ISO Homebuyers

Although the economy in general feels stronger, housing continues to struggle. The first quarter results here in the Triangle show sales down 8% from a year ago. That’s not terrible. But showings are down 20%  from a year ago, and that is terrible.  We have 20% fewer buyers out there looking.  Pending sales in the first quarter were down 30%, and that means second quarter closings will be down, too.

A year ago, in 2010, we still had the last of the federal incentives.  First-time buyers could get an $8,000 tax credit to offset the expense of their new home, and move-up buyers could get $6,500.   Those days are gone, and they’re not coming back.

Fewer buyers, combined with more distressed homes (short sales and foreclosures) on the market continues downward pressure on home prices.  We may not have seen the bottom yet.  As for the recovery — it’s going to take a while.  The last estimate I heard was that we can exprect home prices to return to pre-meltdown numbers in about 2020.

The Triangle was one of the last areas in the country to go down, and it should be one of the first to recover.  So maybe for us, recovery will come sooner — maybe in 2016, 17, 18?   Still a long time from now.