A question that keeps REALTORS and homeowners up at night is: “When is the market going to improve?” The answer is, and will be, “When the economy improves.” The reverse is also true. The economy will improve when the housing market improves.
The Real Estate Market And The Economy Are Intertwined Like A Pair Of Ballroom Dancers.
The factor to look at to spot signs of improvement is an elusive characteristic called ‘consumer confidence’. Listen for media reports or search for it online. I think it’s hard to pin down, and easily influenced by media reports, sometimes despite the actual facts. One recent report says that the home values have dropped 33% , which is 2% lower than the ‘Great Depression’ which measured at 31%. How can that be believed?
What Is Really Going On In The Greater Raleigh Area Real Estate Market?
Real estate moves in 10 year cycles. The news media operates in a 24 hour news cycle, sometimes faster given the impact of social media. The market may be depressed, but it’s depressed from an artificial bubble that happened much worse in many other marketplaces around the country. Our market is down, but it’s not in ‘Great Depression’ mode.
For example, so far this week, our local reporting from MLS shows more homes sold than new listings that entered the marketplace. Sure, this is rare, but it’s positive news and I thought I’d share it with you!
Here’s The Bottom Line
It’s going to be difficult to rebound while consumers are concerned about their financial futures. Another reporting system that I trust, Realty Trac, reports that there are more than three years of foreclosures still in the pipeline which will effect housing. But it was good news to see a slow listing week in the Triangle!
If you’re up early Saturday, tune in to WKIX AM 850 to the Real Estate Show between 7:00 AM and 8:00 AM. I’ve been invited on the show to answer more questions about our local market.
If you have any further questions about the Greater Raleigh Real Estate Market or would like to talk with us my number is 919.235.0007
Have a great week!