Triangle Housing Market Report�  - 3rd Quarter 2011

 

Triangle Housing Market Score

6

  Positives

2

  Negatives

 

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Al's Market Score:  The strongly positive Q3 2011 score is the 2nd best we have seen in 7 quarters

No more Tax Incentives:  This report is the first in 3 years where there were no tax inventives impacting the comparisons

Favorable Trends:  Inventory, Showings, Discounting, and Sales were each better than Q3 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, you have a choice of two pricing strategies and the one you choose will have a surprisingly large impact on your financial return and your days on market. Call us for further insight in 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:  Four 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 has worsened slightly

Referrals:  Your referrals and business are so important to our business. Let our unmatched expertise and work ethic help you, your friends, and associates.  It's easy-a simple phone call or email does it

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

 

Total Triangle Home Sales Based

Triangle MLS Data

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

Total Sales Dollars $1.133 Billion $1.236 Billion Up 9% Finally, sales growth over the previous period!  October will likely be our 4th consecutive month of year over year sales growth
Number of Homes Sold 4,788 5,467 Up 14%

 

Average Number of Active Listings & Months on Hand

3rd Quarter 2010 Average

3rd Quarter 2011 Average

Trend

Comments

18,695 16,127 Down 14% Inventories are clearly on the decline, however, we are still carrying several thousand too many homes in inventory as the Months on Hand data reflects.  Inventories may take another year or so to normalize
 10.7 Months on Hand 10.7 Months on Hand  No Change
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

923 1,053 Up 14% Permits grew in the quarter but are down for the full year

 

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

Segment

3rd Quarter 2010

3rd Quarter 2011

Trend

"Comments

Listings Closed

107 Days

129 Days

Up 21% Our high inventory levels continue to drive high Days on Market, thus keeping this a Buyers' market
Active Listing

142 Days

162 Days

Up 14%

 

Total Triangle Average Price of Sold Homes

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

$236,400 $225,900 Down 5% We saw a significant volume shift to less expensive homes this quarter which brought the average price down.  We see no evidence of declining property values in the data

 

Discounting:  Sold Price to Original List Pirce %

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

91.3% 91.7% Improved 5% Q3 Sellers had to discount price 0.4% less to sell versus last year's sellers

 

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

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

16% 15% Down 7% A slight reduction in the percent of distressed sales.  Distressed inventory remains flat at about 1250 units

 

Showings

3rd Quarter 2010

3rd Quarter 2011

Trend

Comments

141,144 147,090 Up 4% Increased showings do lead to increased sales

 

 

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 professional market overview and analysis unique and helpful.   Contact Al  

 

 

Source data:Triangle MLS, Inc. and the National Association of Realtors
� Schnaidt Real Estate, Inc. 2010/2011