Every day I watch and the number of new listings, price reductions and failed listing in the Raleigh real estate market. It is very concerning to me as I see our historically safe real estate market falling and our personal equity investment decreasing. Although Raleigh home prices have not fallen to the extent other areas have, we too have been touched by the forces in this economy.
The past two years have real estate values flat for some Raleigh homes and declining for others. One factor that has caused a decline in property values is the increasing number of Raleigh home foreclosures. We have a second wave of foreclosures postured for early 2009.
Many ask; “how long will it take for Raleigh home prices to return to the highs of 2005 and 2006”? Some believe a year, others think three to five. One thing I know for sure is it will not be this spring.
The mortgage crisis that started with subprime has become an economic snowball that is rolling down hill fast. Housing controls 40% of our economies fuel. Which means it’s no longer just the housing market that is struggling, every business has been affected. Unemployment is growing and people in all price ranges and in every walk of life is losing their homes to foreclosure.
If you know of anyone struggling to make their mortgage payments please have them contact me or any other REALTOR with a CDPE designation. There is help available but, in people in that situation do not know where to turn. Foreclosure and the terrible negative effect it will have for years and years can be avoided. A foreclosure on a credit report has the absolute worst consequences. It will affect their ability to rent a home, buy a car, get student loans for the children’s education and may even keep them from getting a job.
Every person that is saved from foreclosure helps Raleigh homes prices stabilize faster. If we can reduce foreclosures we will protect our own property values and the equity we all need for our future while helping someone else have a future too.
If you have any questions, please feel free to call me at the office- (919) 235-0007.