Dudley Price, Staff Writer
Each spring, thousands of Triangle homes sprout "For Sale" signs as the housing industry's most important selling season gets under way.
But this year, in one of the worst housing markets in a generation, brokers are scrambling to prevent a financial frost.
"We're being a little more competitive," said York Simpson Underwood broker Ed Willer. "We have to, because there are more homes on the market."
For the Triangle's largest industry, spring is when agents typically welcome waves of families looking to move up or move into the region. Buyers, clear of winter holiday demands, are eager to settle into a new home before school begins in the fall. Sellers plan spring showings when bright lawns and colorful gardens add curb appeal.
Brokers, who can notch a third of their sales in the three-month period, also count on rewards from homes they show in the spring and close on in early summer.
In the Triangle, spring is typically when brokers can tack a 5 percent premium onto asking prices for homes -- and get it.
Not this spring.
The national housing slowdown continues to pinch sales, and some in the industry worry that the malaise will continue through the year. Brokers are working overtime to sign up buyers and sellers. That means more open houses and using more professional stagers and interior decorators to make sure homes look just right. With a dwindling pool of buyers, prices must be in line with other homes on the market.
Willer is visiting more competing houses to make sure his listings are priced right. "We're taking a closer look at prices -- sharpening our pencils a little bit," he said.
Sales in the area could be 10 percent lower than in 2006, said Mark Vitner, a Wachovia economist in Charlotte.
"This spring won't see as big a pickup as we did in spring last year," Vitner said, "but it's better than what we're seeing nationwide, like in Florida, where sales are down 40 percent.
Compared with many other areas of the country, job growth has kept the Triangle's $10.6 billion housing market churning. The industry set a sales record last year, and sales prices have continued to rise. But this season has had a much weaker start.
Sales in Wake, Durham, Orange and Johnston have declined in four of the past five months and were down 6.5 percent in February, according to the Triangle Multiple Listing Service. The inventory of unsold homes was 10.9 percent higher than a year ago, and unsold houses stayed on the market 2.5 percent longer.
Agents say many transplants are still having trouble selling their homes elsewhere. Even more buyers are expected to be eliminated by tighter restrictions enacted by mortgage lenders after a record number of foreclosures this year.
Any sales decline could accelerate if potential buyers delay purchases, hoping that selling prices decline, and sellers put off listing their homes to get a higher price later.
"We're definitely seeing lower offers than a year ago," said Linda Kolarov, a broker for Allen Tate Realtors. "They think it's a buyers' market."
Still, February showings were up 15.4 percent compared with a year ago as the Triangle's 8,500 brokers competed for dwindling numbers of buyers.
For Kolarov, that meant hiring more stagers to spruce up homes.
"I'm getting one out to almost every house," she said. "We've got a strong market ...[but] there are lots of homes to choose from and lots of new homes, so they have to have their price and condition just right."
Liz Warren, a broker for Coldwell Banker Howard Perry and Walston, is holding two open houses a month, twice as many as last year.
"We're doing more open houses than we've ever done," said Warren, who sells about 30 homes a year in North Raleigh and Cary. "We're stressing having open houses to bring in buyers."
That's also part of Coldwell Banker Howard Perry and Walston corporate strategy, chief executive Eb Moore said.
Last year, the company's 800 brokers and agents held about 50 open houses per weekend. This spring, they have ramped up to 150 and aim to hold 300 open houses every weekend by mid-spring.
"With the market being down, our attitude was 'Let's roll up our sleeves and work harder,' " Moore said. So far, it's working, he said, with first-quarter sales up 2 percent to 3 percent ahead of 2006.
Kathy Eaton of Fonville Morisey Realty warned the 90 agents at her Stonehenge office that sales have dipped a couple of percentage points.
"I'm telling my brokers, 'I want our properties to sell first,' " Eaton said. "It may mean more open houses, hiring professional interior decorators and stagers, doing work up front so homes truly stand head and shoulders above the competition."
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