Raleigh Real Estate Reports
Raleigh New Construction On the Rise?
New Home Sales Increase, Inventory Decreases in Wake County NC
December 2008 numbers show that Wake County new construction is starting to trend back up. After being down significantly to last year over a slow fall season, Raleigh NC new home sales are picking up - and inventory is dropping.
New Home Sales in Wake County NC 2008 Versus 2007
December 2008 new home sales were down 18.74% to December of 2007. This is an upward trend from new construction sales over the past six months. Only in September were new home sales at this level - and in September, many sales were pushed forward because the Down Payment Assistance programs expired at the end of that month.
Resales have an even brighter picture - click here for more information.
Not only that, inventory is decreasing:
Total Available Homes for Sale Wake County NC 2008 vs 2007
In December 2008, total available inventory (new homes, resale homes, townhomes) was down to only 2.45% above total available inventory the previous year. As you can see, this is a significant downtrend in available inventory.
Why is inventory decreasing?
Increased sales, and less new construction. Permits have been down. Presales are becoming a much more popular option than spec homes. Builders don't want to hold onto homes that don't necessarily have buyers up front, and banks don't want them to do that either!
Do the higher sales and lower inventory mean that prices are dropping?
Not necessarily.
Average New Home Sales Prices 2008 vs 2007
In December 2008, the average new home sales price was up 15.59% versus December 2007.
The only month that saw a decrease in average sales price was September (remember, that was the month that first time homebuyer sales increased significantly due to the end of the buyer downpayment assistance program).
This represents average prices - which could mean that more higher priced homes are selling, or that homes are selling for more on average than last year, or a combination of both.
Since current appreciation rates for Wake County are still at 4.5%, it's most likely a combination of both.
There are still some deals to be found - and we have yet to see January 2009 sales.
But overall, it looks like a number of homebuyers that were waiting for great interest rates have decided to buy, and there are fewer choices to be found today than there were 6 months ago.
Information from TARR Reports, an independent analysis of Triangle real estate.
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Penny,
Thanks for sharing the good news, we need to hear more of this!
"and in September, many sales were pushed forward because the Down Payment Assistance programs expired at the end of that month."
Good observation!!
However, in my area there are few real "spec" homes. They are usually homes on which the buyer could no longer get financing when the house was ready to close. KHovanian did sell a few specs, but they market them vigorously.
Your area is a primary "destination" market for retirees and relocating employees. We don't have that many folks moving to the area any longer. Homeland Security brought in come, BRAC some and the always reliable "high tech" in some areas. However, our local market is not buying because they can't sell what they have.
Good post and "flagged".
Cynthia - I'm starting to hear good news from quite a few different locations. Reasonable prices in lots of places and great interest rates are making purchases possible for many people.
Lenn - Thank you the flag. This is certainly a destination area as you said - and even Fort Bragg just an hour to the south is contributing as BRAC continues.