Trend of Low Inventories

low-inventoryWhen you are saying that the Cary North Carolina market has a low inventory it depends on what you are comparing it too.  Are you comparing it to the number of homes on the market last year at the same time?  Are you comparing it to homes in a price range? Or even homes in a certain area?

According to Reuters, “U.S. home sales fell more than expected in December as the supply of houses on the market dropped to a record low, pushing up prices and sidelining some potential first-time buyers”.  They also said, A shortage of affordable homes for sale will frustrate the ambitions of many first-time buyers.  First-time home buyers are forced to stay in rental market longer than planned.  This information was provided by Matthew Pointon, property economist at Capital Economics in New York.

“We expect little growth in sales in 2018, given tight inventories,” said Gregory Daco, chief U.S. economist at Oxford Economics in New York.  Affordability is crimped by rising mortgage rates, posing an additional headwind to sales.

The Cary North Carolina market will fluctuate depending on price and area of the property.   A 6 month supply of property often considered to be a balance market by that National Association of REALTORS®.   When homes sell faster than 6 months it is considered to be a seller’s market.  Likewise, when homes take longer than 6 months to sell that is considered a buyers’ market.

Everyone knows that supply and demand affect price.  When the so called “Housing Bubble”, the demand decreased so much that the supply increased to 4 million houses or more.  The prices of homes took a beating.    Also, the increased inventories of foreclosures, short sales, bank refusing to loan and the home building industries lack on new housing starts all contributed to very low home prices.

“New construction has showed signs of perking up, but remains well below estimates of demand,” said Aaron Terrazas, as senior economist at Zillow. “More importantly, builders face rising labor, materials and land costs making it difficult to build at a price point attractive to entry-level buyers”.

Since that time the economy has improved, and banks have started to lower requirements, interest rates have stayed low and foreclosures have slowed.  Inventory nationwide is reduced to approximately 2 million homes.  When demand is at a constant level and inventory is reduced, home prices trend upwards.   This is because there are the same number of buyers trying to buy less number of homes.

Mortgage rates are now climbing each week in 2018 and consumer confidence level is going up.  This means that Cary North Carolina market is having an increase in demand.   Buyers are now noticing that home prices are increasing.

Spring is almost here and that is the normal busy time of year.  Home prices are going up and inventory is dropping.  So it is time to decide what you want to do before it is too late.

Check Out The Current Market Updates For Our Area

If you’re curious to know what inventory conditions are for your specific market, contact us with the price range and area and I’ll send you a report.

Real Estate Market Update – Cary, Durham, Chapel Hill – January 2018

Real Estate Market Update: Median Sales Prices Chapel Hill, Durham and Cary North CarolinaReal Estate Market Update:  Sales prices in Chapel Hill, Durham and Cary are on the rise. The three-year trend is excellent with median prices in  Chapel Hill and Cary around the $400,000 mark. Houses in much of the rest of the Triangle, including Durham, are more affordable. Median prices in Durham, NC are about $250,000.  Nationally, housing affordability remained flat for 2017.

To view homes for sale in Chapel Hill NC, visit Real Estate Experts web site.

Real Estate Market Update: Median Days on Market Chapel Hill, Durham and Cary North CarolinaReal Estate Market Update:  Days on Market (DOM) have been are still are amazingly low.  This means that overall houses are selling fast.  In January, however, DOM have increased a bit.  I think this is primarily due to a slightly slower start to the season and the weather.  To be specific; in July 2017 Average DOM were 13 in Chapel Hill, 5 in Durham and 6 in Cary.  In November 2017 this increased a bit to 33 in Chapel Hill, 8 in Durham and 10 in Cary.

In January, this has stretched out a bit more to 36 in Chapel Hill, 10 in Durham and 14 in Cary.  I expect to see these numbers come down as the season heats up.

If you are looking for homes for sale in Durham NC, visit Real Estate Experts web site.

