Wow, this is a hot summer already! And like the temperatures, local home sales are also on the rise. During the second quarter of this year, our market surpassed levels from the previous year for the tenth straight month. The most notable improvement was seen in the number of homes sold. This type of market offers some amazing opportunities for both buyers and sellers. 

When analyzing the growth within the six major zip codes in our region, our average sales price has a slight decreased of .02% from year-end 2009. When we look at the median sales price, we have a slight increase over year-end 2009 from $192,750 for second quarter 2010 compared to year-end 2009 of $189,900. 

   • Sellers received 95.16% of the asking price in second quarter 2010 compared to 95.12% for year-end 2009.
   • Second quarter 2010 had an increase in the number of sold homes by 30.3% from second quarter 2009.

Over the last couple of years an analysis of six major zip codes – 28403, 28405, 28409, 28411, 28412 and 28451 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.

2009 Year-End Average Selling Price vs. 2010 2nd Quarter Average Selling Price

2nd Quarter 2010 – 28403 Zip Code

   • The average selling price of $214,218 has increased 2.4% from year-end 2009 average selling price of $209,290.
   • 18% of sellers in second quarter paid a concession compared to 16% in year-end 2009. The best of all the zip codes.
   • The average list price of $232,909 for second quarter has increased 4.1% over year-end 2009 average list price of $223,749.
   • The average number of days a property remained on the market for second quarter was 136 days compared to 142 days for year-end 2009.
   • The median sold price of $175,950 for second quarter has increased 3.6% from year-end 2009.
   • Sold homes in second quarter received 91.97% of the asking price, a decrease from 93.6% year-end 2009.

2nd Quarter 2010 – 28405 Zip Code

   • The average selling price of $264,322 has increased 5.7% from year-end 2009 average selling price of $250,111. The best of all the zip codes.
   • 29% of sellers in second quarter paid a concession compared to 22% for year-end 2009.
   • The average list price of $283,681 for second quarter has increased 6.7% from year-end 2009 average list price of $265,960.  The best of all the zip codes.
   • The average number of days a property remained on the market for second quarter was 133 days compared to 138 days for year-end 2009.
   • The median sold price of $168,000 for second quarter has decreased 6.8% from year-end 2009.
   • Sold homes in second quarter received 93.18% of the asking price, a decrease from 94.2% for year-end 2009.

2nd Quarter 2010 – 28409 Zip Code

   • The average selling price of $279,699 has decreased 3.9% over year-end 2009 average selling price of $291,090.
   • 24% of sellers in second quarter paid a concession compared to 19% in year-end 2009.
   • The average list price of $298,807 for second quarter has decreased 4.4% over year-end 2009 average list price of $312,455.
   • The average number of days a property remained on the market for second quarter was 116 days compared to 133 days for year-end 2009.
   • The median sold price of $230,500 for second quarter has decreased 1.9% from year-end 2009.
   • Sold homes in second quarter received 93.6% of the asking price, an increase from 93.1% for year-end 2009.

2nd Quarter 2010 – 28411 Zip Code

   • The average selling price of $267,295 has decreased 6.3% over year-end 2009 average selling price of $285,407.
   • 38% of sellers in second quarter paid a concession compared to 22.0% in year-end 2009.
   • The average list price of $280,611 for second quarter has decreased 8.1% over the year-end 2009 average list price of $305,422.
   • The average number of days a property remained on the market for second quarter was 122 days compared to 126 days for year-end 2009.
   • The median sold price of $212,150 for second quarter has decreased 1.3% from year-end 2009.
   • Sold homes in second quarter received 95.2% of the asking price, an increase from 93.4% for year-end 2009.

2nd Quarter 2010 – 28412 Zip Code

   • The average selling price of $195,115 has increased .06% over year-end 2009 average selling price of $193,872.
   • 38% of sellers in second quarter paid a concession compared to 27% in year-end 2009.
   • The average list price of $202,336 for second quarter has decreased .02% over the year-end 2009 average list price of $202,816.
   • The average number of days a property remained on the market for second quarter was 112 days compared to 139 days for year-end 2009. The best of all the zip codes.
   • The median sold price of $182,250 for second quarter has increased 4.1% from year-end 2009. The best of all the zip codes.
   • Sold homes in second quarter received 96.4% of the asking price, an increase from 95.5% for year-end 2009.

2nd Quarter 2010 – 28451 Zip Code

   • The average selling price of $215,376 has decreased 1.4% over year-end 2009 average selling price of $218,453.
   • 38% of sellers in second quarter paid a concession compared to 31% in year-end 2009.
   • The average list price of $219,405 for second quarter has decreased 1.5% over the year-end 2009 average list price of $222,709.
   • The average number of days a property remained on the market for second quarter was 113 days compared to 124 days for year-end 2009.
   • The median sold price of $178,553 for second quarter has decreased 2.4% from year-end 2009.
   • Sold homes in second quarter received 98.1% of the asking price, an increase from 98.0% for year-end 2009. The best of all the zip codes.

Summary

Our second quarter continued the year with a positive increase in units compared to second quarter 2009 by 30.3%. While we might have sold more homes, our average sold price from second quarter 2009 showed a 4.2% decline. 

Three zip codes had average sold price increases from .06% to 5.7% over year-end 2009 while three other zip codes had average sold price decreases from 1.4% to 6.3%. This is excellent progress. During the first quarter of 2010, we only had one zip code showing an increase in average sold price and five with a decrease of as much as 13.5%. Our list to sales price ratio for the second quarter 2010 is 95.16%, a slight increase from 95.12% for year-end 2009. The average list price of the sold properties is $250,572 and is down .02% from year-end 2009.

Concessions offered to buyers are now offered in 18% to 38% of the transactions in second quarter 2010. Our median sales price of $192,750 for the second quarter reflects a gain of 1.5% from year-end 2009 which as $189,900. Our overall average days on the market are 121, a decrease of 11 days from year-end 2009. Sellers in 28451 got about 98.1% of their asking price while those in 28403 only got 91.9% of their asking price. Five zip codes had an increase in units sold over second quarter 2009.

2009 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. Here are just some of the reasons that now is the time to buy:

1) Our median home prices are down 7.9% from year-end 2008.
Last quarter, it was 10%. As it improves, prices of homes will continue to go up.

2) Foreclosures and Short Sales make for excellent buying opportunities.
At least 10% of sales in the last quarter were foreclosures and short sales.

3) Mortgage rates have reached historic lows.
Fixed rate mortgages continued to hover at 50 year low, thereby supporting homebuyer affordability and refinance activity. (Source: Freddie Mac 7-15-10)

4) We have a large housing inventory.
There are over 2,889 residential homes available in the six zip codes studied.

An Analysis of information from the Wilmington Regional Association of REALTORS® Incorporated for the period Jan. 1, 2005 through June 30, 2010 – data pulled on July 15, 2010.