iRaleighRealEstate Blog

I was just reading where one of our real estate analysts stated that real estate is a retail business and that is a great way to look at what is currently happening in the Durham and Raleigh real estate market. It’s also where listing agents like me become part-time psychologists with our client sellers, trying to come to emotional grips with all the Durham, Triangle and Raleigh listings that sit on the market, many of which have had few if any showings over the last month.

For Triangle, North Carolina and Raleigh realtors, the last few years have not been pretty and while we did see good glimpses of real estate recovery, the good begat the bad and it has often been down right ugly. We all knew that the expiration of the home buyer incentives in April would bring a drop but predetermining activity on North Carolina homes for sale and Raleigh homes activity is much like playing the stock market; there are economic principles involved but human behavior and reaction is not predictable. In May and June of this year, we saw the low showings numbers and the fewer pending sales but were encouraged by the number of home closings in June. But just like when any retail business has a “sale”, more sales are expected and following the sale, the shoppers decline. If your home is on the market and you’re becoming frustrated at the lack of activity, picture yourself as a store in the mall and it is mid-January; the women’s clothing at Hudson Belk is still just as nice today as on Black Friday, the tools at Sears are just as heavy duty, the cosmetics at Macy’s just as fragrant and the Build-A-Bear still has a heart. Simply put, homes were no longer $8,000 off and the shoppers’ excitement has subsided. The majority of homes on the market right now are very nice homes and three great listings that I have here in the Triangle 6502 English Oaks Drive in Raleigh, 7 Peridot Place in Durham and 6729 Middleboro Drive in Raleigh, are three of the most beautiful Triangle North Carolina real estate listings on the market.

When I say “simply put,” that’s an understatement because tax credits and prices, while significant, are only a small part of the country’s economic problems; unemployment and uncertainty are key issues that only time will adequately address. While NC’s jobless figures fell in July, the news was less than encouraging; there’s even news that NC’s true unemployment rate tops 17.8 percent. The lack of both jobs and consumer confidence led to a very cool summer for Raleigh homes sales and the Triangle real estate market. While the average price of re-sales increased 7% and the overall average sales price increased 6%, area Raleigh re-sale listings increased 20% compared to this time last year and are at their highest level within the prior 4 year period; 55% of the Raleigh Durham area has an oversupply of housing. Now, add that July pending sales were down 32%, showings were down 23% and closings were down 33% and what you have is a picture of very sluggish sales.

Residential real estate often drives the economy but now, the economy is driving residential real estate. This all goes back to a blog I wrote many months ago about the role jobs play in realty. If I were to end this article now, I would be doing you a disservice because the brightest news in all that is going on now is that “homebuyers who qualify to buy can get a great buy.” With the number of homes on the market today and the lowest mortgage interest rates in decades, if you’re looking to make a real estate purchase, let’s get your home search started today.

Rick Freeman has been practicing Raleigh real estate since 2001.

A residential broker with the Carolina’s number one real estate firm, Allen Tate Realtors.

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