 

Real Estate Market Update: Months Supply of homes for sale in Chapel Hill, Durham and Cary North CarolinaReal Estate Market Update:  The supply of inventory is incredibly low.  I don’t remember a time when inventory was this low.  In Chapel Hill there is less than 3 months of inventory and in Durham and Cary there is less than 2 months of inventory.  This is truly an excellent time to sell.  If you have been sitting on the fence, with inventory low, it is a sellers market.  Prices are rising.  With interest rates still low, buyers are moving on the opportunity before prices rise further.

If you are looking for homes for sale in Cary NC, visit Real Estate Experts web site.

Real Estate ExpertsReal Estate Experts is a full service real estate firm.  We represent buyers and sellers in the purchase and sale of residential homes.  We pride ourselves in our honesty and integrity, our knowledge of the home purchase and sale processes and our level of communication and responsiveness. We also have a residential property management company where we work with homeowners that want to rent their homes and we work with investors to get them the best Return on Investment (ROI) when purchasing investment property.  If you would like our help with any of these services, please contact us at 919-928-5131 or info@realestateexperts.net.

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2017 Third Quarter Real Estate Market Update

Real Estate Market Update — The National Association of Realtors Chief Economist Lawrence Yun says that “the national housing market is nearly stalled due to a lack of supply.”  This theme resonates in our Triangle real estate market, although we are experiencing fairly robust activity, despite inventory challenges.

  •  North Carolina is now the 9th most populous state with 4 Triangle Counties among the fastest growing in NC since 2010: Wake (+16%), Chatham (+14%), Durham (+13%), and Johnston (+13%). The Raleigh-Cary Metro area population grew by 2.5% in 2016 alone, and is the 14th fastest growing region in the US. The Durham-Chapel Hill Area grew by about 1.5% in 2016.
  • Fueling this growth is the general migration pattern in the US from North to South. Newcomers are attracted to our climate, employment opportunities, affordable housing, quality of life, healthcare, and by their adult children who moved here over the past 15-20 years – “trailing grandparents”.
  • Immigrants and investors have also contributed to growth in our area, including sizeable Mexican, Asian, and Indian populations. One less obvious factor influencing the market, especially at the entry level, are the increasing number of investors who are flipping homes, and who now account for nearly 6% of purchases nationwide.
  • All of these factors are driving the robust demand and appreciation impacting our real estate market, so let’s look at an overview of the trends and statistics of the Triangle, and then try to unpack some of this data for several of our submarkets such as Chapel Hill-Carrboro, Durham, Chatham, and Cary-Apex.

Triangle Real Estate Market Update

  • We are now in a strong “Seller’s Market” in the Triangle due to increasing demand for housing, decreasing inventory of homes, and historically low interest rates. The average “Days on Market” is now under 2 months, with about 2.5 months of inventory in pre-owned homes.  New construction inventory is 3.5 months, with 1.5 months of inventory for townhomes and condos.

Real Estate Market Update - Months Supply of Inventory

  • With strong demand for housing coupled with low inventory, appreciation is gaining ground in the Triangle, ranging from a low of 4.2% in Chatham County to 15% in Durham, with 5-6% per year appreciation for most of the remaining Triangle regions.

Real Estate Market Update - House Appreciation

  • Average median sales price is up 6.5% over the past year (Sept 16- Sept 17) to $264,000, and overall sales were up 4.5% for the same period. The strongest sales volume has been for 4+ bedroom detached homes over $300,000. However, the fastest pace of sales has been for homes under $200,000, selling in just under 30 days.

Real Estate Market Update - Median Sales Price

  • Nationally, new homes are being built at only half the rate needed to keep up with demand. Rentals and apartments are a major focus of the
    national new construction boom.
  • “Metrostudy’s New Construction Survey” of the Triangle housing market shows that 2,547 new homes were started in the first quarter of 2017, up 4.3% from 1Q16. Annual housing starts through the end of 1Q17 were 8.5% higher than for the same period in 2016, and annual closings for new construction were up 11.5%.
  • The average sale price of a new home was up 15% with the most popular price point in the $300K – $399K range. Lot sales increased by 23% to 12,050 units for the year ending 1Q17.

