Raleigh-Durham Real Estate Blog

Hello and Happy New Year!

In the spirit of keeping you informed on the real estate market in the Triangle, we have reset our communications schedule to allow us to forward regular market updates and properties that may be of interest to you.

SHORT-SALES

If you are focusing your efforts on short-sales, foreclosures and pre-foreclosures, look forward to many more opportunities in this area. If you are not familiar with short-sale investing, visit http://www.tiffanyelder.com/ShortSaleInvesting for a quick overview on the topic.

DURHAM, NC MARKET CONDITIONS:

The Triangle is weathering the current economic storm quite well. We are optimistic that changes in the pipeline regarding the president’s stimulus package and legislation affecting lending and homebuyer incentives will present even more opportunity for growth in this region. Currently, price decreases on listed properties are offering opportunities for investors to buy at very formidable prices. In addition, interest rates for investment property are hovering at an all-time low, further supporting cash-flow opportunities for rental housing.

A few facts from the Triangle Area Residential Realty Report (TARR) Report (available via subscription at http://tarr.smapublications.com), as of 4Q2008:

Positive Factors:

· Durham realized an overall 2.45% appreciation rate over the past year

· Overall inventory has decreased 8% over the past year

· Average days on the market has decreased from 132 to 127 for active listings

· Current supply of housing in Durham based on 2008 closings is 8 months

· Average sold price is $196,400, down 2% from 4Q2007

· 2 of the top selling neighborhoods in Durham were located in the South Durham area near Research Triangle Park . One additional neighborhood in NE Durham, rounded out the top 3. In these 3 neighborhoods, properties sold for and average of 96.6% of their asking price. Feel free to contact our office for properties available in these 3 areas.

· New home inventory decreased 21% from 4Q2007, likely due to the very strong incentives being offered by builders and the slowdown in speculative new construction builds.

Other Factors:

· Durham was recently ranked the #3 Safest City In The US To Ride Out The Recession (full article can be viewed here)

· The unemployment rate in Durham is currently at 6.5%

· There is an overall decrease in showing activity for listed properties (43% decrease in Q4 of 2008 as compared with Q4 of 2007). For this reason, we are advising clients to amend their investment strategy to “buy-and-hold” until market activity picks up.

As you can see, although purchase activity has slowed, overall activity in Durham, NC points to a continued slow-and-steady growth trend; very similar to years past.

We look forward to your investing success in 2009!