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Low Interest Rates Spark Home Buying Boom

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RALEIGH — The time is right if you are in the market tobuy a new house.

Joe Kalavski and his wife built a five-bedroom house in North Raleigh in 1984.When the last of their four children moved out,they decided it was time to sell the empty nest.

"We pretty much painted, put in newcarpet, and updated everything because weknew we were selling," he says.

Realtor Scott Greeson says that is a smart move.Sellers have to be competitive in this market.

"It's very important for the seller to get the house in the rightcondition, to price it right, because it is a competitivemarket," he says.

The Kalavskis are asking $299,000 - a little less than they think it'sworth because they paid about 170,000 forit.They are confident it will move fast. Five buyers have already looked atit, and it is only been on the market aweek.

Greeson says buyers are getting more housefor their money because of lower interest rates.

"I haven't been able to tell any changesin the economy. It's great. It's booming," he says.

The Kalavskis will benefit from the ratecuts when they close on the new house they arebuilding.

"That's what we loved. We didn'tlock in an interest rate yet because we don'tclose until the end of the summer, and I'mlooking for it to get lower and lower," Kalavski says.

The market is still working in your favor, even if you are not buying orselling.Homes in the Triangle are appreciating atabout three percent a year.

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