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February 02, 2007

Has the housing market bottomed out?

The slow housing market has not affected North Carolina as much as it has other states. While the trend in sales and prices have been a concern to many people, N.C. State University economist Mike Walden says this may be the year when we start seeing a pick up in housing activity.

"Many housing experts say yes, and they say yes for several reasons," says Dr. Walden, a professor of agricultural and resource economics. "First, nationally, the housing market has actually contracted to the point where housing investment is at an average or normal level. In other words, the speculation that we had in prices has been eliminated.

"Secondly, interest rates remain very good, remain very affordable, and this certainly helps buyers," he adds. "And then thirdly -- and perhaps most importantly -- the job market has been relatively strong. This is going to help put more people in jobs, get better raises and that will stir and stimulate the housing market."

Posted by deeshore at February 2, 2007 08:55 AM