Looking for a new home under $400K in the Triangle?
Raleigh Custom Homes
Far from the "slump" apparent in other areas of the country, The Triangle housing market remains strong - especially in new homes under $400K.
Home prices are still appreciating at a slow, steady pace - the average sales price in October wa
s 5.6% higher than a year ago - and homes are selling at 97% of list price.
A home in the Triangle remains a safe, sound investment - and Stanton Homes CEO Stan Williams has been answering some oft-asked questions about supply and demand.
"While changing standards for jumbo loans have slowed the pace of steadily climbing gains for homes priced above $400K, inventory of lower priced homes is still moving well and is actually in short supply," said Williams.
"While it's true that there's been some adjustment from the extremely brisk sales of 2006 and 2005, it's obvious that this region continues to be a huge draw for buyers," said Williams. "Buyers expecting prices to drop in the $200-$400K supply may be in for a surprise. These homes continue to sell at 97 percent of value or better - as they always have. We're building as fast as we can but we're anticipating that by Spring, there won't be enough new homes available in that price point to meet demand."
Although the past two years showed higher overall totals, Williams said that this year's trends - even in higher priced homes - remain solidly aligned with big picture averages.
The first three quarters of 2007 saw 6444 closings in Wake County. This is down compared to the record 2006 and 2005 years, but up 18% from 2004's 5455 closings, up 37% from 2003's 4702 closings, up 91% from 2002's 3382 closings, and up 100% from 2001's 3226 closings, in first three quarter comparisons according to public records.
"Clearly, the overall trend reflects a much healthier direction than many areas of the country," said Williams.
The overall Triangle market has a 5 month supply of homes - squarely in the middle of the five-to-six month supply that the industry considers to be the best balance for buyers and sellers, according to the TARR Report (Cary/Apex/Morrisville Markets.)
According to the various recent TARR reports, the overall Wake and Chatham County supply of new homes in the $200K - $400K price range varies from 6 to 2 months, with the lowest inventory in the most desirable areas and the most desired price point of $200-299K.
Total jobs in the area have increased 2.3% in the past year. 21,000 new potential home owners are moving into the area. Those already living here will continue to trade up or trade down as their family needs change.
"The Triangle market is exceptionally well balanced right now for both buyers and sellers," said Williams. "It's an exciting time."
You may also be interested in:
Most Up-to-Date Raleigh Market Reports - How is the Housing Market in Raleigh?
Wake County New Home Communities
Wake County NC Property Tax Rates 2011
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Articles copyright Stanton Homes 2006-2011. Unauthorized use is not permitted. Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements. Please note: all listing information per MLS, and current as of posting date. Information subject to change. Stanton Homes does not make claims to ownership of any lot listings, but can work with homebuyers to purchase available lots and build. Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions. Ask for further information regarding any community, lot or floor plan. Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area. No claim of ownership is made to homes or land pictured.
Penny, here in Charlotte, we are experiencing a solid market as well but, we do have Buyers (who the media have scared half to death) who believe that they are going to get a $500K home for $400K! When they don't, they just keep looking for that pie in the sky! IT'S NOT GOING TO HAPPEN! The media has got to start reporting the TRUTH about our market here in NC--we are not following national real estate trends and frankly, have never done so. We have such a huge relocation market here and Buyers are coming from depressed areas that are not doing as well as we are here--while I give them solid information about our market, they have been so brainwashed by national media that they don't believe us here in Charlotte!
Thanks for the post!
Debe in Charlotte, NC
Debe - I agree. I think that 3-6 months from now, these buyers will be tired of renting a "temporary" place while waiting for someone to accept an unreasonable offer, and we'll see a steady resurgence of much more realistic offers. There's only so long anyone wants to be in an apartment with all of their things in storage while they wait for an unbelievable deal - not to mention the loss of tax deductible mortgage payments and lack of equity.
There aren't too many builders willing or able to sell for less than it cost them to buy the land, pay for permits and land use fees, build the home, and pay their employees - we're not talking "investment" flippers trying to make a lot of money in a short amount of time by buying low, painting and putting in carpet, and selling high, we're talking hardworking professional craftsmen making a living creating homes they can be proud of - and that are worth the investment.