Raleigh Market vs. U.S Real Estate Market

For most who live in the Research Triangle area, we have been aware for quite some time of just how fortunate we are to have a residence in this part of the country. While we may have felt some of the gusts of wind from the current recession and down turned real estate market, we certainly have not been in the eye of the storm. I understand for some this may come as no consolation if you've lost your job, lost your home and had to file bankruptcy, nor was it intended to be. It just simply is important to me that in order for our economy to turn around we need a country of citizens who carry on with business as usual, this in turn helps the flow of cash that is so desperately needed in our country right now to keep not only it's head above water but for it to swim a marathon. Therefore, I feel it my unofficial duty when reporting about the real estate market and happenings associated with it in the Raleigh region, to make sure I always point out the positive as well as the negative, the latter always seems all the more easier to come up with wouldn't you agree. Having said all that, her are some recent statistics released from the NAR (National Association of Realtors) in relationship to the Raleigh-Cary areas 4th quarter 2008 Metro Market.

The current median price of a home in the Raleigh-Cary area at the end of the first quarter of 2009 in Raleigh was $223,000 while compared to the median home price in the U.S. of $167,633. What does that mean? Well, in one years time in our local area since the end of the first quarter in 2009 homes have appreciated -2.2% while nation wide they appreciated -8.8%. And in the last three years in the Raleigh area homes have appreciated +11.7% while nation wide they have appreciated -22.7%. So theoretically, while home values has gone down over the last year or so, if you purchased a home more than three years ago there is a good chance you would still have some equity in it. I realize that does not fit everyone, certainly you would have had to have bought it at the right price as well as other factors figured into that, but nonetheless this is good news. On the flip side to that, while prices are not down as much locally as on a national scale, we still continue to weaken.

The Raleigh-Cary area has also held onto a fair share of equity despite the current market trends. This fact is played out in the following statistics. In a 3 years span, the local housing market had a housing equity gain of $23,400 while nation wide it was -$49,267. Over the past 7 years Raleigh-Cary saw a $51,000 home equity gain compared to a $31,367 U.S. gain and over the past nine years we had a whopping $61,700 gain in the housing market where the national gain was on $633. Glad you live here now?

I realize these statistics only go thorough to the end of the first quarter of 2009 and we are all aware that there still were and continues to be declines (with some potential mid summer spikes) in the value of our homes here. But being the hopeless optimistic that I am, my way of thinking is that the less we decrease in value compared to the rest of the nation the quicker we should recover when the housing market decides to make a turn for the better. In the meantime try not to think about it too much and go enjoy your day.

"Because Integrity Does Matter!"