Home Buying in Raleigh>Question Details

Gotonc, Home Buyer in Raleigh, NC

How is the market for buyers in the $150K - $200K price range.?

Asked by Gotonc, Raleigh, NC Mon Aug 24, 2009

I am relocating and consider buying a new home in that range, get to know are better and in the future buy something nicer ($300 - $350K range). I wanted to know if prices are expected to go lower, or maybe a recovery is already under way.

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At first glance your questions appears to be a very simple and typical question of a buyer - "How's the market"?

I could give you a simply answer - it's good and recovery appears to be on the way - but that answer would be cheating you a little bit -

Here is the detailed answer -

A real estate market is usually defined as either being a 'buyer's" market or a 'sellers' market - this is determined by how many homes are for sale versus how many homes are being purchased (sometimes referred to as the absorption rate) - a market in balance has 6 months of supply, anything less and the pendulum starts to swing to the sellers - more than 6 months and the advantage goes to the buyer - the further away from the 6 month mark in either direction and the more extreme the market conditions (I have a previous blog post that provides more info on determining buyer or seller market )

http://caryrealestate.wordpress.com/2009/03/06/buyer-or-sell…

The market conditions can vary greatly even in the same price range in the same city, with factors like access to employment, roads, schools, subdivision developer and house builder etc. You mentioned you were thinking of buying a 'new' home, conditions also change for a true new construction home versus a re-sale home that is 'new' to you.

For example, taking a look at the current market conditions using the following parameters:

- Single family detached home (not a townhouse or condo)
- with a 'Raleigh' address
- Priced between 150k - 200k

464 Homes actively for sale (only 57 of those are new construction)
116 homes are 'pending' - which usually represents the last 30-45 days of sales activity as these properties are waiting to close -which in our market is usually 30 - 45 days
437 homes have closed in the last 6 months
looking back 30 days total of 70 homes closed
looking back 60 days total of 167 homes closed
looking back 90 days total of 255 homes closed

these stats are from the triangle mls system as of today august 24, 2009

This is an example of the type of information to expect from a high quality, professional agent representing you and your interest (called buyer agent)

I would imagine that if you were to start looking at homes, you would not want to view all 464 that are for sale in Raleigh in the 150-200 range! :) A comprehensive interview with a buyers agent would be invaluable by narrowing down to the specific homes that fit your particular needs.

Just so you know - before you start discussing anything in detail or before you provide any personal information to a NC real estate agent, you need to remember that by default the agent does not represent your interest - it takes an agreement between you and a agent to solidify a relationship where the agent would represent you - the State of NC takes this seriously and wants you the consumer to be protected - for this reason they created a brochure that walks you through the different options of working relationships with agents - here is a link to the brochure

http://caryrealestate.wordpress.com/2009/08/25/nc-working-wi…

Hope this helps a little!

Respectfully,

David Williams
Licensed NC Real Estate Broker
2 votes Thank Flag Link Mon Aug 24, 2009
Raleigh, is one of the most stable areas in the nation as far as prices and values. When you ask about Raleigh the question back to you would be which Raleigh, There are several city and towns that you would not know if you left Raleigh city limits and gone into Cary, Apex or Wake Forest. With-in the city limits of Raleigh there are currently 392, single family 3bedrooms or more, on the market in the price range of 150-200. With-in the city limits of Raleigh there are 188 single family 3 bedroom homes in the 300-350 range homes.
If you would like to go to my website Zip Realty.com you can see everyone of these and the neighborhoods, schools, get a birds eye view and a street view of the property. Then you may want to look in Cary, Apex and Wake Forest areas. These area would add a significant additional top choices.
0 votes Thank Flag Link Tue Aug 25, 2009
Hi Gotonc

I wanted to give you a great website that is used for listing homes. Its http://www.zillow.com Put in the search for homes at the top your prices and there are a lot of homes available in the Raleigh area. You can get more specific in your search to narrow down the number of homes based on what you are looking for in your new home. It shows everything about that house. I tell everyone that the first step really in looking is to have already worked with a Mortgage consultant so that you know exactly how much house you can afford.

Another great website you might be interested in is http://www.visitraleigh.com.

Welcome to the area and Good luck in your search.

Ginger
0 votes Thank Flag Link Tue Aug 25, 2009
They are at least stable and in the better areas they are going up. Across the US, homes in this "first time buyer" price range are selling much faster than a year ago. However, our market is one of the best in the US, so those homes are selling even better. So long as you pick an area with good appreciation potential, your game plan of buying a more expensive home should be well funded by the purchase of this home.

