It takes a long time to turn a battleship around in the water to get it headed in the right direction. The same holds true with real estate. The Crystal Coast real estate market that had been so glutted for so long is now starting to resemble something normal. It’s been almost 10 years in the making but finally we are headed in the right direction. I have a lot of info to get out so we’re going to hit it by the numbers.
Currently the Crystal Coast real estate market has a 9 month supply of residential homes for sale. 6 months is considered a normal, stable market. Nationally the housing market has a little over a 5 month supply according to the Wall Street Journal. All of this is great news considering Carteret County had a 3 year supply of homes just a few short years ago.
This all falls in sync with days on market (DOM) before a home gets sold. Currently our market is seeing 233 days as an average for a home to be listed before it gets sold. This is almost exactly in line with the supply of inventory. Now before you get too excited, the 233 DOM is only for sold homes. The DOM for unsold homes can be double and triple that time.
In fact, if we use January 1 of this year as our starting point then 66 percent of all homes listed are still sitting on the market as unsold. 14 percent went off market as a contract expiration or cancelation by the seller and never renewed. Or, the seller just got so frustrated with the delays and withdrew their property without re-listing.
Only about 20-21 percent of the homes that were listed on or before January 1 of this year have been sold.
The average sold price of a Crystal Coast home is $233K. The average list price is $340K. The target market for our area is homes in the $200K and under range. This is where a full 56 percent of all homes sold came in at. 26 percent of all homes sold fell between $200K and $350K. Sales really start to drop off at the next level where only 10 percent of all homes sold fell between the $350K and $500K sold price range.
How homes are bought is still quite impressive. This year so far a total of 26 percent of all homes bought were paid for with cash, 39 percent with a conventional loan and 23 percent with a VA Loan.
During the boom times of real estate the Crystal Coast was lucky to see 13-14 percent of the homes paid for in cash. As a side note it is also interesting to see the resurgence of owner financing and 1031 tax deferred exchanges. The numbers of them isn’t supper high but alternative means of financing usually shows a market willing to work with buyers and qualified to do so.
30 year mortgage interest rates have been bouncing between approximately 3.8 and 4 percent for the past couple of months. According to all indicators the Feds are not anticipating raising rates by any substantial margin this year. This is great news for home buyers.
Here is more good news for the Crystal Coast area. The number of new homes coming on market for sale is down by 18 percent for this year. The number of existing properties for sale is down by 14 percent.
Why is this good? Remember when I mentioned earlier that a normal, stable market has about a 6 month supply of inventory? The last time Carteret County was at that level was about 10 years ago when there were approximately 900-1,000 homes on the market. We are currently at 1,795 homes on market. When the market gets right, terms and conditions are favorable, homes get sold and buyers and sellers are happy.
Margaret Hitchcock is owner of Hitchcock Realty. She is a multi-million dollar a year producer, a seasoned professional, Realtor and most of all a business woman that pays attention to detail, assuring your best interests are met at all times. Contact Margaret at (252) 269-2893