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Home sales in the 3 main counties making up the Research Triangle Park area of NC were up 7.9% in the first quarter of 2010 when compared to 1st quarter 2009. The average sales price dropped 3.7%, however, from $237,900 to $229,000. Sales were up 13.7% in Orange County, 9.7% in Durham County and 7% in Wake County respectively. Sales in Durham County held up best in 2009, down 7.6% for the year. Orange County (Chapel Hill) sales ended the year down 10.6%, while Wake County sales (Raleigh-Cary) were down 13.4% for the year. Sales in the Research Triangle Park area were down 28.8% in 2008 as compared to 2007. The decline in home sales in 2008 was fairly consistent in the 3 county area with declines in each county in the 28-29% range.
So after several years of lagging the nation in price appreciation at the beginning of the decade, the downward movement of home prices in the Triangle area is significantly better than the national averages over the past 5 years. In the 5 year period ending March 2010, Durham MSA home prices have risen 13.5% while Raleigh-Cary MSA prices rose 14.4%. Home prices over the past 5 years for the entire US decreased 2.9%. Continued slow sales, however, are beginning to put pressure on prices in areas and price ranges of the Triangle with excess inventory. The unemployment rate for the Durham-Chapel Hill MSA stood at 7.2%% at the end of April 2010, after peaking at 8.4% in June 2009 and ending the year at 7.7%. Unemployment for the Durham-Chapel Hill MSA stood at 5.9% at the end of 2008. These figures were still well below the state unemployment rate of 10.8% and the national rate of 9.7% at the end of April as the entire country tries to recover from a lengthy recession. Lender underwriting requirements have definitely tightened over the past couple of years but money for purchasing homes is still available to qualified buyers with stable employment and good credit history. For buyers short on downpayment money, FHA loans have resurfaced as the loan vehicle of choice. Trying to time the bottom of the market in terms of pricing and interest rates is a difficult proposition, just like trying to time the stock market. Interest rates are still near historical lows but fluctuate constantly. When the economy improves and buyers start to stir, both interest rates and home prices are likely to increase. Therefore, this is a great time to purchase a home!
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Closed home sales in the first quarter of 2010 were up 13.7% over the same period in 2009. Home showings were also up for the quarter with an increase of 17.4% versus first quarter 2009. The average sales price of homes in Orange County for the quarter was $349,290, down 19.8% from 2009. The median sales price of homes sold in the first quarter was down 21.1% from $360,000 to $284,000.
The real estate market in Chapel Hill and Orange County showed dramatic improvement in the fourth quarter with sales up 46.1% when compared to 2008. Much of this increase was undoubtedly attributable to the federal first time homeowner tax credit which was scheduled to expire November 30 before Congress extended and enhanced the program to include existing homeowners.
Despite a strong 4th quarter, home sales in Orange County NC ended the year down 10.6%. Sales through September 2009 were down 22% from 2008. Sales for calendar year 2008 were down 28% when compared to 2007.
The average price of all Orange County homes sold in 2009 was $317,847, down 1.2% as compared to 2008. For Chapel Hill-Carrboro, the average sales price through December was $371,431 down 1.6% from $377,549 in 2008. Average sales price in all of Orange County for 2008 was $322,477, down 5.9% from 2007 figures of $342,740. (Source-Triangle MLS)
The average prices of sold homes in Chapel Hill and Orange County was still well above the average sold prices in 2009 of $196,310 in Durham County and $243,516 in Wake County (Raleigh/Cary), the other two primary counties comprising the Triangle region. (Source-Triangle MLS)
The median price of homes sold in Orange County for 2009 was $258,000, up 1.2% from 2008. The median price of Chapel Hill-Carrboro homes closed in 2009 was $308,000. up 2.7% from 2008. The median price of sold homes in calendar year 2008 was $255,000, up 7.6% from 2007. These numbers indicate prices of smaller homes are holding up very well (Source-Triangle MLS)
The demand for homes in Chapel Hill and Orange County priced under $300,000 is still high, putting a floor on the price of homes in the area, but economic conditions and slow sales are forcing builders and sellers of more expensive homes to negotiate a little more as the percent of original list price received by the seller dropped from $97.2% to 96.7% in Chapel Hill-Carrboro in 2009.
