NC Weathering Real Estate Storm

Reed Construction Data, Building Team Forecast:
Raleigh, Austin and Charlotte are Most Intense Housing Markets in U.S.
Jim Haughey -- August 31, 2007

The most intense housing development in the U.S., excepting resorts and small college towns, is currently taking place in three mid-size southern cities: Raleigh, Austin and Charlotte. Homebuilding is increasing in each of these cities and home prices are rising from modest levels.

Financing is coming largely from prime, conforming mortgages. Home demand is from both existing residents, not forced to postpone buying by falling home prices, and from households moving into the area for jobs. Businesses and families are attracted by low operating and housing costs. In a strong economy, these sources of housing demand are insulated from the home-price and mortgage-finance problems elsewhere in the country.

New York Times, Business:
Drop Foreseen in Median Price of U.S. Homes
David Leonhardt and Vikas Baja, August 26, 2007
Graphic: Home Prices Across the Nation
Charlotte growth rate slows slightly but outperforms national median even when adjusted for inflation - only Portland & Seattle fare better.

Raleigh News & Observer, Business:
Housing Prices Up More in Triangle
Dudley Price, August 31, 2007

Triangle home prices in the second quarter rose despite a national housing slump that slowed U.S. price appreciation to its slowest pace in a decade, according to a government report.

Prices of existing single-family homes in Raleigh-Cary rose at a rate of 7.1 percent compared with a year earlier, the Office of Federal Housing Enterprise Oversight reported Thursday. Durham resale prices rose at a rate of 5.4 percent compared with a year before.

By comparison, prices nationally rose 3.2 percent, the agency known as OFHEO said. That was the smallest gain since 1997 and came as lenders tightened mortgage requirements.

"To this point, you've bucked the trend," said Michael Helmar, an economist for Moody's Economy.com, who tracks the Triangle housing market.

Triangle Business Journal
Triangle housing prices rise faster than national average
According to figures released Thursday, August 30, 2007, by the U.S. Office of Federal Housing Enterprise Oversight:

Home prices grew at a 7.1 percent annualized rate in the Raleigh-Cary Metropolitan Statistical Area, which includes Wake, Franklin and Johnston counties. The Durham MSA, which includes Durham, Orange, Chatham and Person counties, saw prices grow by 5.4 percent.

Nationally, housing prices grew at a 3.2 percent annualized clip - the smallest gain, OFHEO said, in more than 10 years.

There are warning signs for people who are vulnerable to property tax increases:

Sales of existing homes in the Triangle have slipped in recent months as low- and moderate-income borrowers have defaulted on their home payments.

But the area has avoided the worst of the problem, seen in states such as California.