Market Conditions for Raleigh, North Carolina Reported by Tracy Santrock, ePro, CRS, SRES Updated January 7, 2012.

Current Market Rating: 3 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

The real estate market in Raleigh is starting to show signs of recovery. Inventory is now stabilizing and home sales are starting to level off rather than continue to decline. That said, here is a look at the current real estate market in Raleigh.

So, what is going on that's affecting the market?

1. Families relocating to this area are finally selling their homes in other areas in order to relocate. The growth rate in the Raleigh-Cary MSA from 2010 to 2011 was a whopping 12.2%!
2. Downward pressure on real estate prices has made areas closer to Research Triangle Park more affordable. The Median Priced Home in Raleigh is currently $229,900.
3. Unemployment is hovering at 7.7%. There are a lot of people that have relocated to the area without jobs hearing about our great economy and strong job growth which has put pressure on the job market.
4. While we were one of the last markets to join the recession we have seen a downturn in overall market activity year over year.
5. LIFO market - we are expected to be one of the first markets to recover.
6. Anyone that purchased after the peak in 2006 will have difficulty making a profit if they were to sell today.

Here are the current market details through Q42011:

Inventory:
• Inventory is declining. New home inventory decreased 35%.
• Median Sales Price has declined 1% in Raleigh (I always tell clients that are relocating to the area that we did not see the huge price fluctuations we have seen in other parts of the country)
• Initial price in selling a home is very important. If a seller lists their property correctly the homes sold in an average of 57 days at 97% of list price. However, if a seller has to reduce the price of their home they are netting 90% of List Price and 172 Days on Market.
• The supply of homes in this area is 6 months of inventory which is considered to be a balanced market.
• Closings are down 26% Q42011 and 22% YTD.
• There are fewer buyers in Raleigh, and fewer pendings, than in Raleigh in the higher price ranges(400k+).
• Availability of new construction and builders willingness to negotiate on price is having a substantial impact on the resale inventory.

The real estate market has leveled off and stabilized. However we will face challenges well into 2012 for several reasons:

1.The housing market has stabilized in that we are seeing fewer foreclosures and distressed properties in the area.
2. Consumer worries about the economy and when we will recover from the recession.
3. Instability of the dollar and the global markets.
4. Fluctuation and uncertainty of the US Stock Market.
5. Tightened lending requirements.
6. Families relocating to the area are having trouble selling their homes prior to relocating.

For more information on the area please visit my website at www.TriangleNCHomes4Sale.com or www.activerain.com/tsantrock for more information on the area


ZIP Code: 27609

Location Characteristics: Since Raleigh is such a great place to live I thought I'd list the 2011 Raleigh Accolades:

~ #5 State for Corporate Relocations
(North Carolina)
Atlas Van Lines, August 2011
~ #8 State for Venture Capital
(North Carolina)
Bizjournals.com, August 2011
~ #4 Top 10 Places to Live in 2011
(Raleigh, NC)
RelocateAmerica, August 2011
~ #4 State for Cost-Efficient
Manufacturing
(North Carolina)
American Institute for Economic
Research, July 2011
~ #5 Coolest Small City in America
(Raleigh, NC)
Yahoo Travel, July 2011
~ #2 Best City for Young Professionals
(Raleigh, NC)
Forbes.com, July 2011
~ #2 Fastest Growing Region
for Green Jobs
(Research Triangle Region)
Brookings Institution, July 2011
~ #2 Next Boom Town in U.S.
(Raleigh, NC)
Forbes.com, July 2011
~ #1 Best Place for
Business and Careers
(Raleigh, NC)
Forbes.com, June 2011
~ #4 for Young Adults
to Start a Career
(Raleigh, NC)
American City Business Journals,
June 2011
~ #3 Top State for Business
(North Carolina)
CNBC, June 2011
~ #1 City for Families
(Raleigh, NC)
Forbes.com, June 2011
~ #1 Most Profitable Biotech Industry
(North Carolina)
Ernst & Young, June 2011
~ #5 in U.S. for Job Growth
(Raleigh, NC)
U.S. Bureau of Labor Statistics
June 2011
~ #1 Metro for IT Labor Force
#4 Metro for IT Grad Output
(Raleigh-Durham, NC)
KLG Advisors, May 2011
~ #10 State for Long Term
Economic Growth
(North Carolina)
American City Business Journals
May 2011
~ #7 Best Place to Buy a Home
Right Now
(Raleigh, NC)
Zillow.com, May 2011
~ #2 Business Climate
(North Carolina)
Chief Executive Magazine, May 2011
~ #4 Economic Development Success
in 2010 (North Carolina)
Site Selection Magazine, May 2011
~ #2 Top City for Smart Grid
U.S. Headquarters (Raleigh, NC)
#2 Top City for Smart Grid Software
Development (Raleigh, NC)
#3 State for Smart Grid Vendors
(North Carolina)
Duke University, April 2011
~ #8 Large City for Human Resources
#8 Large City for Economic Potential
#10 Large City for Business
Friendliness
(Raleigh, NC)
fDi Magazine, April 2011
~ #4 Small City for Quality of Life
#5 Small City for Economic Potential
#10 Small City for Human Resources
(Cary, NC)
fDi Magazine, April 2011
~ #1 Fastest Growing City in the South
(Raleigh-Cary, NC)
Fortune Magazine, April 2011
~ #1 Most Sustainable
Mid-Size Community
(Raleigh, NC)
U.S. Chamber of Commerce
April 2011
~ #3 Metro for Housing Permits
(Raleigh-Durham, NC)
Reed Construction, April 2011
~ #7 in Small Business
(Raleigh, NC)
Bizjournals.com, April 2011
~ #8 Strongest U.S. Job Market
(Raleigh-Cary, NC)
American City Business Journals
April 2011
~ #15 Funniest City
(Raleigh-Durham, NC)
TheDailyBeast.com, April 2011
~ #1 Healthiest County
(Wake County, NC)
CountyHealthRankings.org
March 2011
~ Named a Global City of the Future
(Raleigh, NC)
McKinsey Quarterly, March 2011
~ #3 Cleanest City
(Raleigh, NC)
Forbes.com, March 2011
~ #1 Healthiest Housing Market for 2011
(Raleigh-Cary, NC)
Builder Magazine, March 2011
~ #6 State in 2010 for New
and Expanding Businesses
(North Carolina)
Site Selection Magazine, March 2011
~ #9 Best Value in Public Universities
(North Carolina State University)
Princeton Review, February 2011
~ #2 Biggest Brain Magnet in U.S.
(Raleigh-Cary, NC)
Forbes.com, February 2011
~ #4 Metro in 10-Year Job Growth
(Raleigh-Cary, NC)
BusinessFirst, February 2011
~ #13 State for Technology
and Science
(North Carolina)
Milken Institute, January 2011
~ #10 Most Frugal U.S. City
(Raleigh, NC)
Coupons.com, January 2011
~ #9 Most Popular City
for College Grads
(Raleigh, NC)
Brookings Institution, January 2011
~ #11 Most Affordable City
(Raleigh, NC)
Forbes.com, January 2011
~ #3 State for In-migration
(North Carolina)
United Van Lines, January 2011
~ #3 City for Gay Parents
(Raleigh, NC)
American Community Survey
January 2011
~ #10 Most Notable High-Growth
Area in the U.S.
(Cary, NC)
Gadberry Group, January 2011
~ #15 Best Value in Public Education
(North Carolina State University)
Kiplinger's Personal Finance
January 2011


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