Chapel Hill – Carrboro Real Estate Market Update

Year to date (Sept 2017), listings and closings are down 4% an 1% respectively, compared with the same period in 2016.  There are 3.7 months of inventory now, and the average Days on Market is 54. Median sale price is up 0.6% to $360,000 with sellers seeing 97.4 % of their original asking price.  There seems to be downward pressure on prices from new construction and affordable alternatives in neighboring areas such as Chatham, Hillsborough, and Southwest Durham.

Chapel Hill real estate market update - closed sales
Chapel Hill real estate market update - supply of inventory
Southwest Durham (Southpoint Area) Real Estate Market Update

There were 5.7% fewer listings in 2017 and 2% fewer sales, but the median price increased by 6.7% to $240,000, and homes sold for 99.2% of asking price.  There is only about a month of inventory available, so the pace is quick for sales in Southwest Durham, especially in “tried and true” subdivisions such as Woodcroft, Twelve Oaks, and Hope Valley Farms.  Some higher end homes such as those in Colvard Farms have longer market times and more price concessions to reach a sale. Drees, Toll Brothers, Terramoor, and Pulte all have new home communities active in this market.

Durham (Overall) Real Estate Markete Update

Again, inventory is down to 2 months supply with fewer new listings coming online, and 4% more closings over the same period last year, so demand is there.  Prices reflect this tight supply of homes and are up 9% over the past year, with the median home price at $229,000.  Days on market is down to about a month.  The most active price point is under $399K.  Entry level homes within walking/biking range of downtown are often under contract within days and with multiple offers due to the rejuvenation of downtown Durham.

Durham real estate market update - Closed Sales
Durham real estate market update - supply of inventory
 Cary-Apex-Morrisville Real Estate Market Update

This region has been very active with high demand and increasing prices, with new construction balancing out some of that demand.  Bella Casa subdivision in Apex has closed 33 new homes averaging $509K just in the third quarter of 2017.  Lochmere, Cary Park, and Kitts Creek had strong resales of over 20 homes each in the third quarter of 2017 with an average home price close to $400K.   4,100 of the 5,400 homes listed this year to date have been absorbed with an average of 31 days on market.  Cary and the Apex-Holly Springs Area continue as popular destinations for transplants seeking affordable, newer home options that are close to Raleigh and RTP.

Cary real estate market update - closed sales
Cary real estate market update - supply of inventory
Chatham County Real Estate Market Update

14% more homes closed in Chatham County this year to date (Sept ‘17) compared with the same period in 2016, with the median sales price up 4.5% to $365,000.  There are over 450 homes currently for sale in Chatham with an inventory of about 4 months and “Days on Market” of 2 months.  Much of this inventory is new construction such as Briar Chapel (about 2 yrs. inventory left), Chapel Ridge, Westfall, Legacy at Jordan Lake, and so on.  Prices have rebounded significantly, but not completely, from lows in the 2008-2010 years.

Chatham is still an affordable alternative compared with some other regions of the Triangle, and remains a desirable destination for “tax refugees” and “downsizers” from Chapel Hill-Carrboro, Cary, and Durham.  Retirees and transplants also abound, as in Fearrington Village and Briar Chapel.

Chatham Park is the “800-pound gorilla” in this room with 7,100 acres of mixed use community, and 60,000 potential new residents in 22,000 homes.  Construction of homes will reportedly begin in North Village near Bynum by early 2018. 

Chatham County real estate market update - closed sales
Chatham County real estate market update - supply of inventory

A professional realtor is your best ally in buying or selling a home, no matter what the season. When it comes to the real estate market, we stay on top of the numbers and we want you to be knowledgeable too.  Check out the update to date market stats on Chapel Hill, Carrboro, Hillsborough, Durham, Pittsboro, Raleigh, Wake Forest and Cary, Apex and Morrisville

 

If you are interested in learning about available properties in the greater Triangle area, visit us online.  Call us today at 919-928-5131 or e-mail us at  info@realestateexperts.net for additional information.

How Healthy is Our Housing Market?

Looking to buy a house or sell a house this year? There’s a good chance you know the housing market is booming, pretty much all over the country. East coast, West coast; no matter which side of the country you’re living on, there’s a good chance the housing market is healthier than it has been in years.

But how do you tell if a housing market is healthy, or not?

