RALEIGH -- Trying to predict the future of the Triangle's housing market has been tough the past few years. Economic uncertainty and conflicting news coverage regarding new home sales can drive anyone to throw their arms up in disbelief. Housing start permits are up one month, builder and consumer confidence are down the next month, and there's even been some talk about renting as the "new norm."
Despite the changing data reports, now and moving forward, I believe we can at least ground ourselves knowing that the American dream is still alive. According to the results of a recent poll conducted by the Republican and Democratic polling firms of Public Opinion Strategies and Lake Research Partners for the National Association of Home Builders, homeowners and non-owners alike consider owning a home essential. An overwhelming 75 percent of those surveyed said that owning a home is worth the risk of the fluctuations in the market. Ninety-five percent of homeowners said they are happy with their decision to own a home, and 73 percent of renters said that owning a home is one of their goals.
You can translate the data any way you want, but home ownership is still one of the best investments for individual households. In addition, Wake County continues to be a reasonably healthy market. In the Raleigh-Cary area, home prices have fallen only about 9 percent since their peak in 2007 according to the Federal Housing Finance Agency's Housing Price Index. Comparatively, home prices have fallen 19.3 percent throughout the rest of the country since 2007.
The results from this survey clarify the mixed sentiment about home ownership. However, we are still faced with industry-related problems from the national to the local levels.
Locally, homebuilders work to overcome hurdles that threaten to severely slow the housing and economic recovery, such as construction loans and financing. Buyers are facing issues such as appraisals and uncertain mortgage acceptance. In the survey, the largest barrier for those who want to own a home is money for a down payment and closing costs. The National Association of Home Builders estimates that it would take 12 years for a typical family to save enough money for a 20 percent down payment on a median-priced single-family home, and other research has found it would take even longer.
Our industry needs to be ready to provide new homes to meet the changing needs and growing population of our area. National policymakers debate the housing finance and budget issues that will impact job creation and future growth. They need to recognize the important role that housing plays in the economy, where building 100 average single-family homes generates more than 300 jobs and nearly $9 million in taxes and revenue for state, local and federal governments.
Home ownership provides important emotional and financial benefits, while housing fills an important hole in the economy. No matter how long it takes to get housing back to normal, we can all be reminded that, at the end of the day, home is where we want to be.
Tim Minton is executive vice president of the Home Builders Association of Raleigh-Wake County, the second-largest home builders association in the country.
