Real Estate Information Archive

This information comes from Stacey P. Anfindsen of the Birch Appraisal Group of Cary. The information contained in this update presents data and analysis of the residential real estate market within Wake County.

What is happening with inventory and list prices?

Second quarter inventory increased 25% compared to 2Q/07 and the average list price increased 1% to just over $368,500.

What is going on with closings and the average sales price?

The number of closings in June decreased 35% compared to 6/07 closings. The average sales price of all housing increased 1% during the month of June. The average price of a re-sale increased 1.2%.

How long are houses taking to sell?

The average days on market for closed sales in Wake County during the first six months of 2008 was 85 days. This was an increase from the 70 average seen during the first six months of 2007.

Are house prices appreciating?

Our current rate of house appreciation is significantly superior to the average rate seen nationally. These rates are calculated by comparing the two most recent sales prices of the same house and should not be confused with the rise or fall of the average sales price in a given area.

What was the highest sales price during the month?

A house closed for just under $2,000,000 in the Regency Park development in Cary.

This article by Brian Clark Howard presents some interesting points about the risks and dangers of living in a home with granite countertops.

By Brian Clark Howard

Granite countertops are red-hot — and not just because of their soaring popularity and high resale value. It turns out that some granite quarried for furnishings brings with it relatively high levels of uranium, which is not only radioactive but releases radon gas as it decays.

As the New York Times reports, sales of granite countertops have exploded tenfold in the last decade, as has the number of different styles now available. At the same time, a debate has been simmering about how safe the attractive surfaces actually are.

There have been a number of reports of people observing above-background levels of radiation coming from their kitchens, and the EPA has received a growing number of complaints, according to the Times. Officials have noted that some exotic and striated granite varieties from Brazil and Namibia, in particular, have been most suspect.

The Marble Institute of America calls any worries about radiation from granite countertops "ludicrous," saying that any possible levels are insignificant compared with background radiation from space and the Earth's crust, or even X-rays and smoke detectors. Yet one person told the paper her house had radon levels of 100 picocuries per liter of air because of her granite countertops, when the EPA recommends action if radon levels exceed 4 picocuries per liter.

Typically, people receive 360 millirem of radiation from background levels a year, while a "hot" granite countertop might add just a fraction of a millirem per hour, and that's if you are very close to it.

Still, the precautionary principle suggests considering other, and often less pricey, alternatives. What the industry fails to point out is that most public experts agree there is no safe level of radiation — all radiation has the potential to damage cells, and cumulative, lifetime exposure is often cited as a major cause of many cancers, as well as potentially aging itself. (So even though the fraction contributed by countertops is likely very small, it may be worth thinking about.)

Karl Z. Morgan, often called the founder of the field of health physics, is famous for arguing that exposing DNA to any ionizing radiation is like letting a "madman loose in a library." According to the EPA, living in a home with 4 picocuries per liter of radon in the air carries about the same cancer risk as smoking a half a pack of cigarettes per day. While most granite countertops are not likely to emit that much, it should give all those parents who tell their children not to smoke a little something to think about.

A big point that this recent New York Times article failed to mention is that granite quarrying, processing and shipment also carries a sizable environmental footprint. Not only is the (obviously) nonrenewable resource mined in destructive open pits, which can then leach toxins into surface waters, but what is heavier than rocks to ship around the planet? Granite is surprisingly easy to break, so a lot can get wasted. Even when you get your countertop in place, it may require frequent chemical treatments.

For many reasons, it does make sense to be different and forget granite. Check out our pages of gorgeous and green countertops from recycled glass, concrete and even paper; to renewable bamboo; and repurposed materials. Not only can you get a great look, but you'll have a nice conversation piece, and something unique, to share with family and guests.

This article is courtesy of the TBJ and Copywrite by American City Business Journals Inc.

"Kiplinger's Personal Finance magazine has listed Raleigh as the country's second best place to live in 2008, behind only Houston.

The city is "a work in progress," Kiplinger's says in its July issue, which will hit newsstands on June 10 and is currently online. It's long been a good place to work, but big-city cultural amenities have been lacking.

That's changing, Kiplinger's says. Raleigh is increasingly becoming a more exciting place to live, and the excitement of living there is catching up with the benefits provided by the local economy.

In particular, Kiplinger's cites the renaissance of downtown as the reason why 2008 marks "the turning point" for the Capital City. The magazine gives as examples the new Raleigh Convention Center and the downtown RBC Plaza, which are both set to open this year.

Also cited are many of the factors frequently cited when a Triangle-area city makes a "best places to live" list: a relatively low cost of living, a high percentage of workers with university degrees, and strong economic growth.

Kiplinger's says its list encompasses cities "offering strong economies, abundant jobs, reasonable living costs - and fun things to do."

The Martin Prosperity Institute, an economic think tank, compiled the list."

• Only 6 states have experienced depreciation over 2%
• NC has two cities in the top 20 for appreciation
• The Raleigh-Cary area is ranked 30^th out of 292 with:
  • 4.92% appreciation in the last year
  • 0.76% appreciation in the 1^st qtr of 2008
  • 26.66% appreciation in the last five years

Now is a GREAT time to buy real estate in the Raleigh market.