At a very basic level, you can understand the real estate market using supply and demand as your metric. When inventory is low and too few houses are for sale, the prices of houses will rise. If there are many houses for sale on the market, and the inventory exceeds the demand then the prices will fall to attract more buyers.

When these two features are balanced, home prices sell closer to their true value. There aren’t any obstacles in play, like there typically are when the housing market is unhealthy. Some obstacles include bidding wars and insanely high prices.  However, they’re not the only ways to assess the housing market.

Ways to Check Your Local Housing Market’s Health

Assessing the health of your local real estate market is easy, especially if you do a little research.

How long have homes been on the market?

When homes have been on the market for over 90 days, you can believe that’s a sign something may be wrong with the property. Alternatively, there may be something wrong with the local market, suggesting the price on the home is too high for that market.

Check in about the median time homes are on the market for. This is something you can research yourself, or discuss with a real estate professional.

How are the prices?

If prices are falling and rising rapidly, you can bet there are issues with the health of the local real estate market. Quickly rising and falling prices can indicate the market is out of balance (remember, supply and demand!).

An annual increase of say, 5 percent is healthy for homes on the market. Increase or depreciation above or below that level can indicate an imbalance of the market.

What about foreclosures?

Foreclosures are a sure-fire way to diagnose an unhealthy real estate market. This can drive down home prices, and a healthy real estate market thrives on limited foreclosures.

The Raleigh-Durham and Triangle Housing Market

healthy housing market

According to a study on the healthiest housing markets in the United States, both Durham and Raleigh made the top 15. While Durham came in at No. 14 nationally, Raleigh came in just behind at No. 15.

Each housing market was diagnosed based on stability, risk, ease of sale, and the affordability of the area. The study, done by SmartAsset, scored Durham at a healthy 82.71 thanks to those factors. Raleigh scored 81.21.healthy housing market

So let’s talk about the factors that helped SmartAsset score the housing markets of the United States. How long people lived in their homes, and the number of homeowners with negative equity contributed to the stability factor. Risk is calculated by percentages of homes decreasing in value. Ease of sale is accounted for by data on the average time a home for sale hangs out on the market. The shorter the time, the better! And finally, affordability is assessed by monthly home-owning costs, as well as income in each city or county.

Other North Carolina cities made it onto SmartAssest’s healthy housing market list. Charlotte ranked No. 21, Winston Salem ranked No. 47, and Greensboro ranked No. 48. These cities represent healthy housing markets, and indicate North Carolina has a good real estate market.

We Can Help!

If you have been thinking of relocating to the Triangle area, you will definitely want to consider putting down roots in one of these cities! Visit Real Estate Expert’s web site to learn more about Raleigh-Durham real estate.
Give us a call at 919-813-6449 or send us an email to  info@realestateexperts.net to find out more about living in the Triangle, and visit realestateexperts.net to view current homes for sale in the area.

 

Triangle Home Price Update: Spring 2017

Spring has sprung. Alongside of blooming flowers, warmer temperatures, and the promise of Summer comes the busiest home-selling and home-buying season of the year. Buyers are more likely to shop during this time period, thanks to more daylight and the pressure to get a new home situated before the next school year starts.

If you’re looking to sell your home, there are three recent developments that ensure this spring is a unique, and promising, time to do so quickly. What’s more? You’re likely to get the most for your money as a buyer and seller. Let’s look at Triangle home updates for spring of 2017.

Mortgage Rates Are Stable

Last July, mortgage rates were at a low of 3.41%. The presidential election, like it typically does, shakes the housing market briefly because of impending law changes, administration direction, and uncertainty in the face of a new President. The 30-year fixed mortgage rate hiked up after the election, reaching a high of 4.31% in December 2016.

Despite the increase in 30-year fixed mortgage rates, they’ve stabilized over the past few months which keeps them near historical lows.

If you’re looking to buy a home, this spring is an exceptional time. The current low mortgage rates are advantageous because they allow you to afford more bang for your buck. You’ll be able to afford a more luxurious home, at a better price.

