: Wake Forest
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Let me add a third perspective or maybe a 300th one...lost count since the home market took a breath and found itself on a ventilator. But it will recover and with any illnesses there is always set backs and changes in treatment plans, but in this case the patient (home) will survive......but back to my perspective;

If you need to buy a house buy one
at the best price you can negotiate.

If you need to sell your house sell it,
at the best price you can negotiate.

If you don't need to do either mentioned above
than DON'T.

Buying a home is like buying produce.
The fresher you get it the more you pay.
The older it gets the less you pay
Somewhere in between those two extremes
the farmer and the buyer can both live with the taste!
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