Triangle Housing Market Report�  -Q1-2014

 

Triangle Housing Market Score

3 Positives

5 Negatives

 

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Al's Market Score:  A big turn to the negative for our market score -  this one for Q1 '14.  

Favorable Trends:  Sales, Discounting, and Distressed Percentage all improved in Q1.

In Summary:  Q1 2014 sales grew 5% over 2013.  All price segments but two experienced sales growth.  Low inventories are a continuing problem and appear to be costing us 300 to 500 transactions a month. Morrisville, Cary, Apex and Holly Springs have the most acute inventory shortages. New construction permits were up 4% and new construction sales were up 2 points but this was hardly enough improvement to lessen the shortages issues.

Mortgage Rates:  Rates remain in the 4 to 5% range.

Our Advantage:  We have a unique and comprehensive discounting analysis to help you price your home if you are a seller.  If you are a buyer, our highly detailed Triangle city by city analysis will really help you choose which city to buy your home or investment property in.  These tools coupled with our market expertise, and professionalism offer you, your friends, and associates the best real estate buying and selling support in the industry.

Did you know:  Less than half of all signed Offers to Purchase have closed thus far in 2014.

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

 

Total Triangle Home Sales Based
 

Q2-2013

Q2-2014

Trend

Comments

Total Sales Dollars

$1,207 Billion

$1.364 Billion

Up 13% Sales were up 5% on a unit basis and 13% on a dollar basis.  The higher dollar basis growth was driven by increases in high end sales mix, less distressed sales, and appreciation/price increases (particularly in new construction). All price segments above $200k increased sales for the quarter.
Number of Homes Sold 8,827 9,068 Up  5%

 

Average Number of Active Listings & Months on Hand

Q2-2013

Q2-2014

Trend

Comments

10,598 1,138 Down  4% Low inventory remains problematic and we believe this lack of supply is affecting sales by 300 to 500 transactions per month.  Meanwhile our population continues to grow 1.7% (38,000) per year.

 5.6 Months on Hand

4.6 Months on Hand  Down 19%
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

Q2-2013

Q2-2014

Trend

Comments

1,402 1,462 Up 4% New permit growth was marginal with builders siting "lack of lots" as the issue.  Developers appear to be working on the lot shortage problem. We will investigate this issue further over the coming months.

 

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

Segment

Q2-2013

Q2-2014

Trend

"Comments

Listings Closed

115 Days

105 Days

Improved 9% Days on market are dropping as the strong sales continue - an expected trend.
Active Listing

143 Days

148 Days

Worsened 4%

 

Total Triangle Average Price of Sold Homes

Q2-2013

Q2-2014

Trend

Comments

$218,533 $224,906 Improved 3% This small increase is being driven by less discounting and a lower percentage of distressed.

 

Discounting:  Sold Price to Original List Price %

Q2-2013

Q2-2014

Trend

Comments

94.1% 95.0% Improved 0.9 points Discounting lessened as a result of the lower inventory levels.

 

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

 Q2-2013

Q2-2014

Trend

Comments

15.2% 11.1% Decreased 27% The percent of sales that were distressed decreased and the number of Distressed "For Sale" declined for the fourth consecutive month.

 

Showings

Q2-2013

Q2-2014

Trend

Comments

 200,733 195,205 Down 3% This impressive showings growth suggests continued strong near term sales growth. 

 

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The Market Smart Investor™  subscription product is designed for investors, developers, and builders.  The reports provide market information, trends, analysis, leading indicators and forecasts and are segmented by price, multiple geographies, subdivision, builder, new, and resale product.  Special "drill down" reports/studies are also offered, generally on a quoted basis and at the request of the subscriber.  The source data generally comes from the MLS, Tax, and Public records. 

 Contact Al  to receive further information on these high value subscriptions.

 

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