Regarding Mark Steckbeck's Feb. 9 Point of View article "Big houses, big inventory":
The year 2009 was a wake-up call for real estate practitioners within our market. The total number of closings was at or near a decade low in some areas.
While there may have been some bubble euphoria during 2006 and 2007, the majority of experienced practitioners know that the Triangle is not immune to national economic and housing trends. They are well aware of local economic conditions and have seen firsthand the effects of job losses, short sales and foreclosures. For the first time in decades, agents counseled sellers to price their homes as the lower-priced alternative. For sellers who heeded that advice, the average days on market was 96. The average seller accepted 97 percent of final list price.
The development and homebuilding communities have struggled to come up with product that is more in line with the median family income. The areas within Wake County that are most sought by buyers are North Raleigh, Cary and inside the Beltline. The lack of land available for development, the high cost of that land and the costs associated with bringing the houses online have made such a product economically not feasible.
The Triangle housing market, including Wake County, consists of many sub-markets. Each of these sub-markets is subject to unique influences. To paint all of them with the house-prices-will-fall brush stroke is incorrect. I survey 70 geographic areas/price points within the county. Thirty-seven of these have a current supply of 10 months or higher. Thirty-three operate within normal supply and demand boundaries.
Steckbeck predicted that falling prices in 11 percent of the market [the higher end] would have a dramatic effect on the rest of the market. I agree that house prices will fall in the oversupplied sections of the county. I do not agree, and predict stable prices, in the sections with a lower supply of housing.
Last year started with record low sales levels. However, closed sales increased every month, culminating with the fourth quarter netting sales higher than in 2008. Additionally, the decrease in prices combined with low interest rates means that housing affordability is at its best level in recent history. Add the tax credit extension to that and the results are far more encouraging for economic improvement in the Triangle housing market.
Stacey Peter Anfindsen
Treasurer, Raleigh Regional Association of Realtors
Raleigh
The length limit was waived to permit a fuller response to the article.
