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Wilmington Housing Market Makes National Headlines Author: Broker Breeze Feb 10

Tax Credit Helps Wilmington Housing Market Rebound

By Christine Dugas, USA TODAY

The Wilmington, N.C., housing market ended the year on a good note, despite the region’s tough economic times. Home sales rebounded from a slow start when a boost from the first-time home buyer tax credit kicked in. The buyers who took advantage of it accounted for 34% of home sales last year, says Mary Martin, president of the Wilmington Regional Association of Realtors.

Now that the tax credit has been extended and expanded to include repeat home buyers, agents hope it will keep sales moving. But beach property sales are still lagging: Loans are much stricter for vacation-home buyers and investors, Martin says.

HOUSING MARKET: Track the rise, fall and … rebound?

• Sales status. Last year, Wilmington home sales were down 16.2% compared with the previous year. But in the last quarter of the year, sales reversed. In December, sales were up 19.8% from December 2008. The improvement has raised hopes that the market has hit bottom and may be turning around, Martin says.

• Price points. The median price of houses sold was 5.6% less than a year earlier. Home foreclosures are declining. “Prices seem to be stabilizing, which is good,” Martin says.

New homes are being concentrated in the $200,000-to-$250,000 range, because those are selling, Martin says. The price range is not just desired by first-time home buyers: Older empty-nester couples are moving into such smaller homes, too.

• Local economy. The unemployment rate was 10.2% in November, slightly higher than the national rate of 10% at the time.

“We’ve been more hard hit with this downturn than any of the five that I’ve experienced as an economist,” says William Hall, professor of economics at University of North Carolina-Wilmington.

The real estate development industry in particular is suffering.

“That is more than just construction. It includes finance, insurance, real estate leasing, architects and others,” Hall says.

About three years ago, economic analysts estimated that one out of five people in southeastern North Carolina had a job related to real estate development. The numbers are closer to one in 10 now, Hall says.

• Hot ‘hoods. Wilmington is a historic port city. The downtown area has cobblestone streets, boutiques, restaurants and the Cape Fear Riverwalk. Many people love the historic charm, Martin says. And of late, more of them can afford to live downtown because condominiums have been built there.

The new buildings are not modern-looking on the outside, because the city requires them to fit in downtown. The price for a one-bedroom condo ranges from about $160,000 to $180,000, while a two-bedroom starts at about $200,000, Martin says.

(View original copy of article at: http://www.usatoday.com/money/economy/housing/closetohome/2010-02-08-Wilmington-Delaware-real-estate_N.htm)

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Market Makes Significant Strides Heading into New Year Author: 2010 WRAR President - Mary Martin Jan 30

With the New Year off to a promising start, our local residential market offers some exciting news and trends for both buyers and sellers in the Wilmington area for 2010. During the 4th quarter, our local market showed improvements in numbers of homes sold and seller’s asking price over 4th quarter 2008. These are strong indicators that the housing market is stabilizing and progressing towards a recovery. 

Further analyzing the growth within the five major Wilmington zip codes, our average sales price has decreased 9.6% from 4th quarter 2008, and increased 5.3% from 3rd quarter 2009. When we look at the median sales price, we have a 12.0% decrease over 4th quarter 2008 and a .03% decrease over 3rd quarter.

•  Sellers received 94.3% of the asking price in 4th quarter 2009, compared to 93.6% for 4th quarter 2008.
•  4th quarter 2009 had an increase in the number of sold homes by 34.5% from 4th quarter 2008.

Over the last couple of years, an analysis of five Wilmington zip codes – 28403, 28405, 28409, 28411, and 28412 was conducted.  The areas of focus were: 

•  Sellers Concessions – The amount of money a seller of a house contributes toward the buyers purchase.
•  List Price – The amount of money a home is listed on the market.
•  Selling Price – The price the seller accepts for his or her house.
•  Days on Market – The number of days a house remains for sale, from the listing date to the date the property is placed under contract.
•  List to Sales Price Ratio – The difference between the list price and the selling price shown as a percentage.

