6020 Creedmoor Road, Raleigh, NC 27612 ~ Cell: (919) 280-2726 ~ Erin@HomesInRaleigh.org

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Raleigh 2010 Year End Housing Market Report

Homes in Wake County

Wake County MLS Statistics

Closed Sales
Average Sales Price
Average Days On Market Until Sale
Number of Homes For Sale

2009

12,058
$243,669
96
8143

2010

11,045
$255,844
102
8239

Annual Change

-8.4%
+5.0%
+6.3%
+1.2%

No Mountains and No Valleys in 2010

There's good news and not so good news and then, some more good news as the 2010 Raleigh Real Estate Market clicked to an end.

Good news? Prices edged up a bit. A small bit but . . . UP. There was also a significant improvement in December sales over a fairly sad November which provided one more reason to refer to it as Turkey Month.

Some not so good news? Well, interest rates crept up in December. Actually, nearly a half a point by December 31st. The other not so good news is that sales were down a little over 8% from those in 2009.

Pending sales were very good in December. That means a good start for completed sales (closings) in the first quarter of 2011.

In 2009, 12,058 homes were sold. In 2010, 11,045 homes were sold. That's an decrease of 8.4%. Overall, 2010 had a decrease in homes sold. However the decrease was certainly not as significant as in other portions of the country.

Average Selling Price of Raleigh Homes
In 2009 the average selling price was $243,669. In 2010 the average selling price showed an increase of 5% to $255,844. So, although fewer homes sold, those that did sold for more money.

Average Length of Time to Sell a Raleigh Home
In 2009 it took three months plus a week, on average, for a home to sell. That went to three months and a week and a half in 2010. In reality, the time it took to sell a home remained the same.

Number of Homes For Sale in Wake County
In 2009 and 2010 the number of homes for sale were about the same. There was a difference of fewer than a hundred homes.

What Does All this Mean?

The fact that both home prices and interest rates are creeping up should catch the attention of folks who have been "waiting to see" what would happen. Both these increases are important and something folks need to be very aware of.

Interest rates are now in a momentary hovering pattern. At this point; just a under 5%. But, think about the Bank which will be underwriting these 5% (approximate rate) mortgages, for 30 years terms. Three decades is a very long time and a lot can happen.

The current interest rate set by the Federal Reserve is nearly at zero. But it's gonna' be increased once the job market improves over the next 2 to 3 years. And, when that happens, interest for home loans will rise.

It just a fact of financial life. The law of supply and demand affects the interest market too. As the economy improves more folks, both business and home owners will want more money. The more money they want or require, the higher the cost of money will be in the form of interest.

Looking through a bank's perspective, a bank is in business to make money. How will a bank make money underwriting a 5% mortgage when the cost of money for the bank is 3 - 5%? Short answer: It Can't.

So mortgage interest rates will eventually be going up. When, you ask? There is not a person on the planet who has that exact answer.

In the meantime, we will continue to experience a slow but, steady upward creep in both home prices and mortgage interest rates.

It is important to keep in mind what the impact of an increase in interest rate will have on the price of a home. What may seem like a small increase will, in fact, have a significant impact over the life of a loan. The average, end result, of a 1/2 a percent increase on the cost of a $250,000 30 year mortgage is over $20,000.

So, as we look forward from 2010 to the upcoming year we feel that buyers will be experiencing a renewed urgency to secure low interest loans and more home sellers will be putting their homes on market earlier than usual so as to catch the resurging interest.

Feel free to contact us with your questions about the Raleigh housing market. We're easy to talk to and can answer questions you may have about current Wake County market conditions, interest rates or what we see happening on the ground. If you're interested in selling your home we'd be happy to provide our recommendations and input on how best to proceed.

We'll also provide you with a neighborhood report that will let you know what has been happening with home sales in your personal neighborhood.

Email Us to request your own Raleigh Neighborhood Report Sample

If you have questions about the Raleigh Housing Market Email Us or Call Us Today at 919-280-2726

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