Triangle Housing Market Report�  - Third Quarter 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 the Third Quarter of 2013.  

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

In Summary:  Q3 '13 sales grew 24% on a units basis and 30% on a dollar basis over 2012.  All price segments but two experienced growth.  Low inventories have become problematic as 19 of the 20 Triangle city markets are significantly below normal levels.  New construction permit growth slowed to half the year to date average at 17% growth. 

Sales growth finally reached the $1M+ market as it grew 35%, up for a -12% growth in the first quarter.  Despite this high end growth remains above $700k price levels.

Mortgage Rates:  Rates have returned to 3.5%-4.5%.

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 the city in which to buy your home or investment property.  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 2013.

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

 

Total Triangle Home Sales Based
 
Q3-2012
Q3-2013

Trend

Comments

Total Sales Dollars
$1.5 Billion
$2.0 Billion
Improved 30% Sales growth rates between $100k and $900k ranged from 26% to 77%. While markets above $700k are improving, there remains much work to do, especially above $1M.
Number of Homes Sold 6,723 8,352 Improved 24%

 

Average Number of Active Listings & Months on Hand

Q3-2012

Q3-2013

Trend

Comments

12,911 11,412 Down 12% Low inventory remains problematic as builders are slow to fully respond to increased demand.  There are too few resale sellers to compensate for the lack of new construction.  The Triangle inventory levels are 30% below normal levels.

 5.9 Months on Hand

4.1 Months on Hand Down 30%
   6 Months of Inventory is Considered a Balanced Market

 

New Construction Permits for Wake County Only

Q3-2012

Q3-2013

Trend

Comments

1,383 1,616 Improved 17% New permit growth continued but at half the year to date growth rate so new construction appears to be slowing. This is not great news as the market could use another 2-3 thousand inventory homes. 

 

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

Segment

Q3-2012

Q3-2013

Trend

"Comments

Listings Closed

114 Days

95 Days

Improved 17% Days on market are dropping as the strong sales continue and inventories remain low.
Active Listing

149 Days

144 Days

Improved 3%

 

Total Triangle Average Price of Sold Homes

Q3-2012

Q3-2013

Trend

Comments

$228,241 $238,666 Improved 5% Increased higher end sales less distressed sales, and appreciation drove the average sales price higher.

 

Discounting:  Sold Price to Original List Pirce %

Q3-2012

Q3-2013

Trend

Comments

93.8% 95.7% Improved 1.9 points Discounting continues to improve with a two point improvement in the third quarter.

 

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

Q3-2012

Q3-2013

Trend

Comments

14.9% 9.2% Decreased 24% The number of distressed sales dropped in nine of eleven price segments.  Only the $300k to $400k and $700k to $800k segments grew.

 

Showings

Q3-2012

Q3-2013

Trend

Comments

 164,607 187,011 Improved 14% While showing growth rates have slowed from earlier this year, they remain robust.  The average listing is showing 5 times per month and it is taking an average of 22 showings to get to a sale. 

 

 

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. 2012/2013