FYI on RTP rent rates and house prices

The peak of house prices in our market was 2008. The average sales price of a detached house during the first 11 months of this year is down +/-9% compared to the same period in 2008. The average monthly rent of a detached house is up 3%. Rising rents typically push shelter seekers into home ownership. While national rents are rising at a higher rate than local, the upward trend still exists. The average 30 year fixed mortgage rate in 2008 was 6.65%, the current average is 3.09%. This dramatic drop in interest rates, combined with lower house prices and stable to increasing wages has produced unprecedented housing affordibility. While I would expect these trends to continue in the near future, the great unknown is whether our national political leaders can figure out a solution to the fiscal cliff.

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About TARR Report

S.M.A. Publications was formed in 1997 with a mission of providing real estate information for practitioners within the Research Triangle Park area of North Carolina. The company produces the T.A.R.R. Reports which are published monthly, quarterly and annually, covering all aspects of the residential real estate market. The publisher, Stacey P. Anfindsen, has over 23 years of residential experience in the Triangle market. He is an active real estate appraiser, educator and consultant.
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