Greensboro NC 3Q08 Housing Update

Last week, the TRIAD MLS released its 3^rd quarter results. Below you will find a summary of key findings for the Greensboro metro area.

Current Outlook

The number of existing, single-family homes sold in the Greensboro area of Guilford County totaled 704 in the 3rd quarter of 2008 after adjustment for seasonal variation. The number sold was down -7.7 percent compared to the level of sales recorded in the 2nd quarter, and it was -14.3 percent below the number sold during the 3rd quarter one year ago.

At the end of the 3rd quarter of 2008, the inventory of homes on the Greensboro market was 2,614, or 3.5 times the number of homes sold in the 3rd quarter. The inventory/sales ratio is up substantially from what it was at the end of the 2nd quarter. At the current sales pace, it will take 10.4 months to exhaust the inventory. The number of existing homes offered for sale was up 11.4 percent from what it was at the end of the 2nd quarter, and it was 7.7 percent above the level one year ago.

The quality-adjusted price of the average home sold in the 3rd quarter was off -1.3 percent from the previous quarter. The average quality-adjusted price of an existing home in Greensboro was $185,861. The average this quarter was -4.1 percent below the average recorded in the 3rd quarter of last year.

Over the past year, consumer prices nationally have risen 4.3 percent, indicating that real home prices in Greensboro have declined. Nationally, the pace of existing home sales has fallen -10.7 percent over the past 12 months.2 Average home prices are down -9.5 percent across the nation and -3.4 percent in the South. The national inventory of unsold homes is up 2.9 percent over the past 12 months and will take 10.4 months to sell at the existing pace of sales.

Among other indicators of housing demand, the average time on the market for existing homes sold was 98.9 days, up 2.0 percent from the average in the 2nd quarter. The sale-list price spread, which shows the ratio of selling to listing price, was lower at 92.6 percent, indicating an increase in the level of discounting in the market. Over the past year, time on the market has risen 9.7 percent, and the spread has fallen, showing that the time to sell a home has risen and sellers are accepting a smaller percentage of the listing price.

THOUGHTS...

•1. Inventories are still rising and have not yet stabilized. This is expected to continue well into the first part of 2009.

•2. Overall sales volume dropped quarter over quarter by 7.7% indicating less buyer demand in the marketplace. Buyer reluctance will likely remain a significant impact until efforts from the Federal housing rescue plan are felt.

•3. Real home prices have declined in Greensboro quarter over quarter with many sellers discounting the price of their homes to reflect the change in real value by today's market standard. The average reduction is almost 8%. Location and condition will determine profitability of the sale of your home while PRICE will determine the probability that your home will sell at all!

For more information on the status of our local market, please give me a call at 336-854-5607 or visit me at www.triaddreamhomes.com

As always, consult your professional Realtor for advice on buying or selling in this challenging market!