Employment is Up

Throughout the last year, the number of jobs has not only increased, but it has increased in a big way. With 2.3 million new jobs introduced in the last year, the economy reflects business and consumer confidence. The United States Department of Labor Statistics reported 235,000 new jobs in February 2017 alone. As the economy reflects the cyclical nature of employment and the real estate market, new jobs and the decrease of unemployment affects the housing market in a healthy way.

Lower unemployment means less crime, less crime means higher property values. People feel a surge of confidence when new jobs open; unemployment in your area can lead to issues buying and selling homes. Fortunately, employment is up, new jobs are being created at a consistent basis.

Inventory is at an All Time Low

Mortgage rates are nearing a historic low, as is the inventory of homes. February 2017 saw a 17.9% year-over-year decrease in the number of homes on the market. March 2017 marks the 100th consecutive month of year-over-year declines. This trend dates all the way back to October 2008.

There are fewer houses than ever on the market in the Triangle, right now. Some homes are selling within hours of being on the market. Since the market has an all-time-low inventory, prices are being driven up, as is competition. This is good news for a seller, at least!

How Do These Spring 2017 Updates Benefit You?

The demand for homes in the Triangle is through the roof. Due to the growth in jobs, low and stabilized mortgage rates, and consistent high-ranking of quality of life and education in the area, the Triangle will likely see an even higher and stronger demand for homes.

Take a look at this statistic: in February 2017 homes sold, on average, within 68 days on the market. This is compared to 75 days on the market in February 2016.

Selling your home this Spring means taking advantage of the strong demand and low inventory. You’re likely to see prices increase this Spring, and you’re likely to see top price for your home. On a national scale, February saw a 6% year-over-year rise in home prices. This definitely agrees with the trend around the Triangle, too.

Spring 2017 is a wonderful time to sell your home if you’ve been considering it for some time. This is a good opportunity for buyers to take advantage of low mortgage rates, too. If you’re curious to know how much your home is worth in the current market, try our home valuation tool.

We’re Here to Help

Whether you’re looking to buy or sell this spring, Real Estate Experts can help. Homes all around the Triangle are coming onto the market. Several amazing homes have just been listed, too. Loaded with listings hot off the press, Real Estate Experts is ready to help you find your next home.

Our seasoned team members work together to provide outstanding service to our buyers and sellers, while developing a unique partnership to better care for our clients. If you are looking to buy or sell, let one of our top realtors assist you today.  Give us a call at 919-813-6449 or send us an email to  info@realestateexperts.net to find out more about living in the Triangle, and visit realestateexperts.net to view current homes for sale in the area.

Triangle Homes Sales are Rising

Triangle home sales and prices are rising. Homes in the $200,000 to $400,000 bracket are selling fast. This past January, the average price of homes sold was $279,800. A 5% increase over last January, triangle home prices are on the rise. Not only are prices increasing, but so are the number of homes selling.

The issue we are facing now is a true lack of inventory.  If you are thinking about selling, this is a great time to sell your home.

More homes are making it onto the market daily, but they won’t stay for long. The greatest demand for homes is within the $200,000 to $350,000 price range. In January, homes priced in that range spent an average of 49 days on the market.  Last year, homes priced in that range spent an average of 59 days on the market, whereas four years ago they spent 115 days on the market. Availability of homes in this coveted price range is dropping, creating a considerable shortage of inventory.triangle home sales

Over the last year, the Triangle inventory dropped 9.4%. This inventory dropped an astonishing 36.4% in the last four years. New construction contributes homes to the market, however they are often priced higher than buyers might like. This is a consequence of rising land prices in the Triangle, but it makes new construction less attractive. The lack of acceptable options has encouraged home owners to stay put, influencing the lack of inventory of homes in the $200,000 to $300,000 price range.

In this seller’s market, homes are often sold above the original list price. In January, 13% of homes sold for more than they were originally listed for. Even buyers are confused as to why they make an offer at or above list price, and they don’t win the bidding war. “Blind bidding,” says John Wood, owner of Re/Max United in Cary, North Carolina. “They don’t know why they’re not being successful,” he reports to the News and Observer. It’s all about inventory.

