The Trend Continues - Seven Months In A Row!• Raleigh home sales reached a peak this January not seen since January 2007.• Sales were up 16.8% over January 2011. • Average sales prices were down 6.1% or, about $15,000. • It took just four more days to sell a Raleigh home this January than January 2011. • There was another significant drop in Raleigh homes for sale of -27.8%. What Does All this Mean?Raleigh homes sales continue to increase. This is really extraordinary news. There are a couple points which we want to highlight. In January 2007, there seemed to be a generally held thought that all was right with the World. The DOW Jones that year was, within a very few months, going to reach an all time high. Home sales were climbing. Interest rates were at a very low point of around 6%. A $200,000 mortgage, with taxes, insurance, and PMI (private mortgage insurance) cost about $1,500 a month on a 30 year loan. What could happen? Well, we now are well aware of what could happen. And, it certainly did!Now flash forward to January 2012.January 2012 turned out to be the best January for Raleigh home sales since 2007. The Dow Jones is again climbing at an extraordinary rate. It's at the highest it's been in 3 years - climbing over 6,000 points! Home sales have now climbed for 7 months in a row. And, to top all of that off, interest rates dropped to an historically low of around 4%. What do these low interest rates mean for a Raleigh home buyer now? It's really amazing. Let's take a look at an example.
The effect of the difference between a 6% and a 4% interest rate is substantial. Just think, what it means. A person now is able to purchase a $313,000 home as compared to a $250,000 home in 2007, for the same monthly mortgage payment! You can now buy a home for $63,000 more - with the same mortgage payment - just because of the drop in interest rate! That could mean an extra bedroom or two, a larger garage, a bonus room, or even a larger lot. Please keep in mind that these low rates and these examples and do not necessarily mean that a Raleigh home buyer must have a 20% down payment. Low interest rate loans may be available for you such as an FHA 3.5% down payment loan or, a zero down payment VA loan. A Raleigh home buyer can simply buy a bigger and better home today than could have purchased in 2007 with the same mortgage payment. This is the time for a home buyer to make the leap. There will never be a better time. Raleigh Home Sellers For Raleigh homeowners who are still sitting on the fence about putting their home up for sale - this is also your time to make the leap. Why? • With interest rates at these extremely low levels, buyers are making their presence known. Buyers have a much more positive view of the economy than they have had and it shows. For seven (7) months, there has been an increase each and every month in home sales. • Raleigh sellers will begin to add more and more homes to the market. • Why wait and add your home in an eventual ocean of homes for sale? It's better for you to add your home to the current low inventory of available homes because you home will stand out more to the increased stream of home buyers. Raleigh Home Buyers and Sellers Feel free to contact us with your questions. We're easy to talk to and we can answer any questions you might have about current market conditions, interest rates or where Raleigh home prices are headed. If you're interested in talking about listing your home we'd be happy to provide our recommendations on how best to proceed to market your home. We'll also provide you with a Raleigh Neighborhood Report that will let you know what has been happening with home sales in your individual neighborhood. The Raleigh Housing Market Reports below will give you a detailed look inside the current and past Raleigh Area Housing Market. Wake County Housing Market Updates - January 2012North Raleigh Housing Market Updates - January 2012Inside The Beltline Housing Market Updates - January 2012Wake Forest Housing Market Updates - January 2012Raleigh 2011 Year End Housing Market ReportRaleigh Housing Market Report ArchivesIf you have questions about the Raleigh Real Estate Market Email Us or Call Us Today at 919-280-2726
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