Triangle Housing Market Report -- Issue 02-08

Al's Market Index

For Buyers

For Sellers

buyers7.gif sell4.gif

 

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Welcome to the second issue of our Triangle Housing Market Report� where our objective is to provide unique and otherwise unavailable market insights which will facilitate personal real estate decisions and corporate recruiting and organizational decisions.

This issue takes a first look at 2008 results by comparing the first Quarters of 2008 and 2007.  To net it, sales are lower than 2007, inventories are higher but did lessen slightly late in the Quarter, and average prices remained steady.  What are the seller and buyer implications?  

For sellers, special emphasis on list price decisions, home staging/preparation, high quality marketing, and creative incentives are important.  The percentage of sellers reducing list prices increased dramatically, suggesting that those sellers who were too optimistic regarding their home's appreciation are retreating in growing numbers.  For buyers, having a good process for sorting through the increased number of choices and performing careful pricing due diligence are important.

At Schnaidt Real Estate, our service offerings and processes reflect these new market realities.  This report itself is evidence of our commitment to thoroughly understanding the market so we can better help each of you.

Historically low mortgage rates, a still-steady local economy, and continuing inbound relocations continue as positive market forces.

Questions, Suggestions, and Requests

Have specific questions, suggestions, or requests?   Click to E-mail those to us.  We are perpetually in search of Market Report content ideas and are always pleased to answer your questions, including those about specific properties.

 

Total Triangle Sales Based on Triangle Multiple Listing Service

Triangle MLS Data

First Quarter 2007

First Quarter 2008

Trend vs. Q1 2007

Comments

Total Sales Dollars

$1.734 Billion

$1.341 Billion

arrow - DOWNDown 23%

We are running at rates approximating 2004 levels.  It should be noted that the 2008 vs 2007 comparisons are tough because the years 2005 through 2007 were the best years ever in the Triangle.

Total Number of Homes Sold

7,469

5,641

arrow - DOWNDown 24%

 

 

Total Number of Active Listings in the Triangle MLS

1st Quarter 2007 Ending

1st Quarter 2008 Ending

Trend vs. Q1 2007

Comments

15,564

19,033

arrow UP   Up 22%

The Wake County segment with the most inventory is the $800,000 to $1,000,000 price group.
The Wake segment with the least inventory is the less than $150,000 price group.

 

Triangle Total Months Inventory on Hand

1st Quarter 2007 Ending

1st Quarter 2008 Ending

Trend vs. Q1 2007

Comments

5.1

8.6

arrow UP  Up 68%

January ended with 11.5 months inventory on hand so we did see some improvement within the Quarter.  

6 Months of Inventory is considered a balanced market.

 

Q1 of 2007 vs Q1 of 2008 Days on Market

Segment

Percent of Homes Sold Q1 of 2007

Percent of Homes Sold Q1 of 2008

Comments

0 to 60 Days

48%

44%

The time to sell a home is extending as the inventory grows.  Sellers must be patient.  The buyers are there but they have more to look at and seem less motivated to move quickly.

61 to  Days 120

25%

25%

Greater than 120 Days

27%

31%

 

Average Sale Price

County / Region

1st Quarter 2007

1st Quarter 2008

Trend

Comments

Wake County

$253,956

$259,151

arrow UP  Up 2.0%

While average prices are up 2+%, the segments with high inventories are likely to see some reductions as the inventory corrections occur.

Total Triangle

$231,910

$237,591

arrow UP Up 2.4%

 

Showings

1st Quarter 2007 Ending

1st Quarter 2008 Ending

Trend

Comments

244,833

211,856

arrow - DOWN  Down 13%

Showings are down less than sales - that may be a good sign for us.  If you read the 2008 Existing Homes Outlook below, you will see that the NAR forecast calls for a better 2nd half of 2008 in existing home sales.

 

Interesting Charts and Info

In this section we post other graphs, charts and information.  Last issue we posted a 10 year appreciation chart.  In this issue time we offer an Existing Home Sales Outlook news release by the National Association of Realtors' Chief Economist, Lawrence Yun and a graph of Home Sales and Average Prices.  Special requests for postings are gladly considered....

2008 Existing Homes Outlook                                                 2004 to 2007 Sales & Avg. Price Graph

Source data from Triangle MLS, Inc., Stacy P. Anfindsen of S.M.A. Publications, Inc., and the National Association of Realtors   � Schnaidt Real Estate, Inc. 2008