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.

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.

Home sales in the Research Triangle Park area of NC rose 19,5% in the 4th quarter, but finished the year down 14.6% when compared to 2008. Fourth quarter home sales were stimulated by the federal first time homebuyer tax credits which were set to expire at the end of November before being extended by Congress. Sales in November were up almost 70% from 2008, but December sales were actually down 7.3% when compared to 2008. Through the first three quarters of the year home sales were down 19.5%.

Of the three counties comprising the Research Triangle Park area, sales in Durham County (Durham) held up best, down 7.6% for the year. Orange County (Chapel Hill) sales ended the year down 10.6% when compared to 2008, 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 sales in 2008 was fairly consistent across the 3 county area with declines in each county in the 28-29% range.

Despite the slowdown in sales, the average price of homes sold held up reasonably well in contrast to some other areas of the country. With the continued slowdown, however, home prices did show some strain (see below).

2009 Average Sold Home prices and % change by County (City) through for 2009 are as follows:

Durham (Durham)- $196,310 up 0.0%
Wake (Raleigh/Cary)- $243,516 down 7.9%
Orange (Chapel Hill)- $317,847 down 1.2%

For the entire Triangle region, the average price of homes sold dropped 6.6% from $238,573 to $222,827 for 2009, while the median price of homes sold dropped 4.2% from $190,000 to $182,000 in the same period. The drop in prices was influenced as much by of the type of homes that were selling, i.e. more homes priced below $200,000 purchased by first time homebuyers taking advantage of the tax credit, as it was by diminishing home values.

Inventory of homes in the Triangle housing market stood at 7 months the end of 2009, the same as at the end of 2008. With fewer homes sold for the year, a stable absorption rate of inventory seems to indicate would be sellers were sitting tight until the market improves.  The primary reason for inventory stability, however, was a reduction of newly constructed homes by 26.7%. The overall inventory stability was actually good for the market though as greater inventory would put more strain on home prices. Total inventory at the end of December was actually down 14.5% in terms of number of homes on the market when compared to December 2008.

Average price of homes on the market in the three main counties making up Research Triangle Park as of December 31, 2009 was as follows:

Durham County
New Homes $279,205
All Homes - $237,159

Wake County
New Homes $402,921
All Homes $330,377

Orange County
New Homes $578,418
All Homes $460,173

In summary, sales for the year were down nearly 15% in 2009 for the three county Triangle area. Meanwhile home prices have fallen a bit, although at a slower rate than for much of the country. For the time being the local market is mixed; relatively balanced in the lower and middle price ranges (below $300,000) and in some of the more popular locations throughout the Triangle, but certainly favoring buyers in the upper price ranges including new construction.

For more information about the housing market in the Research Triangle Park area or to discuss buying or selling a home, please contact me at 919-536-0323 or larry@larrypulley.com or check out my website at www.larrypulley.com.

 The one subset of people short changed in the first time homebuyer tax credit are newlyweds where one spouse currently owns a home.  If the couple wants to purchase a new home jointly, either because they will reside in the area where the non homeowner lives, or will both be moving to another location, they're out of luck.  Under the tax credit rules, neither spouse can have lived in the previous principal residence of the home owning spouse for a period of three years prior to purchasing a new principal residence.  In a great majority of cases, this is not how couples unite, with one party owning a home but not living in it for three or more years prior to getting married.

Even the new existing homeowner tax credit provisions short change newlyweds.  Under this provision, both spouses must have lived in the principal residence for a period of five consecutive years out of the past eight years to qualify for the tax credit of up to $6,500.  So the union of couples where one spouse previously owned their prinicpal residence again won't qualify for the tax credit if they jointly purchase a new principal residence.

In a country with government policy presumably encouraging the creation and stability of families, this oversight is unfortunate. I personally know of at least two couples who have or will be denied a tax credit and I'm sure there are many, many more.  How many more of you have similar experiences?  Not anything that can be done about it at the stage of the game, but unfair to many newlyweds nevertheless.

 Larry Pulley

The time tested real estate axiom is location, location, location. That's one of the great selling points for living in the Woodcroft and other nearby SW Durham neighborhoods.  With easy access to major job centers at Research Triangle Park, Duke University and UNC-Chapel Hill, plus easily accessible shopping, banking and medical facilities, SW Durham is a popular place to be.

Another nice feature of the Woodcroft community, for those who want to reduce their carbon footprint is public transportion. Triangle Transit  (formerly Triangle Transit Authority or TTA) buses go right through the center of Woodcroft down Woodcroft Parkway.  Triangle Transit buses connect the Triangle area with routes connecting Raleigh, Durham and Chapel Hill.  Each of these cities has its own public transportation system but only Triangle Transit runs between the cities. A rider can, however, make connections from one system to the another without additional cost by purchasing a regional pass.  Regional passes can be purchased by the day for $4 or by the month for $64. At www.gotriangle.org you can find your public transportation options and utilize the trip planner to get from point A to point B.

