Housing market as predicted for 2012

Posted on 06/25/12 No Comments

It continues to make news, but no one is really surprised by how the real estate market has functioned for the first six months of 2012. There has been slow, steady growth.

Some anomalies exist. For example, listings are down and prices continue to slide, a fact that is sending business school studentsĀ runningĀ for the history books, questioning the economic principles of supply and demand.

Despite that, May 2012 saw new homes sell at the fastest pace in two years. New home sales, while only a small section of the market, are important because of what they represent to the overall economy: jobs. It is believed, although very hard to measure, that every new home creates three new jobs for a year. Generally speaking, one doesn’t need the Bureau of Labor Statistics to know that a new house can’t become a home without carpenters, electricians, roofers, landscapers and yes, real estate agents; clearly, a new house represents another opportunity for a roofer with more nails than shingles.

Here at home, things continue to move along well. The Raleigh-Cary market is earning its reputation as one of the nation’s best real estate markets because of its stability and value. Our average sale price is down slightly like elsewhere, but activity remains above average.

Few doubt that mortgage rates will increase any time soon, given the nation’s pace of growth.

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