Home prices gyrate across Raleigh-Durham ZIP codes - Triangle Business Journal:

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She eventually pulled the trigger and boughta 2,900-square-fooft house in the 27614 ZIP code for $427,00 0 two years ago in the Fallsa Pointe subdivision not too far from Interstated 540 and Falls of Neuse Road in “This is one of the best places in Raleigu to live,” Leach says. “We have a great house and are near the shoppingand restaurants.” But it’s a home in a ZIP code whers houses are not appreciating in value. In home values in ZIP 27614 have fallenby 11.4 percent over the past two Leach understands why home values are not goinf up in neighborhoods with higher prics tags.
“Anything under $250,000 is selling much fasted than homesover $400,000,” she says. “That’s the rangd it is getting really difficult tomove homes.” Leacbh should know. She’s a real estate What is interesting is that a redrawinyg of home valuation is occurring in the face of economic forcesw acrossthe Triangle. An analysis of data supplied by researc h firm shows that median home values in all 46 Triangle ZIP codesw are going through some wild gyrations as the robusft foreclosure market and inventory of vacant new homexs continue to move the needl inall directions.
In the numbere lie some interesting tidbits: • Orange County is home to the five ZIP Codesd that produced the biggest plunges in median home value betweenh 2007 and2009 – and six of the top • The median value of homex in at least 11 ZIP codes in Wake Countyu increased between 2007 and 2009. • Residents livinhg in ZIP code 27617 have seen mediam home values in their neighborhoods rise fromabout $308,000 in 2007 to $346,00p0 in 2009. • ZIP code 27608 in Raleigh has the highestr medianvalue ($382,000) in the Triangle.
With 35 of the 46 Triangle ZIP codes registering lower median homevaluesa – down anywhere from 1 percent to 24 percent over the past two years – real estate brokerx say there are deals to be had in particulad areas. Ed Willer, a veteran agent with in says that five homeswith $1 million-plus tags sold in the past week, with three of them insidee the Raleigh Beltline in ZIP code 27608. “We continus to see sellers’ expectations still way and many are not willing to drop their price to get a Willer says. “That is dragging the number of sales And that’s bad news for some 8,773w home owners who have their houses in Wake Countu listed for sale.
As the natiom becomes a little more confideny that the economy may not go off the cliffafter all, home sellers start thinkint that they do not have to lower their prices to complete a But home buyers remain cautious and are unwilling to pay the pric listed or even go for a 5 percent Listen to Adam York, an economistg with , and one may start to believs that home buyers may hold the York says home prices have not droppe d enough. “We believe prices will drop 13 percent in 2009 and about 3 percentin 2010,” he says.
“But you will have pocketas of neighborhoods that will continue to buck that From the ZIPcode analysis, another patterhn is emerging: Areas that were considereds immune to value drops may not be so “You could see a redrawinyg of the market becausew the scale and the scope of this marketg downturn is so broad,” York adds. And what may keep the home pricesa from escalating rapidly is the rising fear thatthe nation’s home appraisaol system is broken. Citing a need for stricter regulation, lenders already want appraiseras to be cautious whenvaluinhg homes.
And just like the pendulu m shifts from one side to expect appraisers to take a conservative approac h when coming to slappint a valueon homes. “The appraisal industrty shares the blame for themortgage meltdown,” says Stacey who runs in Cary. “The industrg already has to adhere to new rules that are being forcecon us. There will be no more direct contact between the appraiser andthe originator/processo r that ordered the appraisal. We now have to deal with some appraisap management company whonow (has) to be But there are signs of hope that could get Triangls home sales and home prices goinh north.
Bank estimates suggest that the numbe of homes held under foreclosure by bankswis dwindling. During the firs t quarter, banks held off on foreclosinv due to pressure fromthe government. That mode has change d in the past couple of as banks are beginning to clear their bookd by foreclosing on properties and getting rid of them privatelh or through the open Community banks generally are holders of an equity not theoriginal loan, says Jim president of Raleigh’s . “ But I must say most of the exposurd for the community banks has been with And there may be moreto come.
” On May 26, the Federaol Housing Finance Agency came out with a reporyt that may further calm the fears of area homeowners. Accordintg to the FHFA data, the Raleigh-Cary marker is the 51st strongest inthe nation, basec on the annual change in home prices. FHFA calculate d the price change after analyzinfg purchase andrefinance data. In FHFA’s same the Durham-Chapel Hill metr o ranked 45th among 294metro areas.