Triangle Housing Market Report�  - 3rd Quarter 2012

 

Triangle Housing Market Score

7

  Positives

1

  Negatives

 

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Al's Market Score:  The market score remains strongly favorable at '7' to '1'.

Favorable Trends:  Sales, inventory, discounting, showings, and new construction permits were all positive.

Mortgage Rates:  Rates remain in the 3-4% range.  The loan approval process remains challenging, especially for jumbo loans.  Call us for lender recomendations.

In Summary:  Sales in Q3 2012 grew 22% over Q3 2011.  All price segments experienced growth as housing sales continued strong despite the sluggish economy and low job creation, suggesting that pent up demand was higher than originally estimated.  This sales growth and continued restraint from new home builders has eliminated excess inventory for the first time since 2007.

Referrals:  Let our unmatched market expertise, professionalism, and work ethic work for you, your friends, and associates.  A simple phone call or email to us does it.

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

 

Total Triangle Home Sales Based
 

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

Total Sales Dollars $1,248 Million $1,535 Million Improved 23% All price segments have grown at double digit rates except for the $800k to $900k segment which grew 8%.
Number of Homes Sold 5,509 6,705 Improved 22%

 

Average Number of Active Listings & Months on Hand

3rd Quarter 2011 Average

34d Quarter 2012 Average

Trend

Comments

16,127 12,911 Improved 20% Excess inventory has fallen from 5,023 to a negative 253, meaning the overall market now has under 6 months of supply on hand.  This drop was much quicker than anticipated.
 8.8 Months on Hand 5.9 Months on Hand  Improved 33%
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

1,053 1,383 Improved 31% Permits grew 31% vs. last year and 7% vs. last quarter.

 

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

Segment

3rd Quarter 2011

3rd Quarter 2012

Trend

"Comments

Listings Closed

128 Days

115 Days

Improved 11% Days on market are dropping as sales continue storng - an expected trend.
Active Listing

162 Days

149 Days

Improved 8%

 

Total Triangle Average Price of Sold Homes

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

$221,638 $228,548 Improved 3% This increase is being driven by growth in higher end sales and less discounting.

 

Discounting:  Sold Price to Original List Pirce %

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

91.8% 93.8% Improved 2 points Discounting has lessened in the past year as a result of the lower inventory levels and fewer choices for buyers.

 

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

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

14.4% 14.9% Worsened 3% The percent of home sales that are distressed grew slightly. Distressed "For Sale" inventory remains flat at 2010 levels. The often spoken of foreclosure "shadow inventory" has yet to confirm its existence.

 

Showings

3rd Quarter 2011

3rd Quarter 2012

Trend

Comments

147,090 164,707 Improved 12% Consistently strong showings growth means continued sales growth.

 

 

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. 2011/2012