Carolinas' Real Estate Market Steady Throughout 2012
Historically, real estate is known for its ups and downs. Even in good times, month-to-month or seasonal fluctuations are common. And it’s not unusual to read conflicting reports about the market from different sources.
But that’s not been the case in 2012.
Since January, we’ve been “Steady Eddy.” Allen Tate has consistently had 55 sales per day and 45 closings per day across its markets in the Carolinas. With the exception of a slight uptick in the spring and late summer, we haven’t had seasonal fluctuations like other markets.
So what’s the story? Interest rates are at an all-time low. Rents are at an all-time high. And inventory is the lowest it’s ever been. These factors are leading to a steady, stable market.
What buyers are finding is that a good property, at any price point, will sell if it’s in top condition. But it must be memorable. It’s more important than ever to set the dining room table, or remove that extra furniture to a storage unit to make your home look more spacious.
New construction will soon offer greater competition for resale homes. That’s because builders are buying up lots, and building a good product at a low price, with the amenities that buyers want.
I’m confident that the Carolinas’ real estate market has turned the corner. We expect to end the year with around 15,500 closings. That’s up 20 percent from 2009, 2010 and 2011, and well on par with 2008.
When it comes to real estate, steady activity is a good thing for a stable, sustainable market. We’ll be delighted if we can finish 2012 with more of the same.
Author: Garrett Wyckoff, Vice President of Corporate Services, Allen Tate