Each month, the Triangle MLS reports statistics on the Raleigh real estate market and the surrounding areas as well. I thought I’d write a quick post summarizing what December (and 2009) looks like vs the previous year. Most of you will not be interested in this, but for stats geeks like myself, you might find it interesting. If nothing else, it will give you reassurance that the Raleigh real estate market is slowly improving, and the trends show that although it has been a tough year, it certainly has not been nearly as bad as other markets around the nation.

In 2009, we saw 21,983 closed sales, an 11.5% decrease from 2008. However, we also saw a larger decrease (-15.6%) in the number of new listings that came on the market in 2009. What this means is that the inventory level, or supply of homes on the market has decreased to 8.6 months. This means that it would take just over 8 months to sell the current listings if no new listings came onto the market. The 8.6 inventory number is supposed to give us a way to determine the supply and demand levels that currently exist in our market.  There are particular places such as the downtown Raleigh real estate market, and parts of the North Raleigh real estate market that have seen a more dramatic reduction in supply, and some places such as certain Cameron Village neighborhoods have actually seen appreciation in the last year.

So, the inventory level really gives us an idea of how healthy our market is. The number has improved 6% from 2008. Most people consider a level of 6 months to be a very healthy market. So as we enter 2010, we see signs that supply and demand are shifting more back toward a seller’s market.

Other stats that are important: average days on market for listings is currently 104 days, and the median sales price is $178,000, down 4.7% from a year ago.

There are still plenty of hurdles ahead for our economy including a bleak job market outlook for the near term future, incredibly high government spending (which could cause interest rates to rise), and an ever growing national debt. These factors could cause high inflation (I see no way around it at this point), but there is a silver lining for real estate owners. If you look back over the last 100 years, hard assets like real estate, oil, and gold often appreciate significantly during times of high inflation. The reason for this is that these commodities are measured in US Dollars, and as the dollar goes down in value, real estate acts as a protection, or “hedge”, against inflation.

My current take: I am actively buying real estate and I would encourage you to do the same. I believe that with interest rates at an all-time low, and prices back to levels that are much more affordable, combined with the fact that Raleigh real estate has been an historically stable market, I think it’s a great time to buy. Whether you are a first time homebuyer or “move-up” buyer looking to take advantage of the tax credits, or an investor looking to create equity through real estate, I think there are a lot of opportunities out there….

This home is listed at $247,900 and is in one of the most desired locations in Apex real estate and Cary real estate… just off Davis Drive, close to 64, convenient to Cary, Apex, or RTP. There are not many Apex homes for sale in this price range. Check out my featured listings page for more details and more pictures.

Southeast Corner of intersection

But let’s face it, people wouldn’t be moving to Cary and it’s population wouldn’t be increasing 4% per year if they didn’t like the rapid growth.

The image to the left shows an aerial map of the extremely valuable intersection of Davis Drive and High House Road. The gray section of the map shows the planned development that was initiated by Sears Farm, LLC. This 24 acre area is valued at about $7.2 Million and was purchased from the Sears family to develop into an upscale retirement community with 135 apartments, 26 plaza apartments, 46 estate homes, and 16 assisted living suites.

If you look to the adjacent corner (the Northeast corner), you’ll see the 42 acre piece of real estate that was just purchased by Crosland, a Charlotte development company, for $11 Million. High House Davis LLC was the seller.

This planned development was approved by the Town of Cary about a year ago. It has not commenced yet but should get underway soon as the real estate market continues to improve. This mixed use development will contain 140,000 square feet of retail space at the corner, along with 390 residential units, including townhomes and condos.

So another one of Cary’s prime corners will soon have the buzz of commerce and activity. Wouldn’t it have been nice to have been a land-owning farmer in west Cary about 25 years ago? I wonder what Mr. Sears (owner of the corner at one point) is up to these days?

I know one thing: he sure understands the value of holding real estate and the long term wealth that it can produce.