The Wilmington Regional Association of Realtors has released information regarding the State of Real Estate for 4th Quarter 2008. This report analyzes growth in Wilmington's five top zip codes--28403, 28405, 28409, 28411, 28412.
If I can answer any questions regarding real estate trends in the Wilmington NC market, please email me at DianeParker@SeaCoastRealty.com or call 910-617-5244.
WRAR Tuesday, February 3rd, 2009
By April McDavid ABR, CRS, CSP, GRI, RRS
President, Wilmington Regional Association of REALTORS®
Analyzing the growth within the five major Wilmington zip codes, the 2008 year end average sales price has decreased 6.8% over year end 2007, only decreased 3.1% from year end 2006. While 2008 was not a spectacular year in the number of homes sold, the average sales price is +8.9% over 2005.
Graph 1: Median Selling Price Trend from 2007 to 2008 for Zip Codes 28403, 28405, 28409, 28411, and 28412.
- Sellers received 95.5% of the asking price in 2008, compared to 96.7% in 2007. For year-end 2006, sellers received 97.8% of their asking price.
- 2008 had a decrease in the number of sold homes by 30% from 2007.
Over the last couple of years an analysis of five Wilmington zip codes - 28403, 28405, 28409, 28411, and 28412 was conducted. The areas of focus were:
Sellers Concessions - The amount of money a seller of a house contributes toward the buyers purchase.
List Price - The amount of money a home is listed on the market.
Selling Price - The price the seller accepts for his or her house.
Days on Market - The number of days a house remains for sale, from the listing date to the date the property is placed under contract.
List to Sales Price Ratio - The difference between the list price and the selling price shown as a percentage.
Year End 2008 28403 Zip Code
•q The average selling price, of $244,932 has decreased 1.3% from 2007 year-end average selling price of $248,171.
•q 16.5% of sellers in year-end 2008 paid a concession, compared to 17.4% in 2007.
•q The average list price of $264,105 for 2008 has increased 2.6% over the 2007 year-end average list price of $257,338.
•q The average number of days a property remained on the market for 2008 was 112 days, compared to 82 days for year end 2007.
•q The median sold price of $195,000 for 2008 has decreased 5.8% to $207,000 from year end 2007.
•q Sold homes in 2008 received 92.7% of the asking price, a decrease from 96.4% year end 2007.
Year End 2008 28405 Zip Code
•q The average selling price, of $396,356 has decreased 15.7% from 2007 year-end average selling price of $351,466.
•q 18.6% of sellers in 2008 paid a concession, compared to 15.1% in 2007.
•q The average list price of $310,169 for 2008 has decreased 15.4% under the 2007 year-end average list price of $366,588.
•q The average number of days a property remained on the market for 2008 was 110 days, compared to 102 days for year end 2007.
•q The median sold price of $186,000 for 2008 has decreased 12.5% to $212,500 from year end 2007.
•q Sold homes in 2008 received 95.5% of the asking price, a decrease from 95.8% year end 2007.
Year End 2008 28409 Zip Code
•q The average selling price, of $318,979 has decreased 1.9% from 2007 year-end average selling price of $325,071.
•q 14.1% of sellers in 2008 paid a concession, compared to 15.9% in 2007.
•q The average list price of $336,038 for 2008 has decreased .05% over the 2007 year-end average list price of $337,633.
•q The average number of days a property remained on the market for 2008 was 121 days, compared to 93 days for year end 2007.
•q The median sold price of $255,000 for 2008 has decreased 8.4% to $278,500 from year end 2007.
•q Sold homes in 2008 received 94.9% of the asking price, a decrease from 96.2% year end 2007.
Year End 2008 28411 Zip Code
•q The average selling price, of $317,831 has decreased 1.2% from 2007 year-end average selling price of $321,740.
•q 25.4% of sellers in 2008 paid a concession, compared to 19.4% in 2007.
•q The average list price of $330,836 for 2008 has decreased .01% over the 2007 year-end average list price of $331,142.
•q The average number of days a property remained on the market for 2008 was 112 days, compared to 91 days for year end 2007.
•q The median sold price of $242,250 for 2008 has decreased 2.1% to $247,450 from year end 2007.
•q Sold homes in 2008 received 96.0% of the asking price, a decrease from 97.1% year end 2007.
Year End 2008 28412 Zip Code
•q The average selling price, of $212,229 has decreased 9.6% from 2007 year-end average selling price of $234,792.
•q 23.8% of sellers in 2008 paid a concession, compared to 19.9% in 2007.
•q The average list price of $219,737 for 2008 has decreased 8.6% over the 2007 year-end average list price of $240,472.
•q The average number of days a property remained on the market for 2008 was 114 days, compared to 86 days for year end 2007.
•q The median sold price of $189,950 for 2008 has decreased 7.4% to $205,198 from year end 2007.
•q Sold homes in 2008 received 96.5% of the asking price, a decrease from 97.6% year end 2007.
Summary
Coming into 2009, there is a lot of promise for this year to be better than 2008. With a new administration in the White House and the Federal Reserve and Treasury department spending hundreds of billions, we have a lot of action moving our economy forward. Congress has offered assistance to the Auto Industry, Obama has a strong economic stimulus plan, and mortgage rates are at an all time low. With the potential recovery of the credit markets and the amount of housing inventory available, this makes the spring of 2009 a very desirable time to purchase real estate.
Our median sales price for 2008 ($215,000) reflects a small downturn of 6.7% from 2007($230,000) and maintains the same median as 2006 ($215,000). In 2008, we continue to see a small market correction in average sales price; we decreased 6.8% from year end 2007. Just two zip codes had average decreases of 9.6% and 15.7% while three zip codes managed slight decreases of 1.2% to 1.9%. A total of three zip codes had an increase in concessions offered to buyers on the sales price; concessions are now offered in 14% to 25% of the transactions in 2008.
Our market has experienced a decline of 30% in number of homes sold in 2008 compared to 2007. All five zip codes experienced a decline from 20% to 43%. Our list to sales price ratio for 2008 is 95.4% a slight decrease from 96.7% for 2007. Sellers in 28412 got about 96.5% of their asking price while those in 28403 only got 92.7% of their asking price. 2009 can be a good market for our area with an inventory of homes available and interest rates low, this would make a great time to buy.
An Analysis of information from the Wilmington Regional Association of REALTORS® Incorporated, for the period Jan. 1, 2005 through December 31, 2008 - data pulled on January 16, 2009
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