The S&P Case Shiller numbers released June 29, 2010 indicate that there were a ton of people buying homes in April! WOW! Who would have guessed that the $8000 tax credit was going to have such a huge impact on sales in April?!
Okay – so I’m being tongue and cheek here. I think the sales are good for the buyers, the sellers an the Economy. But I’m just not buying that the chart below shows the REAL picture in what’s going on in the Housing Market.
It is my estimation that once we look at May and June Housing Pricing numbers and activity we will see a SHARP drop. In fact current data indicates that SHOWINGS were way down in May, 2010 after the Tax Credit ended.
While I am fortunate to live in a high growth area (Cary, NC) and this chart shows we are in pretty good shape… I’m still very CAUTIOUSLY optimistic. My concern comes from the Realty Trac numbers in the last 2 weeks that indicates a “Shadow Inventory” of 3.5 years in North Carolina. Shadow Inventory takes current properties on the market, plus the property banks currently own, plus the homes that are CURRENTLY 4 months past due. Again, in Charlotte (which is the closest City we have data on) the “TOTAL” Inventory shows a 3.5 year supply.
The Triangle is blessed to have JOBS. We have tons of people moving here… so our little corner of the market might be okay… but in general, I fear that the “hoopla” over the April housing numbers is just that, “hoopla” – not a genuine indication that we are on a path of full housing market recovery.
We’ve lived in the Triangle since 1969. If you are looking for an informed, local consultant to help you with a purchase in this area, call Steve and Eleanor Thorne, Mortgage Banker in Cary 919-649-5058. We have the best mortgage rates available.
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