Local News

Local homebuilders confident in 2010

Posted February 25, 2010
Updated February 26, 2010

— Sales of new homes dropped 11.2 percent in January, the U.S. Commerce Department reported Wednesday – the lowest level on records going back nearly a half century.

But local developers said they are trying to remain positive about what's to come this year, saying there are signs that the worst might have passed.

Local homebuilders confident in 2010 Local homebuilders confident in 2010

"We feel that 2009 was the bottom," said Warren Smith, president of the Homebuilders Association of Raleigh-Wake County. "Unfortunately, in 2010, we're going to see the results from the bottom."

Smith said one of the biggest problems in the Triangle is that too many homes that were built above the $500,000 price point before the economy's downturn. That left many builders sitting on inventory for more than a year, often ending in foreclosure.

"We are starting to see a little bit of a turnaround," he said. "I think a lot of these guys have now adjusted their business philosophies."

Much of the focus now appears to be on building new homes that cost less than $300,000, Smith said. New federal tax credits for home buyers are helping shape that direction.

"I think the incentives are making a difference in the lower price ranges," he said.

Although Smith and others believe things will be better in 2010, they said it will likely be another year before the market stabilizes.


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  • ncguy Feb 26, 2010


    Good luck builders....

  • 27615 Feb 26, 2010

    if homebuilders would stop building new houses for a few more years supply would catch up with demand.

  • mtnmama Feb 25, 2010

    300K is just a maximum. The problem for builders & developers is that the banks, while handing out hefty bonuses to top execs, are still not lending. They are sitting on the $$ and developers, builders AND home buyers can't get any loans to do business. The building industry propped up the economy for many, many years and until the banks are FORCED to make loans, recovery will be slow, very slow. We need it to start somewhere, and the ball is in the banks' court right now. When building resumes, it will create jobs, and the trickle down occurs from there.

  • Nunya123 Feb 25, 2010

    They call me CATMAN - why should we give you a break? $300k isn't excessive by any stretch of the imagination. For many in the area it is less than a 3:1 median multiple (3x your household annual salary = affordable house). Just because not everyone can afford it, doesn't make it excessive.

  • They call me CATMAN Feb 25, 2010

    $300,000 is a good price give me a break that is still a bit excessive. I don't care what area of the state we live in.