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Triangle Homes Sales are Rising

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

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  [email protected] 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

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

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

Luxury Home Sales Update

image1

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.

Image6

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 [email protected] Visit us online at realestateexperts.net.

First Quarter 2016 Local Real Estate Market Statistics

The stats are far better than this picture reports! Since April, 2015:

Showings are up 10%
Inventory is down 14%
Listings are up but most are selling fast
Pending inventory is up 11%
Closings are up 15%
Resales under $400,000 are moving:
63% of resales listed in April went under contract; 69% had Days on Market less than 30; and 29% of those homes that sold in April sold        for above list price!

The bottleneck in the market is homes priced above $500K.  We are still seeing listings expiring or reducing their prices.  In fact, 35% of the inventory priced above $500,000 had price reductions.

Overall, days on market are going down.  The current average for the Triangle is 47 and average prices are up 6%.

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