With recent news reports that the housing market is improving and prices are increasing I thought it might be good for someone in the trenches to weigh on the current status of the housing market. At least how it is playing out in northeast, NC. I've been in real estate since June of 2005 and below is what I see.
There are several areas to consider when reporting on the housing market. First is the area in which you wish to buy or sell. Every area and market is different with its own set of specifics. Because of this variable you cannot simply read up on the "national" housing situation and consider yourself fully informed. The national market offers possible trends and patterns but remember the figures are pulled larger metro areas.
In my piece of the northeast, NC real estate pie, the market remains down and prices continue to decline, though not sharply. In a year over year comparison the average sold price of residential, single family real estate in 2007 equaled $207,350. In 2008 that same price was $174,829 and now in 2009 it is $160,225. So we see a 22% decline in prices over the last three years.
The most active markets by year are as follows: 2007 = $200-250K, $300-400K, $250-300K. 2008 = $200-250K, $120-140K, $300-400K. 2009 = $200-250K, $160-180K, $120-140K. Notice how the $300-400K priced home went from the second most active market in 2007 to not even being listed in the top three in 2009! A good indicator of the times.
In June, Money Magazine told their readers: "To sell your home fast, you're going to have to dip 10% to 15% below what comparable homes in your neighborhood recently sold for..." Again, a good indicator of where the market is currently and what it takes to get a property sold.
Finally, consider one other very important factor. The number of homes sold compared to the number of new listings coming on the market. In 2007 there were 157 homes sold from January 1, 2007 to August 31, 2007 and 183 new listings. In 2009 there have been 87 homes sold for the same period and 367 new listings!!! No that is not a typo! The housing market is extremely saturated with homes and sparse with buyers hence, it is a buyer's market in the best sense of the term!
Plus you also have to consider who is buying and what are they buying, distressed or non-distressed properties and how many first time home buyers have jumped into the market? Plus, what does the future look like? Tune into my next blog for some thoughts on these issues!
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