We’ve waited a long time to see this!!

Housing inventory at an all time low!

Months Supply and Impact on Price

According to dictionary.com:

“The relationship between supply and demand determines the price of a commodity. This relationship is
thought to be the driving force in a
free market.”

In real estate, supply and demand is represented as the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).

Economists are using the guidelines as follow…

  • 1-4 months supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
  • 5-6 months supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
  • 7-8 months supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.

Currently in the Triangle we have roughly 4.2 months of inventory. This number fluctuates based on your City and Neighborhood but overall we have made the switch from a buyer’s market to a seller’s market.

In most parts of the country, home values are rising. This is for two reasons:

  1. According to NAR’s latest Existing Homes Sales Report, raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.
  2. According to this month’s Pending Sales Report from NAR, houses going into contract reached levels last seen in April 2010 which was the month the Home Buyers’ Tax Credit expired.
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Raleigh: A Growing City

Raleigh is named by Forbes the fastest growing city in the country. Since 2000 we have experienced larger growth than most other areas. Why is that? From someone that has moved here my reason is that we get all four seasons, not too hot, not too cold and conveniently located between the mountains and the ocean.

Compared to areas up North it is affordable, the people are nice and the biscuits are good! Oh, and I forgot to mention how good the sweet tea is! Everyone greets you with a “hey, how are y’all?” and doesn’t beep the horn when you can’t find your street to turn on. Although, I must admit that is changing a bit and the traffic is getting heavier.

So come check it out, see what the Triangle is all about and if it should be your next place to call home.

http://www.forbes.com/pictures/edgl45emig/no-1-raleigh-nc-metropolitan-statistical-area/

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Why You Should Buy A Home Right Now

This week, we are going to look at the three financial reasons to buy a home now instead of waiting: prices are rising at an accelerated rate, interest rates are increasing and rents are skyrocketing. – The KCM Crew

I couldn’t agree more with this statement! Houses are selling in days, for more than list price and quicker than they have in years. This has not extended into the outlying areas however that will come in time.

The price of a home is the major consideration when deciding whether or not it makes financial sense to purchase a house. Experts are not only projecting that house values will increase in 2013 but they are also projecting interest rates to go up as well. With higher interest rates your buying power will decrease along with the actual cost of the home.

It took agents several years to get sellers realistic about their listing prices. Now that we are pricing more realistically inventory is low. A stable market is 6 months of inventory and the Triangle is down to 4 months. That is an indicator that the market has shifted from a buyer’s market to a seller’s market.

Now the work begins to educate buyer’s that these homes are priced well, and priced right and that they aren’t going to get thousands of dollars off the asking price. We are coming out of the bottom and the lack of inventory should be their sign that that is truly happening.

So, what is a buyer and seller to do? Listen to your agent, you have hired them for their expertise in the market and their market knowledge. They should be utilizing resources to determine where the market is headed.

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