Triangle Housing Market Report�  - Year Ending 2013

 

Triangle Housing Market Score

 Positives

6

Negatives

2

 

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Al's Market Score:  A 6 to 2 market score -  this one for Year Ending 2013.  

Favorable Trends:  All top level metrics except inventory were positive.

In Summary:  Sales in 2013 increased more than 20% for the second consecutive year.  Falling inventories have quickly turned our buyers' market into a sellers' market.  Home values increased an estimated 3%.

Next year?  Slowing early indicators in the fourth quarter of 2013 point to a more normal growth rate in 2014:  sales up 3-4%, prices increase 2-3%, and hopefully, new construction grows.

Mortgage Rates:  Rates currently at 4.5%-5.0%.  Expect to see ranges in the 4.5 to 5.5% for 2014.

Our Advantage:  We have many proprietary tools that will be of great assistance to sellers and buyers.  Let our discounting analysis and city ranking database help you price your home, or let our builder rankings help you choose a builder and obtain guidance on how to get the best deal, or find the healthiest markets for purchasing.  These tools coupled with our market expertise, and professionalism offer you, your friends, associates, and companies the best real estate buying and selling support in the industry.

Did you know:  Only half of all signed Offers to Purchase closed in 2013.

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

 

Total Triangle Home Sales Based
 
2012
2013

Trend

Comments

Total Sales Dollars
$5.4 Billion
$7.0 Billion
Increased 29% Sales below $100k decreased by 2% while all other price segments increased 15% to 55%.  Homes above $600k finally finally showed strong growth in the second half.
Number of Homes Sold 23,859 29,469 Increased 24%

 

Average Number of Active Listings & Year End Months on Hand

2012

2013

Trend

Comments

12,773 11,050 Down 14% New to market listings grew only 11% while sales grew 24%.  As a result inventories were the year's negative story as the number of for sale properties dropped 14%.  Lack of inventory did impact sales.  3,000 to 4,000 additional listings are needed to achieve normal inventory levels.  Apex, Cary, Morrisville, and Holly Springs have only one to two months on hand.

 5.3 Months on Hand

4.1 Months on Hand Down 23%
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

2012

2013

Trend

Comments

4,822 6,195 Increased 29% Despite new home construction increasing 29% it did not match sales growth.  Additional new construction is the only solution to the tight inventories.

 

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

Segment

2012

2013

Trend

"Comments

Listings Closed

120 Days

101 Days

Improved 16% Days on market are dropping as the strong sales continue and inventories remain low.
Active Listing

155 Days

145 Days

Improved 7%

 

Total Triangle Average Price of Sold Homes

2012

2013

Trend

Comments

$224,909 $234,814 Increased 4% The average sales price increase was driven by strong sales growth in segments above $300,000, less discounting, fewer distressed sales, and the welcome return of appreciation.

 

Discounting:  Percent of Original List Price Realized

2012

2013

Trend

Comments

93.5% 95.3% Improved 1.8 points Because of increased sales and lower inventories, the percent of list price realized has grown nicely and returned to normal levels.

 

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

2012

2013

Trend

Comments

15% 11% Decreased 27% Thankfully, both the distressed percent of total sales and the number of distressed sales dropped, signaling a slow return to normal over the next few years.

 

Showings

2012

2013

Trend

Comments

 662,323 760,486 Increased 15% Showings increased for the full year, however, Q4 of 2013 showings growth slowed significantly with December showings below December of 2012.  As a result, sales growth rates will slow in early 2014.

 

 

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 powerful.   Contact Al  

 

 

Source data:Triangle MLS, Inc. and the National Association of Realtors
Copyright Schnaidt Real Estate, Inc. 2013/2014