Local News

Home sales in Morrisville showing signs of improvement

Posted August 17, 2009 9:55 p.m. EDT
Updated August 18, 2009 12:12 a.m. EDT

— The down economy has been particularly hard on home builders. The slump in sales has even pushed some Triangle builders out of business. However, there are signs the market could be turning around – at least in Morrisville.

According to Wake County statistics, building permits for new homes are still down, overall. In the first six months of 2008, 1,041 permits were issued in Raleigh. During the same time this year, just 484 permits were dispersed. In Cary, 667 permits were issued last year; compared to 413 this year.

However, Morrisville is showing signs of slight growth. From January to June of this year, 150 new home permits were issued; up from 126 last year.

Morrisville's proximity to Research Triangle Park may be a helping factor, according to Tim Minton, executive director of the Home Builders Association of Raleigh-Wake County.

"Where you have more employment centers, it is going to create greater opportunity,” Minton said.

One of the bright spots is the Chessington community, off McCrimmon Parkway, in Morrisville. According to a salesperson on site Monday, four homes sold there last week.

The neighborhood has seen price reductions though, as high as $137,000, the salesperson said.

Another reason homes are selling is due to the government tax credit for first-time buyers, Minton said.

"Especially with the $8,000 tax break, houses priced at $300,000 or below are selling much more quickly,” Minton said.

These small signs give home builders like Marty Scott hope. He said if the housing market is improving, now is the time to buy.

"The buyers are definitely in the driver's seat,” said Scott, with Maranah Custom Homes.

Minton said when the economy bounces back, prices on homes should rise significantly. Builders have been building less and there will be reduced inventory for buyers.