Business

Builders see Triangle housing market turning a corner

Posted October 15, 2012
Updated October 16, 2012

— Realtors are selling more homes this year than last across the Triangle, and that is good news for buyers, sellers and the overall economy.

Builder Patrick Rose said he sees a huge change just in the past six months in the Cary community of Cameron Pond. New homes that went unsold for as long as a year are now moving more quickly.  

"In the last, especially three to four months, those homes have all sold," he said. "We've seen interest in pre-sale opportunities with folks coming in, looking at lots, wanting to custom-build their own homes."

Rose, who works for John Weiland Homes, said even foot traffic has increased. "You see more people in the neighborhoods, more people in the sales centers, people stopping and asking questions," he said.

Those buyers are able to capitalize on interest rates at historic lows and prices that have dropped 10 to 20 percent from the peak of the housing market.

"I would definitely say we've turned a corner, but again you have to be cautiously optimistic," Rose said.

Stacey Anfindsen, a residential market analyst, sees many positives. Pending sales are up, closings are up and days on the market are down, leading to a reduction in the available inventory, or fewer people waiting to sell their home. "All of those are really, really positive signs for the market," he said.

Builders see Triangle housing market turning a corner Builders see Triangle housing market turning a corner

Anfindsen noted that the recession, which all but halted building in the Triangle, has had an impact on inventory, too.

"New construction is probably down 50 or 60 percent from where it was in 2006 and 2007," he said. Builders bought land in 2005, 2006 or 2007 and held it until the tide turned and are now beginning to develop those properties.

"It's been a buyer's market since 2007," Anfindsen said. "It's trending towards a seller's market."

12 Comments

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  • nerdlywehunt Oct 24, 12:53 p.m.

    I hope the numbers are true. I want a recovery. But we've been lied to so long I don't believe a word they say any more.
    storchheim
    Amen to that statement.....they are much worse than used car salesmen.......and make WAY too much money for what they do!!!!!

  • nerdlywehunt Oct 24, 12:51 p.m.

    Check out the great deals on foreclosed homes. I bought two for rental and one to live in.........everything is discounted 30% from the peak!!!!!!

  • JustAName Oct 19, 12:54 p.m.

    "That's the purpose of articles like these." - storchheim

    Makes you wonder why they have left it up here all week long.

  • Alexia Oct 16, 5:42 p.m.

    I bought a house a year ago. It was definitely the right time to buy. Interest rates are so low, it is virtually free money. Prices were low, too, as builders had to work hard to close any deal they could. The only challenge I had was financing. I have an excellent credit score, but that did not deter the lender from scrutinizing every single piece of financial data. I would venture to guess that those who have less than perfect credit were extremely challenged to get a loan. The inability to get a loan has been the biggest obstacle to the housing recovery, I suspect.

    I've heard some people say they want to wait longer. For what, I have no idea. Just to pay rent and never own the place you rent? Bottom line is you have to have a place to live and it might as well be your place.

    I don't know if prices are really on the rise now or not, but they've certainly stabilized from what I can tell.

  • bobbyj Oct 16, 3:00 p.m.

    yes wait and see. Bought my place at the peak in 2005... lucky for me my house in another region of the country double in value the previous 4 years. People are buying new homes but looks like he used inventory is still hanging out there for 75-90 days unless you really bottom out the numbers.

  • ENC-43 Oct 16, 2:56 p.m.

    Well, storcheim, I doubt you'll believe me. I'm a realtor. I'm an onsite agent, and what the builder said in this interview is absolutely true. Why? I don't know......a new normal? The realization that there will be a tremendous shortage of homesites very soon? Low interest rates? I have no idea, but people are buying. Take it for what it's worth.

  • storchheim Oct 16, 1:47 p.m.

    Data is data, and realtors lie about things that most people can't verify without a lawyer. They lied - oops, I mean miscommunicated - about the numbers around a year ago too.

    The reporters quoted BUILDERS. How does a builder feed his family? He sells you a HOUSE. First he's got to convince you that it's a good investment. That's the purpose of articles like these.

    Why is there suddenly this surge in "interest", given that the bottom dropped out 4 years ago and rates, which were 5% in 2003, have been lower even than that for almost the same 4 years? Why now, suddenly, are certain builders allowing themselves to be quoted as saying everything's fine?

    I hope the numbers are true. I want a recovery. But we've been lied to so long I don't believe a word they say any more.

  • SubwayScoundrel Oct 16, 1:13 p.m.

    Good news. It will never, and I repeat, never get back to 2005 timeframe bubble and if it does, hunker down, because all bubbles crash.

    Sometimes it takes more tape and glue to fix them.

    No matter what my political concept is, Good news is Good news...

    Otherwise, it is just bitterness

  • Tony Snark Oct 16, 1:07 p.m.

    "Pending sales are up, closings are up and days on the market are down" Data is data.

  • changedmyname Oct 16, 10:39 a.m.

    Try selling your house and see whose market it is?

    Sellers can't sell (without losing their shirt) and buyers can't buy (without getting a loan)

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