banner
Business

Raleigh area home prices forecast to fall again in 2012

Posted January 9, 2012

Map Marker  Find News Near Me

— Housing prices are expected to continue declining in the Raleigh and Cary area this year, according to a new forecast by a California-based real estate valuations company. 

In a report released Monday, Clear Capital projected that housing prices in Raleigh will drop about 3 percent in 2012, continuing the downward trend of the last five to six years. Home prices in the Raleigh area fell 3.7 percent last year. 

Another drop in prices would put the Raleigh and Cary area in the bottom half of the top 50 metro markets, ahead of cities like Los Angeles or Detroit, but behind Dallas, Fresno, Ca. and Virginia Beach, Va. 

Nationally, home prices are expected to rise 0.2 percent in 2012. Despite the positive trend, however, many cities and larger metropolitan areas will continue to lag behind. Only 20 of the country's top 50 metro markets are expected to have stable prices in 2012, where prices fluctuate no more than 2.5 percent in either direction. 

"Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years," Clear Capital's Alex Villacorta said. "With national prices down a little more than two percent for the year and sitting at their lowest point since 2012, out projections show that the current balance the market has found will continue through 2012." 

In its report, Clear Capital repeatedly highlighted the importance of studying trends within local markets to judge the health of housing prices.

127 Comments

This story is closed for comments.

Oldest First
View all
  • baracus Jan 10, 2012

    "They should probably reassess property values. No wait, they'd probably go up 40% again."

    Yup and how much did the average tax bill go up? Something much less than 40%. My house assessed 45% higher and my tax bill went up maybe 5%, because they lowered the tax rate. If they reassessed now at lower values, they would just increase the rate to maintain the same revenue and most people's bills would change very little.

  • KCfromNC Jan 10, 2012

    "Yes Prozac, the downfall in housing was and is all Obama's fault."

    The fact that he has a time machine makes up for the fact that he used it to go back and time to before he was elected to destroy the housing market. I mean, yeah, it's bad that housing is less expensive now than 5 years ago, but come on, none of those whiners in Europe or Asia have a President with a freakin' time machine! How awesome is that!

  • KCfromNC Jan 10, 2012

    "Markets fluctuate because that's what they do. While a new car "depreciates" a new home "appreciates" in value"

    How did that turn out for people who bought a few years ago? House values aren't back to 2003 levels because they've been appreciating all these years, you know.

  • beaupeep Jan 10, 2012

    "Does anyone else think the property values may be going down because of the messed up school system in Wake County?"

    Uh, no.

  • Mean Old Mom Jan 9, 2012

    Does anyone else think the property values may be going down because of the messed up school system in Wake County? Could it be partly to blame?

  • Lamborghini Mercy Jan 9, 2012

    Da Toy Maker - The plot thicken, my man.

    Yes it always does so I've heard.lol Fortunately, we both made the decision together to buy a home. Right now everything is agreed 50/50. We've browsed the market for a few months now and agreed 2012 is the year to the move into a home. Thanks for information and I will add it to my list of considerations before making that 20-30 year agreement.

  • Save It Jan 9, 2012

    I keep hearing the "Clinton allowed for unqualified borrowers" argument citing fair housing. I wish there would be a national campaign to derail this farce.

    "Fair Housing" did not force banks to lend to minorities. It did not force unqualified borrowers to get loans. What happened is quite more sinister. The repeal of Glass-Steagall allowed banks that created mortgages to sell them as securities. They made lots of money doing this. When qualified lenders ran out THE BANKS, not the government, went in search of more borrowers. Many unqualified. But they didn't care. They simply insured these new, risky mortgage backed securities against losses through guess who...AIG. So even if the knowingly bad securities they were selling along side the "good" mortgage securities failed they would not have any losses. But what if they ALL failed? At once? They did. The banks got bailed out. First by Bush, then by Obama. What happened to the bankers? Tax payer bonuses. Love, Wall St.

  • tiredofthenet Jan 9, 2012

    Well then its time to call the property tax people to come out and reassess the value of our homes. By law you have that right. So if you look and see that your neighbors are selling their homes for less than your assessment value, call Wake Revenue.

  • Karmageddon Jan 9, 2012

    Are my property taxes going down as well?

  • Da Toy Maker Jan 9, 2012

    "A foreclosure stays on your credit report for 7 years.
    rescuefan"
    True but your credit history goes back further than that, right?

More...