It is July here in the Raleigh area and the summer heat is here to stay for a while. Along with that, we are halfway through the year and the real estate market also continues to stay red hot. We are experiencing homes flying off the market, we are seeing record setting prices and we continue to starve for inventory, especially that of resale homes. The 2nd quarter is a wrap and here are the latest statistics……..
Inventory For over 3 years, we saw a steady decline in total inventory in the Triangle (44 straight months). In May, we finally saw a slight increase to break that string but it didn’t last long. June saw a 3% decrease in inventory of that over May and a 3% drop compared to June 2017. We ended the 2nd quarter of 2018 with less than 5500 total homes on the market across all price points in the greater Raleigh and surrounding counties area.
Looking at just the numbers, we did see an increase in the total number of homes listed during the 2nd quarter of 2018 in comparison to 2017. Listing inventory increased by 3% to over 11,600 homes. Unfortunately that increase was 100% dependent on the new construction market…...resale homes were completely flat in regards to inventory growth in year over year 2017 to 2018.
Inventory is down but listings increased so that means most homes went under contract that did hit the market. Pending homes increased by 4% in the second quarter to over 10,000 homes. We did see a drop in pending homes at the end of Q2 from May into June due to the overall lack of inventory as well as the seasonality of the market. Most homes hit the spring market in April and May and then we tend to see more closings in June and July. 93% of homes that went under contract (pending) in Q2 went to closing and closed (9,391 homes). When comparing that number to the same time period a year earlier, it stayed the same.
Days on Market We continue to see homes sell at an amazing rate. The average number of days on market have seen a slight increase over the last months but we are still seeing an average of 40 days which historically is still extremely fast when you take into consideration that we are averaging that number for homes from $100,000 all the way to the homes that are $1M+.
If you look at the price point of homes under $250,000, the average DOM of 9 days and a Median of 3. If you are shopping in that price point, you basically have to see the home on day 1 and get your offer in.
Pricing Finally, home pricing continues to go up and we are seeing historic averages. Locally as well as nationally, average home prices have surpassed those prices prior to the recession of 2007/2008. The 2nd quarter in the Triangle has produced record average prices for homes in the area and we are above $325,000 for all homes and for resale homes, we are above $308,000 for the first time.
If you are interested in pursuing real estate here in the Raleigh/Triangle area, give our team at the Kima Real Estate Group a call today. We are more than ready and capable with helping you no matter what your real estate needs are. We look forward to speaking with you and to earning the chance to help you…...919-443-0200.