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Triangle home sales surge in October, but prices fall

Posted December 1, 2009

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— Home sales in the Triangle area shot up 44 percent in October from a year ago, but the good news was offset by a 12 percent decline in sale prices.

New and existing property sales hit 2,009 in October, up from 1,397 a year ago, according to the North Carolina Association of Realtors.

Home for sale generic Lower-priced homes garnering offers

However, the average price fell to $219,914 from $248,693, based on Multiple Listing Service data. Industry observers attributed the price decline to more sales in lower price ranges.

"People are re-evaluating their needs, and not always is bigger better," said Stacey Horowitz, a Realtor with Fonville Morrisey in Raleigh.

Statewide, existing home sales jumped 22 percent from 2008, to 7,720. The increase was the largest one-month gain since March 2006, according to the group.

Average sale prices declined 7 percent to $198,202.

In the Triangle, Realtor figures include new and existing home sales. The rest of the state reports only existing sales.

Horwitz said she is starting to see multiple offers being put on more area homes up fro sale.

"Things are starting to move. There's a lot out there, but once again, if things show well – it's really important to show well – there are buyers looking. I think the tax credit has helped," she said.

Triangle sales increased 9 percent from September, the increase getting a boost by federal tax credits for first-time home buyers.

Even with the jump last month, sales through the first 10 months of 2009 lag behind the same period in 2008 by 18 percent statewide.

34 Comments

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  • nerdlywehunt Dec 2, 2009

    More realtor lies. Why are taxpayers bailing out this industry when they created this mess to begin with. Most of these people were so against the bailouts for the banks and automakers but are ON BOARD for this sham!

  • unc70 Dec 1, 2009

    The appraisal situation is also affecting the markets severely in the higher price ranges and in the more difficult mixed neighborhoods. The rules were changed and now require that appraisers be "hands-off" from other parties. While those intentions were good to avoid the possibility of collusion, unfortuantely the quality of appraisals has generally gone down, now likely going to the lowest bidder whether they not the details of the particular sub-market.

    For example, rather than having an appraisal done by someone with 20 years experience in the Raleigh markets with emphasis on inside the Beltway, your appraisal might be done by one less experienced and that experience somewhere else, maybe Greensboro. Not that they might not be competent, but the new mandates make things much harder for everyone, with the pressure on appraisors not to appraise too high. The computerized data that is increasingly used makes matters even worse because there are incredible errors. The problem is

  • robbins Dec 1, 2009

    People, don't panic! The reality is that the $8,000 stimulus bill has allowed first-time buyers to move forward with a purchase. First-time buyers are in a lower price range, so more of the lower priced homes sold to create the statistics stated. That alone is going to mean the average price of homes will be lower - it doesn't necessarily mean that all the sellers lost lots of money.

    And to the home stager who is advertising on here, staging does wonders for a home. However, the main benefit is selling more quickly because it shows better. Staging will not produce an incredibly higher price for the home. The home is worth what it's worth. Staging may enhance the chances of selling for top dollar, but it's not going to add to the actual value range of the home.

  • Leftfinsright Dec 1, 2009

    The article is misleading about prices falling. The bulk of the sales were from first time home buyers. They tend to buy in lower price point. For arguments sake, to make it simple: If you have 200 people buying homes in the 200-225 range vs. 200 people buying homes in the 225-250 range, then of course the "average" sales price will be lower. It doesn't mean that people were giving their homes away at heavy discounts. Irresponsible headline and explanation in the reporting, in my opinion.

  • micah Dec 1, 2009

    There is a wealth of information you can source right at your fingertips if you take 10 minutes to do a little research. One of the great things about the internet is how easy it makes this. Unfortunately, you have to be able to think for yourself and weed out the mis-information. If you are really interested in the negative aspects of the home buying stimulus, do some homework. A good place to start is to read the actual stimulus bill(s) with "Where will this 8K come from?" in mind.

  • wildervb Dec 1, 2009

    "Ummm, a tremendously larger amount of people than "some" are criticizing the 8K homebuyer credit. If you actually do some research (and uninformed message boards like this don't count)you might easily see the myriad of negative aspects to this type of stimulus."

    What are the negative aspects? The purpose is stabilize the housing market which it seems to have accomplished. Inventory of new homes is now well below what it was a year ago. The new buyers who purchased homes this year had to qualify under much tougher lending standard than we've had the last couple of years, they should be able to keep these homes.

  • grimreaper Dec 1, 2009

    Not good news. This parallels the consumer goods right now where sales are only at bargain prices which really just shows you are liquidating an overstock.

  • micah Dec 1, 2009

    Ummm, a tremendously larger amount of people than "some" are criticizing the 8K homebuyer credit. If you actually do some research (and uninformed message boards like this don't count)you might easily see the myriad of negative aspects to this type of stimulus.

  • ger Dec 1, 2009

    people are actually criticizing Obama's/govt's effort to get people buying again by offering the 8k credit. some of you folks are so cynical its sad

  • Made In USA Dec 1, 2009

    On the bright side of having a tax assessment greater than the actual home value is the fact that that will eventually put growth back into the prices of housing, and it will keep reminding you of what you home used to be worth.

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