Inventory of available Orange County homes in all price ranges stood at 19 months as of March 31, 2010, up from 8 months in inventory at the end of December. Inventory of homes priced under $300,000 was at 10 months at the end of March. Inventory of homes in all price ranges at stood 7 months at the end of 2008. (Source-Triangle MLS)
For the entirety of Orange county the average price of all homes on the market as of March 31, 2010 was $454,537 versus $476,079 at the end of March 2009, a 4.5% decrease, while the average price of new homes on the market was $574,293 as compared to $617,781 at the end of March 2009, an decrease of 7%.
The average days on the market for sold homes in Orange County in the first quarter was 125 days, the same as the first quarter of 2009. (Source-Triangle Multiple Listing Service)
Local Economy-
The unemployment rate for Orange County stood at 5.9% at the end of April 2010, an improvement from 6.2% at the end of December and the high of 7.1% in July 2009. Orange County gained 1,646 workers in the first quarter after losing 2,980 workers during calendar 2009. The unemployment rate in Orange County was 4.8% at the end of December 2008, and only 2.9% at the end of December 2007.
The statewide seasonably adjusted unemployment rate for N.C. was at 10.8% at the end of April while the national unemployment rate stood at 9.7%. (Source- Employment Security Commission of NC) While the employment picture in Orange County worsened over the past couple of years, the local economy is showing signs of life and is in a much better position than the rest of the state or the nation as a whole. This is primarily because education and health care are the primary industries of Chapel Hill.
In summary, after months decreasing sales, the real estate market in Chapel Hill and Orange County continues to improve after rebounding nicely in the fourth quarter. Inventory levels are still high compared to levels at the end of 2007 and average and median sold prices have dropped dramatically. The cause of the drop is primarily that the federal homebuyer tax credits stimulated sales in the lower price ranges, but not the upper price ranges. Two plus years of diminishing sales has put downward pressure on all prices though, so with interest rates still near historic lows it's a great time to by a home in Chapel Hill, Carrboro and Orange County!
If you are interested in purchasing a home in Chapel Hill or Orange County in the near future, now seems to be a great time while interest rates are still low and inventory relatively high. Home prices might be higher in Chapel Hill and Orange County compared to the rest of the Triangle but the desirability of the school system and the lure of the college environment make Chapel Hill an appealing choice for many executives, professionals, and retirees relocating to the Triangle area. They don't call Chapel Hill the "Southern Part of Heaven" for nothing.
For additional information on the market in the Chapel Hill and surrounding area or to discuss buying or selling real estate in Orange County, please contact me at 919-536-0323 or send me an email to larry@larrypulley.com. Thanks and I look forward to assisting you.
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The real estate market in Chapel Hill and Orange County showed dramatic improvement in the fourth quarter with sales up 46.1% when compared to 2008. Much of this increase is attributable to the federal first time homeowner tax credit which was scheduled to expire November 30 before Congress extended and enhanced the program to include existing homeowners. This is evidenced by the fact that November 2009 home sales were more than double sales in November 2008, while in December closed sales were up only 6.7%.
For calendar year 2009, home sales in Orange County ended down 10.6%. Sales through the first three quarters of 2009 were down 22% from 2008, after falling 28% for calender year 2008 when compared to 2007.
The average price of Orange County homes sold in 2009 was $317,847, down 1.2% as compared to 2008. For Chapel Hill-Carrboro, the average sales price for 2009 was $371,431 down 1.6% from $377,549 in 2008. Average sales price in all of Orange County for 2008 was $322,477, down 5.9% from 2007 figures of $342,740.
The average prices of sold homes in Chapel Hill and Orange County was still well above the average sold prices in 2009 of $196,310 in Durham County and $243,516 in Wake County (Raleigh/Cary), the other two primary counties comprising the Triangle region.
The median price of homes sold in Orange County for 2009 was $258,000, up 1.2% from 2008. The median price of Chapel Hill-Carrboro homes closed in 2009 was $308,000. up 2.7% from 2008. The median price of sold homes in calendar year 2008 was $255,000, up 7.6% from 2007. These numbers indicate prices of smaller homes are holding up very well
The demand for homes in Chapel Hill and Orange County priced under $300,000 is still quite high, putting a floor on the price of homes in the area, but economic conditions have forced builders and sellers of more expensive homes to negotiate a little more as the percent of original list price received by the seller dropped from $97.2% to 96.7% in Chapel Hill-Carrboro. It appears though that builders are raising prices again as the average price of newly constructed homes on the market rose 8.5% from Dec. 2008 to Dec. 2009 (see below).
