I have a listing appointment on Tuesday to discuss the Marketing of a Townhome in Cary Park.  I've sold several in the area but the market has shifted dramatically since last year.  This particular Townhome is just a few years old, in a great location, built by a reputable builder, and has been listed through a limited service company for two months with no showings.  The seller, who used to be a Broker, has tried a number of things to get the property moving to no avail. That said, I thought I'd gather my thoughts and write a Market Conditions Report for Townhomes /Condos in Cary for Q12008 that I will use in my discussion with the seller on Tuesday.  

First, lets talk about the overall real estate market in general and some of the variables that have influenced the market.   

Gas prices are at an all time high, the value of the dollar has diminished significantly over the last few years, the credit markets are still in distress as banks and other financial institutions continue to point fingers, the US housing market is in serious trouble in a number of areas in the country, and the stock market itself was expected to recover with the housing market and that just hasn't happened.  Our residential real estate market depends upon the free flow of buyers and sellers. Our market is currently stuck as many inbound transferees cannot sell their out of state residences, many of our outbound transferees cannot sell their local residences and there is a crisis of confidence among a large portion of potential buyers which is playing a role in the ability to sell.

Is there any good news in this segment?

Fortunately, in this area, we have not had the run up in prices experienced around the rest of the country which has helped maintain some stability in sales and pricing.  And, appreciation rates have remained stable in Cary at 4.85% vs. 0.85% for the rest of the US in 2008.  

What about the supply of inventory for Condos/Townhomes in Cary/Apex/Morrisville in particular?

• The average supply in the Triangle is running at 8 months supply.  The numbers for Cary/Apex/Morrisville  are fairly healthy with Cary at 5 months, Apex at 6 months, and Morrisville at 6 months.   

Here are some additional market variables that a seller must consider before selling in the current market:  

• Higher inventory and fewer closings have produced an oversupply of inventory in the Townhome/Condo Market
• Price reductions are up:  There has been a 73% increase of sellers taking price reductions
• Q12007 Inventory = 1905, Q12008 Inventory = 2705
• Q12007 Closings = 1300, Q12008 Closings =980
• Q12007 Average DOM = 107, Q12008 Average DOM = 108
• Over 70% of the Townhomes sold in the first half of 2008 were new construction 

It's not enough in this market to have the home look good, smell good, and be in a great location.  The most important variable to consider in this market is an experienced agent that understands the market, is selling in the same area, and is backed by a top firm in the area that will bring in more buyers to a property. Let's not forget, too, that pricing is critical.  Sellers need to look only at closed home sales to base their pricing on rather than what is currently listed on the market because there are still a lot of overpriced listings on the market.  I've always said that I price homes to sell and not sit.  

Take a look at some of the Townhomes sold in the past few months in the Cary/Apex/Morrisville NC Area: Visit my website or Email me at Tracy@TracySantrock.com for more information on Cary NC Real Estate or the Triangle Market in general.