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Housing Market Looks Stable

READ MORE: Housing Market Looks Stable
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The news isn't all doom and gloom on the housing front. In fact, the buying, selling and building of homes in our area is suprisingly stable. Donna Giardot, of the Wilmington Homebuilder's Association said, "This area has never reflected the state or national trends, and we've not been as bad as other markets have been, in this downturn." Jeff Sweyer, owner of Century 21 Sweyer and Associates said, "We have seen much more traffic than we've seen in a very long time, so things are actually good." In the past five years, the population in Wilmington has been growing 4 percent annually. That's well above the national average at about one percent per year. The population growth and climate are a few factors that helped rank Wilmington the 14th healthiest housing market in the nation out of 75 cities. "If I can be ranked along with cities like Dallas, Denver, and Seattle, Charlotte, Raleigh, D.C. and Houston, I'll take that any day of the week," said Giardot. According to Builder Magazine, what keeps Wilmington desirable is it's access to the ocean, mountains and University. Not to mention the affordability of housing. A median home in the greater Wilmington area costs about $198,000. "We have a bullish attitude, we live in one of the best places to live in the world, and that will always remains," said Sweyer. The predicted population growth for the greater Wilmington area leaves real estate agents and builders confident that Southeastern N.C. will almost always bounce back.

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Housing Prices

We'll soon see the next Wave of Foreclosures in the form of Alt-A Mortages going bad,peaking out in 2010/11 in addition, depressing Home prices even further. People will soon either stop paying their notes or walk away, Jingle Mail anyone? People are loosing their jobs, (in this area), by the hundreds, if not thousands. Expect Unemployment numbers to go as High as 20% by summer, Double what they are now, coupled with falling wages/cutbacks in hours for those whom manage to still have a job.. Private Investment Capital is going to be NIL, As Most, if Not ALL Banks are technicaly INSOLVENT, being propped up with taxpayer dollars to stay alive, Zombie banks folks. No LENDING, NO home buying. How are your 401Ks or Pension funds are doing today, how much have you lost? Keeping on Topic, I wouldn't be Surprized if Home Prices fell another 20 to 30 percent in Wilm.. Though, Who will buy them if the BANKS are NOT lending? Or if there are NO Jobs? Folks this isn't going to end well.... 1930's style..

How does the author define

How does the author define "a strong market?" Because Jeff Sweyer, Builder Magazine, and Donna Giradot said so? Gee, they don't have a dog in the hunt, do they? Inventory is high, sales are extremely low, and rental rates are falling. Listing prices at all price ranges are still strongly influenced by the lending standards of a byegone era. Good luck with that "affordable" median of $198,000 when the median income is $40,000.

HOusing, Banks and Forclosures

A possible partial solution to the rash of foreclosures is for banks to arange for interest only payments with homeowners that can possibly avoid foreclosure through a reduction in the monthly mortgage payment. This would freeze the principle balance at a current value for an agreed period of time giving some households the oportunity to avoid foreclosure and for the banks the continued cashflow and avoidance of cost associated with foreclosure.

Prices are stabalizing..Not declining

Prices are not declining. Prices are getting back to where they should be.. Back to where they before all you other brokers bought and sold and bought and sold for an absurd profit. YOU artificially inflated home sales and now they are going back down to where they should be. It is called market stability. Your friend did not LOOSE $40k. They lost the investment intended for inflated profit. Because prices are returning to what normal should be, more homes are selling because they are closer to being affordable now.But it is still (for now) a renters market. That will soon change once prices drop a bit more, and banks start lending again to a buyers market.

Wilmington Housing

I generally agree with your article concerning the "stability" of housing in the Wilmington area, but that is just what it currently is-stable with limited sale of homes. I personally know of a couple who were transferred to Charlotte recently and they had to discount their home $40,000 to sell it. Your article is encouraging, but it does not tell the full story of how much housing prices have declined here. Granted they may not be as much as some other areas, but the decline is very real, and the immediate outlook for recovery is not too promising. One only has to look at the inventory of unsold homes in the area to support that fact.

But....

...what about the $150,000.00 increase this same house encountered the 5 years before this? The reports always discuss as such: "...Las Vegas home values have dropped over 30%....Phoenix home prices have dropped 32%...", on and on and on. These same articles don't discuss how these same home prices skyrocketed 150% to 300% and more duing the preceeding 5 years! Sure, some people got stuck holding the "hot potato" and bought when it was high during the feeding frenzy. Homes here are still too high. It will be a long time before home prices get back to where they were in '05 and will sell like it's the last listing in the world.

Inflated prices

Home values were inflated when government pushed the subprime and Alt-A loans. These loans were made to borrowers with blemished credit, or involved low or no down payments, negative amortization and limited documentation of income. The loans' unprecedentedly high rates of default are what is driving down housing prices and weakening the financial system. People are now finding themselves owing more on a home than it's currently worth, thanks in large part to the long list of greedy people in power that took advantage of the many ignorant. Barney Frank--the chair of the House Financial Services Committee and a longtime supporter of Fannie and Freddie--admitted that it had been a mistake to force homeownership on people who could not afford it. Renting, he said, would have been preferable. Now he tells us.