For the entirety of Orange county the average price of all homes on the market as of December 31, 2009 was $460,173 versus $453,388 at the end of 2008, a 1.5% increase, while the average price of new homes on the market was $578,418 as compared to $532,997 at the end of December 2008, an increase of 8.5%. The December 2008 average price represented an increase of only 0.3% from average prices of $452,184 at the end of December 2007.
Inventory of available Orange County homes in all price ranges stood at 8 months as of December 31, 2009, with available homes up 5% from Dec. 2008. Inventory of homes priced under $300,000 was only 6 months, though. Inventory of homes in all price ranges in Orange County was at 7 months at the end of 2008. Orange County had only a five month supply of homes at the end of December 2007 The number of speculative (new) homes on the market in Orange County as of Dec. 31, 2009 had fallen to 164, down from 194 a year earlier, a decrease of 14% as new home builders reduced their standing inventory.
In summary, after months decreasing sales, the real estate market in Chapel Hill and Orange County rebounded nicely in the fourth quarter. Inventory levels are still high compared to levels at the end of 2007 and prior years, particularly in homes priced above $400,000 so we'll have to wait and see if builders are able to sustain recent price increases in the coming months.
If you are interested in purchasing a home in Chapel Hill or Orange County in the near future, now seems to be a great time while interest rates are still low and inventory relatively high. Home prices might be higher in Chapel Hill and Orange County compared to the rest of the Triangle but the desirability of the school system and the lure of the college environment make Chapel Hill an appealing choice for many executives, professionals, and retirees relocating to the Triangle area. They don't call Chapel Hill the "Southern Part of Heaven" for nothing.
For additional information on Durham real estate or the Durham community please contact me at 919-536-0323 or by email larry@larrypulley.com or check me out on the web at www.larrypulley.com.
The Durham, NC residential real estate market showed signs of recovery in the 4th quarter of 2009 after experiencing significant declines over the past two years. Homes sales in Durham County were up 27.8% for the quarter after showing period over period declines in each quarter beginning the second half of 2007. A big reason for this surge in sales, though, was the first time homebuyer tax credit, originally scheduled to expire on November 30, 2009 but extended by Congress through April 30, 2010. Home sales in October and November were up dramatically, but sales in December, after the scheduled expiration, were flat when compared to 2008.
For the year, sales of residential properties in Durham ended down 7.8%. Home sales were down 18.1% through 3 quarters, falling 9.3% in the third quarter when compared to 2008, after declining 15.6% in the second quarter and 33.8% in the first quarter. This follows the calendar year 2008 when sales were down 29.1% when compared to 2007.
Despite soft sales, home prices in Durham have held up relatively well. The average price of homes sold in 2009 was $196,310, flat when compared with 2008 average prices of $196,259, and down only 1.1% from the average sales price of $198,452 recorded in 2007. The median price of homes sold in 2009 was $171,200, also flat compared to 2008 median price of $171,250.
The average price for all homes on the market including resales as of Dec. 31 2009 was $237,159, down 2.6% from $243,462 at the end of 2008. The average price of new homes on the market as of Dec. 31, 2009 was $279,205, down 5.2% from the average price of speculative (new) homes of $294,528 at the end of 2008. A decrease in average list price while the average sold price remained steady indicates sellers have realized they have to compete on price to get their homes sold. Resale homes make up approximately 3/4 of the available inventory of homes.
Slowing sales have created more of a buyers' market in Durham. The best homes, in terms of location, price and condition, still sell within a reasonable amount of time. With a lower absorption rate for the available inventory of homes, as evidenced by a increase in months in inventory to 7 months as of Dec. 2009 versus 6 months at the end of Dec. 2008, and therefore increased competition in some segments and locations, it is taking longer to move some homes.
Sellers looking to put their home on the market need to understand that they must have the home in tiptop condition and priced correctly. For buyers, this is an excellent time to buy a home as inventory and thus choices are high while interest rates are still near historical lows. Meanwhile home prices in the area have held fairly steady, so there is no need to wait for lower prices that probably won't come.
For additional information on Durham real estate or the Durham community please contact me at 919-536-0323 or by email larry@larrypulley.com or check me out on the web at www.larrypulley.com.
Realtor Broker serving the Durham, NC market concentrating on areas near Research Triangle Park, Duke University and UNC-Chapel Hill.
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