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GUILFORD COUNTY ? It?s no secret that the building and real estate industries have been hit hard in recent years ? both locally and nationwide.

That?s why a recent report of home sales may be an encouraging sign that the Great Recession is loosening its grip on the economy.

According to a study by Dr. Donald Jud of Jud & Associates for the Greensboro Regional Realtors Association (GRRA), sales of existing, single-family homes in Guilford County increased 12.2 percent in the fourth quarter of 2011 after an adjustment for seasonal variation over the same period a year earlier.

The report indicates that 596 homes were sold between October and December 2011, up from 531 units sold during the same time period in 2010. Sales were also up 1.8 percent in the third quarter of 2011, the report says.

?We have definitely seen the volume of sales pick up recently. The average selling price has not increased much, but the volume has,? says Betty Smith of Smith Marketing. ?Based on all the housing forecasts, I would say we are definitely beginning to see an improvement in our market. It?s not going to be a big jump. It?s going to take several years to get back to what would be a normal market.?

While things are looking better, Smith, who has been in real estate for 37 years, estimates it will be 2015 before things return to normal.

The forecast for new construction, which for years was booming in northwest Guilford County but then stalled, also seems brighter.

?I?ve seen some new construction permits being issued, some in the northwest part of the county,? says Tom Hoyle of A New Dawn Realty. ?I hope the improvement (in the real estate market) is going to be on a long-term basis.?

?New construction will probably improve this year, and it will probably move a little quicker because the inventory is so low right now,? Smith says.

Kathy Dumas of R&K Custom Homes confirms that. ?We?re seeing a lot of traffic. We?re selling spec homes before they?re finished, and that hasn?t happened in years,? she says. ?I think a lot of people are just tired of waiting. They?re not seeing what they want on the market so they?re deciding to go on and build.? With mortgage rates low, Dumas says there?s no better time.

While the volume of sales is improving, it?s taking longer for homeowners to sell their properties and they?re getting less than the asking price.

Some of the highest price homes that sold in the fourth quarter of 2011 were in the Summerfield area, where 23 homes with an average price of $390,000 were purchased. Of those, six were valued at $500,000 or more.

The Oak Ridge area also saw the sale of 17 homes in the fourth quarter, where the average price paid was about $287,500.

While the market here has certainly suffered, other areas have been much harder hit. From the peak in 2006, national housing prices have fallen 31 percent; in Guilford County, prices are off 17 percent, Jud?s report says.

?I think I?m one of those people who believes that everything should take its course,? says Jim Comerford of Re/Max. ?The market has to be rid of all of the foreclosures and short sales. The market should be allowed to run freely to take care of this situation.?

?When the economy comes back and there?s some confidence that tomorrow is going to be better than yesterday, then (people) will start buying again,? Comerford adds. ?You have to get rid of the risk and uncertainty first.?

?Sarah Burchette contributed to this article.

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Source: http://www.nwobserver.com/articles/2012/02/17/news/doc4f3d3c361a1f7182028555.txt

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