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No doubt about it — the economy has taken a bite out of historic real estate sales. But the one-two punch of lower property prices and a slimmed-down credit market also has delivered opportunities to willing and able preservationists. Just take a look at Durham.
"I'm getting a lot more phone calls from people looking for preservation deals and thinking that now is a good time to do it," said Cathleen Turner, director of the Piedmont Office of Preservation North Carolina. "While some prospective homebuyers seem concerned that loans may not be not available, we are trying to get word out that many lenders are still eager provide mortgages for owner-occupants and that interest rates are at an all-time low."
Turner also pointed out that, in addition to lower prices, buyers may also benefit from the N.C. historic preservation tax-credit program and, for a limited time, the federal government's $8,000 first-time homebuyer tax credit and $6,500 move-up credit. In addition, there are now weatherization tax creadits for energy-efficiency improvements.
Deb Greene, a former Duke University student visiting from California, saw the possibilities while touring Durham's historic Cleveland-Holloway Neighborhood last June. Following the home tour, she purchased a large bungalow from Preservation NC for $32,500. Known as the Fuller House, the house sits on a half-acre lot in East Durham.
"I'd always wanted to buy an old craftsman house, so that's what I got," Greene said.
The new homeowner expects to put another $50,000 into renovations for the house - along with a considerable amount of sweat equity. Yet she should wind up with a great house and an investment that is likely to grow much faster than properties purchased at the height of the market.
While the East Durham neighborhood is considered transitional, described by Greene as "up and coming," it is close to downtown Durham, Duke University and Research Triangle Park. As with many urban historic areas, East Durham attracts many creative and socially conscious buyers. Or as Greene puts it: "The neighborhood is full of a lot of really nice people."
 Another fan of the current market for historic houses is Ken Gasch, a real-estate agent and investor who has purchased several properties near downtown Durham. Gasch said he is relieved that some of the riskier speculative investments that buoyed home prices recently are being curtailed by tighter lending practices.
"The only folks who can get money are those who want to buy a primary residence or those who can come up with money through private partners," Gasch said. "That has made it so folks are not competing with the person who went to the bank, got 100% of the money to buy and fix up a place, then left town for Tahiti. That money has dried up."
Gasch paid less than $30,000 for the Clapp-Ferguson House in East Durham, which he is renovating for resale, and even less for the house next door, 407 Oakwood, which his four-year-old son, Winston, has nicknamed "the broken house." Both homes are subject to protective covenants that ensure long-term preservation of the properties as well as owner-occupancy to help stabilize the neighborhood.
Gasch and his business partner, Miles Honeycutt, are posting updates to these renovations at http://clapp-ferguson.blogspot.com/ and http://brokenhouseonoakwood.blogspot.com.
Renee Elder is Communications Director for Preservation North Carolina. Contact her at
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