Local News

Low Interest Rates Spark Home Buying Boom

Posted May 7, 2001 7:57 a.m. EDT

— The time is right if you are in the market to buy 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 new carpet, and updated everything because we knew 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 right condition, to price it right, because it is a competitive market," he says.

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

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

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

The Kalavskis will benefit from the rate cuts when they close on the new house they are building.

"That's what we loved. We didn't lock in an interest rate yet because we don't close until the end of the summer, and I'm looking for it to get lower and lower," Kalavski says.

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