Date: Wed, 17 Dec 2008 04:52:16 -0800 (PST)
From: Lynn Hayes
Subject: Real estate market report
Greetings Chathamohicans!
I’ve prepared a report on the real estate market in the Chatham/Orange/Durham area for my clients and posted it on my website.
Here is the general info about the Triangle from the report:
I¢m writing this report the day following a broadcast on 60 Minutes about the second wave of foreclosures about to hit. There is no doubt that some segments of the national housing market are in crisis, and that has trickled down to the Triangle. Without the wave of buyers from out of town, there are no buyers for thousands of new homes that are proposed or under construction.
Still, legislation in North Carolina from back in 1999 to restrict subprime loans has helped to keep foreclosures here lower than in other parts of the country, and the fact that our economy is generally stronger and more diversified than the communities which have been hit the hardest has helped. However, there is no arguing with the statistics from the Multiple Listing System that show trouble in the housing market:
* In November of 2006, with the market beginning to cool, across the Triangle there was a six-month supply of homes on the market. In November of 2008, that figure had climbed to a 15-month supply.
* The number of sales in the Triangle dropped from 2527 in November of 2006 to 1186 in November of 2008, a 53% decrease. Meanwhile, the number of active listings increased 19%, from 18,632 in November of 2006 to 22,172 in 2008. More listings and fewer sales translate to a much softer housing market.
You can read the whole report here: http://www.lynnhayes.com/TRIANGLE-MARKET-REPORT.pdf
* In Chatham County, including the Chapel Hill zip codes as well as Siler City and Apex, a very broad market area, there are 223 homes for sale under $500,000 and 212 active listings over $500,000. 295 homes under $500,000 have sold over the past 12 months giving us a 9-month supply of homes in this price range. 128 homes over $500,000 sold during this period, so there is a 20-month supply of homes at this price point.
Economists typically say that anything exceeding a 6-month supply of homes is a weak market.
Obviously, the lower the price the stronger the market. Breaking the statistics in Chatham down a bit more, there are currently 112 homes for sale that are under $300,000, and 177 homes in that price range have sold over the past 12 months, which translates to a 7.5 month supply, and as the price range goes down the supply goes down as well.
Homes in Chatham County and elsewhere are selling, but competition is fierce and more marketing and better presentation and staging is required.
best wishes,
Lynn Hayes