In January, 61% of homes either reached a contract pending, or closed sale. Inventory has fallen for 29 consecutive months, according to MLS data. At the end of January, there were 4,654 Triangle homes on the market overall. This is great news if you’re looking to sell your home, especially if it is appraised within the coveted price range. Consequently, it isn’t great news if you’re looking to relocate to a home in this price range.

“The continued lack of inventory within the sweet spot of demand will produce the following: increasing prices, lower than average days on the market, multiple offers and many final offers accepted above list price,” concludes the MLS report on January, 2017.

 

How We Can Help

Overall, the indicators are good and real estate market trends in the Raleigh, Durham, and Chapel Hill metropolitan area show that it is an excellent time to sell.

At Real Estate Experts, we pride ourselves on our strengths in our home valuation knowledge and our expertise in preparing and marketing homes for sale.  Contact us for a skilled appraisal of your home and expert advice on selling your home in today’s real estate market.

Triangle Region Housing Market Annual Report for 2016

The annual housing market report for 2016 provides insight not only into the past year, but for the upcoming year as well. 2016 saw the election of a new president which means there will be changes in federal policies on the housing market and real estate. The new president, Donald Trump, has a history of real estate experience. He’s indicated interest in investing in infrastructure development as well as the development of new housing and construction. This is intriguing for the future of residential real estate, according to the annual report on the Triangle Region Housing Market.

Let’s take a look at the information provided in 2016‘s Housing Market Report for the Triangle area.

Interest Rates and Mortgage RatesTriangle Housing Market Report

Interest rates on homes did not rise as predicted. But like the year prior the Federal Reserve waited until December to create a short-term rate increase. With that in mind, 2017 interest rates are expected to increase over the year. The economy is healthy, unemployment is at a nine-year low, and wages are higher. The market outlook is positive.

2017 is expected to see mortgage rates stay below 5.0 percent. Rates aren’t expected to grow by more than .75 percent throughout the year. If mortgage rates begin to climb higher, there’s a possibility for rate lock. This means that homeowners may stay in their current housing situation instead of trading their property for a higher-rate property. If this situation occurs, it might affect the availability of affordable homes and a strain on the already-struggling housing inventory.

Listings, New Construction, and Sales

Inventory of homes in 2016 was lower than other years in a year-by-year comparison. Low home inventory is expected for 2017, too. At the end of 2016, there were 7,447 active listings. New listings increased by 4.2 percent, helping 2016 to finish out with 46,193 listings. Most new listings, compared to 2015,  came from East Durham, Central Durham, Knightdale/Wendell/Zebulon, Inside the Beltline, and in Chatham County. The top five areas in the Triangle where the inventory of homes for sale increased from 2015 are Wake Forest, Hillsborough, Durham, Inside the Beltline, and in Chapel Hill or Carrboro.New Construction Annual Housing Report 2016

New homes are being built. In the Triangle region in 2016, new construction built an inventory of 31,126 units. Compared to 2015 where new construction built 28,512 units, 2016 shows positive growth. In 2016, Chatham County, Johnston County, Knightdale, Wake Forest, Fuquay Varina, and Holly Springs had the most new construction in the Triangle region.

However, houses are not being built quick enough. New construction in the Triangle area is approximately at half the rate of the rest of the country. Even though there is a lot of new construction, there are a large number of properties being developed as expensive rental units.

The sales in the region also showed some positive growth. Under Contract sales and Closed sales both increased in 2016. Under Contract sales saw a 9.7 percent increase, while Closed sales saw a 10.1 percent increase. In comparison to 2015, East Durham, Johnston County, Knightdale, Zebulon, Wendell and Durham County saw the most closed sales. Overall in 2016, the Carey, Apex, and Morrisville saw 5,287 homes total in closed sales alone.

Prices

Over the last year, home prices rose. In the Triangle region, Durham, Knightdale, Wendell, Zebulon, Garner, Cary, Apex ,and Morrisville showed the most change in median sales prices in comparison with 2015. The lowest amount of change occured in Raleigh, Hillsborough, Orange County, Chapel Hill, and Carrboro. The median sales for 2016 hovered around $232,000 which is a 5.5 percent raise. This is, in fact, a symptom of low home inventory. When the demand outweighs the supply, prices rise. In 2017, there’s an expected home price increase, but it should be at a slower rate than that of 2016.

