Mortgage Minute

Making the Grade: Raleigh/Durham Housing Market Gets a "B"

If you haven't noticed, discussion of the housing market has been relentlessly focused on price (average sales price, median sales price,) price direction, and units. And for good reason - they are useful and telling numbers. But price movements alone do not tell the whole story. Particularly if we are talking about the overall health of our real estate market, and especially it's long term prospects for recovery.

In that case, the focus on price/units as the sole measure of the housing market is a little like diagnosing a patient with a influenza as terminally ill because they've spiked a fever.

Which is why I am pleased to see this piece from Finance & Commerce's Burl Gilyard on a recently released housing market study: The new "Homeowners' Market Fundamentals Index," from Montana-based Redfish Emerging Markets LLC, ranks 185 U.S. metro areas, and the Raleigh/Durham areas comes in at an honorable 13^th/20^th place.

Mark McGlothlin, CEO of Redfish, noting that Raleigh/ Durham still gets a solid (and inspiring) "B" grade.

Though the grade doesn't put us on any sort of honor roll, we do appreciate the studies attempt to look forward and weigh factors beyond simple price/unit metrics: The Redfish rating system weighs five factors: population demographics, job growth, local economic development, single family market "metrics" and the health of the rental market.

McGlothlin said that Raleigh and Durham were helped in the rankings by the increasing population growth, a encouraging job outlook and the current supply of homes and condos available for sale on the market.

"I tell you what helps Raleigh/Durham the most ... jobs," McGlothlin said. "Job growth creates population growth, which drives housing demand." You can find the full study, and more information on it's methodology right here: Homeowners' Market Fundamentals Index[Redfish Emerging Markets]

This weeks Interest Rates:

October 3rd- October 17th
30 Yr. Fixed Rate

Conv 30 yr Fixed	6.250 - 6.625
Conv 15 yr Fixed	5.875 - 6.250
FHA 30 yr Fixed	6.250 - 6.750
Conv 5/1 yr ARM	5.750 - 6.625
JUMBO 5/1 ARM	5.750 - 6.250

Features for the month of October!

1. Any realtor that purchases or refinance their personal residence with Alera Financial in the month of October will have the commitment fee and appraisal fee waived saving you an additional 850.00 of closing cost!

2. Alera Financial will provide a free one year AHS Warranty for all First Time Home Buyers that closes a home with Alera Financial!

3. Dinner at Ruth Chris for three agents on Alera Financial. Get your buyers PRE-APPROVED

Have your best week ever!

Brian