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| Market Conditions for
Winston-Salem, NC,
Winston-Salem, NC,
Wilmington, NC,
Wilmington, NC,
Greenville, NC,
Greenville, NC,
Greensboro, NC,
Greensboro, NC,
Charlotte, NC,
Charlotte, NC,
Cary, NC,
Cary, NC,
Asheville, NC,
Asheville, NC, Raleigh-Durham-Chapel Hill, NC
Reported By
NARREIA.com
As of 03/02/2006
Contact me for more info! |
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Headed into this year I wasn't sure what would occur. We have made contingency plans and are acting accordingly. The only way the headlines could have been more to the point is for them to have declared the "Sky has fallen". If you are living in the West or even the Northeast you probably feel that it has.
HOWEVER, the News&Observer published an article TODAY (3/27/08) and I read a startling stat:
"Sales of new homes dropped the most in the Northeast, by 40.6 percent, and fell 6.4 percent in the Midwest. Sales rose 5.7 percent in the South and 0.7 percent in the West."
Sales in the South ROSE 5.7 percent. BUT THERE'S MORE, check this out Raleigh prices increased:
"US Home Prices fell 10.7 percent in January and the S&P/Case-Shiller home price index of 20 cities saw the steepest decline in the index's two-decade history.
The index looks at home prices in 20 cities. Charlotte is the only NC city on the list. And it was the only city that squeaked by as a gainer in the index., with a 1.8 percent rise in Jan compared with a year earlier.
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Raleigh is not included in the index, but it too has managed to resist the national trend. In January, HOME PRICES ROSE 3.6 percent compared with the year before according to the regional MLS.
Worst-hit were Las Vegas and Miami, each reporting 19.3 percent drops."
If you do the math this is a nearly 23% difference between Raleigh and LV or Miami.
I can remember wondering if we would see the same types of crazy returns as LV, Miami, LA even areas in the Northeast. Thank goodness we didn't. There is a shift to the Sunbelt and people are now recognizing where the speculation was and where the value is. Raleigh NEVER saw prices become detached from the income they produce. As an example, I a new construction duplex I purchased last year is producing a positive cash flow and based on 2 dozen recent comps (last 1-2 months) has appreciated 6-7%. This is not smoke and mirrors but rather the result of concentrating on value over growth. I just purchased a home in the area and am cash flow positive from Day 1.
Raleigh Investment Real Estate, www.raleighinvestment.com, concentrates on producing opportunities for our investors that produce actual positive cash flow. Yes, SUSTAINABLE returns of 30-40% annually ARE achievable after consideration for free cash flow, principle, tax and appreciation of 3-4%.
In the last year we have sold out 4 phases/communities of new construction, managed duplex communities. I own some, my parents own some, my partners own some....and I have plans to buy in our next community beginning in May. To find out more, give me a call @ 919-271-0284.
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Disclaimer: These reports reflect the views and opinions of the Advisors and are not necessarily the views and opinions of NARREIA.
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