In spite of a steady stream of negative national real estate news, our local residential market held its own during 2007. The following are positive statements about what happened during the year.

• 2007 was the third best market in Triangle MLS history based on closed sales.
• 2007 was the third best market in Wake County History based upon closed sales.
• Area house appreciation rates are above the national average.
• Average closed prices are increasing.
• Job growth is still positive in the Triangle.
• Interest rates are near historic lows.
• North Carolina was again one of the top inbound destinations based upon the United Van Lines annual moving survey.

So despite national trends now is till a great time to buy and sell real estate in the Triangle!

Information courtesy of Stacy P. Anfindsen of the Triangle Business Journal.

This report from the North Carolina Home Builders Association shows that Raleigh is still a hot area and continuing to grow.

"The U.S. Census Bureau reports that eight counties in North Carolina are among the top 100 fastest growing counties in the nation. For counties with populations of 10,000 or more experiencing the highest rate of population growth between 1 July 2006 and 1 July 2007, Union County was 7th highest in the country, Brunswick County was 17th, Cabarrus County was 29th, Wake County was 33rd, Johnston County was 58th, Pender County was 71st, Mecklenburg County was 82nd and Iredell County was 90th. As well, two North Carolina counties were in the top 10 counties nationwide with the largest numeric population increase over that same period: Wake County was 7th, and Mecklenburg County was 10th. Watch for the anti-growth special interest groups (dba, environmental special interest groups, dba environmental public interest groups) use this as evidence that we need impact fees and other growth stopping measures."

With strong growth continuing in our area now is still a great time to buy or sell real estate.

Blog by John Lynch of PRG Funding

If I had a dollar for every person that said to me, “the Federal Reserve cut mortgage rates why are they higher than last month.”  Contrary to popular myth, the Federal Reserve doesn't control mortgage rates.  In fact, their most well-known strategic tool -- the Federal Funds rate -- is the overnight interest rate which banks charge each other when a bank needs to borrow money to meet end- of-day reserve requirements.  Those are the rules that say that a bank must have so much cash on hand when the books close at the end of the day, and those funds can be borrowed from another bank at this interest rate.  You should know that the Fed merely "suggests" what that rate should be, which is why it's called a "target" rate; the actual rate is negotiated between the borrower bank and the lender bank.

A good way to keep a handle on the Fed is to remember that the Fed Funds rate is the shortest of short-term rates – almost like an overnight loan -- and a fixed-rate mortgage is all the way at the other end of the scale, a loan that lasts as long as 30 years.

The end result is that the Fed raises or lowers interest rates to help address increases or decreases in economic activity. Lower rates can help banks to make certain kinds of loans more cheaply, especially for business and certain kinds of consumer lending, and that can help to generate greater economic growth. Higher rates can cool demand, helping to keep inflationary pressures from forming.  Expectations of what the Fed may do can be more important than what they actually do, as their actions or inactions can help to confirm or deny what investors believe.  This is why the market reacts sometimes strong to the Fed chiefs comments.

You also may have realized that sometimes the Fed cuts interest rates -- and fixed mortgage rates actually rise as a result. Why?  If the Fed is taking steps to address economic weakness by lowering rates, that likely means that a return to faster growth and the possibility of higher inflation.  Currently we are seeing the weaken dollar and the prices of commodities increasing.  What is the Feds next move?  I think you may have an idea.

Information Courtesy of Sigma Research

This blog is provided by John Lynch of PRG Funding.

Class is in session!  Mortgage 101…this isn’t pass fail either.  What in the world is going on with mortgage rates?   How does this effect the Raleigh Real Estate Market?

Why are rates so up and down?  It is The President?  The Economy?  Is it Inflation?  The Subprime melt down?   

Well the answer could be yes to all?  But the truth is that rates are stimulated by a number of reasons, and you are one of those reasons.

Mortgages come from many sources, including banks and brokerages, but most come from investors through what is communally known as the "capital markets." These markets are where investors interested in purchasing bonds come to buy these items.

In order to attract investors, the bond sells people must compete and they do this by offering different products with different risks and return over given periods of time. These bonds compete with other investments, US Treasuries, corporate bonds, foreign bonds, and others.

These investors are people like us that want low payments on debt and high returns on investments.  You or your investment advisor will only buy so many low yielding bonds whether it is mortgages or some other bonds.  It’s almost like shopping for who has the best interest on a savings account.  The banks compete according to their needs.  Banks that want more deposit growth offer higher yielding savings accounts…..

The demand plays a considerable role in the markets yields because there are so many options where we can invest.  If demand falls….how best to attract them back?  Raise the rates and investors come back.  If course, it's not as simple as that but mortgage market makers serve not one client, but two: investors, who want the highest possible return on their investments, and the homeowner or homebuyer, who wants the lowest possible interest rate. In chorus, rates need to be high enough to attract investors but low enough to attract borrowers. .

As interest rates decline, investment customers can become more or less interested, depending upon the direction of economic growth, inflation, appetite for the given product, and several other factors. Characteristically though, the lower those rates get, the fewer investors are interested.  Next week we will look at the Fed. Rates and it’s impact on rates.

Information courtesy of Sigma Research