One of the most frequent questions we get asked at Hitchcock Realty is what the real estate market is doing. In other words, is now a good time to sell. For many years it wasn’t. After the real estate “explosion” in the mid-2000’s came the painful aftermath of a glut of inventory which spilled over into the 2010’s. The Crystal Coast had a huge over-supply of inventory, prices did not re-adjust to reflect a flailing market place, bankruptcy and foreclosures became a normal everyday occurrence.
I’ve been writing, doing television and radio about the Crystal Coast marketplace since before, during and now after the “explosion” and subsequent downturn in business. Anyone that has followed my reports know that the one thing I have always focused on in this market place is the absorption rate otherwise known as the supply of inventory. To understand what the supply of inventory is, you have to understand the theory behind it.
In a nutshell, the supply of inventory asks one simple question. If no new inventory came on the market for sale how long would it take to sell all of the existing properties? So the supply of inventory is the rate of sales compared to the rate of new properties coming on the market for sale. In an ideal environment it takes 5-6 months to completely sell off all existing inventory.
Shackelford & Associates has supplied us with some very accurate and exciting news about the condition of the Crystal Coast real estate market. After several years of a glutted market, things have turned around.
According to their website, “Shackelford & Associates has been in business since 1993. We provide top quality real estate appraisal, brokerage, consulting, and revaluation services. We have a large, diversified, and well educated staff to provide our clients with excellent quality.”
The first graph below that Shackelford & Associates has given us shows the Crystal Coast (Carteret County) July year over year supply of inventory. Notice how in just 5 years we have been able to reduce the supply and get it down to near normal, stable levels. Reduction in inventory means sellers and buyers are reaching mutually agreeable terms and conditions in a more timely manner. Inventory isn’t siting, it’s selling.
Sales volume is a component of the supply of inventory. Let’s face it, if nothing gets sold then inventory will grow. The other key component of the supply of inventory is the amount of new homes coming on the market for sale. If more homes go up for sale than homes get sold then the inventory expands and the market slows down. Fortunately for the Crystal Coast, sales have been on the upswing!
And finally, the big question, the one that everyone wants to hear about is price. The median sold price of a Crystal Coast home according to Shackleford and Associates has teeter tottered over the past 5 years but spiked to a new high this past second quarter.
Please keep in mind that the Crystal Coast is a highly diversified real estate market. We have some large and beautiful oceanfront homes, soundfront homes, and homes in beautiful and often historic areas 5, 10 and 15 minutes away from the beach. A five minute drive can change the price range of a neighborhood by $200K, $500K and more.
All in all the Crystal Coast real estate market is doing well. In fact, this market hasn’t done this well in almost 10 years. Inventory is tightening up, buyers and sellers are coming to mutual agreement and properties are getting sold!
I’d like to thank Shackelford & Associates for the charts and graphs. Visit their website or give them a call at Phone: (252) 215-2250. This is a top notch organization and worth a visit with them!
Contact Margaret Hitchcock of Hitchcock Realty for all of your real estate buying and selling needs along the coastal region of North Carolina. Margaret is a Realtor with over a decade of successful real estate experience.