My pre-licensing real estate class was postponed today due to ice on the roads so I am sitting looking out my window at the snow and the birds at our bird feeder. Since I have some “extra” time, I am writing my real estate market update for our blog.
November was another good month for real estate both at the national level and here in the Triangle. Closed home sales in the four main counties of the Triangle area of North Carolina (Durham, Johnson, Orange and Wake) were up 26.7% as compared to November 2015. In addition, pending home sales in the four counties were up 6%. Pending sales statistics is a forward looking indicator that promises to bring increased sales for the month of December and January as well.
One again, there was an increase in home sales while inventory levels continued to decline. In the four main counties of the Raleigh area, the total amount of housing inventory decreased 11% in November compared to last November for the 27st consecutive month. Inventory levels were 8% below October 2016 which reflects a “normal” end of the year decline. This is the 8th consecutive month where the inventory level has been below 50 days.
According to Stacey Afindsen of Birch Appraisal Group of Cary, the increase in home sales while inventory levels continued to decline was due to an increase in the number of resale homes in November. New construction home sales declined in November by 4%. The overall supply of homes on the market in November had dropped to 2.7 months. This means that if no inventory was added to the market and homes sold at the rate they did in October 2016, all of the inventory would sell in less than 3 months. This represents a very strong seller’s market.
Other statistics of note are: 60% of the homes on the market sold within 30 days, 14% sold over final list price and financial concessions were paid on 66% of the closed sales. 52% of the inventory for the four counties went under contract during the month.
These and other positive statistics are skewed to the lower price points (under $400,000). Like most areas the Raleigh NC area actually has two real estate markets based upon location price point. Here the luxury housing market still has an abundance of inventory and prices are depressed. For example, in North Raleigh at list prices above $800,000 there is a 10 month supply of inventory. At this price point and above Cary (which is a highly desirable location) had 6 months of inventory and Wake Forest has an 13 month supply.
If you would like my complete Real Estate Market Update November 2016 PowerPoint or more information on your specific location contact me. There is absolutely no obligation. And if you are thinking of selling or buying a home or if you know of someone who is, Linda and I would love to help. Remember we provide: A high level of personalized service in buying and selling a home!