By Kirk Ross
Staff Writer
Among the many rites of spring, nesting is among the most common. Humans are little different than their winged counterparts in that respect – except in the past few recession-rattled years, when the season’s traditional boost in home-buying has been lackluster.
This year, there are indications that some of the drags on the market here are easing, and, with that, an increase in activity is apparent.
The Durham-Chapel Hill metro area was recently listed by Builder magazine as the third-healthiest real estate market in the country, behind Austin and Raleigh-Cary. The article notes last year’s 3 percent growth in home values – while the Triangle as a whole took a dip – and cites a prediction by Moody’s for a 70 percent increase in building permits for new homes in 2011.
The sense among many is that there’s a pickup in activity. But in looking at what’s moving and why, there’s also little doubt that the Great Recession has reshaped the marketplace.
“People are getting extremely realistic and practical,†Pat Neagle, president of the Greater Chapel Hill Association of Realtors, said in a recent interview. Buyers, she said, are less inclined to want as much house as possible.
“They’re more interested in living within their means or even a little below their means,†Neagle said. “It’s a smart approach. People are stepping back and realizing what’s important in life.â€
For Weaver Street Realty’s Gary Phillips, a healthy measure of realism is helping the market recover. This spring the increase in interest is noticeable, he said, but overall it still looks like a recessionary market.
“That means the very best continues to attract interest,†Phillips said, but not the large, multi-bedroom homes that used to drive the market. “The McMansion is dead,†he said, adding that new construction and spec housing for large homes is still way down and likely to stay there as builders work through their inventory.
“The only things being built are small, tight and green,†he said.
The new market also has made sellers much more willing to negotiate.
“People need to know that the asking price is no longer the end-all-be-all.â€
Both Neagle and Phillips said the credit market is dictating buyer behavior.
“If you’re going to buy, you need a good down payment and a good credit score,†Phillips said. “It’s still a very constrained environment. We’ve had to ’rassel about every bank to closing.â€
Neagle said getting your ducks in a row ahead of time is key.
“Given what’s going on in today’s economy, it’s more important than ever for a buyer to get pre-qualified.
If you’re thinking about selling your home, the new lay of the land has brought some changes there as well.
“Realtors are drilling in the idea that there is so much competition,†Neagle said. That means properties have to be in good shape, not just clean and presentable.
“You want your property to stand out, so do the work ahead of time and prepare it. People are looking for homes that are move-in ready.â€
First, it is a myth that you can “buy” a home. Very few people can buy a home, the rest of you are just renting from a bank. I proposed we stop using that piece of banking propaganda and use “committing voluntary indentured servitude” instead.
Second, the housing market still has a bit to go down, and areas like Carrboro that saw modest “growth” will see the drop in prices and sales the rest of the country has in the past. People are not getting “practical”, they are broke and the credit market has tightened. They have no choice BUT to be practical! Take a look at the state of commercial real estate in the area and you will start to understand the crumbling of the ponzi scheme we like to call capitalism. The banks took homeowners for suckers, and you are buying and selling the same con!
To me, the economy will get better when there is no need to buy a home, when having shelter does not mean you have to sell your self to another person.
Instead of buying a house, rent and buy silver.