2008 4th Quarter Average Selling Price vs. 2009 4th Quarter Average Selling Price

 

4th Quarter 2009                               28403 Zip Code

•  The average selling price, of $204,758 has decreased 14.7% from 4th quarter 2008 average selling price of $239,948.
•  17.9% of sellers in 4th quarter paid a concession, compared to 11.8% in 4th quarter 2008.
•  The average list price of $221,351 for 4th quarter has decreased 18.1% over 4th quarter 2008 average list price of $270,202.
•  The average number of days a property remained on the market for 4th quarter was 125 days, compared to 119 days for 4th quarter 2008.
•  The median sold price of $166,250 for 4th quarter has decreased 18.1% from 4th quarter 2008.
•  Sold homes in 4th quarter received 92.5% of the asking price, an increase from 88.8% 4th quarter 2008.

4th Quarter 2009                               28405 Zip Code

•  The average selling price, of $235,815 has decreased 24.2% from 4th quarter 2008 average selling price of $311,190.
•  23.6% of sellers in 4th quarter paid a concession, compared to 11.7% for 4th quarter 2008.
•  The average list price of $248,213 for 4th quarter has decreased 25.3% from 4th quarter 2008 average list price of $332,122.
•  The average number of days a property remained on the market for 4th quarter was 130 days, compared to 114 days for 4th quarter 2008.
•  The median sold price of $169,500 for 4th quarter has decreased 15.9% from 4th quarter 2008.
•  Sold homes in 4th quarter received 95.0% of the asking price, a increase from 93.7% for 4th quarter 2008.

4th Quarter 2009                               28409 Zip Code

•  The average selling price, of $274,895 has decreased 16.5% over 4th quarter 2008 average selling price of $329,333.
•  19.8% of sellers in 4th quarter paid a concession, compared to 11.3% in 4th quarter 2008.
•  The average list price of $291,092 for 4th quarter has decreased 17.6% over 4th quarter 2008 average list price of $353,302.
•  The average number of days a property remained on the market for 4th quarter was 136 days, compared to 138 days for 4th quarter 2008.
•  The median sold price of $225,000 for 4th quarter has decreased 12.6% from 4th quarter 2008.
•  Sold homes in 4th quarter received 94.4% of the asking price, a increase from 93.2% for 4th quarter 2008.

4th Quarter 2009                               28411 Zip Code

•  The average selling price, of $295,270 has increased 10.9% over 4th quarter 2008 average selling price of $266,349.
•  23.9% of sellers in 4th quarter paid a concession, compared to 22.0% in 4th quarter 2008.
•  The average list price of $315,548 for 4th quarter has increased 13.9% over the 4th quarter 2008 average list price of $276,923.
•  The average number of days a property remained on the market for 4th quarter was 109 days, compared to 110 days for 4th quarter 2008. 
•  The median sold price of $210,000 for 4th quarter has decreased 8.7% from 4th quarter 2008.
•  Sold homes in 4th quarter received 93.5% of the asking price, a decrease from 96.1% for 4th quarter 2008.

4th Quarter 2009                               28412 Zip Code

•  The average selling price, of $204,192 has decreased 9.9% over 4th quarter 2008 average selling price of $226,648.
•  35.3% of sellers in 4th quarter paid a concession, compared to 31.8% in 4th quarter 2008.
•  The average list price of $211,654 for 4th quarter has decreased 12.2% over the 4th quarter 2008 average list price of $241,127.
•  The average number of days a property remained on the market for 4th quarter was 134 days, compared to 111 days for 4th quarter 2008.
•  The median sold price of $183,000 for 4th quarter has decreased 1.1% from 4th quarter 2008.
•  Sold homes in 4th quarter received 96.4% of the asking price, a increase from 94.0% for 4th quarter 2008.

Summary

Our fourth quarter wrapped up the year with a positive increase in units compared to 4th quarter 2008 by 34.5%. A lot of these sales were driven by the original tax credit that was set to expire on November 30, 2009. By now, we are all aware that it was extended until April 30th, 2010. While we might have sold more homes, our average sold price from fourth quarter 2008 showed a 9.6% decline. Our current inventory of homes is high with over 13 months of supply.

