Inventory and pricing
On Sunday July 25, 2010 the front page headline in the “News and Observer” out of Raleigh was that home foreclosure rates in Durham County were up over 30% from a year ago. That’s terrible, so much for banking reform to help people stay in their homes.
Just as happen stance would have it, I was searching Triangle Multiple Listing yesterday and looking at two bedroom townhouses in Chapel Hill and Carrboro, right next door to Durham and Durham County. The line pre-real estate market melt down used to be a whole lot more vivid, now a days, not so much. Chapel Hill and Carrboro don’t have the volume of foreclosed homes that Durham does, but their reality is a still a tad scewed.
Currently there are 169 two bedroom townhouses or condominiums on the market just in Chapel Hill. The average size in square feet is 1233, with typically two and a half baths; the average list price is $323,701. Huh? What? No, that can’t be? Well it is! What are REALTORS in Chapel Hill thinking? What’s in the water? This is insanity and really points to the larger problem in the real estate market…and that is PRICING REALITY. Until REALTORS can get real with their clients this “crisis” in real estate won’t go away. By the way I am NOT picking on Chapel Hill, it is to me just a glaring example, I could also point to the condo “boom” in downtown Raleigh and Durham…neither of which are selling and BOTH of which are HIGHLY OVER VALUED as examples too. Most likely I could skip across the country finding fine examples too of real estate over valuation.
I know that there are a whole lot of folks out there who are going to say, “But I have to get “X” dollars out of my place.” To them I’d say, take your place off the market and stay put. My reasoning is simple, “When you bought your place, did you really care what the seller had to get out of the property?” Of course you didn’t, we don’t think that way do we? There are two courses of action to take to solve the glut in real estate; one, cull the inventory or cull pricing; each will achieve the same end, some equilibrium. If we do nothing the market stays saturated with so many low valued foreclosed homes flooding the market. Will we take this action…doubtful but who knows.
Want to see specific properties in the area…phone me 919-608-2372 or email me at msullivan@fmrealty.com