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Area home prices report prompts skepticism

Posted November 9, 2012

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— A report from the National Association of Realtors that shows median home prices soaring in Durham and cratering in Raleigh has prompted some skepticism among area real estate agents.

The group reported Wednesday that sales prices were up 14.1 percent in the Durham market in the third quarter, to a median of $190,400. Meanwhile, prices in the Raleigh market were reported to be down 16.1 percent in the Raleigh market during the period, to a median of $188,200.

"This is not an indication of home values," said Phyllis Brookshire, a real estate agent with Allen Tate Realtors and a past president of the Raleigh Regional Association of Realtors.

Brookshire said the quarterly report is an indication of the types of homes being sold.

"It's taking a small snapshot here, when we have data to the contrary," she said. "Median home prices are actually up a little bit, somewhere between 1 and 2.5 percent."

Bram Luknight, the president of the Durham Regional Association of Realtors, also threw cold water on the national report, saying median prices for home sales there are up only about 3 percent.

A spokesman for the National Association of Realtors said there are times when analyzing periods for the same metro area is like comparing apples to oranges. Local real estate agents would have a better understanding of the market, he said.

For sale sign, home sale Real estate agents question reported swings in area home prices

"The takeaway from the report is it's interesting data to see the country and the real estate market as a whole," Brookshire said. "Rising tides carry all boats. We need the market to be strong."

Nationwide, median sales prices rose 7.6 percent in the third quarter, to a median of $186,100.

Durham resident Jeremy McParlan finds Brookshire's take frustrating.

"We're thinking about potentially making a move, but we want to do it when the time's right," McParlan said, noting that he thought the quarterly report on home prices was a sign he should scout Raleigh for a new house.

"You see the numbers like we're seeing this week, and it's time to sell," he said. "It's not a small gap at all."

Now, he says, he needs to educate himself further about area housing markets.

"Seeing that report kind of made me think we have our answer, and we don't, apparently," he said.

6 Comments

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  • amenmike Nov 12, 1:32 p.m.

    RE Storcheim, let's give credit to Freakanomics when you use their work. What Freakanomics did consider is that people hire agents to do a job and that job is to get homes sold. So the $150 arguement is just PART of the story. As for disclosure...that my friend is NC law, see general stat. Residential Property Disclosure Act. ยง 47E-1

  • amenmike Nov 12, 1:28 p.m.

    I'm a REALTOR and I DO NOT TRUST NAR stats. They are biased for organizational gain and typically flawed.

  • burnhace Nov 9, 7:07 p.m.

    Sell your house, buy gold, it looks warm. Sit on a pile of gold and stay warm and dry. Or not. Maybe looks are deceiving.

  • westernwake1 Nov 9, 6:42 p.m.

    Anyone who trusts NAR reports at this point is obviously out of their mind. These reports are incredibly biased and regularly incorrect For example even as the RE market was tanking the NAR reports showed that everything was stable and growing in real estate.

    It has reached the point where even Real Estate agents do not trust NAR reports anymore (as outlined by this article).

  • meeper Nov 9, 6:30 p.m.

    I would think twice about buying a home at all. With the coming economic collapse, home values and everything around are going to collapse. This government refuses to stop printing and spending money and the end result will be devastating. I'm selling mine now so I won't lose the equity built up after 30 years. Good luck!

  • storchheim Nov 9, 5:53 p.m.

    It doesn't matter. If you're selling, the realtor will try to talk you into listing low so she doesn't have to work. Then she'll try to talk you into taking the first, low offer that you get. If that doesn't work, she'll try to trick you into reading the home inspection report and tell you that if you don't do this deal, you will have to "disclose" everything the inspector found as defects and then you'll NEVER be able to sell!

    Remember, $10,000 less to you means only about $150.00 less to her, and she's going to grab for a slightly smaller commission rather than lose it. She does not care, and has no liability, if you get ripped off. Read the contract. She doesn't.

    I think this horsestuff about the market rising is just more lying realtors making money by misrepresenting.