Triangle Housing Market Report�  - 4th Quarter 2011

 

Triangle Housing Market Score

5

  Positives

3

  Negatives

 

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Al's Market Score:  The strongly positive Q4 2011 score is the 2nd best we have seen in 8 quarters

Favorable Trends:  Inventory, Sales, New Listings to the Market, and Showings were each better than Q4 2010 

Mortgage Rates:  Rates remain in the 4-5% range.  The loan approval process can be challenging, especially for jumbo loans.  Choose your lender carefully.  Call us for recomendations

Before You Decide to Sell:  Sellers, your choice of pricing strategies will have an impact on your financial return and your days on market. Call us to discuss what our analysis has revealed and how to approach this market 

Before You Decide to Buy:  Buyers, the sellers' pricing strategy will influence how much purchase value you can achieve.  Call us for further insight

In Summary:  Six consecutive months of sales growth as the market slowly improves.  Our analysis refutes the often stated belief that distressed property sales are depressing all property values.  Discounting increased slightly

Referrals:  Let our unmatched market expertise, professionalism, and work ethic work for you, your friends, and your associates.  A simple phone call or email enables us to help those you care about

E-mail Al or Call Al at (919) 349-3900

 

Total Triangle Home Sales Based
 

4th Quarter 2010

4th Quarter 2011

Trend

Comments

Total Sales Dollars $968 Million $974 Million Up 0.6% The market has now logged six consecutive months of sales growth versus 2010 same months.  Sales were up 11% in the 2nd half
Number of Homes Sold 4,165 4,454 Up 7%

 

Average Number of Active Listings & Months on Hand

4th Quarter 2010 Average

4th Quarter 2011 Average

Trend

Comments

17,307 14,302 Down 17% Inventories are clearly on the decline. It will likely take another year or two to return to balanced levels
 10.3 Months on Hand 8.1 Months on Hand  Down 21%
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

4th Quarter 2010

4th Quarter 2011

Trend

Comments

668 818 Up 23% Permits grew over 2010 for the 3rd straight quarter. However, the full year ended down 1%

 

Average Days on Market for "Closed Homes" and "Current Actives"

Segment

4th Quarter 2010

4th Quarter 2011

Trend

"Comments

Listings Closed

111 Days

128 Days

Up 16% Our high inventory levels continue to drive high Days on Market, thus keeping this a Buyer's market
Active Listing

158 Days

174 Days

Up 17%

 

Total Triangle Average Price of Sold Homes

4th Quarter 2010

4th Quarter 2011

Trend

Comments

$232,700 $218,700 Down 6% A continued volume shift to less expensive homes this quarter lowered the the average price for the quarter from 2010.  We do not see evidence of declining property values

 

Discounting:  Sold Price to Original List Pirce %

4th Quarter 2010

4th Quarter 2011

Trend

Comments

92.2% 91.9% Worsened 0.3 pts Sellers discounted slightly more to get to a contract

 

Distressed Property Sales:  % of Total Sales (MLS Data Only)

4th Quarter 2010

4th Quarter 2011

Trend

Comments

12% 16% Up 30% A big increase in the number of distressed sales with most of that increase coming below $300,000 price levels.  Distressed "For Sale" active listings remained reasonably flat at about 1270 units

 

Showings

4th Quarter 2010

4th Quarter 2011

Trend

Comments

111,409 113,920 Up 2% Showings were higher for the entire 2nd half of the year driving the increased sales. Late year showings growth points to sales growth in early 2012

 

 

Want to Know More...

For clients and prospective clients, we are pleased to share our "State of the Triangle Housing Market" presentation.  Investors, developers, lenders, and builders will find this unique and inciteful market overview very helpful.   Contact Al  

 

 

Source data:Triangle MLS, Inc. and the National Association of Realtors
Copyright Schnaidt Real Estate, Inc. 2011/2012