Four zip codes had average sold price decreases from 9.9% to 24.2%, over fourth quarter 2008, while 28411 posted an increase of 10.9% in average sold price. Our list to sales price ratio for the 4th quarter 2009 is 94.38%, a slight increase from 93.61% for 4th quarter 2008. The average list price of the sold properties is $261,884 and is down 10.4% from 4th quarter 2008.
Concessions offered to buyers are now offered in 17.9% to 35.3% of the transactions in 3rd quarter 2009. Our median sales price for 4th quarter ($188,134) reflects a downturn of 12.2% from 4th quarter 2008 ($213,750).  Our overall average days on the market is 125, an increase of 7 days from 4th quarter 2008. Sellers in 28412 got about 96.4% of their asking price while those in 28403 only got 92.5% of their asking price. All five zip codes had an increase in units sold.

Last year will be looked at as the year in which our market bottomed out and started to stabilize. 2010 presents us with a housing opportunity that makes it the most affordable in generations. These are just some of the reasons that now is the time to buy:

1) The First Time Homebuyer Tax Credit has been extended and expanded to include repeat, move-up buyers.
2) We know our home prices are down at least 10% from 2008.
3) Foreclosures and Short Sales make for excellent buying opportunities.
4) Mortgage rates have reached historic lows.
5) We have a large housing inventory.

An Analysis of information from the Wilmington Regional Association of REALTORS® Incorporated, for the period Jan. 1, 2005 through December 31, 2009 – data pulled on January 17, 2010.

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November Numbers Show Improving Local Market Author: Broker Breeze Dec 12

Click Here to view all of the latest local residential market statistics based upon data from your MLS.

Percentage of Change from November 2008 to November 2009:
(* Rounded up.)

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Local Market Shows Progress Towards Recovery Author: 2009 WRAR President - April McDavid Oct 23

The fall season offers some exciting news for both buyers and sellers in the Wilmington area. During the third quarter, our local market showed improved numbers over earlier this year and year-end 2008. This is a significant indicator that the housing market is stabilizing and beginning to recover. 

When analyzing the growth within the five major Wilmington zip codes, our average sales price has decreased 15.2% over year end 2008 which is only a decrease of 6.9% from last quarter. When we look at the median sales price, we have a 13.0% decrease over year-end 2008 and a 3.2% decrease over last quarter.

  • Sellers received 95.4% of the asking price in 2008, compared to 95.5% for 3rd Quarter 2009.
  • 3rd Quarter 2009 had an increase in the number of sold homes by 11.6% from 2nd Quarter 2009. 
  • September 2009 was particularly significant because the number of sold homes during that month also outpaced levels achieved in September 2008. This is the first time in over three years that this has happened.

Over the last couple of years, an analysis of five Wilmington zip codes – 28403, 28405, 28409, 28411, and 28412 was conducted. The areas of focus were:  

  • Sellers Concessions – The amount of money a seller of a house contributes toward the buyers purchase.
  • List Price – The amount of money a home is listed on the market.
  • Selling Price – The price the seller accepts for his or her house.
  • Days on Market – The number of days a house remains for sale, from the listing date to the date the property is placed under contract.
  • List to Sales Price Ratio – The difference between the list price and the selling price shown as a percentage.

2008 Year-End Average Selling Price vs. 2009 3rd Quarter Average Selling Price

3rd Quarter 2009 – 28403 Zip Code

  • The average selling price of $192,580 has decreased 21.4% under the 2008 year-end average selling price of $244,932.
  • 21.3% of sellers in 3rd quarter paid a concession compared to 16.5% in 2008. 
  • The average list price of $202,337 for 3rd quarter has decreased 23.4% over the 2008 year-end average list price of $264,105.
  • The average number of days a property remained on the market for 3rd quarter was 122 days compared to 112 days for year-end 2008. 
  • The median sold price of $159,500 for 3rd quarter has decreased 18.2% from year-end 2008.
  • Sold homes in 3rd quarter received 95.2% of the asking price, an increase from 92.4% year-end 2008.

3rd Quarter 2009 – 28405 Zip Code

  • The average selling price of $245,441 has decreased 17.2% over the 2008 year-end average selling price of $296,397.
  • 20.7% of sellers in 3rd quarter paid a concession compared to 18.5% in 2008. 
  • The average list price of $261,798 for 3rd quarter has decreased 15.7% from the 2008 year-end average list price of $310,425. 
  • The average number of days a property remained on the market for 3rd quarter was 140 days compared to 109 days for year-end 2008. 
  • The median sold price of $186,000 for 3rd quarter has matched almost exactly $186,500 from year-end 2008.
  • Sold homes in 3rd quarter received 93.8% of the asking price, a decrease from 95.5% year-end 2008.

