Triangle real estate market on upswing heading into 2013

Posted on 12/27/12 No Comments

According to The Associated Press, “Sales of new homes rose 4.4 percent in November from October to a seasonally adjusted annual rate of 377,000, the Commerce Department said Thursday. That’s the fastest pace since April 2010, when a federal tax credit boosted sales.”

The Case-Shiller report, which came out yesterday, stated that home sale prices are on the rise as well, going up 4.3 percent from October 2011 to October 2012.

In short, the housing market is heading into 2013 on a very positive upswing. And in Raleigh, Cary and Apex, all markets that tend to outperform much of the nation, we’re expecting Spring 2013 to be a turning point for the Triangle housing market.

However, hanging over everything like an anvil in a Roadrunner cartoon is the “fiscal cliff” decision. Will Washington get an agreement in place before the last lingering strands of rope snap? No one is sure.

The fiscal cliff’s largest impact on the real estate market is that it will dramatically slow lending. Low mortgage rates have been a significant factor for the housing market’s continued growth. It’s been somewhat slow, but theĀ measurablesĀ are undeniable, as indicated by the recent reports we mentioned here, as well as reports that sales for previously occupied homes are at their highest level in more than three years.

It looks like the health of the real estate market in 2013 will depend on what our elected officials can do to bridge the economic canyon before it swallows years of solid recovery.

 

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