I was just reading an article about home sales in The Business Journal of the Triad. Here’s a synopsis:
The first quarter was rough for real estate sales. There seems to be more interest from buyers now at the beginning of the second quarter. Why? Tax Credits? Good interest rates? Time of year?
In the first 3 months of the year, sales of single family homes dropped 37.6% in Alamance, Forsyth and Guilford counties to 1,598 compared to 2,559 the first quarter of 2008. The median house price fell to $143,000.
What seems to be selling best are homes under $200,000. First time home buyers are trying to take advantage of the $8000 tax credit and low interest rates averaging 4.6% for 30 year loans. About 75% of the homes sold in the first quarter were under $200,000. Many people are buying less than they can afford now that the market has shown them values don’t always go up. Conservative is a buyer’s new caution.
Building permits for new homes fell 51% to 334 this same quarter. There are just too many available vacant properties on the market already.
Has the real estate market hit bottom? Is this a good time to buy? What’s the right answer for you?
