How does Raleigh housing compare to boom markets?

By Jason • January 19th, 2010

Raleigh has taken some lumps during the real estate downtown but as you can see in the graph below, our pricing has outperformed the US average, Atlanta and the boom markets of Orlando, FL and Phoenix, AZ. I included Atlanta because of their explosive growth and the fact that they are a leading southern city. I included Orlando and Phoenix because I wanted you to see what Raleigh looks like compared to boom-towns.

Notice that Zillow shows our home average home price to be around $190k. Other sources I use show Wake County detached home prices as $205k through 2009. If Zillow has combined attached to detached housing numbers then that would quickly explain the difference.

Zillow Home Value Index
More US Home Values
Raleigh’s TARR Report website touts Wake County’s annual home appreciation to be 3.08%. Home appreciation is defined as an increase in value of a home as a result of an increase in the market. I feel it’s an important factor when buying your first home because saving a 20% down payment can be difficult. It may make more sense to put less money down and build your equity through your home’s appreciation along with the money you pay in equity on your loan.

Wells Fargo chief economist John Silva and Matthew Martin, a member of the Federal Reserve Bank in Richmond, Va., cited several economic indicators in Raleigh that are slowly moving in the right direction during the recent Greater Raleigh Chamber of Commerce economic forecast meeting. They are encouraged by positive movement in the housing market, jobless claims and car sales.

“Raleigh has held up better than the rest of the state. You can actually take bragging rights,” he said. “Typically, in past recessions, it was the Raleigh-Triangle area competing with Charlotte for who’s holding up the best. Charlotte has fallen behind this time around.” Read more from Warm forecast issued for local economy.

I have been asked by other Realtors how much of what I report do I guarantee my clients. None. There is a risk to buying and selling property and I can’t change that. There’s a risk to investing in the stock market as well and I have yet to find a stock broker or financial planner that offers that guarantee. People generally don’t like risk and it’s evident in our litigious society and ever changing real estate contracts. My guarantee to my clients is that my pursuit of housing statistics, home sales data and interpretation of what it means to us will make them better prepared. If you are armed with thoughtful market insight and prepared to have discourse about your home buying goals, then you will have your best opportunity to make the best decision for you and your family.
 
Capitol Broadcasting Company. Warm forecast issued for local economy. [Internet]. 2010 Jan 6. http://www2.nccommerce.com/eclipsfiles/21368.pdf. [Cited 2010 Jan 19].
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