In 2016, sellers received 97.5 percent of their list price. Sellers in Hillsborough, Durham, and Garner saw the most change in percentage of original listing price received at sale. This is a year over year increase of .9 percent; and good news for sellers.  A predicted increase of price of homes in 2017 will likely encourage an increase in list price received at sale.

Who Will Be Looking to Buy in 2017?

Even though it might seem logical to look at millennials as the next wave of home buyers, there are factors that are contributing to their lack of participation in the housing market of the Triangle area. Some analysis suggests that it’s a bit of a cultural shift for this generation; they’re doing things differently. Many are opting away from early marriage, family life, or they’re making attempts to get rid of student loan debt. Some could be uneasy real estate investment in the wake of the last recession.

Baby boomers will likely make up a major group of home buyers this year. Refocusing investment from the stock market to real estate is an option for this generation in the wake of the election. The new administration creates a period of expected change, and it has encouraged this demographic to look at a higher price-range homes to invest their wealth in.

 

If you are interested in learning about available properties in the greater Triangle area, visit us online.  Call us today at 919-813-6449 or e-mail us at  info@realestateexperts.net for additional information.

When buying a home, even new construction, it is important to have a buyer’s agent. At Real Estate Experts, we are fierce representatives for our clients. We’re known as expert buyer agents so contact us and see how we can help you find just the home you are looking for.

 

 

 

 

 

 

Real Estate Market Trends in Raleigh, Durham, Chapel Hill – October 2016

Market InsightsIt’s time once more for an update on real estate market trends in the Raleigh, Durham, Chapel Hill metropolitan area.  Trianglewide closed sales are up 9.3%, median prices are up 5.7%, and average prices are up 5.7%.  The average days on market is 50, and sellers are getting almost 98% of their asking price.  We are hearing nationally that housing inventory is at an all-time low, and the Triangle is no exception.  Across the metro area, there is only 2.9 months of inventory on the market.  This is incredibly low inventory and an indicator that we are in an extreme seller’s market situation.

Real Estate Market Trends October 2016

Real Estate Market Trends in Chapel Hill, NC

In Chapel Hill, real estate sales are up 11.6%, and median and average prices are up 2% and 2.5%, respectively.  However, houses are staying on the market longer in Chapel Hill.  The average days on market is 74, which is better than last year at 77, but twice as long Durham and Cary.  The other indicator that the market is not as robust in Chapel Hill is the amount of inventory on the market.  There are four months of inventory on the market on average.  This sounds good, since anything less than five months is a seller’s market.  However, only Chatham County has more inventory on the market at five months.

Real Estate Market Trends in Durham, NC

This year, Durham real estate sales have been on fire!  Closed sales are up 11.6%, median prices are up 9.9%, and average prices are up 8.7%.  The big wow is that the average days on market in Durham is 39, down from 49 last year, and a record low overall.   Sellers are also getting 98% of their asking price and inventory in Durham is really low at two months.  This year, we have seen many multiple offer situations and, in fact, significantly more offers than two on many homes.  The Durham real estate market is hot!

Real Estate Market Trends in Cary, Apex, and Morrisville, NC

Homes for sale in Cary, NC, as well as Apex and Morrisville, are going fast.  Closed sales are up 4.7%, median prices are up 8.7%, and average prices are up 6.7%.  The average days on market is astoundingly low at 30 days.  Wow!  This is down from last year, which was 35 days.   Sellers are also doing incredibly well and getting, on average, 99% of their asking price.  The other amazing statistic is that there is only 1.9 months of inventory on the market, which means it is truly a seller’s market.

Overall, the indicators are good and real estate market trends in the Raleigh, Durham, and Chapel Hill metropolitan area show that it is an excellent time to sell.

At Real Estate Experts, we pride ourselves on our strengths in our home valuation knowledge and our expertise in preparing and marketing homes for sale.  Contact us for a skilled appraisal of your home and expert advice on selling your home in today’s real estate market.

September 2016 Real Estate Market Trends

Market Trends

As we near the end of 2016, real estate market trends for the Triangle and surrounding areas are improving: closed sales are up; median and average prices are up; days on market (DOM) are down; list-to-sales price ratio (how close sellers get to the list price) is up; and inventory is down. This is all good news.

