The following contribution comes from our Al Schnaidt, Sales Associate out of our Fonville Morisey ITB office and frequent contributor to WRAL news on all things Raleigh, Durham, Chapel Hill (and surrounding areas) real estate.
When 2012 began, economic forecasters were cautiously optimistic as to the direction of where the nation’s housing market was heading. In the our region of North Carolina – Raleigh, Durham, Chapel Hill and surrounding areas (more commonly known as The Triangle) - we are pleased to report the first half of 2012 has been unbelieveably strong. Take a look at these comparisons to the first half of 2011:
- Sales are up 16%
- Only the $800k to $900k segment did not grow sales
- Number under contract is up 25%
- Showings are up 11%
- 10 of 11 price segments grew sales from 4% to 30%
- Last year, home sellers realized 92% of their list price at closing, this year they are realizing 93.2%. That’s a 1.2 point improvement!
- New Construction Permits (Wake County) are up 62%
- Durham and Wake County are doing the best in terms of home sales with Durham showing almost a balanced market. First time we’ve seen that since ’08!
- It is possible that home values will turn positive by year-end
Negatives (and there are only a couple)
- Despite inventory shortages in the lower price segments, we continue to have 10 to 35 months of inventory on hand for the price segments above $400,000
- Distressed sales, while dropping from the high Q1 levels, are still running at 15% of sales
Is It Sustainable?
Given our weak job creation and high unemployment numbers, I do not believe the Triangle Housing Market can sustain the performance we have witnessed in the first half of the year…and understandably so. Look for single digit sales growth rates by year-end.
Still, with all those positives I mentioned above, our Triangle market continues to remain one of the strongest housing markets nationally.
So, Who’s the Typical Triangle Buyer Then?
Based on research I have done, it looks to be first-time home buyers as well as those looking to upgrade their housing. We can attribute much of this to low interest rates stimulating the desire to purchase now. Take a look at my July 12, 2012 interview with WRAL’s Bill Leslie to learn more:
And for more good news about our Triangle housing market, please take a look at my interview with WRAL’s Kelsey Carlson from just a few weeks ago as well.
If you’re planning to make a purchase this year, we’d love to help you. Interest rates remain historically low. It’s a GREAT time to buy!
Thank you for sharing your expertise with us, Al. We appreciate the positive news!