North Carolina Real Estate Market Outlook
The Old North State is facing a gloomy property market as rising foreclosures blight the signs of recovery. Home values that are sliding to lower levels are indicating the collapse in the market. As such, market sentiment remains bland amidst lower mortgage rates that are available to highly qualified borrowers.
Charlotte is suffering from eroding property values after a series of economic indicators showing listless results last year. This dismal trend has continued in 2009 with the mortgage industry plagued by defaults that lead to foreclosures in the city. As a major financial center that is home to several Fortune 500 companies in finance, food and beverage, steel, and industrial technology to name a few, the business district has been laying off hundreds of employees. It eventually caused the unemployment rate to shoot up above 7 percent.
Home sales are on a downward spiral in the city after strong market showings for a number of years. There are no indications yet of an increased buyer turnout as housing inventory remain high. RealtyOutlook.com predicts home values to further drop by 15.5 percent this year.
The Wilmington area is in a sluggish home sales pace as mortgage providers have increased their lending standards. It has brought down the number of approved applications that has been on a drought since last year. This coastal community enjoyed residential development during the lending boom only to have constructed units sitting idly in the market today. Expect a 14 percent plunge in home values within the next 12 months.
Durham’s local economy continues to soften as businesses are coming to grips with the existing market conditions. The Bull City should brace for more job cuts this year that will further increase foreclosure cases in the area. However, it should rely on its university towns where Duke, North Carolina Central, and Shaw universities are situated. This year, a 13 percent drop in home values is projected to hurt the property market.
In Greensboro, the real estate sector has gone bust even with the resistance of its manufacturing hubs against the ongoing crisis. Foreclosures are filling this small town market only to have few bargain takers. RealtyOulook.com forecasts a 12 percent plunge in home values. Expect property markets to remain sour even if the cost of living remains affordable to many residents.
In Raleigh, one of the country’s fastest growing cities, home construction is a growing pain in the industry with very few interested people willing to risk their finances. As the mortgage firms rein their offers to potential borrowers and the city is left with borage of real estate setbacks from depressed home values to rising foreclosures. The tony neighborhoods in Old Raleigh and suburbs in North Raleigh area will have tougher times ahead. RealtyOutlook.com expects home prices in 2009 to fall by 13.5 percent.
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