Since you are relocating, you might like this video of the Raleigh area. http://tinyurl.com/oradn2 . It sounds like you are a first time buyer, so you might be able to benefit from http://www.SoLongLandlord.com. Since you are relocating, http://www.RaleighDurhamRelocation.com is designed for you.

I can put my 30 years of experience to work for you if you need a Team that will get you the right house. Please visit http://www.TeamForYOUrDreams.com for more information, and to search every home that is available for sale.

Welcome to the triangle.
0 votes Thank Flag Link Mon Aug 24, 2009
A lot of that depends on where in the area you want to live. In many areas of Raleigh, Cary, Apex, and Morrisville, prices in the first time buyer range are doing fairly well. That price range has attracted the first time buyers who are capitalizing on the first time home buyer tax credit (which only lasts through Nov. 30...no guarantee that the gov't will renew the plan for next year although there National Association of Realtors is encouraging it to help w/ the economic recovery). In this market, the majority of what's available in that price range in the most desirable areas of Raleigh are townhomes and condos. You'd definitely need a buyer's agent to crunch the market data numbers for you, but according to the TARR Report which gives the subdivisions w/ the best appreciation rates over the past 13 months, the areas with the highest overall appreciation are Inside the Beltline (certain neighborhoods), parts of Cary, and parts of N and NW Raleigh (areas 1, 2, 5, 7...maybe parts of areas 9 and 10...I can explain more about those areas to you later if you decide you're ready to work with an agent). With interest rates being this low and no guarantee they'll be this low for some time to come, if you can afford it and it meets your needs, purchasing a nicer home now maybe be a good bet as well, especially with all the deals builders are offering in new construction...which ultimately affects pricing of existing construction so that the resales also remain competitive. It does seem that the market in Raleigh is on its way back up (but not as much in the higher price ranges...over 450K...there's a lot of inventory out there that will take a while to absorb). There's no way to tell if prices will go lower, stay steady, or increase...but even though the total number of sales was lower than previous years, the average home price in Wake Co. is still increasing and many areas are still appreciating in value.

If you'd like more information about the area or are curious to see where you might get more bang for your buck, feel free to contact me via my website. In addition, our company just added a couple of searches on the home page that will allow you to search for foreclosures and short sales if those interest you.

Raleigh's market has been pretty stable over the past couple of decades and Apex was just voted the 3rd best place to live in the U.S.... it's a great place to live...let me know if I can help you with relocating.

Have a great eveing!

Wendy
0 votes Thank Flag Link Mon Aug 24, 2009
You can get a nice 1400 sq ft. detached home in N. Raleigh for around 140k. If you are interviewing buyer's agents I specialize in the North Raleigh area. This area is seeing an increase in home prices. From around a base min. of 130k. My website is http://raleighrealestatedirectory.com/AgentIQ I blog about the area and am a local expert so if you need a buyer's agent it would be worth your time to give me an interview. I promise to do a good job for you.

Thanks for the opportunity,
Call me if you have any questions, -Sarah Tingen "Agent IQ"
You can also google my name to see my exposure in Raleigh and my references :)

919-441-2837
0 votes Thank Flag Link Mon Aug 24, 2009
Gotonc,

In our area, this is an extremely "desired" price range. Especially now with all the "First Time" home buyer's purchasing and qualifying for the $8,000 tax credit.

No one has a "crystal" ball to predict the future of the housing market or economy, but many indicator's show that if you want to buy a home, NOW is the time.

History shows that real estate will always have it's "high's" and "low's", but overall it's a great investment.

Make sure you speak with a Realtor in the area you are planning on relocating to. They will have accurate area stat's. They could also provide you with information on a local Lender or Mortgage Specialist.

Good Luck on your house hunting!
Web Reference: http://www.weberhomes.info
0 votes Thank Flag Link Mon Aug 24, 2009
Hi Gotonc
The market here is very good for buyers in that price range. If you qualify as a "first time home buyer" you also could receive the $8000 tax credit. If you would like to see some properties in your price range, please email your wants and needs and I will send you some available homes.
Thanks, Michael
Web Reference: http://www.colvinm.hpw.com
0 votes Thank Flag Link Mon Aug 24, 2009
Gotonc,
I like that we are getting mixed signals. That is an improvement overa ll bad news.
I like that the stock market is leading the way.

The strength in your plan is that the lower price range will remain appealing, and you risk less if the stock market indicators and the news turn against you.
Web Reference: http://www.MikeJaquish.com
0 votes Thank Flag Link Mon Aug 24, 2009
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