It helps to take a deeper dive and look at the numbers by market area – there are real differences.

 

Raleigh, Durham, Chapel Hill Real Estate Market Data

Real Estate Market Trends

Homes for sale in Chapel Hill are up 11.5%, plus average and median sales prices are up 2.9% and 3.2%, respectively. But Chapel Hill homes average the longest number of days on the market, 79, compared to 39 in Wake County, 37 in Raleigh, and 29 in Cary/Apex/Morrisville. Chapel Hill also has the second largest inventory on the market, next to Chatham County.

Durham real estate is doing very well. Closed sales are up over 10%, median and average prices are up close to 10%, and days on the market is under 40! In addition, inventory is hovering at around two months. Clearly, we need more inventory come on the market in Durham.

The real estate market in Cary, Apex, and Morrisville is smoking hot. All indicators are up, and the average days on the market is 29, with less than two months of inventory on the market. This is amazing!

The third quarter indicators for the Raleigh, Durham, Chapel Hill real estate market are strong:

  • Inventory is down 12%
  • Pending sales are up 6%
  • Closed sales are up 9%
  • Days on market is 50
  • Average prices are up 6%

There’s no doubt that the market has improved in 2016. If you have been thinking about selling, give me a call today at 919-697-5014. I am happy to do a complementary analysis and inform you how your house stacks up against these averages.  Circumstances vary in different locations and price ranges. As a real estate expert with 20 years of experience in analyzing the Triangle real estate market, I tell it like it is. My role is to give my clients honest feedback as to whether it makes sense to sell or sit tight. I’m here for you!

For more information on the real estate market, visit  www.RealEstateExperts.net.

 

Luxury Home Sales Update

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The Institute for Luxury Home Marketing (ILHM) has released its latest “Luxury Housing Report,” designed to provide insight into what’s happening in the luxury markets of 31 metro areas around the country. For each metro area, LHM ranks the zip codes by median price, takes the market data from the top ten zip codes with median prices above $500k, and creates a local composite that represents the top of the market. The report is prepared based upon Altos Research Company’s proprietary national data set. Keep in mind, this is active listing data, not historical MLS or closed transaction data; so you are looking at “what’s happening now,” not “what happened a couple of months ago.”

The report, released on May 23, 2016, looked at 25,262 luxury homes which have been on the market for an average of 150 days. The ILHM Luxury Composite Price this week was $1,558,269. The Market Action Index measures supply relative to the current demand, and an index market above 30 indicates that conditions favor the seller.

Real Estate Price Trends

Across the ILHM national sample, luxury home prices have remained stable in the past several weeks. This week, the median price is $1,558,269.

image2Price Per Square Foot

Changes in how luxury homes are valued–as well as how they are being constructed–can be measured by viewing changes in price per square foot. The current median price per square foot for luxury homes is $400.

Image3Supply and Demand

Home prices are a function of supply and demand, and market conditions are characterized by looking at these factors. The ILHM national market is currently barely in the Buyer’s Market zone (below 30). With this week’s Market Action Index of 29, luxury buyers should see reasonable levels of selection.

Image4Inventory

Inventory data indicates the number of properties for sale in a given real estate market and will fluctuate seasonally. The Market Action Index (above) will allow you to gauge demand levels relative to inventory. As inventory increases or demand falls, the Market Action Index with quickly drop. The chart below shows teh total number of homes in the ILHM sample each week. These homes are listed for at least $500,000 in the top 10 zip codes for 31 major metro markets across the country.

Image5Days on Market

Days on Market data indicates the health of the market and how long you might expect it to take to sell a home. Or, how quickly you should make an offer on a home you are considering purchasing. The properties in this report have been on the market for an average of 158 days.

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Finally, the chart below provides a look at the local luxury markets across the country. As you can see, the Market Action Index in Raleigh-Durham is currently elevated.

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For more information about this report, or any of your real estate questions or needs, contact Real Estate Experts any time at 919-813-6449 or info@realestateexperts.net. Visit us online at realestateexperts.net.