Are Home Sales Really Improving?

Yes! In Wake County, we had a significant increase in the number of homes closed in July, October and November. The increase was compared to home sales in the previous months as well as 2008. The First Time Home Buyers Tax Credit has driven at least part of the home sales.

In watching the news over the next 2 or 3 months, viewers must be cautious in how they interpret what they hear. The media might be reporting that homes sales dropped in December, January and February. In a normal market, these three months are typically slow months in the real estate market anyway. I'm sure the media won't be reporting that fact.

In Wake County, we had significant growth since 2004 through somewhere in 2007. Based on the changes in the economy, I don't think we will experience that big of a growth rate for many years. Homes prices in other areas have dropped back down to "affordable prices". People in those areas probably won't be leaving those areas in the big numbers they have in the past. And they won't be bringing with them large amounts of money to put down on a house or to buy a house with cash. Based on this information, I think Wake County and the surrounding area will find a new normal market.

Home sales will continue to improve in the next year just not to the levels we had in years past.