The Crystal Coast real estate market place can finally start using terms like “stable”, “recovered” and “normal” in describing the conditions for both sellers and buyers. This has been a decade in the works but the good news as well as the promise of a better tomorrow have finally arrived.
For those in a hurry, here is the short version of how April 2016 played out along the Crystal Coast. There was a total of 1,719 single family residential properties that were for sale during the month. A total of 133 of those homes were sold or roughly 8 percent of the total properties available. The average days on market for those homes that did sell was 179 days or just at the 6 month mark, which is what you want to see.
The average list price for a Crystal Coast home was $359K. The average sold price was $266K. As you can see, there was about a 26% disparity between what price sellers wanted and what buyers were actually buying at.
The lion’s share of the homes sold were priced at $300K and below. This is the range where 65% of all homes were sold under. 38% of all Crystal Coast homes sold were priced at $200K and under.
The method of paying was a little bit out of the ordinary. 47% of the home buyers used a conventional bank loan. That figure is usually in the 30 percentile range. 23% of purchases were paid by cash. 12% were VA loans with the remainder coming by a variety of other methods.
But here is the most important aspect about any real estate market that we must look at. It’s called the absorption rate or often times referred to as the supply of inventory. This is the rate of sales in which a market place is able to clear out all of its inventory. The ideal absorption rate is 6 months. The Crystal Coast market during the month of April was at 13 months. This in simple terms means that there is still an over-abundance of inventory to be sold.
The absorption rate tells us many things about the Crystal Coast. As mentioned earlier, the homes that sold last month averaged being on the market spot on the ideal time frame-6 months. This tells us that the successful sellers had priced their homes appropriately and had satisfied the terms and conditions of the buyer.
Now let’s break this down even further. There was a total of 1,719 homes on the market in April. 133 of those homes sold. There was also 273 new homes that went on the market for sale during the month. Subtract out the sold homes and the new inventory and that leaves us with 1,313 homes that were left sitting on the market which helped cause the absorption rate to expand to 13 months. If you reflect back to the average list price ($359) and the average sold price ($266K) you can see that on a whole, sellers tend to be a bit ambitious with price. This also shows you what this market will bear and in general, is willing to pay.
Here is the moral of the story. If a home is priced right, that the price is justified according to the current market conditions, then it will sell within a reasonable time period. If it is priced too high, then the property is just going to sit.
I also have to interject that the homes that sell are generally clean, decluttered and have no major issues to contend with. But that’s a topic for another article.
To show the diversity of price of Crystal Coast single family residential properties, here are a select towns and their average April sold prices. Atlantic Beach $469K, Emerald Isle $437K, Beaufort $307K, Morehead City $278K, Cape Carteret $221K and finally Newport $215K.
Another interesting thing to note is to see where the “hot” markets are within the Crystal Coast region. For example Emerald Isle has only a 9 month supply of inventory, Newport has an 8 month supply while Cape Carteret only has a 5 month supply. Conversely, Atlantic Beach is a very slow market with a whopping 24 month supply of inventory to sell!
This is a very good time for both the seller and the buyer. The homes that sell the quickest are the homes that are most suitable, priced according to market conditions and fall within the target range of buyers.
Each home is different and requires a trained, seasoned professional to properly assess and market it with care, diligence and experience. Margaret Hitchcock of Hitchcock Realty is a Realtor with many years of successful real estate sales experience, perfectly capable of handling your next transaction. Call Margaret today at (252) 269-2893.