The Crystal Coast housing market which for years had been crippled and stymied by a glutted housing market is now on the brink of solid stability. July’s market report shows a constant and consistent improvement in the rate of sales compared to the rate of new listings coming on market. Hold on to your hats, the area is getting primed to explode again!
The housing inventory is determined by what is known as the absorption rate. As the name implies, it is a measuring of how long new inventory coming on market can get sold. In a normal, stable market it should be about 5 to 6 months to sell a house.
Last July the Crystal Coast housing market had a 10 month supply of inventory. That’s still over the desired goal but look at what it compares to. Last year the July inventory was at 11 months, in 2013 it was at 13 months. In 2012 the supply was 15 months and skipping back to July of 2010, the Crystal Coast had a whopping 22 month supply of inventory. Believe it or not it gets worse the further back we go until about 2005-2006.
This has been a very long, slow road to recovery after the joys of the housing boom a decade ago. And because of the time it has taken to get to a 10 month supply there is no reason for concern of a quick reversal in trend.
The 6 month supply of inventory is kind of the pivot point for both buyer and seller. This is when neither side really has the advantage. On the supply side it is a buyer’s market. If inventory drops below 6 months then it very much becomes a seller’s market.
Another indication of the supply of inventory coming down is the availability of funds. 30 year mortgage rates are still hovering around 4 percent and shouldn’t really see any great change for the rest of the year. Surprisingly along the Crystal Coast last July saw 27 percent of all sales coming in as cash. 45 percent were conventional with 18 percent choosing a VA loan.
The bulk of the market still remains at the $250K price and under. In fact 60 percent of all sales can be found here. The median sold price for July was $212K. The average sold price was $272K but that’s because several upper end properties closed during the month.
Properties are starting to come on market and quickly go off. The prime properties are being bid on, the lower end homes are getting scooped up. The Crystal Coast market is starting to light up again!
Crystal Coast Home
If you are considering a home in the Morehead City, Atlantic Beach, Beaufort, Emerald Isle, Newport areas then please contact Margaret Hitchcock of Hitchcock Realty. She is a 10 year experienced Realtor with a long track record of success!