2nd Quarter 2008 Market Trends for Durham, NC

Time certainly has changed since the boom market of 2007. Year-to-date prices have declined in all areas of the Triangle except Wake County. We're seeing longer Days on Market (DOM) and total area sales down 29%. However, Durham is still a bargain compared with the other areas around the Triangle. Through 2007 the average sales price was $190,000 compared to $252,000 in Cary and $330,000 in Chapel Hill.

For most areas across the United States we have seen declining prices, fewer sales, and increased days on market. Overall inventory across the US stands at over 11 months. In the Triangle we've seen a slow down and increased inventory at 7 months but nothing like other areas in the country.

This year Bankrate.com and others indicate that the Triangle Market is one of the healthiest markets in the country. Our biggest challenge is families trying to sell their homes in other areas to move here. The bottom line - the market is moving. However, in some areas we are unfortunately seeing properties sit on the market and prices decline. I still think that this is a great time to buy. Interest rates remain at all time lows. Prices are the same as last year and in some cases have come down, especially in the luxury home market.

Here is a recap of some key elements in the Durham Real Estate Market:

• Inventory is stable +5% Resale, New Construction +15%
• Supply = 7 months compared to 11 months nationwide
• Showings 19% Decline from June of last year

Sales

• Contract pending levels off 21%; TMLS contract pending sales were off 26%
• Closings are off 29%
• Average DOM = 80; New Construction = 136 TMLS average = 02

Appreciation

• Up 3.97% vs. Nationwide decline of 4.8% and Southeast decline of 1.2%

Subdivisions

• Woodcroft
• Hope Valley Farms
• Grove Park

List to Sales Ratio 96%

One of my favorite magazines posted an article on how downtown Durham has a lot of activity going on, including arts, culture, and new restaurants. It's worth a read.

Overall expect a bumpy ride for the next 8-15 months but we are poised for stabilty and future growth.