Triangle Housing Market Report�  - 2nd Quarter 2010

 

Market Score

5

 Positives

2

 Negatives

 

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The Broad Trends:  The Triangle housing market had a big 2nd quarter and 1st half of the year vs. 2009.  The Federal Tax Incentive clearly increased sales. Looking forward, we expect to to see lower sales in Q3 than 2009's Q3 as the Tax Incentive has expired and the market appears to be taking a breather.

Sales were up in the quarter and the 1st half on both a unit and dollar basis

Months on Hand dropped even as inventory units grew. Strong closings caused the improvement in MOH

Average sold price climbed as the segments between $200k and $500k ran ahead of 2009's pace, thus bringing the average up

Showings fell significantly behind 2009 for the 2nd quarter, confirming that the expiration of the tax incentive was a negative for our market

Mortgage Rates:  Rates for conforming loans remain well under 5%

2010 Estimate:  We are staying with our original estimate of 8% - 10% growth in sales vs. 2009 as we expect to see an incease in activity at the end of the 3rd quarter and most of the 4th quarter.

Before you decide to sell or buy, please call for the latest Triangle market information including the areas surrounding your properties. Pricing remains volatile. Closings are generally more difficult to complete and, as a result, it takes longer to close. Let our market knowledge, professionalism, and experience help you achieve your goals.

Questions, Suggestions, and Help...

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

 

Total Triangle Home Sales Based  on the Triangle MLS

Triangle MLS Data

2nd Quarter 2009

2nd Quarter 2010 

Trend

Comments

Total Sales Dollars $1.343 Billion $1.719 Billion arrow UP  Up 28% Very strong sales in the 2nd quarter and we are also up nearly 20% for the 1st half of 2010 vs. the 1st half of 2009. We believe we will be softer than 2009 for the next few months and then regain some momentum in the fall and end the year up 8-10%  
Total Number of Homes Sold 5,995 7,519 arrow UP  Up 25%

 

Total Number of Active Listings in the Triangle MLS

2nd Quarter 2009 Ending

2nd Quarter 2010 Ending

Trend

Comments

17,268 18,826  arrow UP Up 9% Listings inventory remains problematic. There are just too many listings and it is coming from resales not new construction. We have shown over 250 homes in the past 2 months and it is clear that many listings are still over priced

 

Triangle Total Months Inventory on Hand

2nd Quarter 2009 Ending

2nd Quarter 2010 Ending

Trend

Comments

9.9 9.8 arrow - DOWN  Down 1% The months on hand measure improved due to the strong number of closings in the quarter.  This number will climb again in Q3
6 Months of Inventory is considered a balanced market.

 

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

Segment

2nd Quarter 2009

2nd Quarter 2010

Trend

Comments

Listings Closed

101 Days

100 Days

arrow - DOWN1% Days on Market was stable during the quarter. Our market analysis shows that when priced correctly, homes sell reasonably fast. If priced too high it can be a long wait. It also takes more showings to get a contract because buyers have much more to look at
Active Listing

133 Days

133 Days

No Chg

 

Total Triangle Average Price of Sold Homes

2nd Quarter 2009

2nd Quarter 2010

Trend

Comments

$222,800 $228,100  arrow UPUp 2.4% Average prices grew in the quarter as the number of homes in the $200k to $500k segment increased from the 2009 pace.  This is a good sign for those attempting to sell homes between $300k and $500k, an area that has been hard hit by the lack of buyers

 

Showings

2nd Quarter 2009 Ending

2nd Quarter 2010 Ending

Trend

Comments 

217,394

185,339

arrow - DOWN Down  15% Showings slowed significantly in May and June, coinciding with the expiration of the tax credit. As a result, we will see fewer sales than last year through the remaining summer months

 

Want to Know More...

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

 

 

Source data:Triangle MLS, Inc.,S.M.A. Publications, Inc., and the National Association of Realtors
� Schnaidt Real Estate, Inc. 2009/2010