Triangle Transit buses run through Woodcroft about every half hour during the morning and evening rush hours on the way to Chapel Hill and then to the Durham VA Hospital area near Duke University.

Triangle Transit is particularly convenient for Woodcroft residents working or going to school at UNC-Chapel Hill as Route 403 goes through Woodcroft and arrives on the UNC campus in under 15 minutes. Parking is at a premium around the UNC campus, so taking public transportation saves time and money.  A one way ticket is available for $2 with a round trip ticket costing $4, the same as a regional day pass.  There are other ticket packages available as well as discounts for senior citizens.  

For more information on real estate and communites in Durham and Chapel Hill, please contact Larry Pulley at 919-604-0189 or larry@larrypulley.com.  More information is also available at www.larrypulley.com.

The neighborhood with the most home sales in Durham in 2009 YTD is Hope Valley Farms, located between Hope Valley Road and Fayetteville Road in SW Durham.   Year to date through October 2009 there have been 108 closed sales.  The average sales price is $195,351.  The average sold home has 1,749 square feet and costs $115/square foot. 

Hope Valley Farms was started in 1988 with Pulte Homes as the primary builder, but the townhomes and many of the single family homes weren't built until after 2000. Home prices range from $134,000 for a small 2 bedroom townhome to $367,000 for a 4BR executive home with over 3000 square feet.  Styles range from traditional to what we call "transitional" which typically looks traditional on the outside but inside features cathedral or vaulted ceilings in the living area and/or owners' suite and has the more open floor plan that today's buyers prefer.

Like other communities I've written about on Active Rain, Hope Valley Farms is conveniently located with easy access to I-40, Research Triangle Park, Duke University, UNC-Chapel Hill, shopping, dining, banking and more. 

Neighorhood amenities include walking trails and the Hope Valley Farms Swim, Raquet and Fitness Club. There is an initiation fee to join the club.  Full memberships start at $125 for seniors and go to $375 for a family. Dues are billed quarterly and range from $138 for seniors and singles to $210 for families.  Summer swim club memberships are also available, costing $550/single, $710/couple and $790/family.  There is also a fee structure for the tennis and fitness center only with initiation fees ranging from $100-$125 and quarterly dues from $100-$130.

The swimming pool includes 8 lanes for competitive swimming plus a 25 foot waterslide.  Lifeguards are on duty during the swimming season from 4-8PM.  Other times are swim at your own risk.

 For more information on this wonderful community in Durham, NC or with other questions about Durham real estate, contact your Southwest Durham and Chapel Hill specialist, Larry Pulley,  at 919-604-0189 or larry@larrypulley.com.  

Another popular neighborhood in SW Durham in North Carolina is Woodlake, which is just across Fayetteville Road from Woodcroft about which I've written previously.  Like Woodcroft, the Woodlake community has a variety of home styles ranging from small single family detached homes of around 1200 square feet, including sought after one story (ranch style) homes, to larger homes to townhomes.  The subdivision gets its name from the lake which is a central focus of the neighborhood with over three miles of walking trails around the lake and through the community.

Home prices in Woodlake range from $160,000 to $400,000+.  The average sales price for homes closed YTD in 2009 is $206,000.  Average cost per square foot is $121.

Among the amenities in Woodlake, in addition to the walking trails, are a clubhouse and community swimming pool.  Unlike many neighborhoods, use of the swimming pool is included in the monthly dues of only $27.  In addition, Piney Woods Park, a municipal park with tennis courts, ball fields, picnic areas and a dog park is within walking distance.

Woodlake is perfectly located with easy access to the I-40 interstate. Travelling I-40 east for 2.5 hours takes you to the NC coast while travelling west/NW for around the same amount of time takes you to the Blue Ridge Mountains.  The Research Triangle Park is only 5-10 minutes away.  Woodlake is within 15 minutes of both Duke University and UNC-Chapel Hill and less than 30 minutes to NC State in Raleigh. 

Several restaurants and retail shops, plus a bank and emergency medical facilities are within walking distance of Woodlake at Sutton Place. There is a drugstore and convenience store just across Fayetteville Street on Woodcroft Parkway.  The Streets of Southpoint, a dynamic shopping center is within 2 miles.

Woodlake remains a popular destination for folks relocating to the Triangle area and continues to sell very well.

For more information on this wonderful community in Durham, NC or with other questions about Durham real estate, contact your Southwest Durham and Chapel Hill specialist, Larry Pulley, at 919-604-0189 or larry@larrypulley.com.