Just the Facts Please!

OK - time to regroup and look at just what the Raleigh Real Estate Market in Wake County is doing... Let's take a good look at the Good, the Bad, and The Ugly;

The Good

• 3rd quarter closings were the 6th highest in history

• Current supply of 8 months is lower than national current supply of 11 months

• Average house price appreciation in the Triangle Multiple Listing Service has been 4%. National rate is a negative -4.8%

• Average re-sale sales price +4%, average overall sales price +8%, average list price +2%

• Houses priced correctly sell in an average of 55 days

The Bad

• Overall inventory grew 7%, making 2 consecutive months of <10% growth

• Withdrawn listings increased 2% compared to 9/07

The Ugly

• 29 consecutive months of inventory growth, 20 consecutive months of lower pending sales

• 63% of all price points have an oversupply of housing product

• 9/08 expired listings were 227% higher than 9/07 expired listings

• 8/08 employed workforce was lower than the 8/07 workforce for the first time since ‘01 v. ‘00

The chart below (courtesy of Stacey Anfindson - T.A.R.R Report) highlights the difference between December 2007 and December of 2008..

Description December 07 December 08 % Change Wake County Stats Number of detached sales 885 786 -11.19 % Number of condo sales 305 210 -31.15 % Number of townhouse sales 52 102 96.15 % Number of new construction sales 587 477 -18.74 % Number of re-sales 655 621 -5.19 % Average detached sales price $280,039 $292,358 4.40 % Average condo sales price $182,790 $187,767 2.72 % Average townhouse sales price $123,337 $303,172 145.81 % Average new construction sales price $288,470 $333,453 15.59 % Average re-sales price $214,759 $227,200 5.79 % High Sale price detached $1,195,000 $3,100,000 159.41 % High Sale price condo $505,000 $1,243,500 146.24 % High Sale price townhouse $274,500 $847,500 208.74 % High Sale price new construction $947,500 $3,100,000 227.18 % High Sale price re-sale $1,195,000 $1,394,000 16.65 % Average Sales Price for the entire area $249,597 $273,359 9.52 % Number of Listings for the entire area 7909 8103 2.45 % Average List price for New Construction for the entire area $419,564 $445,663 6.22 % Average List price for Re-sale for the entire area $319,906 $320,151 0.08 % Average List price for the entire area $362,811 $361,158 -0.46 %

There you have it - the facts. Is our market down? Yes the number of detached sales was down 11.19%. But take a look at the average detached sales price - it was up 4.40%

We will be watching the NC Employment Security Commission closely as they reveal Wake Counties workforce numbers for January. We'll also be watching pending sales and showing reports for this month as well. Those lower figures are troubling.

There's no denying that the market is adjusting itself. That is one part of the news out there that is factual. But I can't help but wonder what would happen if everyone stopped listening to the gloom and doom reported nightly and just went about their daily business? Remember people buy and sell homes based on their personal needs not what the market is doing.

I am sure that with interest rates as low as they are and inventory as ripe as it is we will see an upswing as we head into the spring market. Especially from the wise and well counseled 1st time home buyers. Don't forget that the government has up to $7,500 tax credit waiting for those that qualify.

Happy House Hunting,

About the author: Pamela is a Raleigh Realtor with The St. Peter HomeSelling Team at Prudential YSU Realty in the Triangle.
A team of passionate North Carolina Brokers dedicated to connecting their clients to success in home buying and home selling in the Triangle. Pamela can be reached via email at Pamela@RaleighHomesOnline.com or by calling (919) 645-2522.

For your real estate needs The St. Peter HomeSelling Team serves the following areas; Raleigh, Cary, Apex, Morrisville, Holly Springs, Fuquay Varina, Garner, Wake Forest