Questions on Foreclosures

Recently I have received a number of inquiries about foreclosures and what they mean in the local market. I have repeatedly told everyone that while yes the percentage of foreclosures are up the overall real estate market in our area of North Carolina is doing well. Looking at the statistics available from our MLS (multiple listing service) the triad area has actually had an increase in the average sales price and a decrease in the days on market. Basically this is saying that the area is continuing on a steady rise in value. The combination of the new incoming industry and the lack of any kind of "real estate bubble" has made the Triad an attractive area for families and businesses.

Movin on UP!

Well the media thinks that the real estate market is in the tank. The only problem with that statement is that in the Greensboro Triad area is not experiencing the same downturn as in other parts of the country. According to the Triad’s multiple listing service data the average sale price for homes in this area has actually gone up in the last year with no significant change in days on market (days on market being how many days a home has been listed for sale). A recent New York Times article quotes Douglas Fenichel of Hovnanian Homes as stating “that when a home is priced properly, people will buy,” showing that nothing is as it seems. Basically it is great time for people to be moving up in home size and buying a house anywhere from 20 to 30 or even 40 percent larger than their present home. The thought process is that you will actually gain more on the purchase of your new home which far outweighs any loss that you may incur on the sale of your present home. I personally have spoken with numerous individuals that are doing just that moving up into a larger home. At an open house today I met with a young husband and wife presently selling their home and looking to buy a larger home in an upscale neighborhood. To summarize, we find that many savvy first time homeowners are recognizing that this is the perfect time to sell their home even at a small discount so as to be able to buy a larger home at a greater discount