Remember, real estate is a local business

Posted on 06/24/13 No Comments


Maybe the national business news pundits just like the word “bubble.” Or, perhaps they just like to scare people.

Whatever the reason, there is no shortage of stories out there about the doomed fate of the just-now-recovering national real estate market. Many analysts think home prices are rising too fast and investors are buying up too many single-family homes, damaging inventory and artificially inflating the market.

But here’s the thing to remember  — none of that is happening in the Triangle.

Problems arise, and misinformation spreads, when national pundits don’t differentiate between what’s happening in different markets. For example, cities like Phoenix are seeing double-digit increases in sale prices because it set the standard for the market’s bottom. Any semblance of stability in that region isn’t possible without outlandish, pre-bubble leaps in appreciation.

In Raleigh and Cary, real estate never dipped too low. Yes, we rode high on the bubble and prices and activity did slow significantly upon its disintegration. However, our market fell steadily and controllably, unlike so many others around the market.

As a result, we were able to better gauge how to manage our market, allowing real estate agents to advise home buyers and sellers intelligently on offers and listing prices. There wasn’t any panic, worry, sure, but no one ran for the hills.

Because of the broad impact of the Triangle’s university base and industrial diversity (pharma/high-tech/health care/government), we continued to experience a steady pulse of economic plasma, allowing the market to thrive at a much healthier pace than most of the country.

It’s important for us to remind ourselves that when it comes time to make critical real estate decisions like buying or selling, we have to look local. Once inside the borders of central North Carolina and the Triangle, things look a great deal more positive. No unmeasured growth. Reasonable price growth. Healthy inventory. And a great place to live.

If you have some questions about buying a home in Raleigh, Cary, Apex or elsewhere in the Triangle, please let us know how we can help.





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