Very Positive. Conditions not seen in almost 15 years!
This market report was completed June 21, 2018. It covers a time period from current, past 30 days and past 6 months. Although very detailed, this report is also clear, concise and brief. It is also extremely encouraging because we are experiencing positive market conditions not seen in almost 15 years.
There are currently 1,059 single family, residential properties on the market listed as “For Sale” in the Carteret County Multiple Listing Service (MLS). The average time on market for sale (not sold) for these listed homes is 197 days.
The average price for the listed properties is $406, 386. The highest priced listed home is $3,199,000 and the lowest list priced home is $39,000.
SUPPLY OF INVENTORY
There is currently a 5.5 month supply of inventory available on the market. What this means is that if no new inventory came on the market to sell, it would take 5.5 months to sell off all of the existing inventory. It is a key matrix to watch in a real estate market place.
The 5.5 month supply is significant. The Carteret County area has not seen inventory this low in almost 15 years. Approximately 8-10 years ago Carteret County had a 3 year supply of inventory.
A 6-7 month supply is considered to be a normal, stable market. Anything under this is considered to be a seller’s market while anything over is thought to be a buyer’s market.
Comparing 2018 year to date market activity to 2017 we see some interesting differences. In 2018 homes sales are up by 3.1% compared to 2017, but the average sold price is down 3.7%. Although the average sold price is down this year, in contrast, the average list price is up 6.5%
The good news for home sellers is that inventory is down 6.4% this year over last year. It’s good for sellers because fewer homes on market for sale means less competition for you.
PAST 30 DAYS
In the past 30 days there have been a total of 189 single family homes sold. The average list price of these sold homes was $322,542 while the average sold price was $307,369. These sold homes were on the market for an average of 149 days.
*73 sellers extended their contract after the listing expired. The average list price for these extended homes is $346, 278. Total days on market was 345 days.
PAST SIX MONTHS
Since around Christmas of last year, there have been a total of 895 homes sold. The average list price was $307,194 while the average sold price was $292,424. Total days on market for a sold home was 148 days.
*496 sellers extended their contract after the listing expired. The average list price was $346, 278 while the average days on market was 363 days.
TERMS OF SALE
The various financial instruments used to finance and purchase a home has been consistent all year. Since the beginning of the year 51% of single family dwellings were by a conventional loan. Cash sales equaled 31% and VA loans at 9%. The remaining 9% included FHA, USDA, 1031 Exchange, and ARM’s.
One of the significant differences between the current market and the “boom” of almost 15 years ago is how buyers bought their homes. In the past, cash sales were only around 5% to 7% as opposed to the current 30% to 40% it’s been for several years. Adjustable Rate Mortgages or ARM’s were all the rage in the years from 2005 through 2010. The interest rate on ARM’s go up at scheduled times and can cause your mortgage to balloon out of hand. ARM’s were one of the primary causes for the real estate bust.
30 year mortgage rates which are currently under 4.5% were well above 7% back then. 15 years ago loans backed by Freddie Mac and Fannie Mae were made to unqualified borrowers.
Carteret County and the Crystal Coast area has never been able to handle more than 900 to 1,000 homes on market for sale at a time. After the bust, this market had almost three times that amount. It has taken almost 10 years, but the supply of inventory has dwindled down to near that level again. This is very good news.
In short, the Carteret County real estate market is in one of the best conditions it has been in since before the real estate bust of the mid-2000’s. This is an extremely active market for both buyers and sellers. For example, Margaret Hitchcock, CRS and Broker-In-Charge at Hitchcock Realty is currently in the midst on closing 7 different properties at the same time.
Is now a good time to be buying or selling in the Crystal Coast area? You betcha it is!
Contact Margaret Hitchcock or Sylwia Rola with Hitchcock Realty at (252) 648-0300 for more information and to see what real estate opportunities are available for you!