What is the Inside Scoop on our local real estate market?
The key word here is local (think location, location, location). We hear about the economy and foreclosures affecting the real estate market. We hear doom and gloom. It's important to have a long term perspective and to realize that real estate is a local market.
It may be snowing in Boston but sunny in Chapel Hill. There may be a glut of foreclosures in Florida, but a stable housing market in Raleigh. Weather and real estate: both local conditions.
The economy and the housing market has its up and down cycles. In the late 1980s, mortgage rates rose to 20%; people still bought and sold houses. A few years ago, prime was at 4%.In California, there was the dot.com boom and bust.During the boom, people bought houses with cash which is partly why housing prices rose.When the market went into a slump, people panicked, yet people were and still are buying and selling real estate.
Locally in the Triangle, employment has grown slowly but steadily, and this trend is not likely to stop.One of the keys to this growth is that this area isn’t dependent on one industry like Detroit for example.Education, bio-tech, hi-tech, health care, and service industries are strong here.The Triangle is consistently rated as one of the best places to do business, to live and to retire.We are somewhat insulated from what is happening elsewhere in the country, which proves that real estate is a local business.