Raleigh area home prices forecast to fall again in 2012
Posted January 9, 2012
Raleigh, N.C. — 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.