3rd Quarter 2009 – 28409 Zip Code

  • The average selling price of $312,199 has decreased 2.3% over the 2008 year-end average selling price of $319,619.
  • 15.7% of sellers in 3rd quarter paid a concession compared to 14.1% in 2008. 
  • The average list price of $332,776 for 3rd quarter has decreased 1.2% over the 2008 year-end average list price of $336,701. 
  • The average number of days a property remained on the market for 3rd quarter was 128 days compared to 121 days for year-end 2008. 
  • The median sold price of $240,000 for 3rd quarter has decreased 5.9% from year-end 2008.
  • Sold homes in 3rd quarter received 93.8% of the asking price, a decrease from 94.9% year-end 2008.

3rd Quarter 2009 – 28411 Zip Code

  • The average selling price of $250,287 has decreased 21.3% over the 2008 year-end average selling price of $317,945.
  • 21.5% of sellers in 3rd quarter paid a concession compared to 25.2% in 2008. 
  • The average list price of $259,059 for 3rd quarter has decreased 21.7% over the 2008 year-end average list price of $330,870. 
  • The average number of days a property remained on the market for 3rd quarter was 127 days compared to 111 days for year-end 2008. 
  • The median sold price of $211,450 for 3rd quarter has decreased 13.0% from year-end 2008.
  • Sold homes in 3rd quarter received 96.6% of the asking price, an increase from 96.0% year-end 2008.

3rd Quarter 2009 – 28412 Zip Code

  • The average selling price of $189,593 has decreased 10.6% over the 2008 year-end average selling price of $212,101.
  • 25.0% of sellers in 3rd quarter paid a concession compared to 23.7% in 2008. The average list price of $199,122 for 3rd quarter has decreased 9.3% over the 2008 year-end average list price of $219,554.
  • The average number of days a property remained on the market for 3rd quarter was 142 days, compared to 113 days for year-end 2008. 
  • The median sold price of $165,950 for 3rd quarter has decreased 12.6% from year-end 2008.
  • Sold homes in 3rd quarter received 95.2% of the asking price, a decrease from 96.6% year end 2008.

Summary

Our third quarter has shown limited, but significant progress. Now is the best time to buy with several positive indicators:

  • Mortgage rates on a 30 year fixed loan are just below 5.0% – some of the lowest rates in 30 years.
  • Current inventory of homes is high – from 13 to 15 months supply. 
  • For first-time homebuyers, the $8,000 tax credit is still available until November 30, 2009.

While there is lots of conversation about expanding and extending this tax credit, it has not been approved as of the writing of this article. The downside has several factors:

  • Qualified buyers are finding lending standards to be a lot tighter, from the need for higher credit scores and loan program restrictions.
  • Sales are also suffering from the current foreclosures and short sales in the market. As these take place, we are finding new issues with appraisals having lower values and taking longer due to new appraisal rules.

Our market has experienced a sizeable increase of 11.6% in number of homes sold in 3rd quarter 2009 compared to 2nd quarter 2009. Sales to first-time home buyers are helping to drive this increase. In 3rd quarter 2009, we continue to see market corrections and adjustments in average sales price; overall, we decreased 15.2% from year-end 2008. All five zip codes had average sold price decreases from 2% to 21% over year end 2008. Our list to sales price ratio for the 3rd quarter 2009 is 95.05%, a slight decrease from 95.5% for 2008. The average list price of the sold properties is $245,972 and is down 14.9% from year end 2008.

Concessions offered to buyers are now offered in 15.7% to 25% of the transactions in 3rd quarter 2009. Our median sales price for 3rd quarter ($188,450) reflects a downturn of 13.0% from 2008 ($216,500). Our overall average days on the market are 133, an increase of 20 days from year end 2008. Sellers in 28411 got about 96.6% of their asking price while those in 28405 & 28409 only got 93.8% of their asking price. All four zip codes had an increase in units sold except for 28403. 2009 will prove to be a time when our market stabilized. With the current inventory of homes available and low interest rates, now is the best time in history to buy a home!

An Analysis of information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through September 30, 2009 – data pulled on October 14, 2009.

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