Raleigh Real Estate Market Update
Real Estate Home appreciation continues double digit growth
June 2005
WASHINGTON -- If you like a lot of froth with your real estate, you will enjoy the federal government's latest numbers on appreciation in American home values. But if you've been expecting the
real-estate boom to fizzle any day now, and you're convinced that double-digit real estate home appreciation rates just can't keep going, you need to push back your housing bubble-bust timeline.
That's the upshot of the latest national real estate quarterly data released
from the 265 major real estate markets (including the
Raleigh NC real estate
market) compiled by the Office of Federal Housing Enterprise Oversight, which tracks real estate home pricing changes nationwide. From the first quarter of 2004 through the same period this year, the average real estate home in the United States appreciated at
a near-record 12.5%. In the recent 12-month real estate housing
prices survey period, some real estate home markets were as hot as any time in decades, or hotter.
This includes one of the
Top 5 hottest realest
markets in America: Raleigh, North Carolina.
In reviewing the national real estate numbers:
The entire state of California, noted for its already high-cost
real estate, saw an average gain per house of 25.4%. That is a
stunning jump of close to 2% per month, often on
real estate
homes and
Boca estate homes already priced in the
million-dollar-and-up bracket.
Nevada houses, though nowhere near as expensive as California's,
gained an extraordinary 31.2% on average during the 12 months,
according to the office of federal housing. Three other states
-- North
Carolina (27%), Maryland (23%), and Florida (21.4%)
-- saw
home values gain more than 20% on average. The District of
Columbia, treated as a state for statistical purposes, had an
average gain of 22.2%.
A near-record 43 metropolitan areas had average real estate home appreciation rates at or above 20%, and three -- Las Vegas and Reno, Nev., and
Boca Raton Florida real estate topped 30%. None of the 265 metropolitan areas in the federal study experienced net declines in home values, and no state had a rate of gain lower than the national Consumer Price Index inflation rate of 3.1% during the year.
But not all the directional signals were positive in the latest numbers. In fact, there are distinct hints that some of the zestiest real estate markets may be seeing slowdowns already. For example, of the top 20 metropolitan high-gainers, not one had an annualized quarterly rate that equaled or exceeded its appreciation rate for the year.
To illustrate: California's price inflation rate during the first quarter of 2005 was 3.8%. Annualized -- that is, multiplied by four -- that comes to a rate of 15.2%. That is still frothy, but nowhere as wild as the state's 25.4% rate from the first quarter of 2004 through first-quarter 2005.
Raleigh,
North Carolina real estate had a 7.91% average gain in
home value the first quarter of 2005.
Raleigh,
NC features an annualized real estate home value appreciation
rate of 14.64%. Contrast that with the state of North
Carolina 11.1% average gain for the 12 months covered by the federal housing study.
Patrick Lawler, chief economist in the Office of
Federal Housing Enterprise Oversight, sees a "potential for declines in some areas" in the latest
Raleigh,
NC real estate home prices survey data, especially where there were exceptional run-ups. The chief economist for the
National Association of Home Builders, David Seiders, agrees. In fact, so do most mortgage and
Raleigh,
NC real estate agents. Seiders summed up their common refrain last week: "This is not sustainable, not at the levels we've been seeing."
But Seiders and others are quick to point out that in wide swaths of the country -- the Midwest and South-Central states in particular -- real estate fever is not an issue. Housing values in dozens of local markets in those regions continue to appreciate steadily in the mid to low single digits, much as they have for decades. Losing money by buying a house now at what could be the top of the cycle is not a concern.
Buyers in the super-zesty markets spread along the Atlantic and Pacific coasts, like the real estate markets in North Carolina like: Raleigh, Cary, Apex, Durham, Fuquay Varina, Research Triangle Park, Wake County, Wilson County, The Outer Banks, and more, on the other hand, would be foolish not to ask these key questions: Where are we in the cycle here? How many more quarterly
Raleigh real estate agent
reports with 20%-gains can we really expect? Can local employment and income growth support real estate home price rises that steadily squeeze potential
Raleigh, NC home buyers out of the game?
Nobody in the federal government has the answer for you.
Federal Reserve chairman Alan Greenspan would be the first to admit it. But high double-digit gains historically never have continued in any real estate market for extended periods of years. They tend to slow down, possibly deflate, correct and sometimes lose money for the last home buyers onboard.
Real Estate is still the best investment opportunity in America.
Contact - *For Home Buyers for more information
at:
800-333-2893
or use our
secure contact form
FOR HomeBUYERS, Inc
4000 Wake Forest Road, Suite 112
Raleigh, North Carolina NC (USA)
27609
(919) 878-1110
or
Toll Free: 800-333-2893
info@forhomebuyers.com
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