Tag Archives: Real estate pricing

Buyers’ or Sellers’ Market in the Carolinas?


Buy Sell Scale_Can StockWhat exactly is a buyer’s market?  A Buyer’s Market is when we have more homes for sale than buyers.  In this market buyers can leverage the over-supply of homes to their advantage and get very favorable terms such as lower prices, receive closing costs and can take their time with selection.  Buyer’s markets are often identified with a depressed market or declining market and the obvious signs are very few offers in a buyer’s market – best offer is the only offer you received and it’s really low.

So what exactly is seller’s market?  A Seller’s Market is when we have fewer homes for sale than buyers.  In this market sellers can leverage the under-supply of homes to their advantage and get very favorable terms such as higher prices, pay little to no closing costs for the buyers and get quick turnarounds.  Seller’s markets are often identified with a real estate market that is improving and/or getting hot, with multiple offers in a seller’s market – pick the best of many offers received and often they are over the asking price as buyers are competing.

Another way we track whether we are in a buyer’s or seller’s market is our current monthly supply of inventory.  This market statistic demonstrates how many months of supply would be left if no other seller placed his house on the market.  The breakdown would be the following:

1 to 5 months = seller’s market – price is appreciating

5 to 8 months = balanced or normal market – price is stable

8 months and more = buyer’s market – price is depreciating

So how are we doing in North and South Carolina?  Reviewing the last 12 months ending October, 2013 for single-family homes and condo/townhomes for a few areas in NC and SC:

  • Charlotte, NC = 5.5 months with our best month in 2013 of 4.4 months
  • Triad Region, NC (Asheboro, Burlington, Greensboro, High Point, and Winston-Salem) = 9.5 months with our best month in 2013 of 6.3 months
  • Triangle Region, NC (Raleigh area) = 4.8 months with best month in 2013 of 3.8 months
  • Greenville, SC = 6.7 months with our best month in 2013 of 5.6 months
  • Piedmont Regional SC (York, Lancaster County, Lake Wylie) = 6.9 monthswith our best month in 2013 of 5.4 months

As you can see from these numbers across the Carolinas, our trending for the last 12 months demonstrates we are moving out of a buyer’s market and into a healthy/balanced market, which means a great equilibrium for both sides of the transaction.  The monthly supply inventory numbers of 2009 thru 2012 were often double-digit numbers of 10 months and more indicating a strong buyer’s market for many years, with falling prices.  Now with these monthly supply inventory numbers decreasing into single-digit numbers, we are starting to see price appreciation in all of our markets.  A few of our markets are even starting to evolve into a seller’s market!

So what does all of this mean to you?  It means the NC and SC residential real estate market in 2013 showed solid improvement throughout the year and continues to build strength.  If you are thinking of buying a home, low interest rates and good pricing results in high affordability.  If you are thinking of selling your house, the improving market means more activity and better chances of market-value returns for your equity investment.

Reposted from Allen Tate Blog by Tony Jarrett

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Home Prices on the Rise


Home Prices on the Rise

National Association of Realtors (NAR) reports that home prices are slowly on the rise as of October 2012.

 


March Sales ~ On the Move!


Wow!!  What a terrific article about where sales have been and where they’re headed.  Consumer confidence is certainly back, if you ask me!Please take time to read this great report from Allen Tate’s very own President, Pat Riley.

 When you read the national housing reports talking about Q1 2011, you need more information to figure out the “rest of the story.”

Let me try, from my perspective, to help you. First and foremost, you must understand that the report for the month or quarter might be speaking to numerous categories. For example, sales, pending sales and solds – or even a category like new homes vs. resale – might be represented in a single report.

The data indicates that sales of existing homes fell 9.6 percent in February, the lowest level in 9 years. To understand why, you need to remember what happened last year in Q1 and Q2. We had a tax credit incentive that “borrowed” sales from the second half of the year, sending us into 2011 with a very small pipeline. Additionally, new home sales continue to drag, due to the availability of lot-ready opportunities and lender restraints on speculation building at this time.

Now … for the rest of the story. Sales in March in the Carolinas – without a tax incentive – were very strong. In fact, at Allen Tate, we rivaled last year’s numbers without the incentive. This indicates that the recovery is real and this is what we need… gradual and steady.

Yes, lending standards remain very tight and we are overcompensating for the Ills of the past, where lending standards were much too loose. The rental inventory is full of folks getting their credit in order so they can buy. Clients who have credit are listening to today’s mantra of selling low in order to buy low, instead of what their neighbors did just a few years ago – selling high and buying high, which is all relative. Everyone is realizing that there will still be downward pressure on pricing in 2011, but waiting is not a wise decision, with interest rates pushing.

The first half numbers of 2011 may not rival last year, but the real story will be told at year-end. Sales and closings will prove that the “bottom” (according to me) was October 2010. Interest rates, while still historically low, are up considerably from last April.  Smart buyers will understand that waiting for another price concession will simply not make up for the difference in higher interest rates.

Rental vacancy rates went from 10.7 to 9.4 percent in the last year, so competition for the opportunities is out there. With lower home prices, the first-time home buyer today is KING. It is “time to get off the fence” for sure!

By Pat Riley


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